Michael DiMella

State officials estimated the entire housing package would spur around 200,000 new housing units over the next decade. The package would also provide incentives for converting commercial office buildings into housing and it would remove a state density cap on residential buildings. That would allow city officials to zone for taller structures in new parts of the city. On “good-cause”: Newly constructed units would be excluded for 30 years, and the exemption would apply retroactively to units built as early as 2009. Units in small owner-occupied buildings are exempted, as are dwellings where the landlord owns 10 or fewer units across an entire portfolio. Units above a certain rent threshold would also be excluded, but the exact level was still being negotiated. #485x #421a #housing #development #nyc

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Want more details about the Knakal Map Room? In this clip from a recent podcast, I share BKREA's hub of real estate information in Manhattan. The Knakal Map Room houses extensive data on development projects, construction plans, recent sales, and more, providing a comprehensive view of the market. Yes, it's analog but there is something to be said about having a physical map you can highlight, mark up, and manipulate that is very satisfying. Special thanks to Jamie Bateman from the From Adversity to Abundance Podcast for having me on his podcast. Get the link to the episode in the first comment. #bkrea #nyrealestate #bobknakal

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Why Is Office-To-Residential Conversion So Difficult To Get Done? In NYC, there is a low availability rate of apartments and a glut of B and C-level office buildings with low occupancy. Perfect, right? So why is office-to-residential conversion occurring at such a relatively slow pace? This is true even with the recent announcement of the planned conversion of Pfizer headquarters to housing. Jonathan Miller, CRE®, Member of RAC described many of the issues in a recent HousingNotes article 'The Challenge Of Office-To-Residential Conversions – Red Stapler Edition'. These are his bullet points with broader explanations in the article here https://lnkd.in/eQaPVW-5 - More Time Needed - Construction Costs Are Higher - Large Floorplates Are Often Not Feasible - Most Municipalities Can’t Afford To Subsidize - Zoning Variances And Community Approvals - Vacancy Rates Are Misleadingly Low _____________________________________________ If You Are Buying A Home Or Commercial Property In New York State… Did You Know That Title Insurance Companies Are NOT All The Same, Including The Cost? And, it’s your RIGHT to choose the title company you want to use! That's Where Your Due Diligence Comes In! Read '10 Significant Ways That Hallmark Abstract Service Differentiates Itself From Many New York Title Insurance Providers!' here https://lnkd.in/eTQAWCdH. Questions? Contact us at [email protected] or (516) 741-4723. Hallmark Abstract Service...You Buy Real Estate, We Protect It! #adaptivereuse #affordablehousing #housingcrisis #architecture #construction #residential #NYC #NYCrealestate #refinance #CMBS

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As we consider the current administration’s proposal to implement a rent control mechanism, capping rents at 5% for owners of 50 or more units, it is crucial not to lose sight of the many other challenges contributing to the growing affordability crisis. There has been no shortage of criticism on this plan on LinkedIn, grounded in years of well-founded research and opinions from numerous housing experts across the nation. Almost unanimously, the consensus is that imposing national rent control will exacerbate existing housing shortages—now averaging 1.5 million units nationwide—and increase, rather than decrease, affordability. I encourage you to read the attached article from the National Association of Home Builders (NAHB), which offers a ten-point guide as a blueprint towards equitable housing. Pay special attention to points #1, #5, #6, and #8. While every point on the NAHB’s guide is significant, those I highlight have been responsible for adding over 40% to multifamily development and over 20% to single-family development in regulatory costs alone. In Puerto Rico, these costs are even higher, further complicated by grossly inequitable fair market rents that are unsustainable at any level. Rent cap legislation was also introduced fairly recently, ignoring the massive disfunction in permitting, land-use restrictions, approvals and archaic zoning statutes, amongst others. This isn’t rocket science; it’s a matter of supply and demand. With high demand and limited inventory, we all know who ends up paying. #NAHB #ACPR #affordablehousing #realestatedevelopment #multifamily #singlefamily #puertorico #realestate #housingcrisis #apartments #homebuilding #housing #housingpolicy

