Oliver Carr

Following J.P. Morgan’s ownership exit from Carr, has Carr’s development strategy changed at all?

Carr Properties’ development strategy remains consistent with the long-term vision we’ve had in place for years: We’re focused on developing high-quality office and residential properties that deliver on the hospitality-forward Carr experience we are known for. J.P. Morgan’s exit was a long-planned transition, not a change in direction. In fact, with the support of Alony-Hetz, we are actively investing in new development opportunities today. 

In short, our ownership structure has shifted, but our strategy has not — if anything, it has been sharpened and strengthened. I’m incredibly excited and optimistic about the new chapter Carr is entering, one that is positioned to continue to pursue and deliver bold, market-defining projects across our key markets.

Which U.S. cities would you say are ripe for new office developments or conversions this year?

New office development will remain challenging heading into 2026 across most U.S. markets given elevated construction costs and restrictive financing conditions. The exception is markets like D.C. where large tenants are actively seeking premium-quality space and have few alternatives. The D.C. trophy office market is tight (approximately 11 percent vacant) with few large, upper-floor blocks available, creating opportunities for best-in-class new buildings. Still, only a handful of new buildings will move forward in D.C., with significant pre-leasing requirements.

In Boston, a similar dynamic exists, with demand for high-quality space, but with construction costs roughly 30 percent to 40 percent higher than in D.C. and rents not yet supporting new development. Downtown Austin, meanwhile, still has excess supply, and it’ll take time before that market reaches equilibrium and new office development is feasible.

We’re excited about redeveloping obsolete offices into Class A residential — an opportunity we’re pursuing across D.C., Boston and Austin. In our home market, we’re redeveloping two former office sites: 425 Montgomery Street in Alexandria, Va., into a 250,000-square-foot multifamily community, and 3033 Wilson in Arlington, Va., into a 320-unit residential project. These initiatives illustrate how Carr can reimagine underperforming office assets into vibrant, high-quality housing that enhances local communities.

Carr is based in D.C. What’s it been like working in the D.C. market this year? What are you doing to restabilize your portfolio?

D.C. is one of the most resilient markets. This year we’ve leaned into that by repositioning our portfolio — selling non-core assets and investing in upgrades at high-quality developments.

Midtown Center is a standout example of how we create value even in a challenging market. When Fannie Mae announced plans to reduce its footprint, we worked closely with their team to restructure the deal and keep their headquarters in the building on a smaller but long-term lease. That proactive approach gave us flexibility to bring major new customers to the building. 

The result has been tremendous: In the past year, Freshfields signed a 117,000-square-foot headquarters lease and ArentFox Schiff relocated its D.C. headquarters with a 120,000-square-foot commitment. Midtown Center is now nearing full occupancy, a clear sign that thoughtfully designed, amenity-rich assets can adapt, attract top-tier customers, and outperform through market cycles — reinforcing our confidence in D.C. and our strategy in this market. 

We’re continuing to see steady leasing activity, particularly from customers upgrading their space. Our focus remains on delivering the Carr experience, which is at the core of our customer retention.

Carr also has some properties in Boston. What’s the prognosis on that office market?

Boston is an innovation-driven economy with extraordinary depth in life sciences, technology, and education, and that base continues to support strong office demand. One Congress is the perfect example of how that demand expresses itself. The tower represents the very definition of a modern trophy asset — world-class design, sweeping views, and a hospitality-driven amenity package — and it was 100 percent leased before delivery, a clear signal that the market wants more of this caliber of product. At 200 State in Boston, we’re also seeing a flurry of leasing momentum following significant capital upgrades, proving that well-located, best-in-class buildings capture customer attention even in a slower macro environment. 

The broader trend mirrors what we’re seeing in D.C.: Customers are driving the flight to quality, choosing the best addresses with the strongest amenities. That’s exactly where Carr is positioned in Boston, and it gives us great confidence in this market over the long term. We’re actively evaluating additional acquisition opportunities in the city because we believe there’s still room for more trophy-level product ripe for the Carr experience that meets the expectations of Boston’s most discerning customers.

Are you expecting an influx of market activity in the first half of 2026 if rates continue to go down? Why or why not?

We do expect activity to pick up as rates stabilize or decline. There’s a lot of capital on the sidelines waiting for more clarity, and I think 2026 could be the year when that capital begins to reenter the market at scale. For Carr, that means we’re preparing to play offense again — leveraging our balance sheet capital to pursue new acquisitions and developments. Rates coming down won’t solve every challenge in the office sector, but lower rates will improve liquidity, unlock transactions, and create opportunities for well-capitalized players like Carr to step in.

Lightning Round:

Mamdani, Cuomo, Adams — Friend, mute, unfollow?
I’m not a New Yorker, but if I were, I would friend Cuomo and support him.

Your pick for Fed chair `26?
Kevin Warsh. He’s a brilliant guy with deep experience in monetary policy.

Borrowing costs up or down by late 2026?
Lower short-term rates and little to no change in the 10-Year Treasury.

Last vacation and where?
Lots of time up in Nantucket, Mass., this summer with family and friends. It’s my happy place.

How are the tariffs going to affect your Thanksgiving shopping?
I won’t buy an imported turkey.

You appear on the kisscam at a concert. Who’s performing?
With my wife at Springsteen or the Stones.

If Stephen Starr asked you which restaurant he should next reopen, what would it be?
A cutting-edge seafood restaurant at One Congress in Boston.