“A Catastrophe of Biblical Proportions” We have never heard this description of an event in our country before. The concern now is the ultimate impact on our economy. During the past five years fuel prices have increased by 50% and the deficit by 500%. Yet the country’s GDP has averaged 4.1% and unemployment has fallen to 4.9%. This upbeat economy in the face of pending doom is being driven by rising productivity allowing companies to maintain profitability. Thus companies are making money, spending money and hiring. Falling unemployment and rising incomes are covering the increasing fuel costs. Corporations are investing freely due to abundant cash and cheap borrowing.
This positive economic news has driven the national office vacancy rate down to 13%, lowest in 4 years and the average rent to $22.17, highest in three years. Corporations are renewing leases early to lock in low rates and aggressive terms. Construction is on the rise.
The Long Island office market remains among the country’s leaders at 9.6 % vacancy and $23.76 average rent. The big news is the sales of large office buildings and portfolios as Long Island developers take advantage of today’s high prices.
The looming question for the future is how our government can pay for the reconstruction of the South and maintain its agenda of tax cuts and the rebuilding of Social Security and Medicare? The only answer seems to be a “Deficit of Biblical Proportions!”
– Ross Selinger