Real estate development, and the industry overall, has seen the effects of the worldwide pandemic these last months. Haute Residence welcomed developer Avra Jain and Ryan Shear, Managing Partner of PMG, for a live conversation on the "State of Affairs" in the development side of real estate. They were hosted by Haute Living's Violet Camacho. Watch the webinar and read some of their main insights below.
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Avra Jain: "For my friends that have stripped malls, we will see big changes in retail. It is accelerating even more than it already was... Hospitality got crushed. (That industry) is under a lot of stress, expecting an 18-20 month recovery. Conferences have been canceled, so those hotels are in a vulnerable situation... Investors and family funds are moving to Miami, putting more equity here and less on the capital markets... On the office side, we already have high net worth individuals already relocating to Miami, bringing satellite offices and even moving their offices... As long as there are unique opportunities, we will do it. We don't just buy and do deals just to do deals... Our local lenders are great. When the PPP was made available, they reached out to us and we were approved and received the money to pass onto our employees. We are lucky we have a lot of good lenders here. A lot of what people need is a little help now to get past this. Tenants will remember the landlords that did the right thing... The reset is an opportunity to introduce more technology."
Ryan Shear: "Other than New York, we are vertical in Phoenix and Florida, and fortunately the jobs have not stopped. We work with the cities to make concerted efforts to keep workers safe... There is more work to be done today. We are putting an emphasis on planning... The silver lining of a down market is construction costs. You're going to be able to buy a better job. I think office and multi-family will be in a good spot in 6-9 months. It will be less expensive to build... In our New York office, there have been many requests to move to the Florida office. In real estate, New York is in the worst place it has been in my career... In New York, buildings are already built and not having sales. It is exposed for not having sales requirements. Urban cores are getting hit the hardest... We are not seeing sellers willing to take a 20% decrease in price... There should be a finality to this. There are lessons to be learned. How to navigate through this situation; keep people motivated, and not let the business suffer. I try to figure it out as I go along."
To watch more webinars by Haute Residence on the latest in the real estate industry with top leaders, developers, brokers and agents around the US and the world, visit www.hauteresidence.com.