tag:blogger.com,1999:blog-1239408433939178847.post3968359847686576503..comments2009-01-18T12:16:30.587-05:00Michael A. Mandelhttp://www.blogger.com/profile/00379226243185870540Michael.Mandel@grubb-ellis.comBlogger2125tag:blogger.com,1999:blog-1239408433939178847.post-89056917276185390622009-01-18T12:16:30.587-05:002009-01-18T12:16:30.587-05:00Richard, thanks for your comment. Yes, building construction has certainly slowed significantly and requests for building permits are a fraction of what they were a year ago.<BR/><BR/>However, most of the building projects that were canceled or put on hold were residential projects anyway. <BR/><BR/>I do not believe that the market has been "over-built." When the market crashed in the early '90s, it was in part due to a ton of over-building in the late 80s. Due, to tax incentives, developers had to get their projects started before the incentives ended, and many office buildings were built on spec.<BR/><BR/>Developers have learned their lesson, and only one new building is being built on spec at this time - 11 Times Square by SJP properties. The other new large developments - 1 Bryant Park, and the NY Times Tower were built for Bank of America and the NY Times, respectively. <BR/><BR/>This said, in the early 2010s, the WTC will come online, and will bring a lot of supply to the market (albeit, a good amount is already committed). By then, I believe the market will have recovered enough to handle the influx of space. <BR/><BR/>It's also worth noting, that the NYC market has still not replaced all the space that was lost on 9/11 and from the downtown residential conversions.<BR/><BR/>For some charts on past construction as compared to current construction, check out: http://www.brokerednyc.com/2008/10/learning-from-history-its-not.htmlMichael A. Mandelhttp://www.blogger.com/profile/00379226243185870540noreply@blogger.comtag:blogger.com,1999:blog-1239408433939178847.post-23399206401084206222009-01-15T23:36:00.000-05:002009-01-15T23:36:00.000-05:00While the speaad widens the market should soften. Vacancy rates will rise until this corrects.<BR/><BR/>Has new building construction slowed or should I say, new approvals for building. The building that are underway now have been in the process for a while and may not indicate future committment to the market. Has the space been over built in this cycle as in past cycles?Richard Stabilehttp://newhomesbyrichard.comnoreply@blogger.com