State of the State 2016: Faith Hope Consolo of Douglas Elliman Real Estate

Faith Hope Consolo, Douglas Elliman Real Estate

What is driving the growth of your business in 2016?

Uptown going downtown, neighborhoods changing for the better, retailers wanting to be on the cutting edge…2016 is a year of consolidation–the neighborhoods and avenues are filling up with the right tenants, and each new move raised the profile. 

We are very active on Fifth Ave. The great brands now stretch from the Plaza District on 58^th down to 40^th at Bryant Park, and we’re watching them go further still. At the same time, we’re seeing them climb north through the Flatiron, and they’re going to meet at 34^th St., which is also in full renovation now. The point is that this whole neighborhood is going to turn, and it’s beginning now. As these leases turnover, better brands are moving in across the board, and that is tremendous for the local economy.

Growth is helping these landlords turn a “C” into an “A” through physical renovation of these spaces–some already a hundred years old–and introducing these spaces to better tenants as the tide raises all boats along the corridor.

 Outside of specific areas, working with landlords around the city, we’re finding that some brokers are getting very nervous, lowering the ask, but, for us, it’s been a very different experience. The locations we work with are attractive because of their location! These are on the main corridors, on corners, renovated, these are special places, which are what the tenants want. They want what they want, meaning if the location speaks to them, we could have a deal.

We’re not playing on the slippery slope of lowering the ask, just focusing on the true qualities of the location. When the right tenant is interested, then, yes, we talk price and the landlords are flexible, because what they want are good tenants, with good companies, who can stay for the long-term.

Trying to frighten the market with “price reductions” is bad business for everyone.

Faith Hope Consolo is the chairman of the retail leasing, marketing and sales division at Douglas Elliman Real Estate.