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Do you think they are ontarget or overly optimistic? FROM CRE Daily: NYC to Deliver Record 35K Apartments in 2025 of 500K Nationally Over 500K apartment units are projected to be delivered in 2025, with The Big Apple leading in volume at nearly 35K units. Bigger picture: According to RealPage, expect over 500K new apartment units next year nationwide—a record-breaking figure not seen since 2008. This is thanks in no small part to improving economic conditions (hint: upcoming Federal Reserve rate cuts), coupled with the fact that affordable homeownership remains out of reach for millions. Zooming in: Around 14 US metros will each receive over 10K apartment units, with NYC leading the pack at a modest growth rate of 1.8%. Coming in second, Phoenix will see 29.6K units delivered at a 7% growth rate. And rounding out the top three, Los Angeles will add 19.4K units, its largest delivery load to date, at a 1.6% growth rate. Markets Expecting The Most New Apartment Supply in 2025 Sunny supply: The Sun Belt continues to drive national apartment supply growth. Texas metros, including Dallas, Austin, and Houston, will deliver 14–27K units each. Other leading markets in the region include Charlotte, Raleigh, Atlanta, and Orlando—all experiencing strong population and economic growth. Meanwhile, Seattle and Denver represent the West in high multifamily supply growth. Small but strong: While major metros dominate in sheer volume, smaller markets are set to achieve the highest growth rates. Asheville, NC, will lead the nation with 13.3% more inventory, delivering over 3.5K units. Other small markets enjoying rapid growth include Huntsville, AL, Wilmington, NC, Savannah, GA, and Myrtle Beach, SC, which are expecting inventory growth rates above 7% next year. ➥ THE TAKEAWAY Demand will dominate: The 2025 apartment market is set for recovery as supply pressures ease. Operators are betting big on Sun Belt growth, driven by strong job markets and high homeownership costs. With rents stabilizing, leasing conditions could rebound as early as spring, marking the end of a generational supply peak.

Here’s something I’m not thrilled about: congestion pricing in NYC. I understand the need to fund infrastructure and improve the subways, but charging $9 a day to drive south of 60th Street in Manhattan feels counterproductive. Right now, Manhattan is already facing a significant drop-off in midweek workers, especially on Mondays and Fridays, as remote and hybrid work redefine office life. Instead of incentivizing people to return, this feels like a deterrent. Yes, I get the argument for reducing cars and encouraging public transportation, but is this the right solution? What really hits home for me is how this impacts young professionals like my 24-year-old daughter, who reverse commutes out of Manhattan for work. She’s now looking at an additional $50/week cost on top of high rent and parking fees. It’s tough enough to get ahead in the city without these extra costs. What are your thoughts on congestion pricing? Is it the right move, or should NYC explore other ways to balance revenue and accessibility?

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Zillow expects Ohio’s Biggest cities to be among country’s hottest housing markets This Story Comes from https://spectrumnews1.com/ and it talks about the hottest real estate markets. "Even with elevated interest rates, it never seems like houses stay on the market for very long. And now there’s a new list that shows Ohio may be home to the hottest market in the entire country. “When you think of Ohio, you think of those top three — you think of Cleveland, Columbus and Cincinnati. And you cannot go wrong with all three,” said Morgan Shawver, a real estate agent and recent first-time home buyer. “The best thing you can invest in on earth is earth so being able to own a little part of land or a home and then building that equity it snowballs, and I think the younger people and our generation they’re just starting to learn that." According to the predictions from Zillow, the Ohio real estate market is benefiting from those lessons. The Buckeye State is the only one to boast three cities in the top 10, with Cincinnati and Columbus taking the second and third spots on that list, respectively. Cleveland ranks eighth. “This state encompasses just about everything. You have Ohio State University, you have Ohio University, all these bigger colleges even just within a few hours of Columbus, you just have so much affordability and so much growth that is going to happen so we just loved it,” Shawver said. Zillow used factors like strong demand, steady home values, job growth and a growing number of homeowners all play a part in the rankings. The website predicts Columbus will have a higher percentage of new owner-occupied homes than any other major metro area this year. Ohio’s capital city jumped 17 spots from last year, while Cleveland fell two spots from 2023. “I just think again there’s so much growth going on in all three. In Cleveland you have professional sports, in Cincinnati you have professional sports, Columbus you have such a good base of things to do, but also young professionals can come here and really plant their grounds and do so much in all three of those, but also right outside of three of those cities are such great school systems and can be a great place to raise a family,” Shawver said. Meanwhile, with companies like Intel, Google and Amazon adding new positions in the Buckeye state, it could add up to a housing boom across the state. “All three have so much to offer no matter where you are in your life. It has just been amazing to watch all three of those blow up, especially now with Intel coming too. I just think all three are going to continue to grow,” Shawver said." The key is cost of living and Jobs and Cleveland Ohio has all that in spades. Need good real estate to create income and wealth with? Call me (Brett) 216-703-5740 Key Realty and Property Management 1200+ Properties and Counting #realestate #propertyinvestment #propertymanagement #realestateagent

