Thursday, October 18, 2007


Drop in Building Permits Seen As Sign of Real Estate Turmoil - October 18, 2007 - The New York Sun

There has been a steep decline in the number of building permits for New York's outer boroughs but Manhattan's numbers remain strong.

There were 1,187 permits filed in the third quarter. The last time numbers were this poor was in the first quarter of 2004, when 1,144 permits were recorded. And the last time a third quarter posted similar numbers was in 2001, when 1,054 permits were filed.

"That is a meaningful drop," the executive vice president of Radar Logic, Jonathan Miller said.

While Manhattan's numbers remained robust, with 53 new building permits, the highest figure since the second quarter of 2001, the other boroughs posted poor results. Brooklyn had 280 permits in the third quarter, second only to the first quarter of 2002, when 180 new building permits were recorded. Queens was also a poor performer, with 485 permits this quarter, comparable to the first quarter of 2005, when 480 permits were recorded.

"The marginal areas have problems first," the managing director for developments at Prudential Douglas Elliman, Andrew Gerringer, said. "There's a lot of confluencing of events right now that is making this market very interesting."

The credit markets are stymieing development, with builders having to put down as much as 30% of the cost of a new building instead of the 10% to 15% that was possible before the subprime market collapse, a partner at Massey Knakal, James Nelson, said.


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