By SARABETH SANDERS
These days, firms don’t downsize, they "rightsize." Companies no longer make budget cuts, they "reduce to competitive levels."
The current downturn has ushered in a new wave of vocabulary for real estate firms that are trying to spin bad news.
Lenders may be asking for 25 percent or more of the purchase price on a new apartment up front, but rather than referring to it as a downpayment, many have recently started calling it an "investment." Meanwhile, that deed in lieu of foreclosure was really just a "loss mitigation technique." And no, that wasn’t a price cut. It was a "price correction."
As the Web site Cityfile recently observed, restaurants across New York have been "closing for renovations," until, after a few weeks or months, they’re finally ready to reveal what insiders knew all along: Reopening was never in the plans.
To some, euphemisms like these are a pointless exercise. "It doesn’t matter what moniker you give these things," said David Schechtman, senior director of Eastern Consolidated’s turnaround and distressed group. "We are in a down market, whether you call it what it is or candy-coat it."
Still, that hasn’t stopped firms from trying. One tactic is turning simple but unforgiving phrases into jargon in order to lessen their impact. Case in point: "rationalizing the workforce." …CONTINUED