Market showing sings for long-term recovery.
Continued foreign investment and a spate of new leasing commitments are positive signs for the long-term recovery of the New York City real estate market, says Larry Silverstein, president Silverstein Properties, Inc.
"After languishing under the combined burdens of overbuilding, escalating property taxes and recession, recent indications point to its imminent turn-around and warrant an attitude of cautious optimism," Silverstein said.
The foreign investment market, he notes, was largely characterized by inactivity throughout the Gulf Crisis. In recent weeks, it has shown a vibrant spark of renewal. Sony's bold acquisition plan for AT&T'S renowned Midtown office tower demonstrates a commitment to the local market that may spearhead similar activity among other investors in the global community.
Meanwhile, he adds, several recent leasing transactions show that action is beginning to replace hesitancy among major corporate space users. Earlier this year, for example, Salomon Brothers completed its massive relocation into a million square feet of space at Seven World Trade Center, the 2 million-square-foot tower developed and now managed by Silverstein Properties, Inc. Salomon signed a 20-year lease at the 47-story tower, the third and final building in the renowned World Trade Center Complex.
The Hartford Fire Insurance Company has just committed to 125,000 square feet of space, joining Salomon after a thorough space search throughout New York City and Jersey City. The firm, a unit of The Hartford, itself a division of ITT, will relocate its Manhattan operations to the entire 20th and 21st floors, as well as one half of the 19th floor.
Finally, says Silverstein, the marked slowdown in new construction will prove formidable in chipping away at the double-digit vacancy rates now plaguing the Midtown and Downtown office markets. This curtailed construction, combined with recent activity on both foreign and domestic fronts should do much to expedite New York City's recovery.
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|Title Annotation:||New York City real estate market|
|Publication:||Real Estate Weekly|
|Date:||Jul 10, 1991|
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