Quote:
Originally Posted by GFSNYC
If you know something about real estate then, you'd know that really NYC is probably one of the least risky markets in the world. You'd also know that the market is very imperfect, immediately after 9/11 was the best time to develop, when everyone was scared.
|
I was not so much speaking towards NYC rather the market in any city. I used some examples from NYC of times when the market was a disaster though.
However, yes you are right. Cities like New York, London, & Hong Kong are very low risk cities because the demand for commercial space is very good. However again, there is always a bit of a risk no matter what city you are building in. Manhattan during the early to mid 90's is a prime example.
After 9/11 though, there was a dry spell. Buildings like Ernst & Young, Bear Sterns, Random House, and Reuters were all u/c before the attacks. 2002-2004 was a dry time for commercial development because companies were frightened by the attacks. That is what's called an un-forced slump. The market plunged a little because of the attacks, not the demand. Companies were 50/50 on Manhattan and were considering other cities such as London (9/11 actually was a main contributor to London catching up big time to Manhattan as the financial capitol).