Top NYC Real Estate Lawyer: Positive Momentum in the Market

I think the market's having a lot of momentum, positive momentum. Um, it's been three years of historic lows in terms of activity. Um, a lot of issues with interest rates, um, geopolitical concerns, and I think that you're seeing a lot of pent-up demand coming out in the in the marketplace. Um, we talked about interest rates. We had our first rate cut a couple weeks back. It's giving consumers a level of confidence that rate cuts are no longer going to be a a fiction that they're actually going to be taking place. And the Fed's already penciled in two more this year, another one early next year. So I think that sophisticated investors and buyers are entering the market now before this pandemonium because when you really look at the detraction in volume that's taking place you and you think about other factors that would lead to buying power such as all-time high in the equity markets alternative assets like crypto hitting record levels. There's a lot of buying power and liquidity out there. People are realizing it's going to be pandemonium again. Let me get my foot in the market now. Let me dip my toes in the water. Start transacting before it's going to be too late. Incredible. You said uh there's momentum in the market. Is this across the board or in specific sectors? >> Um I think it's now across the board. You know, the last few years activity has been concentrated in the high-end market. And luckily in the last 3 months, we're seeing entry- level buyers enter the marketplace. So, as a transa transactional attorney, you know, clearly, you know, we represent every segment of the market, but a healthy market is when everybody's transacting, not just the ultra affluent. And you're starting to see that now. You know, like I remember one day, it was two weeks ago, I got four transactions in my office and on a Friday, all below a million dollars and I was ecstatic and people like, why are you so happy? Because feewise clearly our, you know, revenues higher in the larger deals. I always this is good for the market. It's a good sign when people feel confident in job security, in their incomes, in the carrying cost, valuations, debt service costs, and interest rates. That's a healthy sign for the market. >> You said uh get ahead of the market. Where are the big opportunities at the moment? >> So, you know, it's funny. We were I was just on a previous panel talking about the resurgence of the co-op market. We're seeing a big uptick in co-op transactions in New York City. And that's because values in co-ops have been suppressed for the greater portion of a decade. And they are relatively speaking in comparison to condominiums and new development s substantially cheaper. And people see value there. And people think that the co-op system will let be less antiquated in the future, less ownorous, less restrictive, and you know what, let me take an opportunity now, get into the co-op market, and that's the best value I'm finding in the marketplace. >> Uh, how does the real estate community feel about the upcoming mayoral election? >> Not not good. Um, point blank. It's um I think that the community is really upset that this is something that has, you know, a possibility of taking place, but in reality, people always want to be in New York. people always transact in New York and we move on and I think that you know it's the initial fear is greater than the negatives of the outcome we'll have on the marketplace but no it's not it's definitely something that real estate's not not pleased about >> is there a specific policy that they're they're most concerned about >> rent freezes you know rent freezes they sound great in theory but they're a tremendous disincentivizer for capital to come into New York and to create housing stock and to improve the current housing stock so how do you create inventory when it's cost prohibitive to enter the marketplace. Right? So, I think that's that's a that's a one that the market that the real estate community is concerned with and rightfully so because when you look at the rent regulations that changed in 2019 by the Delasio administration, they created a huge economic disincentivizer for landlords to improve properties and right now you have about 100,000 shadow units, 100,000 shadow inventory rent stabilized units in the marketplace. Imagine like that's a that those units entered the market. Imagine what that would do for local New York City residents. So that's really the biggest problem because they talk about affordability. Affordability isn't addressed by overregulating an industry. Affordability is addressed by incentivizing development, creating more supply, thus reducing competition. >> Uh finally, are you optimistic for the New York market and New York itself over the next 10 to 20 years? >> I always bet on New York. I say I'm not a betting man, but you never bet against New York. So, I'm I'm extraordinarily optimistic in New York, most resilient city in the world and greatest city in the world. >> Pierre, thank you. >> Thanks so much. Great to meet you.