This article talks about how commercial real estate is falling in value. The article gives a few reasons to be pessimistic about the economy. One of them:
“We expect construction activity to continue to pull back over the next 18 months,” as “property values still face significant further declines.”
Here’s a good article on NYC real estate.
The Stuy Town project certainly has potential, but given the market and the need for their fellow investors to receive immediate gains, they are really hurting right now.
Compared to the rest of the economy however, real estate prices in nyc have only gone down 3% since the last quarter. However, the two main things that pose risk now are:
1) Lack of wall street bonuses and new jobs, creating vacancies in luxury apartments
2) Lack of lending for developers