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Calling mass transportation and infrastructure the life-line to the city, guests discuss the projects and impact on New York and surrounding states of the Congress approved, $1 trillion Infrastructure Package: Penn Station and direct access from Grand Central, Gateway, Second Avenue Subway, road, bridge, tunnel repairs, and more. The use of Eminent Domain is discussed.
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Called visionaries, described as "larger-than-life" leaders, Kenneth Langone and Dr. Robert Grossman talk about the restructuring and transformation of NYU's traditional medical school and hospital to an integrated medical center. Guests describe the NYU Grossman Medical School's free tuition, three-year medical program and the ambulatory based system, named the #1 Hospital in New York.
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Guests discuss office properties post pandemic: the increased activity in small/medium size entrepreneur space, with a 90% occupancy, a 20% decrease in rents, workers in the office 4-5 days a week; properties whose leasing volume has climbed back to 80% and "flight to quality" buildings stressing their green standards and amenities, whose hybrid work-force has seen a 50%-60% return to work.
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Guests comment that while the land market has done surprisingly well in the first half of 2022, how the year ends is of concern, considering higher interest rates and no 421a. Developers discuss current and long term projects, the positive effects of midtown rezoning, Coney Island, the Ferry, Long Island City, and Florida.
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Be cautious! developers and bankers agree when considering development of various asset classes: industrial, retail, rental, office. Be selective! consider space, location, cost of building, cost of lending. While deals are being made: industrial is hot, multi-family/rental, food-anchored locations continue to be strong in New York, guests agree these are cautionary times.
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Noting the slow-down in the residential and for-sale markets: rates have almost doubled, buyers are holding off and sellers are tying to figure it out, guests comment that the market is changing. Demand is steady in the Hamptons; supply is limited. Westchester's residential markets are stable; office markets - fairly stable. Health care/hospitals/bio-technologies are booming industries in Westchester.
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Guests describe this year as "one of the best!" noting that New York is coming back, despite the 421a kibosh on new construction; Westchester/Fairfield County-pockets of opportunity; free market/market rate properties are doing well; condos are returning to the market; private money is coming back to New York; land prices have rebounded. Challenges: the expense of C & D office market conversions, retail, hospitality and the impact of unions.
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Discussing the future, seeking opportunities and new family leadership, Josh Muss looks at Manhattan office space, transportation, hospitality and jobs, describing New York City as the center of technology, medicine, education, culture, student life, declaring "there's always a job in NYC, especially for young people."
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With various sources available to finance real estate: traditional lending, alternative lending and a membership-based brokerage service, guests discuss the differences and similarities of their industry and the importance of Fannie Mae/Freddie Mac loans.
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Historic One Times Square, where millions come to celebrate New Year's Eve, has been for many years - an empty shell! The building is experiencing a multi-million dollar redevelopment, benefitting the area and creating a "go-to" for tourists. Guests discussed the living / business opportunities in the Hamptons, increasingly a year-round community and Suffolk County, whose attractive tax rates and support of local leaders, is of interest to developers.
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Bankers agree that their focus is on support of their clients and sponsors, as they discuss a slow-down in 2022 markets, as rising interest rates - low for so long - question what real estate assets will provide lower risks to the investor. Guests comment on the greater risk in the C and D office market, some risks to multi-family and industrial assets, and their interest in limited service hotels and neighborhood retail.
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Guests are optimistic! New capital and foreign reinvestments are returning to New York; rents have stayed strong in Brooklyn; commercial projects are doing well; and smaller projects in the boroughs are booming. Guests discuss buyers coming into New York with "long-term" commitments, as an example of their confidence in New York's future.
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It's taken a long time for Inwood, the northern most neighborhood in New York City to be open to development. As rezoning and court cases have been settled, guests discuss development that the Inwood community will experience: new parks, libraries, affordable and market rate housing, additional retail, supermarkets through the Fresh Program and community space.
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Guests discuss the Rockaways - a hidden gem - and the areas' long journey from an urban wasteland of multi acres of vacant land, through rezoning, mapping to rental apartments, two-family homes, shopping center and a YMCA, along with new development centers of affordable housing and the "bungalow," for entry-level and second home buyers, and more, all designed to encourage community living.
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Guests describe Connecticut's outlook as increasingly pro business: "heads'n'meds, with great universities, bio-tech research, medical facilities; the development rebound in Eastern Fairfield County: housing, financial services, medicine. Discussing future challenges: guests listed interest rates, keeping buildings fully rented, tenants seeking smaller office space, as employees continue to work from home, and the difficulty in financing retail and office projects.
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Lots of things are happening in Westchester! After a decade of no/slow development, the County is experiencing growth in multi family development, an increase in major hospitals, and other diversified expansion. Suburban office occupancy is now close to 75%; migration to the suburbs has encouraged residential development in close-to-the-city, Westchester and Stamford. Guests discuss New Rochelle, Yonkers, Port Chester and Affordable Housing.
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Considering the times we live in - 2021 and early 2022 were excellent years for the investment sales business. War in Ukraine, inflation, rising interest rates have impacted the industry. Guests agree: the world is shifting. Rental markets are doing well; land sales are active; private clients are buying rather than large institutional buyers. The C & D office market is very tough-but attractive. All are looking for government partnerships to significantly increase the supply of housing on the market.
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Changing jobs during a pandemic can be risky. Guests discuss their changes, from retail leasing to mortgage broker, from accountant to banker, and challenges to the future of their industry. As restrictions are relaxed, guests are optimistic about retail, the Long Island market, Gowanus, Harlem, the economy coming back, and the returning to the office.
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Real estate developers and bankers discuss successful projects currently being developed on Long Island. With City endorsement, new projects are in construction after remaining vacant for 40 years - Long Beach - rentals and condos; Westbury - luxury condos and rentals - upgraded amenities, supporting a no maintenance life style. Banker discussed industrial properties, senior living, transit-oriented projects and repositioning of assets.
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