2015 Year in Review - Steven Westreich

What was your most notable project, deal, transaction or professional achievement in 2015? My most notable professional achievable this year was opening a new firm and putting a team and infrastructure in place that has allowed us to compete with the larger brokerage shops, which we are doing. What real estate project, transaction, market trend or product had a significant impact on your industry in 2015? I think the strength of the condo market has had the most significant impact on the industry this year as the cost of land in almost every neighborhood rising to price thresholds that makes condo development just barely financially feasible. As a result, there are much fewer rental development opportunities.   The same can be said for sales of existing properties, as every owner wants to achieve a price that could only be justified by a condo converter making aggressive sellout assumptions. What emerging trends will drive investment and development in 2016? New rent stabilization standards will prove to have a big impact on the buying and selling of rent-stabilized properties as new regulations make it much more difficult to vacate tenants, raise rents after renovations, and deregulate units with the new rent threshold of $2,700. In short, it has become much less lucrative to invest in rent-stabilized properties.  As a result, I believe there will be a flight to free-market assets with below market rents or condo potential, and significant office and retail development in many neighborhoods of Brooklyn and Queens that have recently gentrified.