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🚨 New York’s Housing Crisis: A Post-421-a Landscape 🚨 More than two years after the expiration of the 421-a tax incentive, developers and lawmakers are navigating new territory with the introduction of 485-x, passed in late April. The backdrop? A severe housing crisis in NYC, where rents have soared to all-time highs, vacancy rates have plummeted, and the housing pipeline is nearly dry. 🏙️🏢 While 485-x aims to address affordable housing needs by requiring permanently affordable units and setting lower rent caps, developers argue that it misses the mark. They say that the higher wage mandates and restrictions will limit the incentive to build large-scale projects, the very thing needed to tackle NYC’s housing shortage. 🏗️ As the city grapples with these challenges, the question remains: Will 485-x be enough to unlock new development, or will it further complicate the path to resolving the housing crisis? 🤔 ________________________________________________________ Are you buying commercial or residential property in New York? The title insurance company you choose to use actually matters a great deal! And remember that it’s your RIGHT to choose the title insurance provider you want to work with. Read ’Top Reasons New York Homebuyers Can And Should Choose Their Title Insurance Provider!’ here https://lnkd.in/efKNzZuv. Questions? Contact us at [email protected] or (516) 741-4723. Hallmark Abstract Service…You Buy Real Estate, We Protect It! #NYCHousingCrisis #AffordableHousing #RealEstateDevelopment #485x #HousingPolicy #ConstructionIndustry #NYCRealEstate #421a #Multifamily #CRE #commercialrealestate #government

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In just two weeks, Planscape | Real Estate Advisory will be wrapping up our first project on Cape Cod! We have a photoshoot at the end of June, and I can't wait to share the final product with all of you. 🏠 We're thrilled to deliver the project on time, on budget, and with a few weeks to spare so that the homeowners can enjoy it before the start of a fully booked summer rental season. 𝗔 𝗳𝗲𝘄 𝘁𝗵𝗶𝗻𝗴𝘀 𝗜'𝘃𝗲 𝗹𝗲𝗮𝗿𝗻𝗲𝗱: ✅ 𝗗𝗲𝘀𝗶𝗴𝗻 𝗶𝘀 𝗻𝗼𝘁 "𝗼𝗻𝗲 𝘀𝗶𝘇𝗲 𝗳𝗶𝘁𝘀 𝗮𝗹𝗹": Designing a personal residence is a world apart from multifamily projects. This project pushed me to explore new design solutions and achieve a level of specification not typical in larger developments. ✅𝗘𝗻𝘁𝗶𝘁𝗹𝗲𝗺𝗲𝗻𝘁 𝗣𝗿𝗼𝗰𝗲𝘀𝘀: Securing entitlements in a small town vs. a big city revealed that relationships are paramount. Despite my initial concern about working with a single plan examiner, his collaboration was invaluable, leading to the prompt approval of our project plans. ✅𝗚𝗖 𝗣𝗮𝗿𝘁𝗻𝗲𝗿𝘀𝗵𝗶𝗽𝘀: I am fortunate to have had a GC who was a true partner on this project. Their craftsmanship, open communication, and creative problem-solving were instrumental in ensuring this project was completed on schedule. ✅ 𝗦𝘁𝗮𝗸𝗲𝗵𝗼𝗹𝗱𝗲𝗿 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁: If nothing else, I learned the importance of managing stakeholders with compassion, patience (😉), and an open mind. On a more personal note, one of this project's most rewarding moments was seeing the excitement on the client's faces when they walked into the home last week and saw the project 95% complete. It may sound cheesy, but moments like these remind me why I love what I do so much. I want to express my heartfelt gratitude to my network for your support. Your belief in me and the work I've been doing at Planscape | Real Estate Advisory has been instrumental throughout this process. Stay tuned for the final images in the coming weeks! #realestate #architecture #construction #renovation

