This comes after Web-consulting firms, Scient, Xpedior and iXL Enterprises all announced major job cuts and office closings. Scient is a co-tenant with Jones & Day at a Tishman-Speyer property in mid-Manhattan. Lower ad budgets at dotcom firms and a lessening of demand for Internet business services are contributing to the downturn.
"I don't have a problem with service businesses in general," says Tony Malkin, president of W & M Properties. "But you have to look towards the credit of these businesses and how it equates to the level of risk that you are prepared to take. There is a certain risk in service businesses; there is a greater risk in service businesses in rapidly changing or evolving areas."
"The ripple has become a splash," he observes. "Capital markets are not funding these businesses. But this is healthy because we need the space and the workers. Companies are starved for employees."
Recommended For You
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
