Real estate, economic and financial leaders last week spoke at a forum hosted by the Fordham University Graduate School of Professional Studies and the Westchester Business Council to discuss industry trends and who are influencing the market, and who they are in the commercial sector in and outside of Westchester County. discussed how it affects
“Let’s Get Financial! How Real Estate and Financial Trends Are Reshaping the Westchester Economy” was launched virtually on June 1st and featured. Nicky GreenbergFounder and Chief Innovation Officer of Future Real Estate. Al Gutierrez, Managing Director of JLL Securities Company.and Melinda White, a Hudson Valley and Wells Fargo commercial bank leader. The discussion was moderated by Dr. Joshua HarrisHe is a real estate economist and investment strategist, managing partner of the Lakemont Group and adjunct professor at the Fordham Real Estate Institute.
Harris set the stage by considering an “inverted yield curve,” where short-term rates are higher than long-term rates, and the implications for real estate. He noted that the US Treasury Department’s one-month interest rate is 5.2%, while the 10-year rate, which sets the tone for mortgage rates and commercial property valuations, is 3.6%.
“The interest rate hike in the last 12 months was the fastest level the Fed has ever achieved,” Harris said. “This is occurring in the context of recovery in a post-coronavirus world, which is unique for a place like Westchester, one of New York City’s most famous suburban commuter zones. .”
He asked the committee whether the city of Westchester is benefiting from working from home and other “disruptions” in Manhattan.
“Historically, Westchester has attracted many corporate headquarters from New York City in search of a better way to work and live. Told. “Well, the question is about occupancy, should we be in New York City? Should we consider having more local offices? Westchester is poised to benefit from a location standpoint. increase.”
Gutierrez added that Westchester’s challenge is its “outdated” office buildings, adding that “a lot of reinvestment needs to be done to attract these residents from New York City.”
Harris turned the conversation to Transportation Oriented Development (TOD), looking at progress in Yonkers, New Rochelle and Port Chester, and asked whether the Westchester real estate community is living up to its mission to offer its offerings going forward.
“At present, multifamily housing is the real estate sweet spot,” says White. “The limiting factor is the economy. With current interest rates, will these projects be viable? Projects are on hold, not because of lack of funds, but because of construction and transportation costs.”
Futurist and innovation strategist Greenberg identified Generation Z as a target for TOD. “They are a generation with different expectations and they definitely want to be homeowners,” she says. “They love technology and are very concerned about the environment. It makes sense that they would want to live close to where they work, or at least close to public transport. “
Harris asked how changing access to capital is impacting the office market in terms of expansion, restructuring and other capital expenditures.
“Office space is a tough market. Of course, it’s all case-by-case, and if we have a good story to tell, we’re willing,” White said. “Investors are being very cautious about putting more money into buildings…Owners have to get their hands in their pockets and that’s a downward cycle. If you don’t have quality, you can’t attract good tenants.”
The panel discussion also shared insights into remote work trends and how they are reshaping real estate.
“You can’t group all individuals and organizations into one bucket, so there’s a lot of conflicting evidence about productivity and expectations,” says Greenberg. “Today, the technology we use to do our work is portable, and our company’s information is stored in the cloud, opening up more options. We are empowered to make our own decisions about
On the impact of the recession on Westchester, the Commission agreed that it could be an opportunity to “rethink, reassess and reinvest”.
“There is still a lot of untapped capital,” Gutierrez said. “There will be opportunistic investors looking at properties on the brink of foreclosure as land bank opportunities for redevelopment. Science, education, and these occupy the forefront of much of the obsolete space in the market.”
“This insight is critical as we plan for 2024 and beyond,” said Dr. Marsha Gordon, Chairman and CEO of the Westchester Business Council. “What’s happening in the commercial real estate market in New York City’s Hudson Valley and the wider area has implications for the entire Westchester business community.”
Dr. Anthony R. Davidson, Dean of the Fordham University School of Professional Continuing Studies (PCS), said: “We are proud to work with the Westchester Business Council to bring together top minds to help us all stay ahead of the curve,” he said. . “The way we live and work is constantly changing, and our mission is to provide academic, professional and corporate training programs that keep up with that change.”
Davidson noted that as part of PCS’ mission to support the Westchester community, the school has launched a “Good Neighbor Initiative.” This will automatically reduce tuition by 30% for undergraduate degree students enrolled in PCS at Fordham’s Westchester campus and living in the city. The “nearby” postal code of the campus at the time of application.
Click here to view the event.