Developers under the gun; NY office project clock ticking as market cools.(Brief Article)(Statistical Data Included)

Publication: Crain's New York Business

Publication Date: 29-JAN-01

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COPYRIGHT 2001 Crain Communications, Inc.

A sudden cooling in Manhattan's office market is forcing the city's top developers to redouble their efforts to start construction projects before their window of opportunity slams shut.

The race to build involves almost a dozen powerful players, including Steve Roth and Douglas Durst. They now find themselves in danger of getting caught mid-project with empty space-or of being unable to build at all-if they delay much longer.

``Projects that are far along with their design and development process, and in advanced negotiations with tenants, are likely to get done,'' says Bruce Mosler, the president of U.S. operations at real estate brokerage Cushman & Wakefield Inc. ``The developments that need variances and don't have tenants in hand are at risk.''

Already, two developers have scrapped speculative office projects.

Mitch Rutter's Essex Capital Partners is selling 505 and 507 Fifth Ave., a prime site on the northeast corner of East 42nd Street, where it had planned a...

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