The Real Deal New York

Crisis may spawn building sales rise

November 14, 2008 06:59PM
By Adam Pincus

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From the November issue: Developer Harry Macklowe ceded his prized General Motors Building to lenders after defaulting on a loan for a $7 billion purchase secured with just $50 million down, a defeat that made him the poster boy for the hazards of exorbitant debt in a credit crunch. Real estate analysts believe he won’t be the last to lose a Manhattan trophy tower purchased in the heady days of 2006 and 2007. Although many indicators used in commercial real estate, such as vacancies and asking rents, are often seen as lagging indicators of the overall economy, investment sales, as illustrated by the Macklowe trades, provide a more sensitive indicator of market conditions.

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