Quote:
Originally Posted by cityenthusiast
I know its a financing thing but I think they should go ahead and build towers 2 and 3 they wont be completed for at least two years and Im pretty sure with the high demand for office space and the fact that these towers are extremely important that most of this office space will be leased by the time their finished. Does anyone agree?
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I agree, but it doesn't work that way. Even though developers may have the personal capital to physically erect these towers without securing anchor tenants and subsequent bank finances, they never will take that kind of risk. What if something happens to ruin the allure of NYC, and the real estate market comes back down to earth? Anything can happen, and it's naive and closed-mind to believe anything otherwise...
I don't agree with RobertWapole that the economy will be in great shape 5-6 years from now. There are no indications to me that the middle class is strengthening, that quality jobs are being created, that we as a country are beginning to PRODUCE goods rather than CONSUME them, that our education system is producing and RETAINING the world's top talent, that the US is ready to take risks and think innovatively again, and to invest in science instead of political doctrine. The macro economy is in extraordinarily bad shape, and NYC is merely surviving on it's own bubble of capital that has been allowed to balloon to stupid proportions. If I were a developer, I'd be operating in a very conservative manner, and SIlverstein is already assuming risk by building these tower's podiums without financing.
With that said, the demand for real estate in NYC is still greater than in any other part of the country, and the question is not if, but when these buildings will be built. Whether or not they'll be built as currently designed will become a more relevant question as time goes on...