Wall Street Woes Pressure Office REITs

NEW YORK CITY—The job cuts announced this past summer by the likes of Goldman Sachs, Morgan Stanley and Citigroup made headlines, but Forbes reported more recently that we haven't seen the worst yet. New York State Comptroller Thomas DiNapoli also predicts a decline in financial services employment this year, which Fitch Ratings says could put pressure on office REITs with a concentration of tenants in the sector.

“The securities industry remains in transition and volatility in profits and employment show that we haven't yet reached the new normal,” DiNapoli says in a statement. “The securities industry is still grappling with the fallout from the financial crisis, new regulations and slow economic recovery. How the industry negotiates this uncertainty could impact profitability and the finances of New York City and New York State.”