Time for Real Estate to Rebound

According to Peter Riguardi, President, Jones Lang LaSalle, in the first quarter, a significant amount of activity is set to close as there is still a fair amount of negotiation ongoing between tenants and building owners.

The bottom of the market in the second quarter of 2010, he predicted. Sending them foraging for new and cheaper office spaces, businesses have already stabilized, retailers are reaping better locations and developers are preparing for the next upturn.

Including the Related Companies Hudson Yards development, the company's tower on W. 42nd Street, and Forest City Ratner's Atlantic Yards development, large-scale developments are continuing through the development process while the governor is poised to announce the winning bid for the redevelopment of Aqueduct Raceway.

Compared to a year ago, CB Richard Ellis vice chairman Michael Laginstra observes the leasing market is more active. Business lending is moving in the right direction and the capital markets are getting better.

Leasing in the second half of 2009 was up 56% to 9.9 million feet bringing the year's total to 16.3 million feet, according to Cushman & Wakefield. It was the least amount leased in a decade and 15% lower than 2008.

According to Cushman & Wakefield, vacancies are down 11.1%, the 2nd straight monthly decline and an important sign of stability.

With a results of lowering capital costs for the incoming tenant, much of the activity has been in renewals and smaller relocations where the new spaces have reusable installation components.

In Queens, NY, Chairman of Douglaston Development and Levine Construction Jeffrey Levine, is interested in nearing completion of the Edge on Williamsburg's waterfront.

Where the company allocates more funds and mezzanine loans won't have to come into play, Levine stated he is focusing on more manageable projects.

Source: builderonline.com