Companies hunting for scarce and vastly expensive office space in Manhattan may soon get it for less, if recent anecdotes are the start of a trend. The Post reports that the price on one midtown deal has dropped from $60 a foot to the low $50s.
On the negative side, the factors pressuring the real-estate market–credit crunch, mortgage collapse, volatile stock market–aren’t and won’t be good for most growing businesses. Lenders are demanding tougher terms, and one reason Lehman just passed on more space at 399 Park, for example, might be that it won’t be expanding as fast as it thought. And all those who make their livings on ads should take note: in an economic downturn, advertising is usually one of the first expenses to get cut.