The job losses experienced in the financial services sector in New York City through the summer of 2008 have been relatively moderate, but considering that the current downturn is similar to the one in the late 1980s, more deterioration may be yet to come.
With all sorts of distressed debt investing opportunities now available after the excesses of the last few years, buyers and sellers are treading cautiously and looking for some kind of validation for pricing.
Property & Portfolio Research, a Boston-based commercial real estate research firm, has released estimates of what the impact might be on the New York office market as a result of recent cataclysmic financial events, including the bankruptcy of Lehman Brothers.
As banks continue to curtail the availability of financing, a slowdown in commercial real estate construction spending appears inevitable. After gaining an average of 2% per month for the first seven months of the year, total spending in nonresidential construction was up a mere 0.2% in July, according to a Census Bureau report. And according to the August figures released by the government, nonresidential construction spending contracted 0.1% in August, compared to July.