Consumer confidence gaining momentum.

The New Year ushers in a welcome sense of optimism in both the commercial and residential markets of New York City.

Consumer confidence, which began to gain momentum during year-end 1992, will likely continue to build during the New Year. We anticipate that the increased consumer spending witnessed during the holiday season will translate into increased traffic and sales at quality residential projects.

Already, there is much evidence that action has replaced hesitancy among residential purchasers. At the Upper East Side's The Oxford on Seventy Second, for example, contracts have been written for the sale of six units so far in the month of January.

While a sense of action-a feeling that now is, in fact, the time to buy-seems to be pervading the market, buyers remain highly discriminating in their purchases. Poorly located or illconceived buildings will continue to struggle as will residences that lack the security of financially stable ownership.

The Oxford o Seventy Second has continued to outpace its competition by offering the quality, stability and lifestyle that satisfies the demands of today's buyers.

On the commercial front, high taxes, high vacancies and a dwindling tenant pool did little, it seems, to quell a surge of space movement among tenants in both the Midtown and Downtown markets. Midtown fared well, bolstered by a number of sizable leasing transactions from corporate tenants such as Price Waterhouse, News American Corp. and others.

Downton, too, while outpaced by Midtown in leasing volume, is nonetheless well-positioned for recovery. A dearth of new product, combined with a number of pending commitments from large space users, provide a favorable backdrop for this region, as it heads into the New Year.