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We’ve now had 5 strong months in a row in terms of the number of NYC homes going into contract. Last month was the 3rd busiest November in at least 10 years! All particularly amazing given that election years are often said to be slower than normal. (And because this busyness is happening while prices increase slightly vs being driven by lower prices.) Now that the election is over, will this market get even busier? We will see! Curious what’s happening in the specific segment(s) of the market on which you’re focused? There’s lots of segment-specific data in the tables overlayed in this video. You may have an easier time reading that data if you pause the video. There’s also even MORE data in slides video on my YT channel :) In these monthly reports we focus on Manhattan and “Brownstone Brooklyn.” Comment below or send me a DM if you have any questions at all, whether about these segments or anything else!

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SFR asking rents are forecasted to grow by more than 3.5% in 2024, more than 4% in 2025, and more than 5% in 2026. This resilient rent growth is due to a combination of factors including low supply of for-sale and rental properties in the majority of markets, higher mortgage rates and continued elevated home prices, and continued healthy job growth numbers.

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haven't read this article about #BigApple office market, published by Institutional Real Estate, Inc. magazine? no worries, key takeaway is the concept of "Urban Doom Loop"," which is a cycle that can negatively impact urban areas. For NYC this is history, not a hypothesis. Here's a step-by-step explanation of the cycle: 1. Remote Work Increase: This leads to reduced demand for office space and urban amenities. 2. Tax Revenue Decline As businesses and employees move away or reduce their urban presence, the tax revenue collected by the city decreases. 3. Shops/Businesses Close With fewer people in the city, shops and businesses face declining sales and start closing down. 4. Further Tax Decline exacerbating the revenue problem. 5. Crime Increase. 6. Population Decline Higher crime rates and fewer amenities drive more people to leave the city, leading to a further population decline. 7. Occupancy Decline As more people leave, occupancy rates in both commercial and residential properties decrease. 8. Reinforcement of the Loop The decline in occupancy leads back to further remote work or reduced business activity, the loop is complete. Long Live Remote!

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I know, not everyone is interested in CMBS loans. However, a CMBS resurgence could benefit CRE professionals. Rather than reading the entire article, allow me to extract and summarize four major themes you should be aware of. 1. The CMBS market has seen a significant rebound in 2024, with private-label CMBS issuance reaching $32.2 billion, compared to $13 billion during the same period in 2023. After dealing with CMBS loans and servicers for years, some of my clients refuse to consider another CMBS loan. What has changed? “If you need money and are (a) in position to refinance a loan and you don’t have an alternative, it becomes your go-to source and potentially your only source for financing.”  No other options! 2. The decline in commercial bank CRE lending, influenced by the regional banking crisis of 2023, has driven borrowers towards CMBS as a financing alternative. Yes, many banks are still on sidelines. “Banks are in retrenchment mode so there’s a huge liquidity crisis that’s going on, and CMBS is stepping to fill that liquidity crunch. It’s a combination of a gap in the market because of regulatory pressure, credit pressure and balance sheet pressure.” But someone must buy the CMBS bonds. Are they selling? 3. There is a strong demand for CMBS from investors, with $24.6 billion in new CMBS securities purchased year-to-date through May, nearly three times the amount in the same period in 2023. Why now? Are spreads better? “Spreads for CMBS were historically in the 50 bps range. If they’re making 250 basis point spreads (today), that’s a huge profit for them. Higher spreads are always lucrative for lenders, who charge interest paid on the loan based on the difference of what they’re buying the money for and what they’re selling it for" Even with higher spreads, are the loans attractive to borrowers? 4. CMBS offers competitive rates and terms compared to available options, because there are fewer. “Your options as a borrower, particularly from traditional banks, have dried up materially, compared to the CMBS market, which is still very liquid. While it does come with some headaches when dealing with an asset that underperforms, or goes into special servicing, overall CMBS is available and a better option than it was last year." A CMBS execution may not be your favorite, but it could be the best and only option for a less-than-stellar performing property. Look at it this way, still better than a foreclosure or capital injection.  #cre #commcap #crelending #creinvesting #CMBS

