¶ … Real Estate
According to New York Times reporter Leslie Eaton, the Sept. 11 terrorist attacks "inflicted deep and lasting wounds on New York City's already-teetering economy; devastated both big companies and small businesses in and around twin towers; brought business across city to halt for days, weeks and in some cases months, slashing workers' earnings and tax revenues alike; made many employers determined to spread their workers over wider swath of geography, which has ominous implications for Manhattan."
As a result of Sept. 11, an enormous amount of space was added to the market and there was a short-term damaging effect on the U.S. economy. U.S. businesses suddenly became resistant to change or expansion and surviving World Trade Center businesses had no place to go.
The terrorist attacks took 13.5 million square feet of office space from the market indefinitely and temporarily removed an additional 12.1 million square feet. New York City's commercial real estate market was in a state of chaos for months as reality sunk in and displaced tenants scrambled to find new space. Still, despite the plethora of lost space, the market did not tighten. Instead, New York bounced back.
An estimated 10.1 million square feet was offered on the sublease market within three months of the attack, as companies who had too much space realized that they could easily attract tenants who had lost their space. By the fourth quarter of 2001, despite the huge hole in the market, vacancy rates in New York's downtown area shot up to nearly 14%, with net absorption rates in the red and rental rates showing significant decreases.
The Aftermath
Over a year after the attacks, according to NY Times reporter John Holusha, "the underlying fundamentals of the commercial real estate market in Manhattan are behaving in the mirror image of expected patterns."
The overall pace of activity still looks soft," the New York bank reported in the "beige book," which is the Federal Reserve's periodic assessment of economic...
A secondary mortgage market permits mortgage originators to be more responsive to dynamic mortgage demand and to lower mortgage rates for some homeowners when mortgage demand is higher. According to Koppell (2001): Government-sponsored enterprises (GSEs) are hybrids -- part public, part private -- that affect the lives of most Americans. Anyone who has borrowed money to purchase a home, farm, or pay for college, or invested in a mutual fund
Based on past cycles of real estate market fluctuations, many analysts expect the real estate market to decline further before it rebounds again. In all likelihood, the misfortune of some will provide investment opportunities for others within the next year. The buyer's market that is expected to follow will inevitably result in property sales at far below their prior value. Qualified investors who can wait for the eventual market to
(Economou and Trichias, 2009) Remuneration is stated to be as follows for each of these actors: (1) real estate brokers -- Commission based on percentage of the transaction value; (2) lawyers -- Commission based on percentage of the transaction value; (3) Notaries -- Commission base don percentage of the transaction value; (4) Civil Engineers -- According to specific regulations, taking into account elements of the property in question; and (5) Constructors -- percentage of
Real Estate Industry Analysis The residential real estate industry has been surprisingly resilient in light of the current economic situation. Over the previous two years residential real estate purchases registered into the double digits, while these numbers are down, the market for real estate is anything but out. At a glance, it would appear that realtors do not even know that a recession exists as new properties are springing up from
Diminishing Middle Class in NYC If we look at the Lower Manhattan, it won't take us long to notice the change that has taken place in it in the last 10 years. The population especially the residential population has doubled up in the last 10 years as there has been an addition of 30,000 residents who are now living in Manhattan. The main reason behind this sudden and huge growth in the
What's the family current worth? Today, the Trump family business stands at a net worth of $2.6 billion. (#74, Trump, Donald John) How much total square footage does the Trump family own? The total square footage has been estimated at a 14.5 million. (#74, Trump, Donald John) The LeFrak Family: What family member started the LeFrak family business and when? LeFrak family has been forming its mark on Queens, as it has been building both residential
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now