Robert T. Lapidus

Are there any new assets you are looking to buy in 2026, or new asset classes you’re looking at?

We plan to stick to our knitting. We will continue to take advantage of market dislocation and pursue value-add projects in the office and residential sectors. I wouldn’t rule out other asset classes on an opportunistic basis if they align with our experience and core areas of expertise.

Are there any asset classes in particular that you are shying away from?

We once developed a hotel, but we have never been particularly interested in owning them. Hospitality is a very specific asset class in that it’s more of an operating business than a real estate play.

What do you think best explains the leasing success of Class A offices like 425 Park? Amenities? Design? Technology? Transportation proximity? Something else? 

All of the above — and more. That old adage “location, location, location” is still true, though the quality of a building, its design and its amenities are equally important. Each aspect has played into the success of 425 Park Avenue. In a post-COVID world, employers want their people to work together. They know they can accomplish that by providing state-of-the-art environments with premium amenities, top wellness options, and floor plates that facilitate collaboration.

What local, state or federal policy do you think would most help commercial real estate?

The easy answer is lower interest rates, which will lead to lower cap rates and result in higher values. On the local level, we need better tax policy and incentives to generate multifamily development. New York City needs exponentially more housing, but the current political process has made it too complicated and expensive.

What will be your biggest business expense in 2026?

By far, the largest percentage of L&L’s budget each year is allocated to our people. Regardless of what we’re doing, whether it’s asset management, development, leasing, cleaning or security, it’s all very labor intensive. And that’s OK, because our people are what sets us apart.

What are some of the ideal tenants for Terminal Warehouse?

We have already secured the tenants we need to create a robust amenity program and a new retail destination in West Chelsea. The office portion appeals to any company that values a modern, fully amenitized environment with authenticity. We are currently in discussions with technology, creative, entertainment and financial services firms, to name a few. Terminal Warehouse is well positioned to benefit from the continued flight to quality, especially as fewer and fewer big blocks of premium workspace remain on the market.

Are you expecting an influx of market activity in the first half of 2026 if rates continue to go down?

After the election and in a lower interest rate environment, I do expect to see a rise in activity. However, the near-term political uncertainty we are experiencing could very well have a chilling effect on the market.

Lighting Round:

Mamdani, Cuomo, Adams — Friend, mute, unfollow?
Unfollow — Mamdani; friend — Cuomo.

Your pick for Fed chair `26?
Marc Rowan.

Borrowing costs up or down by late 2026?
Down.

More excited about: an interest rate cut or Taylor Swift’s engagement?
An interest rate cut, notwithstanding my daughter’s enthusiasm for Taylor Swift.

Last vacation and where?
Saint-Tropez in August.

Like in ‘Freaky Friday’ you swap bodies with Jerome Powell. What would you do?
Tell the president to butt out of the Fed, because they need their independence in order to do their job right.

What’s your kryptonite?
Entitled assholes.

You appear on the kisscam at a concert. Who’s performing?
My pick is the Grateful Dead, but in this scenario I am bringing my wife — so it’s likely Billy Joel or the Eagles.