ULI, PwC survey respondents talk New York in 2010

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About The New York Minute Tidbits, tales and musings about the most looked-at real estate market in the U.S.

The general consensus of more than 900 real estate industry experts surveyed by the Urban Land Institute and PricewaterhouseCoopers is that 2010 will be a rough year for the New York market.

The "Emerging Trends in Real Estate" report shows that the New York real estate market is poised to get "crunched" in 2010, with the loss of 250,000 jobs. Availability rates in midtown Manhattan are expected to jump from the mid-single digits to the midteens, while office rents are expected to fall 40% or more. "We'll start to see some musical chairs with tenants moving between buildings," Jonathan Miller of PricewaterhouseCoopers said Nov. 5 during a call discussing the report, which he authored.

Additionally, "Emerging Trends" respondents believe deals will be more attractive as yields will begin to improve. The report notes that cash investors can expect to nab the best assets in the city and other top markets in the latter part of 2010.

Regarding a rebound, Miller said the surveys show expectations that the city will bounce back more quickly than other markets, but that rebound is not expected to be "quick." The report said the rate of market recovery is dependent on the banking industry and how quickly it can reinvent itself.

"So, there's been significant decline in New York, but again, New York is viewed as a place where investors want to be, where people want to be, where people want to visit," Miller said. "It is one of the strongest, fundamentally, U.S. markets, and it will come back. And it will be a very strong real estate market over time."