Manhattan's rental rates continue to rise.Manhattan rental rates have risen to $40.73 per square-foot in fourth quarter 1999, marking an increase for the 11th straight quarter. How long will this real estate market last? Is a crash looming looming: see mirage. ? Where are we headed? These are the questions on everyone's mind. Market-watchers will need to keep in mind several factors as we look ahead. Shortage of Block Space The shortage of space will force companies to seek space in markets other than 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 , such as downtown Brooklyn Downtown Brooklyn is the third largest central business district in New York City (following Midtown Manhattan and Lower Manhattan), and is located in the (i.e. the new tower at MetroTech Center). Rapid Expansion The technology sector will be tested throughout 2000, as these firms begin to feel the pressure of profit expectations. Overall Cost of Occupancy Increasing rental rates will force small and mid-sized firms to look for less expensive space in other markets, such as New Jersey. Impact of the Internet The Internet has had a direct impact on the amount of actual real estate a firm uses, as evidenced by New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. rethinking the amount of floor space they will need as they look to make a move. (The above was compi1ed by Rolf Kemen, director in CB Richard Ellis' Global Research and Consulting Group, the group responsible for generating some of the most pertinent knowledge for the real estate industry today. CB Richard Ellis CB Richard Ellis Group, Inc. NYSE: CBG is a multinational real estate corporation currently based in Los Angeles, California, U.S.A.. On December 20, 2006, the corporation, also known as CBRE, completed acquisition of Trammell Crow Co. in a transaction valued at $2. professionals are long-time leaders in the New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. market and have conducted some of the city's most significant deals to date.) |
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