Monday, March 17, 2008

Negative $1 billion?

That's what Kevin Kingston is telling us that Bear Stearns is actually worth when you take into account that its Manhattan HQ is probably worth about $1.2-1.3 billion alone. (But will it be still without an anchor tenant?)

As I write, it looks like the Fed's intervention over the weekend has helped, what with the market down only ~30 points as I type. (That can of course change in a flash.)

What does this mean for dirt? Well, the loss of thousands of jobs will mean more open space on the market, just what I feared previously, as JPMorgan Chase will just absorb the accounts. But it does not mean a total collapse. Bear rolled the dice and it came up 2, 3 and 12. The people on the don't pass line win. And could this mean a return to tangibles? Maybe. We know commodities are rising rapidly. But dirt? It is more affected by fundamentals. It does smack of more opportunity in the market this year for those waiting -- and with the wherewithal -- to pounce.


BawldGuy Talking said...

If you had to guess, David, who fills that building's space?

David Stejkowski said...

Law firms, JP Morgan Chase may keep some, other blue chip thing is that there's almost always a scarcity of good space. And this is a Class A building, so I would not go into complete panic mode. It looks like the Fed is way ready to react again. But they cannot do it all.