NEW YORK CITY-While e-businesses continue to announce expansions of office space, acquire new buildings and keep the vacancy rates around the nation at all time lows, particularly in Manhattan and San Francisco, their future seems shaky as stock prices wane. Lexington Avenue-headquartered Pegasus Research International, in analyzing last week’s feeble technology stock performance, pronounces the future of these companies dubious at best. The doom of e-companies could be a blessing to those seeking affordable office space, but the slackening of the real estate market could contribute to greater economic woe.

Pegasus finds last week’s 15% loss of average Internet stocks, as well as Pegasus INTDEX’s drop of 6.4% and NASDAQ’s 8.5% drop for the week, are symptomatic of a slowing of revenue growth for many Internet companies. Lower tier companies are reportedly threatened with immanent liquidation or takeover. This will trickle to advertising companies, as only “blue chip” players like Yahoo and AOL see marketing dollars from those e-businesses left standing, spelling disaster for smaller sites.

Pegasus predicts an increase of acquisitions and mergers. Layoffs will likely follow and office space would be vacated. This report follows on the heels of predictions from early last week at the annual NAREIT convention that a recession is looming. Panelists all agreed on the recession forecast and said the commercial real estate industry would survive by avoiding the disastrous overly bold speculative development of the 1980s.

Interestingly, McGraw Hill recently released Pegasus president and founder Greg Kyle’s book, The 100 Best Internet Stocks to Own. Kyle named one of the top 10 picks. The impact of William Shatner’s promotions and diverse offerings, according to Kyle, made it one to own. Now, as reported Friday on by Westchester reporter John Jordan, is closing some operations and its stock value is falling. This disparity demonstrates that no one knows with certainty what is yet to be.

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