Adapting to Change – the Resiliency of New York’s Real Estate Market
By Darya Shneyder | November 22, 2019
Abe Schlisselfeld, right, moderates “Keeping Your Feet on the Ground: Rent Regulation Update Panel” at Greenpearl’s NY Multifamily Summit.
From the moment I arrived at Greenpearl’s New York Multifamily Summit, which took place last month at the New Yorker hotel in midtown Manhattan, the crowd was buzzing over all of the recently enacted legislation that has shaken up our industry. And when keynote speaker Meredith Marshall took to the stage to open the event, he was quick to touch upon those hot-button issues in his high-level overview of today’s real estate market in New York. Interestingly, what stood out to me most about Marshall’s address was the way in which his varied career experience helped illustrate just how many different paths are left to be explored in this industry. His road to success, which includes working in the private equity sector prior to co-founding his firm as well as working on various New York City housing projects, is a glimpse into how the real estate industry in New York is constantly inspiring positive outcomes—a sentiment that I felt was reiterated throughout each of the day’s sessions. Marshall’s story is one of fortitude and resilience, echoed in the currents of our industry today.
Shortly after the keynote, I was able to see Marks Paneth’s new Technology & Digital Services Group in action as Dean Nelson, Principal-in-Charge, moderated a panel that touched on climate change, the Climate Mobilization Act, and more specifically, energy-efficient building technology. The experts on this panel all agreed that the first step towards achieving energy-efficient buildings is to automate utility controls as much as possible. Though the installation and implementation come with associated upfront costs, members of the audience were advised that automated, efficient buildings are lower cost in the long run—with the added benefit of being good for the environment and supporting New York’s fight against climate change.
The most pressing issue on everyone’s mind at the event was the new rent regulation law, so it was a privilege to see Abe Schlisselfeld, Co-Partner-in-Charge of the Real Estate Group at Marks Paneth, moderate one of the day’s most exciting discussions dedicated to that topic. Abe was joined on the panel by heavyweight industry experts Adam Parkoff, Managing Partner of Parkoff Organization; Robert Morgenstern, Managing Principal of Morgenstern Capital; Michael Rothschild, Real Estate VP of AJ Clarke; and attorney Cory Weiss of the real estate firm Ingram Yuzek. Each shared their experiences with the new rent law thus far, and the recurring opinion – which will come as a surprise to no one – was that as landlords receive less rent, expenses and crucial apartment improvements are curtailed. I left that session with much to consider, including the following encouragement from the panelists: We, as an industry, have to make our collective voices heard if we want to see things change in the future.
Despite the new legislation and many real estate industry professionals who are still grappling with changes introduced by the TCJA, the attendees and panelists at the New York Multifamily Summit seemed to be maintaining a positive outlook. The real estate market in NYC is irrepressible, much like the city itself. I’m proud to see Abe, Dean and many more of my colleagues leading the conversations around some of the most groundbreaking developments in the industry right now, and I feel confident that this market can and will withstand its current troubles.
About Darya Shneyder
Darya Shneyder, CPA, is a Partner in the Real Estate Group at Marks Paneth LLP. Ms. Shneyder specializes in providing accounting, auditing, tax and advisory services to commercial and residential real estate owners, developers, and co-ops and condominiums. She also specializes in securing real estate tax reduction via certiorari audit filings. Ms. Shneyder works closely with client’s officers and directors to establish a personalized audit approach to efficiently execute an attestation engagement. She has in-depth... READ MORE +