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Rent control does not work. New York City Community Bank has had a 990% spike in multifamily delinquency tied to rent controlled apartments. With current losses projected at $1.5B. The bank is currently selling off assets to offset losses. I'm a huge fan of affordable housing but rent control is not the answer. In 2019, NYC passed the Housing Stability and Tenant Protection Act. The law primarily affects apartments built between 1947 and 1973, which encompasses around 1 million units. The law severely restricts a landlord's ability to raise rents, charge late fees or evict existing tenants. With increased timelines for non-payment, an inability to charge late fees for evicted tenants, and punitive charges for illegal eviction. The law also curtailed some loopholes by which property owners had previously been able to remove buildings from the program. Loopholes which were often priced into their valuations. Which leads us to where we are now. With $1.5 Billion in losses and several hundred million more projected as the interest rates on the notes reset from say 3% to 7% even as the actual Net Operating Income (NOI) may have actually decreased. Commercial real estate loans are amortized for 20-40 years depending on asset type and loan type. However, the debt is only locked for 5-10 years (with a few exceptions). Theoretically, NOI will have increased sufficiently to offset the increases in interest rates and allow for the takeout of the existing debt, but in this case it's not. With expenses actually outstripping allowable rent increases. While the article focuses on the severe economic losses at the bank level. Losses that almost led to the bank's collapse earlier this year. It does not discuss the real impacts on the properties themselves. As I mentioned the other day, banks are generally not eager to foreclose on commercial real estate. It forces them to book the actual losses. Which means that many of these buildings have likely been in trouble for years. During that time, the owner would have no incentive to do any repairs or upgrades. So yes, the people living in those apartments wouldn't see major increases, but they may also not have working toilets. Further, the buildings, which are older, would likely start to degrade overall. When you underwrite a loan on an older building you pro-forma in more capital expenses, because old pipes break, sewer lines fail, brick has to be tuck-pointed, and repairs may involve lead based paint or asbestos remediation. The overall result of the "Tenant Protection Act" is crumbling buildings, failing banks and substandard living conditions. https://lnkd.in/echg8xXV

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Northern NJ: The Most Underrated Multifamily Market in the US In today’s market, nearly every LP investor is focused on multifamily deals in pro-development red and purple states, particularly in the Southeast. While these regions have attracted significant investment, they are beginning to show signs of oversupply and plateauing demand in many submarkets. Additionally, rising insurance costs have made the Southeast less appealing in certain areas. It’s time for investors to broaden their horizons, and my top pick is Northern NJ—a market that offers all the upside of a growing region without the challenges of anti-development environments or unfriendly tenant laws. I view Northern NJ as an extension of NYC, but without the problems. The region attracts steady population growth by providing affordable, connected living options for renters. NYC’s notoriously challenging development environment has slowed new construction within the city, pushing demand outward. Suburban markets like Long Island, Fairfield County, and Westchester face high land costs and restrictive NIMBY politics, which further constrain development opportunities. In contrast, Northern NJ offers abundant opportunities for development, supported by seamless transportation options like PATH trains, NJ Transit, and major highways connecting the region to Manhattan. The region also boasts one of the best international airports in the country, adding to its appeal. Northern NJ’s relatively friendly local governments make it an easier place to navigate for developers compared to nearby areas. Projects are approved more efficiently, with less red tape, allowing developers to scale faster. Many municipalities also offer tax abatement programs that incentivize development, reducing costs and enhancing project feasibility. The region caters to a wide range of renters, from high-end 4 & 5 Star developments to workforce housing. Transit-oriented projects near urban hubs are in particularly high demand. If renters don’t work directly in NYC, they often serve those who do, making Northern NJ a vital derivative market that reinforces its resilience. With median household incomes 35% above the national average, Northern NJ boasts a strong renter base. The region is home to major industries in logistics, healthcare, and education, providing stable, high-paying jobs. Key employers like Prudential, Merck, and Johnson & Johnson have a strong presence, while world-class universities like Rutgers and Princeton contribute talent and economic vitality. Northern NJ offers everything multifamily investors need: steady demand, a pro-development environment, and resilience—all without the risks of oversupply plaguing other markets. CoStar projects stabilized vacancy rates in the region to remain below 4.5% in the coming years, significantly outperforming the U.S. average of 8%. Northern NJ isn’t just a safe bet; it’s a high-performing market that deserves serious attention.

