REBNY 124th Annual Banquet Echos Optimism for Investment Sales and Diversity

NEW YORK CITY – The Real Estate Board of New York held its 124th Annual Banquet at the New York Hilton in Midtown, and the commercial real estate industry at large came out in droves from every facet of the sector including, brokers, developers, investors, mortgage brokers, lenders and the like for a night they call the “Oscars of commercial real estate.”

GlobeSt.com had the opportunity to turn out and mingle with some of the most prominent stakeholders in the industry to discuss what 2019 has shown them and what insight it will bring in 2020. Attendees discussed diversity initiatives and a change in attitude from one of trepidation to optimism about the investment sales market.

The year 2019 was a transitional one in New York commercial real estate with sweeping legislation that went into effect, such as tighter rent control regulations impacting the investment sales market, Bob Knakal, vice chairman of investment sales at Jones Lang LaSalle, tells GlobeSt.com.

At the end of the third quarter of 2019, investment sales went downhill and were running at a pace down by 35 percent from 2018 and down 67 percent from the peak of the market in 2015. However, the market turned around in the fourth quarter and became more robust, which has contributed to current market optimism, he said.

“In 2019 we were transitioning from a correcting market in which now we’ll have more activity in terms of dollar volume of sales and number of properties sold. And I’m hoping this activity will pull volume up,” Knakal said. “Volume may flatten out and increased volume may take place in 2021, but I think we’re on the verge of change in what has been a 52-month market correction in New York City market sales,” he said.

Joanne Podell, executive vice chairman of retail services at Cushman & Wakefield, had some big deal closing in 2019, brokering the Times Square lease for the Pele store, a soccer-gear retail chain named after prominent Brazilian soccer player Pele, in the former Empire Theater building at 1560 Broadway. She tells GlobeSt.com that 2020 is looking brighter than 2019, optimism has replaced an attitude of fear in the market.

“It was an interesting year for clients both landlords and tenants and a lot of trepidation,” Podell said. “But today I think there’s a lot more confidence because they see people are leasing and there’s business out there.”

It was a big night for Jodi Pulice, founder and CEO of commercial real estate firm JRT Realty, who was accepting the REBNY Lifetime Achievement Award.

Pulice has been spearheading efforts alongside REBNY to diversify the commercial real estate industry that has long been labeled a “boys club” since its inception, having rejoiced when REBNY established a diversity committee in 2019 to examine the lack of participation from women and people of color in commercial real estate, the first time in its entire history, Pulice tells GlobeSt.com.

“I’m hopeful in 2020 that we’ll see more women on boards and women in commercial real estate and people of color because basically there has to be diversity in order to reflect what we see globally,” she said. “That’s the universe, we’re diverse and this board has to reflect that.”

Pulice’s team is comprised of predominately women and people of color, and she said it is her legacy to pave a path where they have an opportunity for mentorship and sponsorship. “When we step up to the plate, and I sit at the table, I give them a seat at the table,” she said. “And the [industry] can see that they’re talented individuals.  All they need is the opportunity to have a seat at the table. And it won’t work out well for commercial real estate in general if we don’t see that.”