According to a recent New York Times article, as we have been expecting, New York City's office market has hit the skids, big time. In my mind, the message here with regard to residential real estate is very noteworthy. Eventually, in a poor demand environment, prices will fall, despite a previously tight supply environment and positive long-term outlook. The New York City commercial market is sending a strong signal not just about the New York residential condominium market, but even the multi-family rental market.
Way back in January of 2008, I penned "Commercial Real Estate - The Next Train Wreck?" In that piece I touched on the Three Cardinal Sins of Real Estate: 1) Overpaying, 2) Over-Leveraging 3) Over-Building. In my opinion at the time, it was obvious that many had broken the first two rules, but that in some markets, particularly New York, the third rule had not been totally violated.
In June I did a follow-up piece on the commercial market and focused on the NYC Office Market. I noted:
New York City 2010
