Upswing for Downtown.

The long anticipated economic recovery is in full swing, as evidenced by a marked increase in office leasing activity. For the past four years, however, commercial real estate throughout the city had to cope with a sluggish economy and its negative impact on their businesses. The effect on several firms was dire, especially for smaller and midsize commercial brokerage firms.

But for those of us with a niche Downtown, in the past two years we have witnessed renewed activity much sooner than our midtown counterparts.

By the end of third quarter 2003, there was a stunning turnaround in which blocks of space disappeared and the area realized positive absorption. Certainly federal and state incentive plans were a tremendous inducement to prospective tenants.

Last year, we witnessed several mega deals Downtown. From health insurance provider HIP's 500,000square-foot space to law firm Cadwalader, Wickersham & Taft's relocation to the World Financial Center, the Downtown deals were substantial.

As one of the most active tenant brokerage firms based in lower Manhattan, Hunter's contribution to this amazing upswing included several mid-size deals, such as Oppenheimer's move to 35,000 square feet at 125 Broad Street and Forex Capital Markets relocation and expansion to 32,000 square feet at 32 Old Slip. In the past year, we have seen a proliferation of financial services, education and law firms relocating and/or returning to the area or expanding.

This year, accounting firm Livingston, Wachtel & Company relocated to 6,386 square feet at 29 Broadway. Benchmark-Pellinore Group, Inc., a brokerage, moved into 7,300 square feet at 40 Fulton Street. And a couple of months ago, Greico Financial Training Institute moved into 5,200 square feet at 29 Broadway.

Among the most inspirational transactions for us was the Continuing Education division of the Borough of Manhattan Community College. The 16,500-square-foot space at 45 John Street her aided the school's return having been displaced when Fiterman Hall was irreparably damaged on 9/11.

Against all odds, the economic recovery Downtown has been speedier than expected. Initially, the return to Downtown may have been a product of the tax incentives, but today there is a true sense of "business as usual" in the area.

From our offices at 61 Broadway, we can see the World Financial Center, which is well occupied at 85 percent. Moreover, the $50 million rehabilitation makes the towers look finer than ever before. But even more bracing is to step outside our building and witness the construction of 7 World Trade Center. The steel frame rises daily and we expect to be leasing space there again shortly. To see this pivotal structure being built reinforces the resiliency of our economy and the unwavering American spirit.

For those of us caught in the economic malaise of the past three years, there has always been hope. Many real estate brokerages did not survive and others, through mergers, diversification of client bases, new service lines, etc., were reinvented to stay in business. Bucking tradition and at an unprecedented rate, local brokerages, both commercial and residential, merged with national conglomerates. As a result, the idiosyncratic and unique ways in which real estate business has been conducted for 50 years in the City, is changing dramatically.

In the mid 1990's, when Richard I. Selig and I started Hunter, we were already established Downtown tenant brokers, active in financial services and law firms. By 1998, Hunter also became known as dot-com specialists. But shortly after the high-tech heyday, which lasted only a couple of years, we made a studied choice to reach out and expand our markets once again.

Long before the Downtown market collapsed, we began concentrating more effort in the Garment Center, where my partner and I had begun as fledgling agents 25 years ago and already had a strong foothold. By 1998, we were the leasing agents for one of the area's best known buildings, 1466 Broadway. Shortly after, Hunter became the exclusive leasing agent for several other midtown buildings. It was a market with which we were comfortable, i.e., focusing on small- to midsize deals.

We were still active Downtown, but it was our midtown leasing that was flourishing in 2000 when Downtown business began to waver. Despite a softening economy, business was brisk in Midtown West. When the unthinkable occurred on September 11, 2001, it all but eliminated a major part of our client base.

Not only were we dealing with terrible tragedy and the loss of many close friends, there was tremendous economic fallout.

And still we prevailed by respecting our roots. Last year, CoStar again named The Hunter Realty Organization, LLC one of the Top 20 Brokerage firms in New York City. As with other firms, our company has managed to weather a difficult recession and a devastating attack, and remain in business Downtown.

PETER SABESAN, PRINCIPAL THE HUNTER REALTY ORGANIZATION, LLC