"PURE PLAYERS" MARKET
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|That's the word from Grubb & Ellis investment vet Frank Mancini, who tells us lower market values will open doors for investors actually interested in "brick and mortar" buildings, not just financial plays. It's a good time for tenants, too. We sat down with him at hisAmericas Tower office to see more in the crystal ball.|
|We kept a few dozen cabs idling (in the background) in case Frank divulged a tip requiring immediate response. Grubb & Ellis expects asking rents in Manhattan to decline an average of 7% annually andasset prices by 20% over the next 24 to 30 months. He also thinks firms will be putting more sublease space on the market, and the projected vacancy rate will settle between 8.5 and 9%, leveling the playing field between owners and tenants. One result: A flight to quality as options lead tenants to seek out more stable landlords and more bang for their buck. Frank adds that brick-and-mortar buyers who purchase assets based on quality and location, and were priced out of the market based on their competitor's use of creatively structured debt financing, will now be able to compete.|
|It's probably not his eldest Frank's hearing in his ear. His son just left for freshman year at Vanderbilt (hey, congrats on beating Auburn!); Frank reports he never rings home, and when you leave him a message, takes two days to call back. Sounds like a pretty normal kid, but we think Frank, a St. John's alum, might be keeping his other two college-bound sons closer by these days.|