However, Alexander said Wednesday during a media presentation at CBRE's offices, "We have great faith in the New York market." In the long term, the financial services sector will be in growth mode again, even though the short term means more layoffs and up to 15 million square feet of space becoming available in '09.

Much of that space will come from large-scale tenants that no longer exist as separate corporate entities, notably Lehman Brothers. The silver lining to the consolidation among financial services giants, Alexander said, is that some of these institutions will become larger and more powerful as a result.

And the short term also presents opportunities, as boutique firms grow and therefore increase their space requirements, possibly snapping up re-priced space although perhaps not in the same proportions as the now-fallen financial services giants. Pointing out that there are now 16 blocks of 250,000 square feet or more available across Manhattan, with as many as eight more joining them this year, vice chairman Michael Geighegan predicted, "We could be flush with large-block opportunities like we haven't seen in years."