This is a stub to mark the financial meltdown that occurred last week.
In a previous post The Party's Over I suggested the art market was going to contract over the next few years. According to Crain"s New York Business, the Spreading pain will cost 90,000 jobs
Retailers will be hit hard, particularly those in the luxury sector, as out-of-work Wall Streeters trade down to mid-tier stores from upscale ones. And brokers are steeling themselves for a slowdown in leasing by luxury retail tenants. They are preparing to lower rents in order to lure tenants into their expanding portfolio of empty spaces.
“Consumers react to news,” says Matthew Katz, managing director of AlixPartners, an advisory and consulting firm. “Certainly the events of [last week] were enough to provide some shock.
It is possible, even likely that money will continue to flow into the very high end of the market in an attempt to redeploy assets. This has happened in the past and I believe it was partly the reason for the success of the Damian Hirst auction recently. Regardless how this plays out, it seems fairly clear that the other sectors of the market will feel the pressure.
Labels: Art Market