10.08.14 | Commercial Observer

The 2014 Commercial Observer Owners Magazine

New York’s landlords Sound off on Mayor de Blasio, Infrastructure and the Future of Commercial Real Estate Sam Schneider, Co-founder & managing partner, Imperium Capital

What’s your real estate prediction for 2015?

I believe real estate cap rates and fundamentals will hold relatively steady in the coming year.

Where in New York is there still untapped potential for real estate development?

Brooklyn is still an untapped market. I do not believe it has reached its full potential in terms of market growth.

What area in New York is “overdeveloped”?

There is so much demand it is hard to say anywhere in New York City is overdeveloped. The eastern part of the Upper East Side may come closest to being an overdeveloped or oversupplied neighborhood.

Is the New York market reaching another bubble?

So many properties are being purchased with large amounts of equity. The debt is not becoming overly aggressive in terms of LTV [or loan-to-value]. I do not see a bubble happening anytime soon.

Will Queens, Staten Island or the Bronx ever experience the sort of boom Brooklyn has recently enjoyed?

They have a chance to see a fair amount of growth, but I do not think they will experience the boom that Brooklyn has experience. Brooklyn has become an international brand.

What about areas just outside the city like Jersey City or White Plains?

I believe they do have a chance to see growth, but not at the same rate as Brooklyn.

What are the odds of a refigured Midtown East rezoning being approved in the next year?

I don’t think any of us know when or if that will take place.

Which area of the city is most in need of infrastructure improvements?

North of Hudson Yards on the West Side, as development continues in that area.

Which overseas real estate market do you think has the greatest potential?

We don’t invest overseas and can’t comment.

What’s your favorite local restaurant?

ZZ’s Clam Bar in Greenwich Village.

Which fellow owner do you admire most?

Stephen Ross of Related.

Outside of the boardroom, what’s the best place to bond with fellow owners?

Dinner and drinks at a local New York restaurant.

Will space apps and listing sites become the standard for smaller deals and create more direct-to-tenant deals?

I believe so much of what we do in real estate is based on relationships, and face-to-face time will remain important.

Is Mayor de Blasio helping or hurting the New York real estate industry at this point in his tenure? Please explain why.

Mayor de Blasio has done a good job since beginning his term. I believe he truly wants to see positive change for the city in all forms.