Moderator Peter Von Der Ahe, an associate with Marcus &Millichap Real Estate Investment Services Inc., noted thatapartment investment volume across the city is down just 40% fromlast year, and for properties valued less than $100 million, volumeis down 20%. That's significantly lower than the volume declinesseen in the office and retail sectors.

The market today is better than it was during the last downturnin the early 1990s, pointed out Ofer Yardeni, a managing partnerwith Stonehenge Partners. Back then, there were assets for sale butinvestors didn't buy them because they were afraid of where themarket was heading, he said. "Now, we know these opportunitiesdon't happen every day," he related. Indeed, Stonehenge has boughtmore than $400 million worth of real estate in the Big Apple,including $296 million in multifamily, and continues to snap upproperties. In fact, Yardeni stated, it makes more sense to buy anasset in New York and increase its value through rent increases andimprovements than to risk developing a new property.

Still, it doesn't mean Manhattan communities haven't felt thepinch of the slowdown. While Stonehenge's properties inneighborhoods like the Village and Chelsea have held up well,Yardeni observed some softness in the luxury assets in the UpperWest Side and Midtown West. Rent collections are coming later inthe month, he said, and more residents are asking to sublease theirunits or bring in a roommate.