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The lenders also say they embrace the tenants' demand for the creation of an "affordable" co-op that covers all 11,226 apartments in 110 buildings between 14th and 23rd Streets, east of First Avenue.
Recognizing tenants' demand for convenience to shopping, among other things, developers are putting up mixed-use projects that try to recreate a contemporary version of the urban streetscape, where stores, offices and housing coexist.
But brokers say that will not occur as long as lenders keep the lid on financing and the state's economy and job growth continue to stoke tenants' demand for space and their desire to be near Princeton University.
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Tenants' demands for larger blocks of space is what Heller Industrial Parks is banking on to fill its two new buildings in Edison.
Whether there would be tenant demand for such a building is much harder to say.
The authority, however, was reluctant to provide financing for speculative office towers, especially when there was little tenant demand for new office space.
He added that although the building would be able to accommodate one large tenant, demand for office space in Westchester now favored catering to small and mid-sized companies.
And even as the economic outlook clouds, real estate professionals believe there will be strong tenant demand for quality new buildings, such as 11 Times Square, a $400 million tower being developed by SJP Properties, which is expected to be completed in 2009.
"There is clearly tenant demand for infill projects right now, because that's where the population is," he said.
"Very few industrial class buildings below 200,000 square feet are currently available or under construction, while tenant demand for these state-of-the art facilities is exploding," Ewing said.
Both buildings will be wired for the high-speed Internet access that virtually all tenants demand today, and bathrooms and common corridors will also be improved.
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