Of the office sector, characterized by a lack of activity and an overload of sublease space, David T. Houston, Jr., president of Colliers Houston, Teaneck, NJ, noted that "office occupancy is directly related to employment," and that the state's economy isn't currently creating any jobs. Houston, and all of the panelists, agreed that a steady increase in productivity by the workforce is contributing to that lack of job creation.

Still, Houston did forecast a slow but steady improvement in the office sector. "Real rents, which have declined in all markets, will bottom out, firm and turn upward in 2004," he predicted.

Addressing the retail sector, Jerrold Bermingham, managing director of National Realty Corp., said the market is generally doing well and noted "consumers desire new stores with multiple locations." Carl Goldberg, managing partner of Roseland Property Co. in Short Hills, NJ, meanwhile, called the residential sector "a beacon of light" in an otherwise dismal economy.

Charles Klatskin, chairman and CEO of Binswanger/Klatskin, Teterboro, NJ provided one surprise when he said that the industrial market, which has recently seen a spate of big box sales and leasing activity, "is going downhill." He reasoned that corporate America "doesn't want to spend money," and said "private companies - smaller, family-owned businesses - are helping the industrial market by buying properties at a 20% premium."