{"id":251399,"date":"2026-06-01T21:32:09","date_gmt":"2026-06-01T21:32:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/251399\/"},"modified":"2026-06-01T21:32:09","modified_gmt":"2026-06-01T21:32:09","slug":"new-york-city-housing-development-now-hinges-on-certain-trends-forum-commercial-observer","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/251399\/","title":{"rendered":"New York City Housing Development Now Hinges on Certain Trends: Forum \u2013 Commercial Observer"},"content":{"rendered":"

Since the election of Mayor Zohran Mamdani \u2014 and even before<\/a> \u2014 much of the commercial real estate industry has been singing Florida\u2019s praises as a low-tax haven that will prioritize business above all else, allowing developers to build, grow rich, and live without interference from local governments.<\/p>\n

Every story has at least two sides, though, and the downsides of the Sunshine State often go unmentioned.\u00a0<\/p>\n

SEE ALSO: The Plan: 99 Park Avenue Returns to Its Art Deco Roots in Midtown<\/a><\/p>\n

For one, Miami\u2019s mayor, Eileen Higgens, is preparing a budget that includes across-the-board city service cuts of up to 25 percent should Gov. Ron DeSantis\u2019s proposed reduction \u2014 and, for some, elimination \u2014 of statewide property taxes go through. The mayor\u2019s proposed cuts would close public parks and cause massive reductions in services such as police and fire response.\u00a0<\/p>\n

But Miami also comes with a direct downside for developers: For all the bureaucracy developers and builders face in New York City, Miami\u2019s can be even worse.\u00a0\u00a0<\/p>\n

\u201cIn New York, when you know what you\u2019re doing, you can get a building permit, or at least the foundation permit, between 12 to 14 months. In South Florida, it takes anywhere between 24 to 28 months if you are on top of it every single day,\u201d Miki Naftali, chairman and CEO of Naftali Group<\/a>, said at Commercial Observer\u2019s Residential Forum held May 28 at Convene<\/a>\u2019s space at 601 Lexington Avenue.\u00a0<\/p>\n

\u201cWe\u2019re building JEM, a 70-story, 1.6 million-square-foot building in Miami Worldcenter, and we\u2019re investing over $600 million,\u201d said Naftali. \u201cIf someone is investing over $600 million in a city and the zoning is residential, if you file for a permit and do everything right, you should get a permit. But there is a planning board. They have an opinion. They can tell you, \u2018Oh, I don\u2019t like this corner, I don\u2019t like that corner,\u2019 and someone sitting over there is trying to tell you how the building should look when you invested $600 million. That was a surprise.\u201d<\/p>\n

\"MikiMiki Naftali (left) and Stuart Saft speak at a panel at the Commercial Observer Residential Forum. PHOTO: Greg Morris<\/p>\n

The Commercial Observer forum featured speakers from all ends of the residential spectrum tackling the subject of housing in New York City from all angles, including debating the negatives and positives of Floridian alternatives.\u00a0<\/p>\n

After the first keynote session of the day, which found Naftali being interviewed by Stuart Saft, a partner at Holland & Knight<\/a>, the event broadened the narrative with a panel on the overall state of the market.<\/p>\n

Moderator Andrew Wachtfogel, co-founder and managing principal at sales and advisory firm Redeavor Group<\/a>, welcomed Jay Roberts, founder and CEO of developer Prosper Group<\/a>; Elysa Goldman, senior vice president of development for developer Extell Development; Genghis Hadi, co-founder and managing principal at Nahla Capital<\/a>; Ray Houseknecht, executive vice president of operations and head of residential for owner Rudin<\/a>; and Ravi Kantha, founder and principal of the Kantha Team at brokerage SERHANT<\/a>.<\/p>\n

As the discussion turned to the subject of New York\u2019s impending pied-\u00e0-terre tax<\/a>, Hadi expressed both the belief that the damage it causes will be minimal and distress for what it could mean in a larger context.<\/p>\n

\u201cI think these laws will be built with sufficient loopholes that buyers will not actually feel the effect of it. However, it is not a positive,\u201d said Hadi. \u201cIf we zoom out from the pied-\u00e0-terre tax itself, the trend we\u2019re seeing, and the reason for our significant investment in a place like Florida, is a trend of buyers moving from tax-unfriendlier states to the tax-friendly states. That\u2019s the bigger picture I take away from this.\u201d<\/p>\n

While Hadi went on to say that New York is, and will remain, the most powerful city in the world, and that those who want to be here will remain here, Roberts noted the disparity between in-migration and out-migration figures in these states.<\/p>\n

\u201cTen years ago, New York City had 8.5 million people. Today, New York City has 8.5 million people. Ten years ago, California had 39 million people. Today, California has 39 million people,\u201d said Roberts. \u201cTen years ago, Florida had 20 million people. Today it has 23.5 million, 16 percent growth. And, in the last five years, Florida\u2019s also added $42 billion of taxable revenue.\u201d<\/p>\n

