2025 Year in Review: Michael Rait, ASID, AIA, BR Design Associates

What transaction, project, or key moment best reflected the direction of the New York CRE market this year? 

My initial impression is that the velocity of deals for corporate office space has accelerated, especially in the second half of this year. That directly affects our business. We do a fair amount of work for landlords, so as their business picks up, we feel it too. We have seen a marked increase in developing test fits for potential tenants, including a much faster decision-making process. This has affected our end-user clients as well. Not long ago, it was a buyer’s market, but with Class A spaces leasing up, our clients now need to act quickly or risk losing their desired office space.

What accomplishment, milestone, project or transaction stood out for you or your firm in 2025?

We were working with a corporate/financial client seeking a new office on Fifth or Park Ave. They wanted an A building with a view of the avenue and notable architecture, but not too high up. By late 2024, just before the market heated up, we had focused on a space and developed some creative solutions for them. As they negotiated final lease points, another tenant swooped in and claimed the full floor. But they then found an equally impressive space, completed a couple of test fits, and have since moved into a beautiful office with views of Park Ave. and the new Chase Bank building. 

What emerging trends or shifts will shape opportunities for you, your firm, or market sector in 2026?

Clients with lease expirations are moving fast to secure space. This is not just for the A buildings, but we see it across all building types, from downtown FiDi to Midtown avenues and side streets. Firms are deciding that it makes sense to have their employees back in the office. The RTO movement is real, and that has a positive impact on our business as well as the furniture, manufacturing, and construction firms. The conversion of commercial space to residential has an impact, but the buildings that are being converted aren’t those that may have been commercially attractive to tenants.