Jason Muss

How f@*$ed is retail?

Some retail, in terms of new leasing, is, for lack of a better word “royally f@*$ed” for the next several months. But, soon after, we are going to see new uses, tenants, and concepts emerge and lead street-level urban retail to an exciting next few years. Suburban malls are f@*$ed for longer, if not forever. Whereas, grocery-anchored, small shopping centers with parking and quality local restaurants, as well as store and neighborhood retail below residential, will actually thrive, as work-from-home trends mean that daytime populations grow, and people look for lunch-time options. That will potentially fuel the tenants in many of these retail spaces. We are seeing that now and expect it to continue.

How flexible are you with negotiating rents?

I think the word is “pragmatic,” not flexible. We are being very, very pragmatic. And “the rents” encompass much more than it used to. The agreement is not just rent, but also flexible terms; relaxation of clauses, such as minimum security deposit; and co-tenancy requirements; and extending deadlines for tenants with work underway; and all kinds of small things that come up. For residential tenants, we are staying in close contact with everyone, and taking advantage of the fact that we have built relationships with tenants over the years, and drawing on those interactions to keep them where they are in.

Has your “dead to me” list grown?

That list has actually become our “alive to me” list — which has expanded. The silver lining of the pandemic is that it has reignited our outreach to folks who we, perhaps, haven’t spoken to in years. We are checking up on what people are up to and exchanging ideas and stories. Almost everyone is looking for more personal interaction and connection, not less.

What would be the signs that things are NOT going to improve in 2021?

If we don’t see restaurants get more relief, we’re in big trouble. Our restaurant scene is by far the best in the U.S., and it’s a big draw to office tenants and visitors to the city.  Another bad sign would be if quarantine restrictions on out-of-town visitors continue past Q1 2021. If that remains, it’s going to continue to harm several key industries that generate huge amounts of tax revenue for the city and state.

Who do you like for mayor in 2021?

Shaun Donovan comes to mind, among a number of quality candidates. He grew up in New York City, and has run some huge federal agencies overseeing literally trillions of dollars. Not many candidates, or people, can say that. His experience dealing with the federal government at the highest levels would come in handy, and he’s also a caring and likeable person who has studied homelessness and can bring his knowledge there to help people and the city.

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

I’d suspend the New York state and New York City mortgage recording tax and real property transfer tax for 2021. While this may seem counterintuitive, as the state and city and MTA need money, we need to spur the sale of properties to new owners who will then invest fresh capital and create all kinds of jobs. Since it would just be a one-year initiative, it would get people off their wallets and create a flurry of activity and perceived value. If we do nothing, the lack of activity would just result in few deals and very little tax revenue anyway. The sales market is quiet; financing is tough to get. Why not create this NYS/NYC stimulus and get things going?

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

I have always felt that local elections are much more relevant to the local real estate market than anything that happens on the national level. That being said, if Biden follows through on higher capital gains taxes, coupled with repealing [the Internal Revenue Code Section] 1031, then you haven’t seen anything yet with regard to the depths to which the investment sales market will fall. Then my suggestions from the previous question would be largely moot, as there wouldn’t be many sales.

LIGHTNING ROUND

Where’s your apocalypse bunker? Home

Favorite at-home quarantine foods? Hard-boiled eggs, coffee and peanut butter!

Did you gain or lose weight during quarantine?  Lost weight and grew some hair (naturally).

What restaurant did you go to when restaurants reopened? None, yet.

Which TV show have you binged? “Shtisel” and “The Crown” — different religions, similar issues!

Best work-from-home hack? Thankfully, none.