REal Talk with Adam Perrotta-July 17

By Adam Perrotta, News Writer

--Today's news was a mixed bag, as yet another disappointing report on the real estate market and a major tenant pulling out of the World Trade Center was balanced out by some good news, including a massive airport addition for one of America's most thriving cities.

Colliers International's latest report on the U.S. office market revealed a third straight quarter of increasing vacancies nationwide. The report would seem to be yet another indication that troubles in the financial markets have had very real effect on the economy at large. Given that office vacancies are a lagging indicator, it is safe to assume that the slide is not yet over, and we can expect a further decline in occupancy in the coming quarters, with rental rates dropping in kind.

And in New York City, Merrill Lynch backed out of plans to locate its headquarters at the World Trade Center. While no doubt a disappointment to many, it's worth noting that Merrill's existing HQ is at the nearby World Financial Center, and the firm has no plans to move from that site. Therefore, the firm's backing out of the WTC space should by no means be viewed as any kind of black mark against the Lower Manhattan submarket in general.

Meanwhile, in Las Vegas, one would be hard pressed to find any signs of a struggling economy, as development continues to surge. Indeed, the city airport's $1.2 billion expansion is aimed at accommodating an ever-growing number of travelers to the city. Given the current troubles in the stock market, perhaps laying some chips on the line at the casinos is one of the better investment strategies out there right now.