Nelson Mills

How f@*$ed is retail?

We are fortunate in that retail represents just 5 percent of our revenues, and our goal is to have it serve as more of an additional amenity for our office tenants. There is no doubt that traditional brick-and-mortar retail has faced significant challenges since before COVID-19, which has only exacerbated the problem. I do believe we will continue to see an increasing shift to experiential retail, and that location will be more important than ever.

How flexible are you with negotiating rents?

Our portfolio is currently over 97 percent occupied, with just 8 percent of leases expiring between now and the end of 2021, so we remain well-
positioned. That said, we recognize things have shifted from a landlord to a tenant’s market, and are taking an accommodating and more flexible approach, particularly with our existing tenants. It’s important to be creative, and we are much more open to shorter lease terms and adjusted concessions in the near term.

Has your “dead to me” list grown?

I can’t say I haven’t occasionally felt the temptation, but no. If there was ever a year for added compassion and understanding, this is it!   

Are you in the market for financing?

Definitely. Over the course of the year, we will be in the market for financing for two of our New York City projects: Terminal Warehouse, an iconic brick-and-beam property that we are transforming into a creative office, retail and events destination; and 101 Franklin, a 16-story office tower we plan to redevelop in the highly sought-after Tribeca neighborhood.

What do you think will NOT go back to normal?

I think of it less as returning to status quo and more about establishing a new normal. And that’s a good thing. I expect companies to opt for more creative and flexible office configurations, and to reverse the trend of having employees work elbow to elbow. We will also see a greater emphasis on wellness and programmable outdoor spaces, such as the cascading terraces we are incorporating into our 799 Broadway project.

What do you think the city and/or state should do to help both real estate and the city?

I give the governor and mayor a tremendous amount of credit for lowering New York’s infection rate, which was the first, most important step in bringing the city back. The key, now, is to get everyone to feel confident, safe, and comfortable with returning to the office and their daily commutes. Restaurants and small businesses are essential components of a vibrant, urban environment, and government should continue to be flexible and creative in its approach. The accommodations they made to support outdoor dining were a game changer.

How do you think the November election will affect real estate?

My hope is that our national elections will run smoothly, and that a clear result will allow us to remove some of the uncertainty that is affecting the overall economy. I’m also hopeful that things will settle down, and we can return to a more bipartisan and cooperative political environment.

LIGHTNING ROUND

Where’s your apocalypse bunker? If there has to be an apocalypse, I can’t think of a better place than New York to experience it.

Favorite at-home quarantine foods? New York pizza

Did you gain or lose weight during quarantine? The pizza notwithstanding, I’ve actually managed to lose weight. I decided to take advantage of the time at home to focus more on my health.

Sourdough bread, banana bread, other? Sourdough, but I have been trying to cut back on bread and sweets.

Which TV show have you binged? “Yellowstone” — it’s the Western version of “Succession,” which is another favorite of mine.

What restaurant did you go to when restaurants reopened? Upland — it has an amazing outdoor space and menu.

Best work-from-home hack? Sneaking into the office.

Where did you quarantine? I spent most of my time in Midtown South, where I live and work. I have only spent 10 days outside of New York City since March.