Which Sector Is Getting Hit Hardest?

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When you're not doing so hot, there's always the hope thatsomebody else is doing worse. If you're involved with theindustrial sector it seems you have little to worry about sinceonly 7% of the polled GlobeSt.com readers think you're beingsmoked. An almost equal amount of readers think multifamily andoffice are suffering the worst (21%) and (22%) respectively. Morethan half (51%) of the polled GlobeSt.com readers decided thatretail is taking most of the licks of this economy. New Yorkerslove to explain that their town is different than the rest of thecountry, and Alan Miller, senior director of Eastern Consolidated,is one of them. He doesn't think the poll numbers match with whatis going on in the Big Apple, yet.

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"What stands out is half of the people are saying retail isbeing hit the hardest. I can't tell you if the retail average isaccurate. I'm surprised to see that 50% attribute problems to theretail area. I hear a lot of things. There are a lot of deals beingsigned in the Meatpacking District where record-breaking deals arebeing signed.

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"The prices people are paying to get into these retail spotsdon't reflect these numbers.Every retailer in the world isclamoring to be in the Meatpacking District. SoHo has come back. Idon't think SoHo or the Meatpacking District are affected. Maybewe're talking about secondary areas.

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"Absolutely the office sector has been hit. They were telling uswe were going to see triple-digit rents, which was a little bloatedand overstated. There's lots of space because we're in a sort ofrecession right now, but the best class A buildings will still getbids.

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"Offices and hotels always go with the economy. They could gethit hard. There are not many trades going on, but the ones that arestill at high prices. The volume's not there.

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"It's been so good for so long. There needs to be a fundamentalchange of the global economy. It's been a bull market for so longthings have been overlooked. This is not just an American problem.The gas prices don't bode well for the future. We're going througha little bit more challenging times.

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"Young brokers, they can't imagine this and have never seenanything like this. Me, I've been working hard. I'm going to getmarket price.

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"Without many banks lending, it's tough. Only the strong willsurvive in a period like this. Something has to happen. There's alot of distress out there. We've seen this movie before, but thistime it's a little bit different.

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"I'm sure industrial is sort of safe. Multifamily, at the end ofthe day, is always a safe investment. In New York City, multifamilyhas always been and always will be a good investment. Those areanomalies though. New York is the last to be affected, but thereare big changes coming. There have been some big land deals, whichis a good sign. They're not making any more of it.

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"There have been no fire sales, but there are vulture accountsfrom people that are just waiting."

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