David Levinson
Co-founder, chairman and CEO of L&L Holding Company and co-founder and chairman at L&L Infinite
Has your outlook on the office or residential sectors changed over the last year?
Demand for Class A office is on fire, and supply is dwindling rapidly as a result. This will lead to increased demand for B-plus and B offices, especially in buildings with larger blocks of available space. Owners who invest in building upgrades will be rewarded handsomely.
New office developments won’t arrive until 2034, and much of that new supply is already under active negotiation. This ultra-premium office trend began with us at 425 Park and continued with J.P. Morgan at 270 Park. This flight to quality is driven by recognition among leading executives that great work environments support productivity and recruitment.
Residential will remain a strong and growing market. New York City has the greatest labor force in the world. Young educated people from all over dream about coming here. Unfortunately, the cost of housing is at an all-time high due to real estate taxes, labor costs and a severe supply/demand imbalance. None of this will change unless government changes its approach.
Citadel’s lease at 425 Park Avenue broke the $300-per-square-foot barrier in 2016. If you had to guess, how much longer until that figure is standard for trophy offices?
The most interesting thing is that our $300-per-square-foot deal at 425 was done 10 years ago. No company had even paid $200 prior to that lease, which created an upward effect on all Class A Park Avenue rents. Today $200 to $300 per foot is a common occurrence. By the time 425 Park rents roll over, we could be looking at $400 a square foot.
Enduring demand and rising construction costs dictate rents at those levels.
Tell us about the tenants interested in Terminal Warehouse. Have any surprising trends emerged in the leasing activity there?
Terminal Warehouse is an extraordinary work environment. It’s a fully enhanced office community designed as a groundscraper that blends historic character and modernized systems and amenities. We are very actively negotiating with several brand-name tech and creative tenants that are excited about Terminal Warehouse’s vision.
What best describes L&L’s strategy today — portfolio expansion or value-add?
We are much more diverse than we had been historically. In addition to office, we are pursuing multifamily in New York and Florida, as well as retail mixed-use in Florida. L&L Infinite, my new venture with Marty Burger, just acquired 600 Third Avenue. We are opportunistic investors who add value to each property we touch.
Wynwood Plaza in South Florida has had a busy year, and you’re cooking up a mixed-use condo project in West Palm Beach. Should we expect any new projects in 2027?
We are very active in both Florida and New York City with mixed-use and multifamily. You should definitely expect to hear more from us.
Lightning Round:
Your AI platform of choice? Claude. It’s changing everything we do. However, we do use other platforms as well.
Who would play you in a movie? Rocky Balboa as the individual, but Maximus, the gladiator, as the leader.
Jalen Brunson or Aaron Judge? Aaron Judge, of course.
“Oppenheimer” or “Odyssey”? “Odyssey.” Love them both, but life is an “Odyssey.”
Tom Holland, Andrew Garfield or Tobey Maguire? Tobey Maguire. The original.
Have you ever eaten pizza with a knife and fork? No, never.
Bank or non-bank? Bank.
Last book you read? Bio of Winston Churchill.
Borrowing costs — up or down in 2027? Up, up, up.
What was your nickname when you grew up/started out? “Big D” as a kid. When I started in real estate, however, I was “Hey, you.”
How long do we have before AI kills us all? Never happening. AI is more likely to keep some of us alive forever.
Where’s your secret escape compound? (Think Peter Thiel’s New Zealand Plan B.) I have one, but it’s a secret.
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