News
Fascitelli & Friends
October 16, 2009
| The Dow hits 10,000 yesterday and Bisnow gets a record crowd of 650 at this morning's State of the Market and Schmooze. Should we play tomorrow's $200M Mega Millions jackpot? Thanks to everyone who stopped by Cooper Union's Great Hall to hear some of NYC's biggest names in real estate give their views and outlooks. |
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| Vornado legend and CEO Mike Fascitelli (he rejected the former designation, saying the word implies you’re old) keynoted. He talked about how the market has changed beyond comprehension, discussing factors like declining rents, TALF, and the debt and sales markets. Fundamentals have bottomed out and rental rates are firming up, he says, reporting that Vornado is hoarding $3B in cash until opportunity knocks. On the leasing side, its directive is to keep the buildings full; concessions are up and space is being built out for tenants. Retail's seeing a lot of vacancies, but it may be one of the best buying opportunities—we have to see what the consumer's going to do over the next five years. |
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| Your humble publisher Mark Bisnow joins Mike and our distinguished panel: CBRE Tri-State President and CEO Mitch Rudin, Cushman & Wakefield global CEO Bruce Mosler, Fried Frank real estate chair Jon Mechanic, Fisher Brothers partner Winston Fisher, and Goldman Sachs real estate co-head Andy Jonas. Where's the money? Mike has it, they joke; Bruce points out that REITs, foreign investors, sovereign wealth funds, and institutions will be the owners—high-leveraged players are out. Buyers won't move, however, until they see stability. |
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| In the same cavernous hall where seven US Presidents have spoken since it was built in 1859, the panel said now is a great time for tenants to lock in rates, and today's opportunities far exceed the benefit of waiting to get the last dollar on the deal. The notion of falling off of a cliff is gone, Jon says, and therefore 10-15 year commitments are returning. |
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| A BIG thank you to our great sponsors Cole Schotz and Cornerstone Accounting Group. Here we have Cole Schotz's Iryna Carey, who moderated the panel, colleague Tara Ryan, The Kaufman Org.'s Michael Giglio, and Cornerstone's Harry Dublinsky,Stanley Perla, and Daniel Vitulli. Stanley tells us that everyone's waiting for the floodgates to open, and it's only matter of time—expect a better recovery than the early '90s, thanks to the lack of overbuilding. |
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| NorthMarq's Ernest DesRochers, Landstar Title's Marco Botarelli, and Cole Schotz's Allison Lissner. Ernest tells us that the multifamily market continues to sizzle—much of what NorthMarq has been working with is agency lending, where he's seeing very competitive pricing. And congratulations to Allison, who recently tied the knot—a wedding in England and honeymoon in Greece. |
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| Tritech's John Ryan, Haworth's Aret Lerian, TSC Design's Steve Bitterman, JFK&M Consulting's Yuri Katz, and Haworth's Robert Garrity. Aret notes a particular uptick in activity of clients this past three weeks, as they start investigating what options they have for '10. After speaking to other attendees, John notes consensus on what his firm's been seeing—pent-up demand and deals ready to be made. Nothing like positivity oozing from the schmoozing! |
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| WURK Environment's Joe DeTrano, ARS Abstract's Anthony Kazazis, Bluestone Realty Advisors' Patrick Bisceglia, Gunlocke's Jamie Mikkelson, and Rock Creek Realty Capital's John Betzig. If you haven't yet, consider signing up for the NYC Real Estate Expo on 10/30 at the Roosevelt Hotel. Anthony is heading the event, which includes 100 vendors and innumerable attendees. And it's free.Register here. |
