"In the system as we know it now, if you can't get terrorisminsurance, you can't build buildings," Raymond T. O'Keefe, co-chairof the Real Estate Board of New York's Economic DevelopmentCommittee, tells GlobeSt.com Northeast Bureau Chief GlenThompson.

"People are saying this could bring construction to a halt,"says O'Keefe. "This could be a tremendous block in real estateactivity." O'Keefe is also a regional managing director at Grubb& Ellis Co.

He says a scenario in which insurers refuse to provide terroristcoverage "will be a real problem, because in order to buildbuildings, you have to secure financing. And in order to securefinancing, you have to have insurance."

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