Deutsche Bank down on New York City office market

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Deutsche Bank predicts a drop in occupancy rates of up to 6 percent over the next two years, and expects no rent growth. The bank’s analysts have downgraded the stocks of two big commercial landlords, Vornado Realty Trust and SL Green Realty, from buy to hold. Deutsche Bank analyst Louis Taylor wrote, “We believe the sale of Bear Stearns, as well as potential layoffs and shrinkage from other financial services firms, may weaken New York office demand and increase the risk of higher office vacancy rates. Until the magnitude of the impact becomes clear, we think the shares will go sideways.” 

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