Scott Galin

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

We are looking to invest selectively in out-of-state multifamily deals, self-storage and debt deals (funds and individual property-specific as well).

Is there a single “good” sign you see in a distressed property that makes you want to buy it?

Regarding the New York City office market, a great deal of tenants are back three to five days a week, with fully or mostly occupied office space close or equal to pre-pandemic levels in many properties. With this rising demand for office space, certain investment opportunities (not solely Class A and trophy) start to make sense. After two years of a disrupted market, in our own portfolio we now are approximately 96 percent leased and have had multiple offers on many of our  marketed spaces.

What real estate or tax policy would you like to see from a Trump administration? 

We have a national housing problem. The Fed needs to unlock funds that trickle down to the states, the cities and owner-sponsors to facilitate more office-to-non-office conversions. They also need to loosen certain regulations permitting banks to be more flexible with modifying existing loans. Loosening those regulations reasonably and responsibly will give banks more malleability to assist in loan restructuring.

We’re in a market reset, where pre-pandemic valuation standards are not in line with current conditions. Today’s deposit/lending ratios are a challenge, which further ties the banks’ hands. Banks don’t want to take back the keys. They want to issue loans. A little breathing room would go a long way.

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

I think so. Demand in the last three to six months is up for all classes, and work from home is fading.

Which market (outside of NYC) do you like best? Which market (including NYC) are you most fearful of?

Markets with strong growth and without aggressive policies that work against landlords. I’m reluctant to consider markets where there is a groundswell for legislation that makes our models unworkable.

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

One with AAAA credit

What’s going to be your biggest expense in 2025?

Capex.

What are your predictions for the mayor’s City of Yes, especially given the controversies within the Adams administration?

City of Yes likely passes, with some changes being negotiated with the City Council.

Do you still like Eric Adams?

I like Adams, but his future is uncertain.

Lightning Round:

Social media of choice?
None!

AI: Helpful in CRE or a fad?
A bit helpful now. Hopefully, it will become a good tool in our toolbox.

Last movie you saw in a theater?
“Conclave.”

You’re going on a six-month expedition into the Amazon. What’s your last meal before you get on the plane?
Bagel, lox and cream cheese, or assorted items from Tao.

Tesla or BMW?
BMW.

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

What are you tired of talking about?
Work from home and AI.