NEW YORK CITY—As the city entered the homestretch of 2016, a trio of developers and investors late last week expressed differing views on what's hot—what's not—and what lies ahead. Brought together in Midtown by the Real Estate Board of New York, the group bandied about different ideas during a panel discussion of what to invest in, where to buy, what sectors to watch and how the presidential election will impact this market.
At Taconic Partners, “We'll be select about new projects, cautious about office and buying new projects; the condominium market is drying up.” said Charlie Bendit, co-CEO. “Most of our focus will be on asset management.”
But for newer firm Cove Property Group, purchasing opportunities are evident. “We're still a buyer,” declared Kevin Hoo, founder and managing partner. “In 12 years or so, there will be a group of us holding and repositioning assets. There are benefits to a long-term hold and—to the extent we can find partners, with our small headcount, we can buy.”
Other players are finding success in leasing office buildings, courtesy of particular occupier types. “We've benefited in the last few years from the TAMI sector coming to Park Avenue South and Chelsea,” shared Leslie Himmel, partner, Himmel + Meringoff Properties.
“We bought there in the early 1980s because that's what we could afford,” she revealed, “and now TAMI tenants are coming there because they want space with high ceilings and flexibility. The sector is strong— Samsung is paying us more rent in Chelsea than some entertainment companies we have at 727 Seventh Ave.”
Additional office-using sectors may soon grow, the panelists said. “New York City receives the second-highest amount of funding from the National Institutes of Health, so we're vastly underserved in the biotech market,” Bendit revealed.
Added Himmel, “If President-elect Donald Trump repeals Dodd-Frank, financial firms will add headcount.”
The industry veterans also weighed in on the residential front, discussing the prospects of affordable housing development. “The city needs to identify locations well served by transportation where it can affect land use,” asserted Bendit.
Officials also need to get creative in what areas they make appealing for developers, Himmel suggested. “Our zoning is 100 years old and in 1916 there was much more manufacturing; maybe even farms. Today, we make technology and apps and the population is swelling to nine million. So the city has to look at industrial areas, as well as other new sights, and not keep a clamp on development.”
Of course, much depends on how the results of the Presidential and congressional elections impact the city.
“Trump's proposals, while scant, look more helpful than not,” opined Hoo. “He could increase employment and GDP growth, which could be good for us.”
Bendit was a bit less optimistic. “I'm concerned about capital flows. Will foreign investors continue in Manhattan. Will condo sales come to a screeching halt?”
But Himmel sounded a hopeful note. “When you start reading (Trump's) tax plan, and his possible repeal of Dodd-Frank, it could be good for New York. But it depends who he puts in cabinet.”
No matter what, she declared, “We all have to be reunited as a country. We're the greatest city the world and will continue to be so.”
At Taconic Partners, “We'll be select about new projects, cautious about office and buying new projects; the condominium market is drying up.” said Charlie Bendit, co-CEO. “Most of our focus will be on asset management.”
But for newer firm Cove Property Group, purchasing opportunities are evident. “We're still a buyer,” declared Kevin Hoo, founder and managing partner. “In 12 years or so, there will be a group of us holding and repositioning assets. There are benefits to a long-term hold and—to the extent we can find partners, with our small headcount, we can buy.”
Other players are finding success in leasing office buildings, courtesy of particular occupier types. “We've benefited in the last few years from the TAMI sector coming to Park Avenue South and Chelsea,” shared Leslie Himmel, partner, Himmel + Meringoff Properties.
“We bought there in the early 1980s because that's what we could afford,” she revealed, “and now TAMI tenants are coming there because they want space with high ceilings and flexibility. The sector is strong— Samsung is paying us more rent in Chelsea than some entertainment companies we have at 727 Seventh Ave.”
Additional office-using sectors may soon grow, the panelists said. “
Added Himmel, “If President-elect Donald Trump repeals Dodd-Frank, financial firms will add headcount.”
The industry veterans also weighed in on the residential front, discussing the prospects of affordable housing development. “The city needs to identify locations well served by transportation where it can affect land use,” asserted Bendit.
Officials also need to get creative in what areas they make appealing for developers, Himmel suggested. “Our zoning is 100 years old and in 1916 there was much more manufacturing; maybe even farms. Today, we make technology and apps and the population is swelling to nine million. So the city has to look at industrial areas, as well as other new sights, and not keep a clamp on development.”
Of course, much depends on how the results of the Presidential and congressional elections impact the city.
“Trump's proposals, while scant, look more helpful than not,” opined Hoo. “He could increase employment and GDP growth, which could be good for us.”
Bendit was a bit less optimistic. “I'm concerned about capital flows. Will foreign investors continue in Manhattan. Will condo sales come to a screeching halt?”
But Himmel sounded a hopeful note. “When you start reading (Trump's) tax plan, and his possible repeal of Dodd-Frank, it could be good for
No matter what, she declared, “We all have to be reunited as a country. We're the greatest city the world and will continue to be so.”
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