1992 Redux?

In the early nineties, more than 70 New York galleries went out of business.

Could it happen again? No, say many observers—today’s art market is too global, too rich, even too smart to suffer such a wrenching setback. All the same, one shouldn’t forget that the art market’s biggest climb ever has been based in part on a growing pile of dealer debt. Dealers have borrowed against inventory to fuel bigger shows, art-fair exhibits, and satellite galleries all over the world...

There are now 360 galleries in Chelsea, up from 124 eight years ago. Already, Craigslist has seen a slight bump in its rental listings for gallery spaces in the area. A couple of them even read “Currently an art gallery.”

Read this very interesting piece by Alexandra Peers in New York Magazine here.