David O’Reilly

Are you going to buy in `25? If so, what asset class?

An asset class in which we are going to accelerate development in 2025 is condos — specifically our condominiums in The Woodlands outside of Houston; in Summerlin in Las Vegas; and in Ward Village in Honolulu, where we have surpassed $6 billion in total condo sales. We are reporting record condo sales volume and will continue to develop to meet the growing demand for the exceptional quality of life that homeowners are seeking — and that leading companies know their employees are looking for.

Let’s talk about office. Is the worst over?

Yes — for quite a while as we’ve continued to demonstrate positive absorption across our portfolio of Class A assets. Our communities have bucked national real estate trends for some time — including commercial leasing trends — proving that, once again, it is quality and location that make the difference. The demand continues for short commutes and thriving, amenity-driven urban centers.

Downtowns are still in demand — it’s just that the areas where downtowns are thriving have changed. The desire and demand for a better quality of life is pushing the downtown experience outwards to communities that deliver best-in-class office and living environments that are adjacent to traditional major metropolitan areas without the density and congestion.

Let’s talk about retail. What’s the kind of tenant you want? 

We are focusing on retail tenants who, in addition to having strong credit and the ability to pay rent, will provide the residents of our communities with quality, engaging experiences within walking distance of where they live and work. In today’s evolution of the retail landscape, it is critical that retailers create meaningful experiences to bring customers into their stores. And, because we are in a unique position as a master-planned community developer, we think not just about the retailer’s product itself, but also about how it will complement our overall vision for the community.

Let’s talk about multifamily. Do you ever see yourself building normal, middle-class rentals again? What would stop you?

Absolutely. We see incredible returns with the large number of new residents moving into our communities, seeking great multifamily rentals across price points. The impressive leasing success we are seeing in Downtown Columbia [Md.], Summerlin and Bridgeland [Texas] reflects a diversity of housing options.

Which market (outside of NYC) do you like best? 

The Sun Belt, notably our community of Summerlin in Las Vegas, is thriving right now — as reflected in the number of people and businesses relocating there, as well as the number of homes we are selling. This market represents a real value play, especially with the potential to introduce a robust film industry to Nevada through our planned production campus in Summerlin in partnership with Sony Pictures Entertainment.

At the same time, we are witnessing a genuine diversification of the Nevada economy beyond gaming, and the number of companies interested in moving to Summerlin from a variety of industries underscores that shift.

How’s the financing climate for new development and redevelopment — hot, cold, or just right?

Looking at new development specifically, I would say the financing climate is both hot and cold. The new development financing landscape has essentially flipped: Multifamily used to be the easiest for which to secure financing, and now it’s the hardest. Similarly, condos used to signify the hardest asset class to obtain financing for, and now they’re the easiest.

Lightning Round:

Your social media of choice?
LinkedIn.

AI: Helpful in CRE or a fad?
Helpful.

Last movie you saw in a theater?
“Taylor Swift: The Eras Tour.”

You’re going on a six-month expedition into the Amazon rainforest. What’s your last meal before you get on the plane?
Jean-Georges’ egg toast.

Tesla or BMW?
BMW.

Will interest rates be below or above 4 percent on July 1, 2025?
Above.

If you could partner with one person in the business on a property, who would it be?
Ravi Ahuja and Sony Pictures Entertainment.

What are you tired of talking about?
Mortgage rates and the effect they have had on the residential housing market.