NEW YORK CITY-Cushman & Wakefield president of US operationsBruce Mosler emceed the company's event, Breaking the SpaceBarrier, last night in the Metropolitan Club. Speakers examinedpricing power, comparative growth, the role of the economy anddevelopment. All concluded New York's real estate had the greatestchance of future success.

“Right now there's a 3.2% vacancy rate in Manhattan,” Moslerobserved in his introduction. Referencing details from C&W'sreport distributed last night, bearing the name of the event,hedismissed notions of the volatility of the market as a result ofdotcom closings. “New York is the home of old economy business, thefundamentals of which are still very, very good. Dotcoms gave back600,000 sf of space last quarter, and already 300,000 sf have beentaken.”

“Reports of job losses in the high-tech sector may look like ared flag for New York, but the real story is the hybridization ofthe New and Old Economy,” observes the C&W report. “Instead ofrushing to file an IPO and leasing large blocks of space inanticipation of explosive short-term employment growth, firms arepursuing more rounds of venture capital funding and are jointventuring with complementing old economy businesses. The result ofthis is increasing convergence between old economy firms and theirhigh-tech counterparts.”