NEW YORK CITY-One of commercial real estate's most proactive heavy hitters, the Blackstone Group's Jonathan Gray took an optimistic view of the future at the Real Estate Board of New York's Holiday Luncheon last month. Held Dec. 17 at the Waldorf-Astoria, the annual event was organized by the REBNY Commercial Brokerage Division and sponsored by Tishman Speyer, the New York Times and Cushman & Wakefield.
Global head of real estate for Blackstone, Gray told the REBNY audience that home prices in distressed markets are back to 2003-2004 levels. However, the country still has a long way to go in the recovery of the housing market.
That being said, the shortage of new supply and need for homes has provided the opportunity for investment which has been a driving factor for Blackstone and its purchase of 42,000 homes nationally for renovation. In looking to the future, Gray noted that the long-term priorities for the US should be getting the fiscal situation under control; making a greater investment in infrastructure and transportation; and improving immigration policy.
Notwithstanding the continuing constraints on supply, Gray similarly waved positive about New York City's real real estate market. He remains bullish on Brooklyn, the area around Bryant Park and street retail.
On the global front, Gray took a more sober view of Europe, a bullish view on China and its long-term future, and greater interest in the emerging markets, which include Brazil, Turkey and India. He predicted that the market will continue to see sovereign wealth funds as dominant investors in the global marketplace.
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