By MATT CHANDLER
Buffalo Law Journal

It isn't time to panic yet."

So says Roger Ross, a lawyer with Hurwitz & Fine PC, addressing the state of business for law firms who handle commercial real estate transactions. While there had been much ado about the national crunch in the real estate market, Ross says that hasn't filtered down to Buffalo.

"Because Western New York didn't have the spike in values that a lot of other areas in the country had, we are not having the same decline," he explains.

Ross, who represents buyers, sellers and lenders in commercial transactions, says that although he isn't in the bread line yet, he has seen a shift in business.

"In my personal experience, in August and September, I got a lot of new business and was closing a lot of deals in November and December," he says. "Since Thanksgiving, I'm opening fewer new folders."

Contrary to some reports, Ross says, the lenders still have money to lend and financing is available ... for the right deals. "I wouldn't say the banks aren't taking any risks, but they are certainly hedging their bets and covering themselves," he says.

To that end, Ross says his clients looking to purchase retail space are experiencing more challenges, with lenders fearful of being left holding a half-empty retail plaza.

"Unless you are an established customer, the lenders may be looking for 20 to 25 percent down on a deal, which can make it tougher for the buyer," he says.

Looking at how his own firm is adjusting to the slowdown in commercial transactions, Ross says the firm is taking it one day at a time.

"Our projections for our own income are being scaled back," he says, "but so far, we haven't talked about laying people off yet, there is enough work to keep people going ... for now."

Most local law firms seem to be in the same position as Hurwitz & Fine. Dave McNamara, managing partner, says Phillips Lytle LLP, too, is seeing a slowdown in corporate deals, but he sees things averaging out in the end.

"Where our business and corporate lawyers aren't as busy as they would like to be, our litigation lawyers are extremely busy," he says. That shift may lead them to adjust projections within individual practices, but McNamara says overall, the firm is weathering the downturn.

"Being a larger firm, we can handle it better than a smaller firm that doesn't have the scope of practice we do," he explains. "If you speak to a real estate boutique firm, chances are they are being hit harder by the economy than we will be."

The firms we spoke to are all optimistic that their commercial real estate practices will pick up, though most admit that when that will happen is anybody's guess.

"I don't have a crystal ball," Ross says, with a smile. "But we are hoping maybe the third or fourth quarter of '09 we will see things pick back up. For now, everyone is in the wait-and-see mode."