Goldman and Morgan Deals Could Impact CRE

NEW YORK CITY-Only a few days ago, Gov. David Paterson said that “of the five largest, independent investment banks, only two are left standing today: Goldman Sachs and Morgan Stanley…” but perhaps he spoke too soon, as both firms are reportedly looking for a buyer. As GlobeSt.com previously reported, the two firms were said to be next up to the plate as far as troubled banks , however as fear stalks the two firms, insiders question what this could all mean for the firm’s real estate assets.

Deborah Jackson, executive managing director of Weiser Realty Advisors LLC, tells GlobeSt.com that should Goldman Sachs be sold, she would imagine that the firm’s 2.1-million-sf headquarters building–currently under construction at 200 Murray St.–might actually not be in jeopardy. “I would imagine that economics–the building is already under construction and typically a firm like Goldman would need space in lower Manhattan–and PR/politics–no one wants to be perceived as walking away from the downtown area–would impact anyone’s decision to stop construction, or to not occupy most of the space.”

Goldman Sachs’ decision to build its new world headquarters directly across from the World Trade Center site was considered a key event in the revival of the Downtown area, according to the Alliance for Downtown New York. Mayor Michael Bloomberg also once said that “this [Goldman's headquarter project] is proof positive of the growing confidence of the financial services sector in the revitalization of the city and Lower Manhattan. The firm’s creation of a state-of-the-art trading facility and its expectation of adding thousands of jobs over the next 15 years speaks volumes to the progress we’re seeing everyday.”