Recovery slow, but steady.

The first quarter of 2002 saw a shaken but stabilizing economy take it first tentative steps towards rebounding. Before Sept 11, the stock market had begun a definite transition from Bull to Bear, as was evidenced by the dot-coin meltdown that was magnified considerably by the events of that day.

Companies in every sector had already started to plan for future growth while adjusting to the changing economic climate, but following the terrorist attacks, the additional concerns of diversification of space and disaster recovery planning needed to be addressed amid downsizing and declining profits.

Understandably, due to the uncertain climate, the decision-making process is taking much longer. However, if a company is planning, a relocation, refitting or build-out in the next six to 12 months, there are tremendous cost-efficiencies to be found in purchasing construction, furniture and fixture materials now. Manufacturers are offering great savings in exchange for securing a backlog of orders through the end of the year, and so the further out a company plans, the better the savings.

Similar opportunities abound in the leasing market for those with growth or relocation plans. Owners are negotiating excellent terms and offering incentives in order to attract tenants and guarantee income for their buildings. Though opportunities are present, the current economic conditions are still causing wariness and hesitancy among decision-makers, and this is not likely to change before the fourth quarter of 2002. Many companies are just beginning to conceptualize growth strategies and so we may not see implementation of those plans until the first and second quarters of 2003. The rest of 2002 will undoubtedly remain slow as the nation continues to regain confidence, but that means that suppliers and service providers are hungry and ready to deal. For forward-thinking companies, this is the time to act.