Jeffrey Gural

Where is GFP looking for the next opportunities for office-to-residential conversions?

Generally, we are looking for large buildings that are in need of significant capital. We focus on areas with growing residential demand where rents support the significant cost of converting these buildings. While that has been concentrated in the Financial District, buildings in areas like Midtown, Long Island City, Queens, and Jersey City, N.J., are also potential prime candidates.

What have you learned from your most recent office-to-residential conversions that you wish you’d known earlier?

First, that we were right to have invested in 2022 to 2024, and that we should have bought more conversion projects. With the recovery in the office market, office buildings are now trading for higher prices and therefore there are less economically viable conversion opportunities. 

Second, through our experience and with help from the City of Yes zoning changes, we continue to improve layout efficiency and the overall quality of our offerings. A few examples include the ability to densify the buildings with more units while increasing amenity offerings as well as improving HVAC system technology and finishes.

Finally, and perhaps this is a cautionary lesson, that there haven’t been many sales that have met the more aggressive developers’ underwriting assumptions. Time will tell if those that are more aggressive in their exit assumptions are rewarded or hurt. 

How has the Midtown South rezoning influenced GFP’s strategy in the Garment District?

Most of our Garment District buildings are already well leased, so our current focus is on filling any remaining vacancies rather than pursuing residential conversions. That said, as other owners in the area convert properties to residential use, we anticipate that displaced businesses will be seeking new commercial space — which positions us to capture that demand and grow our tenant base.

What are you expecting to see out of the next mayoral administration and how are you preparing?

As of this answer, it remains to be seen what the next mayoral administration will look like, but we’re preparing by staying closely engaged with the leading candidates. Public safety will be a top priority regardless of who wins, an area we’ll be watching closely given its impact on businesses and the city as a whole. I recently met with Mamdani, and was impressed by his focus on addressing inequality, which is a major issue in New York City.

What’s the outlook for leasing from the nonprofit sector since you lease to a lot of nonprofits?

Nonprofits are approaching the leasing market cautiously right now. Many are taking a “wait and see” approach, often signing shorter-term leases rather than committing to long-term expansions. The outlook really depends on each organization’s funding sources — some nonprofits have been able to grow, while others have had to scale back or even return space due to funding shortfalls. As one of the largest landlords to nonprofits in New York City, GFP benefits from having a diverse mix of nonprofit tenants, which helps mitigate risk across the portfolio.

Lighting Round:

Your pick for Fed chair `26?
I’m not sure, but I suspect that Trump will choose someone in favor of lowering interest rates.

Borrowing costs up or down by late 2026?
I try to avoid making predictions because no one can truly know what’s ahead. I am cautious about the economy and whether it might slow down. We’ll have to see how factors like Supreme Court decisions on tariffs and the trajectory of interest rate cuts play out before we can gauge borrowing costs.

Which are you more excited about — interest rate cut or Taylor Swift’s Engagement?
Interest rate cut.

When was your last vacation and where?
I had a wonderful visit to Saratoga, N.Y., this summer. In addition to real estate, I’m also in the horse racing business. Though not exactly a vacation, I visited Lexington, Ky., this past weekend to look at some horses.

What’s your Kryptonite?
When all the favorites win in sports betting.

How are the tariffs going to affect your Thanksgiving shopping?

I’m more concerned about the majority of Americans who are living paycheck to paycheck. While higher tariffs or a slowing economy don’t personally affect me, they do impact people trying to make ends meet, and that’s where my focus is.

You appear on the kisscam at a concert. Who’s performing?
Bruce Springsteen.