Manhattan is the first stop for most retailers expanding into the United States, but the new arrivals are shopping harder before signing any lease commitments.

But the improving economy has not yet translated into new speculative construction, in which buildings are built without lease commitments.

This caused Morningstar to reconsider their lease commitment.

Mr. Friedman said the company would not break ground on either building until it has substantial lease commitments from prospective tenants.

In addition, Olympia & York agreed to take over a number of Merrill's lease commitments at other locations.

The Providence Place Mall, as it will be known, has already received lease commitments for 675,000 square feet of retail space.

He tried to develop it as a shopping center, and got a lease commitment from the Walbaum's chain and others.

A deep-pocketed developer with enough confidence in the market to risk his own capital can build speculatively, without lease commitments.

International was concerned about the ability of aircraft manufacturers to deliver when it decided to place an order without lease commitments from airlines.

"Not-for-profits are required to make a lease commitment for 15 years in exchange for the tax benefit," he said.