Fitch: Downtown NYC Not All 'Business-as-Usual'; Effect on U.S. CMBS Minimal
Some of the more visible properties around the World Financial Center appear to be operating at or close to business-as-usual following Hurricane Sandy, while others are still shut down, the effect on U.S. CMBS of which will be marginal, according to Fitch Ratings.
Following a walking tour of downtown Manhattan this week, Fitch analysts noted that some properties such as 315 Hudson and the Mercer Hotel showed no visible damage, with business operating as normal. Other properties seemingly at business-as-usual, according to Fitch, include Seven World Trade Center and One Liberty Plaza.
The same cannot be said for other properties, among them One New York Plaza and 100 Wall Street, which are still undergoing repairs. In fact, the areas east of Battery Park and south of Water Street appear to have sustained the worst damage from flooding.
Fitch expects the sector as a whole will not feel much of an effect from the hurricane's fallout. However, insurance premiums and deductibles are likely to increase.
Fitch is also visiting certain properties in other areas affected by the storm such as other boroughs and New Jersey and will update the market on potential inlays to CMBS containing these properties as collateral.
Additional information is available in Fitch's weekly e-newsletter, 'U.S. CMBS Market Trends', which also contains recent rating actions and an overview of newly released CMBS research, including Fitch presales and Focus reports. The link below enables market participants to sign up to receive future issues of the E-newsletter:
Additional information is available at 'www.fitchratings.com'