Hadi said that better communication and cooperation between the private and public sectors will go a long way toward building the housing New Yorkers need.<\/p>\n

\u201cI started my career in Low-Income Housing Tax Credits. They work,\u201d said Hadi. \u201cHousing gets built when the government engages with the private sector, and that\u2019s all we ask for. Engage with us in a way that works so we can help you fix your budget issue.\u201d<\/p>\n

The next panel focused on how to make conversions profitable, and what they mean for New York City neighborhoods.<\/p>\n

Also addressing government initiatives, William S. Macklowe, CEO of owner the William Macklowe Company<\/a>, said that New York\u2019s 467m, which provides tax incentives for residential conversions, is a rare instance of smart governance.<\/p>\n

\u201cOn a pure business case basis, conversions make a lot more sense than ground-up,\u201d said Macklowe. \u201cThere\u2019s a much lesser degree of execution risk, notwithstanding complicated floor plates.\u201d<\/p>\n

Macklowe noted that for developers considering ground-up development in New York, the 485x property tax incentive adds complication and risk<\/a>, whereas 467m eases the path to conversions.\u00a0<\/p>\n

\u201c467m, along with City of Yes, is one of the few examples of smart governmental policy,\u201d said Macklowe. \u201cIt\u2019s much more beneficial to convert under 467m than to take risks with 485x. It helps expand the fabric of one of the greatest cities in the world, and it brings live, work and play integration into central business districts. That\u2019s what ultimately contributes to sustained economic vitality.\u201d<\/p>\n

That panel also featured thoughts from Joshua Benaim, founder and CEO of Aria Development; Daniel Berman, executive director of MetroLoft, a major force in office conversions; and moderator Jason Hershkowitz, partner at Belkin Burden Goldman<\/a>.<\/p>\n

The general agreement with Macklowe among the panelists was so strong that Benaim used an infamous Winston Churchill quote to express his feelings on the trend.<\/p>\n

\u201cFor adaptive reuse and residential conversion, I like to think of it the way Winston Churchill famously quipped about democracy: It\u2019s the worst form of construction except for all the others,\u201d said Benaim. \u201cIt\u2019s challenging, it\u2019s very difficult, but it\u2019s the coolest in my view.\u201d<\/p>\n

Next came a fireside chat where Max Gross, editor-in-chief of Commercial Observer, spoke with Frank J. Monterisi Jr., executive vice president at developer Related Companies<\/a>.\u00a0<\/p>\n

Discussing the company\u2019s Willets Point project in Queens \u2014 which, along with Sterling Equities<\/a>, finds Related developing 2,500 units of affordable housing in addition to the city\u2019s first soccer-specific stadium, a 250-room hotel, an elementary school and 40,000 square feet of public space \u2014 Monterisi described it as \u201cstitching that part of New York into modern-day New York.\u201d<\/p>\n

\"FrankFrank Monterisi Jr. speaks at a panel at the Commercial Observer Residential Forum. PHOTO: Greg Morris<\/p>\n

\u201cIt\u2019s completely reimagining what was a sea of parking into something else,\u201d said Monterisi. \u201cIf you think about economic development in New York, it\u2019s certainly one of the greatest examples in the last few years of growing the pie.\u201d<\/p>\n

Monterisi also cited the project as an example of a strong public-private partnership, and an example of why those partnerships are so important in New York City development.<\/p>\n

\u201cThe folks at [the city\u2019s Economic Development Corporation] that I\u2019ve worked with over the years, and at HPD and HDC and in the mayor\u2019s office, it\u2019s one of those things where everybody has to be pulling in the same direction,\u201d said Monterisi, referring to the Department of Housing Preservation and Development and the city\u2019s Housing Development Corporation. \u201cThat\u2019s how you really get complicated projects like that done in New York.\u201d<\/p>\n

To that end, Monterisi said that he thought the Mamdani administration was headed in the right direction for getting these sorts of projects moving forward.<\/p>\n

\u201cHe put out a housing plan a few days ago<\/a> that was really thoughtful,\u201d said Monterisi. \u201cHe\u2019s being bold and ambitious about what he wants to do, and he\u2019s brought some great people into his administration, like his deputy mayor for housing and planning, Leila Bozorg<\/a>. She\u2019s been in the housing world for years, and she really knows how to get things done. What I have found over the years is that having good partners on the public side when you\u2019re a private developer is a huge part of the equation.\u201d<\/p>\n

That said, on the topic of 485x, Monterisi said that Related will not be building any 99-unit buildings, but rather will wait for the legislation to get fixed or modified.<\/p>\n

