Leasing recovery fragile.Net absorption of Manhattan Manhattan, indigenous people of North America Manhattan (mănhăt`ən), indigenous people of North America of the Algonquian-Wakashan linguistic stock (see Native American languages). office space was positive again --the first consecutive quarters of net occupancy gain since 1987, reported Joseph Hilton & Associates in their third quarter Market Monitoring Report. However, corporate downsizing (1) Converting mainframe and mini-based systems to client/server LANs. (2) To reduce equipment and associated costs by switching to a less-expensive system. (jargon) downsizing and permanent white collar job loss pose a threat to the still fragile recovery. JH&A reports that office leasing market is in disequilibrium-Class A buildings, such as the Americas Tower are renting well and the monetary value of concession packages has dropped. On the flip side Flip side In the context of general equities, opposite side to a proposition or position (buy, if sell is the proposition and vice versa). , many older Class B and C buildings are at special risk for a variety of reasons, including lack of financial resources to modernize mod·ern·ize v. mo·dern·ized, mo·dern·iz·ing, mo·dern·iz·es v.tr. To make modern in appearance, style, or character; update. v.intr. To accept or adopt modern ways, ideas, or style. and the inability to compete against the reasonably priced, newer buildings. JH&A predicts that tenants will continue their flight to quality buildings over the next several years, as the differences within building stock become more apparent. In its recommendations to clients, JH&A cautions that tenants carefully evaluate the ownership of a prospective building and its financial condition before signing on the dotted line. The Marketing Monitoring Report is published quarterly and includes information from the Reis Reports, employment data from the New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of State Department of Labor and Joseph Hilton & Associates analysis of current market trends. |
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