Weekend Interview: Newgard Development Group CEO Harvey Hernandez

This series gets into the heads of the decision-makers of CRE, the people shaping the industry by setting investment strategy, workplace design, diversity initiatives and more.

Newgard Development Group is getting ready to start construction on its latest development, a 44-story luxury condo tower in the heart of Miami designed with Airbnb hosts in mind.

The $300M Lofty Brickell building is 88% pre-sold ahead of construction, Newgard CEO Harvey Hernandez told the Miami Herald last month, and the 362 units come fully furnished and can be rented out for the short or long term. He has already developed similar towers in Austin and Miami and has two more sites primed for future residential next to Lofty.

Hernandez says there isn't enough innovation in commercial real estate — and in Miami right now, no blood in the streets either.

Bisnow: Baron Rothschild once said the “time to buy is when there’s blood in the streets.” Where is the blood today?

Hernandez: There is not currently any “blood” out there, but we think there might be opportunity next year. We continue to be vigilant about those potential opportunities and are prepared to move quickly on them.

Bisnow: What is your most controversial CRE opinion and why are you right about it? 

Hernandez: Much of the commercial real estate industry is resistant to innovation. Many people in the industry just want to do what they have done in the past forever. We believe in change, innovation and trying new things with every project we have done.

Bisnow: If you weren’t in real estate, what path would your career have taken?

Hernandez: I would either work in finance or design. I’m passionate about both and am lucky to be able to apply that passion to my day job as a real estate developer.

Bisnow: If you could make one change to the industry, what would it be?

Hernandez: I would make the entitlement and permitting process more efficient because projects take longer than they should. Municipalities and the private sector can work together on ways to streamline that process for the benefit of everyone involved.

Bisnow: What is one thing you would do differently from early in your career?

Hernandez: I would have started in real estate earlier than when I did. I was in my late 20s when I ventured into real estate development. Had I started in my late teens, I would have gained another decade of valuable experience.

Bisnow: As a leader, how do you decide who is worth mentoring and who is simply not a good fit?

Hernandez: The best person to mentor has the right attitude and the drive to learn and execute. It is all about having that internal drive to succeed. Those are the people we are passionate about having on our team and giving them the opportunity to learn and grow.

Bisnow: What are your thoughts on the metaverse? Does it have any relevance for CRE?

Hernandez: The metaverse has a tremendous amount of potential — it’s just not there yet. The potential is the ability to create immersive environments that represent projects way before they are built. That is hugely valuable.

Bisnow: What do you see as the lasting impacts of the pandemic on CRE? 

Hernandez: The lasting impacts of the pandemic are that people want to work, shop and live differently. Commercial real estate, whether it is office, retail or multifamily, is forever impacted by that change of behavior. We have to adapt our projects to take those shifts into consideration.

Bisnow: As you know, there is a massive conversation underway regarding advancing more people of color and women into the C-suite. What are you doing to address those voices and that movement within your own organization?

Hernandez: We believe in diversity, and as a team, we have been diverse since inception at all levels of the company. We also believe in merit irrespective of race, religion or nationality. That’s good for business and what makes this country great. Anything is possible, as long as you earn it.

Bisnow: So, this is the weekend interview. What’s your typical weekend routine?

Hernandez: In my typical weekend, I work out, get some work done and enjoy being on the water with family and friends. Nothing beats time on the water in Miami, especially during these “winter” months.