Finding Personal Success in Today’s Real Estate Market: Insights From Marks Paneth

Commercial Observer’s Partner Insights team recently hosted Abe Schlisselfeld, Co-Partner-in-Charge of Real Estate at Marks Paneth LLP, for a discussion about a variety of topics including what sort of deals are emerging in commercial real estate of late and how he’s been advising his clients on the implications of the new tax laws.

Schlisselfeld said that one of the more interesting things he’s seeing on the deal front lately, especially around Midtown South, is the complete renovation of Class B buildings, leading to another level of gentrification in the area.

“A lot of owners, especially around Hell’s Kitchen, are taking these buildings that are three or four stories, knocking them down, demolishing the interior and revamping them for better use than those buildings have seen in years,” Schlisselfeld said.

He also discussed the strong current focus on tenant amenities for new office properties, and “what they have for the tenants to use, whether it be open space parks for people to eat lunch, cafeterias, exercise rooms—these things can really enhance the buildings,” he said. “And of course, the be-all, end-all: whether or not a building is green makes a difference no matter where you are now.”

Schlisselfeld then discussed how Marks Paneth prepared to advise their clients on the new tax laws, which included spending several months conducting intensive educational sessions with company staff to ensure their full understanding of all the law’s intricacies. He then talked about certain aspects of the new law that have provided valuable benefits to clients. The 199A deduction, for example, allowed taxpayers to potentially get a 20 percent deduction on their pass-through income. He also emphasized the interest expense limitation as providing solid benefits for clients. But he was careful to stress that the exact ramifications will be different for every company.

Reflecting on Marks Paneth’s motto, “Success is Personal,” Schlisselfeld pointed out that there was no one right answer for addressing the new tax law. “Each and every client had a different result,” he said.