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Report: property managers upbeat.

The worst is over for the regions' real estate industry, according to a leading group of New York metropolitan area professional property managers.

The survey, conducted by the Greater New York Chapter No. 26 of the Institute of Real Estate Management (IREM), is the only one of its kind that measures the opinions of property managers in the New York area.

The results of the survey revealed that IREM members are currently optimistic about the area real estate market. Among the respondents, 62 percent felt the region's real estate market would improve, while 27 thought it would remain the same. Only 11 percent thought it would worsen.

"Despite the current negatives in the economy, the survey seems to indicate that our members are looking beyond the short term to a realistic market recovery," said Hilary Becker, president of Greater New York Chapter No. 26. "We're encouraged that the people who deal with the day-to-day realities of the real estate industry see that a recovery is at hand.

"Property managers -- perhaps more than developers and brokers--are in the best position to take the pulse of the real estate market. It is they who contend with the nuts and bolts management of property including operating budgets, rent collection and building maintenance," Becker said.

As to how 1993 will affect their bottom lines, IREM members thought their firms' financial outlook would brighten -- with 52 percent envisioning slight improvement and 13 percent, great improvement. Eighteen percent said business would remain as is; 16 percent thought it would drop slightly; and one percent said it would drop sharply.

When asked whether rental rates and property prices would rise in 1993, 49 percent of respondents said they would remain "as is."

Forty-two percent expected a slight increase. No one anticipated a sharp rise in rents or prices.

IREM members were nearly evenly divided on whether tenants leaving Manhanan for suburban locations is a trend. While 25 percent considered it significant and 21 percent believed it was a definite trend, 29 percent viewed it as minor and 25 percent said it was not a major factor at all.

All in all, "rising costs" figured foremost in the minds of building managers. This factor was cited most frequently by IREM members, followed by concern over "unleased space" and the negative effects of the current "tax law." In terms of severity, unleased space ranked as their biggest worry. Rising costs was second, and the tax law, third.
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Title Annotation:survey conducted by Institute of Real Estate Management indicates optimism among property managers in New York, New York metropolitan area
Publication:Real Estate Weekly
Date:Apr 21, 1993
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