Jeff Gural Chairman at GFP Real Estate By The Editors Are you going to buy in `25? If so, what asset class? My nephew Brian Steinwurtzel has become an expert in acquiring office buildings for residential conversion, and that’s where we’ll continue to focus our acquisitions. Meanwhile, my priority remains managing our existing properties, securing leases, and handling financing as loans mature. Is there a single “good” sign you see in a distressed property? The price, along with the potential for residential conversion, is key. The property must be suitable for conversion, so we specifically look for buildings with ample windows, the right floor plates, and, of course, a prime location. What real estate or tax policy would you like to see from a Trump administration? I believe reinstating the deductibility of state and local taxes (SALT) would do more to benefit New York than any other policy change. Democrats have supported this, and, while Trump appears to back it now, despite initially eliminating it, I’m cautious about relying on his stance. Nonetheless, SALT deductibility remains my top priority. Beyond that, I strongly support efforts to reduce the federal deficit. I worry about the financial burden future generations, including my grandchildren, may inherit. If you could stack the new administration with people you know and do business with, who would you choose? or Mike Bloomberg. I believe an ideal leader would be someone with a strong business background — someone like Jamie Dimon Let’s talk about office. Is the worst over? I believe so. Leasing activity has picked up significantly compared to two years ago. Most of our buildings are bustling again. Overall, I’m optimistic that the worst is behind us. However, if interest rates spike again, we may face some additional challenges in the near term. Let’s talk about retail. What’s the kind of tenant you want? First and foremost, tenant credit is our top priority. Beyond that, we look for businesses that align well with the building’s character and the neighborhood. In SoHo, for example, we have popular clothing brands like Aritzia, Wilson and Athleta as tenants. What’s going to be your biggest expense in 2025? Our largest expense by far is replacing tenants and preparing spaces for new ones. These days, it can cost $100 per square foot or more. Insurance costs have risen too, but the real challenge is the steep cost of construction. How’s the financing climate for new development and redevelopment — hot, cold or just right? Currently lukewarm, especially in commercial real estate. Banks are hesitant to fund commercial projects, showing a clear preference for residential and industrial investments. A significant factor here is the struggle faced by developers who entered the market a decade or so ago and took on heavy debt. Many of these investors, who leveraged aggressively to expand, are now facing foreclosures. What are your predictions for the mayor’s City of Yes, especially given the controversies within the Adams administration? His City of Yes initiative has merit. Overall, the initiative is a necessary step, though implementation will require thoughtful community engagement. Do you still like Eric Adams? (Did you ever like him?) I like Eric Adams, but am somewhat disappointed with recent issues. In some cases, it feels like he’s being criticized for things that fall within his role. For instance, if the mayor is asked to arrange an inspection for a prominent world leader, in this case Turkey, to inspect a building that they just completed, I’d expect him to facilitate that — that’s part of the job. The criticism over travel transparency is fair. He should have disclosed those details. However, if allegations of using straw donors are true, that’s a serious concern. Lightning Round: Last movie you saw in a theater? I hate to admit it, but I haven’t been to a movie theater since COVID. You’re going on a six-month expedition into the Amazon rainforest. What’s your last meal before you get on the plane? I’m a burger guy. So, a hamburger, fries and a salad would be perfect. Tesla or BMW? Tesla. I think that’s the future. Will interest rates be below or above 4 percent on July 1, 2025? My guess is above, but I really have no idea. If you could partner with one person in the business on a property, who would it be? Douglas Durst. What are you tired of talking about? The election!