NEW YORK, N.Y., Oct. 29, 2008 – The New York Area commercial real estate market should brace for a prolonged downturn. That was the message at the October annual joint meeting of the Industrial and Office Real Estate Brokers Association of the New York Metropolitan Area (IOREBA) and the New Jersey/New York chapters of the Society of Industrial and Office Realtors (SIOR).

Cushman & Wakefield’s Ken McCarthy, managing director of that firm’s New York Area research team, served as featured speaker at the program, which took place at the New York Athletic Club in Manhattan. "In an environment where you have financial firms collapsing, where you have unemployment rising, where you have vacancies starting to climb, rents are going to have to decline, and they're going to have to decline a lot,” he said. “In the past two recessions rents declined between 15 percent and 25 percent, and a similar decline this time appears likely,” he added.

McCarthy noted that this is good news for tenants, although many businesses currently are hesitant to make capital expenditures due to the impending recession. He expects the U.S. economy will hit bottom during the first six months of 2009. The New York Area will likely follow about six months later and the real estate market six months after that.

“Ken’s presentation was very informative,” noted IOREBA President Dave Violette. “It wasn’t pretty, but he told us where we are at and that it will be a couple of years before we are out of it. Everyone was interested – the Q&A session following it was one of the longest we’ve ever had. We all appreciated Ken’s candor as well as the opportunity to join with SIOR for this program. IOREBA recognizes the benefits of joining forces with other respected trade organizations to bring educational opportunities to our members.”

With roots dating back to 1927, IOREBA is one of the nation’s largest regional commercial real estate trade groups; its more than 325 members conduct business in New Jersey, New York, Pennsylvania and Connecticut. IOREBA is dedicated to providing the brokerage community with a forum for networking, education and training. The group aims to unite real estate professionals and encourages the highest standard of ethical, moral and professional conduct in its members.

IOREBA achieves these objectives through a program of monthly meetings with distinguished guest speakers, and other activities.

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