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RE sector leading NY out of doldrums.

For the first time in the past four years, New York City's economic recovery is being evidenced by the dual realizations that building owners have weathered the storm and that property buyers have found that interest rates have gone as low as they can go.

Within the cooperative and condominium market, the time to buy is now. For the office user who has found the right location, there is no value to wait a few months in an effort to get a marginally lower rental rate.

In the retail sector, the three criteria for deal-making, "location, location, location," are ringing more true than ever in recent history. A fabulous location offers an unequalled opportunity, which, if lost, cannot be replicated. Do not risk the loss of proximity to transportation, high-density consumer traffic patterns and other qualities of a given location simply by taking a "wait and see" attitude in today's market.

Today's market also is rewarding owners who invested their valuable time and resources during the recession in order to upgrade their properties. Rather than expand their property portfolios, these savvy real estate professionals chose instead to re-invest in existing holdings. Today, they are in a position to offer very attractive rents within substantially improved buildings ... at relatively low cost.

Nonetheless, we cannot afford to become overly exuberant in describing present conditions. One need only look at GE's recent gift of their entire 50-story headquarters building - an Art Deco landmark at 51st Street and Lexington Avenue - to Columbia University. This $40 million gift will ease GE's tax burden and will rid the corporation of a building that is two-thirds vacant. At present, ABO is working with its membership on issues of vital importance to the industry. For example, ABO is at the forefront of the effort to create a policy to deal with lead paint contamination, a problem that has been with us since the turn of the century.

The industry has learned much from the decade-old asbestos abatement crusade and will, no doubt, add a needed dimension of experience and reason to the lead paint crisis.

ABO continues to serve its membership on a daily basis, whether it is through the provision of low-cost health insurance plans for members; immediate access to drug testing and treatment programs for employees; or most-vital networking with industry leaders at our regular monthly luncheons.

In conclusion, I would like to invite all industry professionals to look into the advantages of membership.
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Title Annotation:Mid-Year Review & Forecast, Section V; real estate industry stimulates New York, New York economy
Author:Belson, Jerome
Publication:Real Estate Weekly
Article Type:Column
Date:Jun 23, 1993
Previous Article:A residential overview at mid-year.
Next Article:Sewer extension completed.

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