However, in the last 30 days a number of developers haveapproached SBO about potential rental housing projects "West ofSixth Avenue," Bassuk says. "It's a supply-and-demand issue." Andvarious incentive programs will go toward increasing the city'saffordable housing product. Earlier in the year, the cityintroduced the New Ventures Incentive Program Over a five-yearperiod, New VIP will provide up to $200 million for acquisition andpre-development costs to encourage residential development inderelict manufacturing areas, particularly brownfields, appropriatefor rezoning for residential use.

According to the latest figures from Marcus & Millichap,Manhattan apartment vacancies were expected to fall to 3.9% by yearend, from 4.7% in 2003. Asking rents increased 1.7% to $2,900 permonth this year, while the median price of Manhattan apartmentsrose to approximately $126,000.

Infrastructure improvements are fueling neighborhoodrevitalization in various parts of the borough including Jamaica.The introduction of the Air Train--a transport system connectingthe Jamaica station with John F. Kennedy Airport--is a impactingthe Downtown Jamaica market, according to John D. Markunas of JFKCorporate Square. "The options in Jamaica are increasing." Addingretail space is and community efforts are key in thisrevitalization effort.