2025 Year in Review: Barry Schmidt, Schmidt Construction Consulting

What transaction, project, or key moment best reflected the direction of the New York CRE market this year? Without question 2025’s key moment was the election of our new mayor. The housing shortage in NYC is well known and the policies on the ballot could not have been more different. One, to free up the market to create more housing. The other, to further restrict the market, making rents higher and new housing even more scarce. The voters have spoken and the industry will have to adapt to the new environment. New York is a great city and giant market. There will certainly continue be opportunity for those who look for it.

What emerging trends or shifts will shape opportunities for you, your firm, or market sector in 2026? Despite the ever-increasing regulations, there is a housing shortage in New York and new housing will be built. Compared to a year ago, inflation and interest rates are down. Large corporations such as JP Morgan and Extell have made huge commitments to the city, underscoring their confidence in the city’s future. Demand for commercial construction is increasing, especially for renovations, large corporate fit-outs and healthcare construction. The strengthening commercial sector is emerging as a force for creating new opportunities, complementing the already strong residential sector.