Real Estate Market Sees Significant Drop In New Year
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The bleak economy is hitting the city's commercial real estate market hard according to a newly released report.
The findings by property manager Cushman and Wakefield show a 19 percent drop in new commercial leases in Manhattan from 23.5 million square feet leased in 2007 to 19.1 million in 2008.
That's the lowest level since 2001.
In the final three months of last year, rental prices dropped nearly $5 a square foot.
"I think we're in the midst of the worst, so I think, yes, there will be some more pain, there will be some decreases in prices," said Joseph Harbert, a representative from Cushman and Wakefield.
Experts said recovery will depend on a number of factors including the financial market, consumer confidence and the anticipated stimulus package out of Washington DC.