Seek relocation here, not out of the city.

As companies displaced by the World Trade Center disaster look for space, brokers and city officials are urging them to consider Queens and Brooklyn rather than suburban locations in Connecticut in New Jersey.

With a move to the outer boroughs -- rather than out of state -- companies can help stave off a mass exodus that could prove detrimental to the city, not just in the short term but for years to come.

"This space is located in our hometown, where our great city can still enjoy the benefits of New Yorkers having jobs near their homes, the creation of jobs, and retaining the tax base that these vital businesses provide," said Marjorie Seaman, president Seaman Realty & Management Co., Inc. "We have suffered a stab in the gut, but for companies to leave our city at this time is a knife in the heart."

As a result of the World Trade Center disaster, an estimated 12.5 million SF was destroyed and another 13.3 million SF. The total amount destroyed or damaged represents 6.5 percent of Manhattan's entire office inventory and 23.9 percent of its downtown inventory. The .25.8 million figure also represents 10.9 percent of Manhattan's Class A office space and 44 percent of downtown's Class A office space, according to a report released by Cushman & Wakefield.

"(Space destroyed 12.5 million SF) is roughly equivalent to the entire inventory of the central business districts of Atlanta (13.4 million SF) or Miami (11.6 million SF)," according to the C & W report.

Companies are looking for new space where they can set up shop quickly and have been attracted to areas like the New Jersey shore where an estimated 12 million SF of space was vacant prior to the accident. Manhattan's three major markets -- Midtown, Downtown and Midtown South -- had an estimated 32.2 million SF available.

For example, Lehman Brothers has announced lease transactions in Jersey and Manhattan, American Express has signed leases in Jersey City, Parsippany and Stamford, Conn., and Deloitte & Touche has announced leases in Stamford and New Jersey.

Officials are urging businesses to consider areas like Long Island City and downtown Brooklyn, whose location and infrastructure were attractive to companies even before Sept. 11. As an example of the neighborhood's desirability, officials sited MetLife's decision in June to relocate 1,000 employees from One Madison Ave. to 27-01 Bridge Plaza North in Long Island City.

James Whelan, executive director of the Downtown Brooklyn Council, said downtown Brooklyn has about six million SF of office space, but most of it had already been rented prior to Sept. 11. Some companies are looking to move a portion of their operations to Brooklyn as a way to spread them out geographically, he said.

DUMBO, which contains loft space suitable for smaller users, has several leases in the works. Renaissance Plaza and 180 Livingston St., a 275,000-SF building, has also seen activity.

"With the space we have available, we are seeing a flurry of activity," Whelan said.

The trade center attack is also putting a renewed focus on developments such as Queens West, which was originally expected to start sometime before the end of 2004. LCOR Inc. has been selected as the developer of the project and Kohn Pedersen Fox Associates have been selected as the architects. The project calls for 2.2 million SF of commercial space in the southern half of the 74-acre Queens West site, which is two blocks from the No. 7 subway line.

Although many companies dislocated by the attacks have already made short-term decisions about space, many will be making medium- and long-range decisions in the next year or two. The first phase of the development, which constitutes 1 million SF of space, could be completed within 24 months, said Philip Wharton, senior vice president of LCOR.

Wharton said LCOR was "far along in discussions" with two potential tenants, even prior to Sept. 11. The company is aiming to break ground in March or April.

"We were asked to expedite the delivery of the project and to modify the design," Wharton said.

Architects are working on resigning the project to maximize the amount of office space in the wake of the World Trade Center disaster. The project had originally called for some entertainment and retail uses, which will be scaled down to increase office space.

"Companies may have had to make short-term decisions that were not optimal," Wharton said. "We want companies to be aware of the project as they make more permanent decisions."

The Empire State Development Corporation is the parent agency of the Queens West corporation that includes representatives of the city, the borough president and the Port Authority of New York and New Jersey. City and state officials are pushing for the project, which includes several "as-of-right" tax and other incentives, to move forward.

"It's a great project that's going to provide a lot of residential and commercial space," said an Empire State Development Corp. spokesman. "We're in favor of moving it forward."