Moinian: market not as weak as perceived.

During the past six months, real estate executives in New York City have been in a battle of perception. A picture of declining rental rates, climbing vacancies and tenants returning space in droves has been at the forefront of many recent news articles. However, the fact is that New York City's real estate market is not as weak as many believe. In fact, the city's residential market has shown signs of stabilizing and many neighborhoods are on the upswing.

After the initial shock following the events of Sept. 11 many tenants began to re-examine their living situations. While a very small group opted to relocate, the majority recommitted themselves to their neighborhoods and the city. As a result, the residential market was the first to show signs of recovery.

Currently, we are seeing rental rates begin to stabilize to the levels posted during the summer of 2001. We must always keep in mind that New York City still has some of the best restaurants, retailers and destination spots in the world, making it the perfect live/work/play city. It's no wonder then that people still want to call New York City home.

In addition to renewed tenant demand in New York City, the job market is also beginning to show signs of recovery. Financial institutions, with a major presence in the city, are once again looking to hire quality employees. As a result, the market is poised to see a new generation of residents by the fall of 2002 and beginning 2003.

Despite the challenges New York City still has to face, the residential real estate market seems to be picking up some steam. I truly believe that over the next six months New York City will be filled with tremendous opportunities for the cautiously optimistic executives.