TechTransform, September 12, 2001: I think after the shock has passed and our thoughts remain with the many victims, we also need to know: what's in store for New York - and by extension, our national and world economies?
My old friend and longtime New York commercial real estate insider Paul Fetscher wrote the following in response to an email that predicted total financial collapse. I hope it helps you come to your own conclusions. As usual, I welcome your thoughts.
Wednesday, September 12, 2001 2:52 PM
Subject: Response to RE Newsletter Posting
I'm afraid you underestimate the resiliency of New York. You aren't here, nor do you sense the team sprit being exhibited by the citizens and the financial and real estate industries.
Larry Silverstein just two months ago took the keys to the twin towers under a 99 year lease. He already owned 7 World Trade Center. I have been his retail leasing agent. I assure you that he is a man of the highest integrity and will do the right thing.
By the same token, Westfield America had simultaneously taken over the retail component. I have inspected their plans for a major retail overhaul and expansion. These two parties may be 5 years away from collecting rents. There is no doubt in my mind that the World Trade Towers will be rebuilt and will again proudly stand on the Lower New York Skyline.
The real estate financial ramifications in the short term are nothing but positive. There will be well over a billion dollars in construction. The space in the World Trade Center exceeds the entire inventory of available Class A office space in Manhattan.
Virtually all of today's office space availabilities will be gobbled up. Jersey City, Secaucus and a recently optic fiber wired downtown Newark, NJ all will gain tenants immediately. This will maintain high office occupancy and rental levels.
The financial markets will remain closed, probably for the remainder of the week. Already, firms with trading floors in the World Trade Center trading floors are already wiring and installing alternative trading centers.
The spirit of the people in this city is indomitable and irrepressible. While you may think Doom and Gloom, we New Yorkers will galvanize and stand strong in the face of this heinous crime.
While the losses are inexcusable, this city, this industry and its people will respond positively. We simply will not accept defeat nor intimidation.
If you wish to contribute, contact your local blood center and give blood.
Thanks for your thoughts and your positive beliefs.