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1. If Berman is right, +66 million square feet of office space (about 6% of New York City's total office space) could be converted into residential units in the coming years. These units will likely be awkward, with windowless "home offices", but hey, that's the price you pay for the privilege of living in a converted cubicle in the city that never sleeps. 2. Berman's betting on the zoning gods and dreams of converting pre-1970s buildings, which account for an estimated 30% of the city's 1.1 billion square feet of office space. In a city where a shoebox costs a kidney, his "slums for the rich" sounds like a solid bet. 3. The article glosses over the second-order effects of this trend. Take urban agriculture, for instance – a sector that's expected to grow at a sizzling CAGR of 10.1% from 2020 to 2027, fueled by the insatiable demand for sustainable, local food sources. It's the perfect fit for the eco-conscious Gen Z crowd moving into these converted spaces, who wouldn't be caught dead eating a conventionally grown tomato. 4. Vertical farming can yield up to 350 times more produce per square foot compared to traditional farming methods, making it an ideal solution for urban environments. Startups in the agri-tech sector attracted $4.4 billion in investments in 2019, indicating a strong interest in sustainable crop production and smart farming technologies. 5. So, if you find yourself living in a converted office space with no windows, just remember: you can always grow your own food under the fluorescent lights of your "home office" – it's like having a personal, indoor farm right next to your standing desk! .

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Unlock the Power of Specialization in the Mature Market! Join us for SREI's Mastery Mondays on September 30th at 2 PM (CST), where we sit down with two Certified Senior Housing Professionals who took a bold step by going all in on the 55+ senior real estate niche. For many agents, finding a brokerage that truly supports specialization in the mature market can be a challenge. Whether it's the lack of understanding, community, or proper training, traditional brokerages often fall short when it comes to nurturing your passion for serving older adults. During this exclusive webinar, we’ll talk with Laura Kelso of Kelso Homes and Lisa Treadwell of Indy Real Estate Experts about their journeys in establishing their own independent brokerages. You’ll learn why they made the leap, the hurdles they overcame, and the personal and professional benefits they’ve discovered by carving out their own paths in senior real estate. If you're ready to take your specialization to the next level, don't miss this conversation! Register here (one time): https://lnkd.in/gjVtAFUU

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This is interesting development. Say half of these projects move forward to actual conversions and that each building has an average RBA of 200,000 that's 9.4 million square feet of office inventory removed from the supply / demand matrix. Now say that the occupancy of these buildings is 50% and they move elsewhere that absorbs 4.7 million square feet. So this would move the needle to the tune of 14.1 million square feet. It sounds like a lot of inventory being removed from the supply / demand matrix, but there is currently 97 million square feet available. So these conversions would lead to 14.5% less space available. The $64,000 question is, how do we reduce the available space by another 20-30 million square feet. The long and short answer IMHO is economic growth in NYC; which will lead to more businesses being formed and more demand for office space. Let me know if your firm needs help navigating their next office real estate transaction. Michael Adler 212-519-2046 #cre #commercial #commercialoffice #commercialrealestate #commercialofficebuilding #commercialdevelopment #commercialleasing #office #officebuilding #offices #officebuildings #officelease #officeleasing #tenant

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