The next panel dealt with how developers design residential spaces with lifestyle in mind, and what sort of amenities attract today\u2019s New Yorkers.\u00a0<\/p>\n

Moderator Samantha Sheeber, managing partner at law firm Starr Associates<\/a>, spoke with Jason Hill, director of marketing at developer Domain Companies<\/a>; Elizabeth Koutsoubis, associate principal at architecture firm KPF<\/a>; Sophie Scott, vice president of leasing and marketing for Fetner Properties<\/a>; and Anna Zarro, president and principal at conversion One Wall Street<\/a> and marketing firm AZ & Co.\u00a0<\/p>\n

Scott noted that the COVID-19 pandemic changed the way people in the city thought about the very nature of their apartments, giving amenities a renewed importance.<\/p>\n

\u201cPrior to COVID, there was an assumption that people live outside their homes,\u201d said Scott. \u201cSo, if you\u2019re in the city, you want to experience the city. You\u2019re not going to cook at home, you\u2019re going to do XYZ outside the home, and so for a while there were smaller spaces, smaller appliances, etc. COVID changed the way people live. The expectation became, \u2018I will be cooking from home. I do need space for a desk. I do want bright open spaces.\u2019 Amenities have a greater importance, but also the intentionality behind them.\u201d<\/p>\n

The day\u2019s final panel addressed the changing playbook for workforce and affordable housing in the city.<\/p>\n

Miriam Harris, head of transit-oriented development for the Metropolitan Transportation Authority, noted that the phrase in her title is becoming more of a buzzword in city discussions around widespread development.<\/p>\n

\u201cOur zoning-for-accessibility program allows private developers to get as much as a 20 percent bonus on their property \u2014 that\u2019s 20 percent more housing \u2014 to create elevators and accessible stations,\u201d said Harris.\u00a0<\/p>\n

Harris was joined on the panel by Noah Hale, managing director and head of development at developer Fairstead<\/a>; Jennifer Sun, executive vice president of planning at the New York City Economic Development Corporation; John Valladares, managing director for development and affordable for Slate Property Group<\/a>; and moderator Sheila Pozon, partner at Herbert Smith Freehills Kramer.<\/p>\n

\"VictorVictor Sigoura (right) speaks with Kelly Mack at the Commercial Observer Residential Forum. PHOTO: Greg Morris<\/p>\n

The event\u2019s finale was a fireside chat between moderator Kelly Mack, president of Corcoran Sunshine Marketing Group<\/a>, and Victor Sigoura, founder and CEO of Legion Investment Group<\/a>.<\/p>\n

Mack noted that in a sparse, low-inventory market, Sigoura has managed to spearhead three massive projects in some of the city\u2019s most sought-after neighborhoods \u2014 1122 Madison Avenue, 38 Gramercy Park East and 11 West 13th Street.<\/p>\n

Sigoura said that while developers turned their collective attention to Florida post-COVID, he kept his attention here.<\/p>\n

\u201cWe stayed focused,\u201d said Sigoura. \u201cWe said, \u2018Look, New York is New York. It\u2019s the greatest city in the world, and with these kinds of supply and demand dynamics, we should stay home and focus here.\u2019 So we did that.\u201d<\/p>\n

Larry Getlen can be reached at lgetlen@commercialobserver.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"Since the election of Mayor Zohran Mamdani \u2014 and even before \u2014 much of the commercial real estate…\n","protected":false},"author":2,"featured_media":251400,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[98053,98054,3624,1527,98055,2184,98056,98057,98058,98059,98060,2907,98061,98062,98063,98064,98065,98066,98067,69512,22672,98068,1286,9,11,10,98069,41035,98052,98070,98071,11071,98072,98073,15531,45510,68355,98074,82],"class_list":["post-251399","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-york","tag-andrew-wachtfogel","tag-anna-zarro","tag-channel","tag-construction","tag-daniel-berman","tag-development","tag-eileen-higgens","tag-elizabeth-koutsoubis","tag-elysa-goldman","tag-frank-j-monterisi-jr","tag-genghis-hadi","tag-housing","tag-jason-hershkowitz","tag-jason-hill","tag-jay-roberts","tag-jennifer-sun","tag-john-valladares","tag-joshua-benaim","tag-kelly-mack","tag-max-gross","tag-miki-naftali","tag-miriam-harris","tag-more","tag-new-york","tag-new-york-headlines","tag-new-york-news","tag-noah-hale","tag-players","tag-policy-601-lexington-avenue","tag-ravi-kantha","tag-ray-houseknecht","tag-ron-desantis","tag-samantha-sheeber","tag-sheila-pozon","tag-sophie-scott","tag-stuart-saft","tag-victor-sigoura","tag-william-macklowe","tag-zohran-mamdani"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/251399","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=251399"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/251399\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/251400"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=251399"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=251399"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=251399"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}