Jason Muss

Where is Muss Development going to be in 2026? In 2028? In 2033?

The next several years will provide challenges and opportunities. We will need to strategically operate our properties to maintain tenancies and attract new tenants. Simultaneously, we will need to be aware of new investment opportunities that will surely arise for any property type — and be ready to transact if it pencils out for us. Hopefully, our versatility and experience in owning and operating a diverse portfolio will help guide our decision-making as we navigate this evolving market.

Tell us about a successful financing in the last 12 months. Or tell us about an unsuccessful one.

We closed a financing in early 2023 that had a mid-2024 expiration. There was a choice between waiting and hoping for the best, and paying a small defeasance and locking in the interest rate for a very long term. We did so to avoid the possibility of needing another refinance later and at potentially even higher rates. If rates were much higher than where we locked in, there could have been a need for new equity, or cash flow would have been severely impacted. We weren’t forced to refinance, but it provided certainty. 

I don’t think it’s possible to say any deal that closed is somehow unsuccessful, but there was a property we could have financed a year ago, but it would have triggered a steep penalty. We may ultimately come out behind by choosing not to refinance, but not by much. The numbers at the time did not justify to us refinancing early with the penalty.

When will we know the market has stabilized? (Be specific!)

When banks start calling us again. Numerous lenders have typically approached us on a regular basis as part of daily business. Most lenders today are turtles in a shell. They only emerge for safe conversations. Another sign of normalcy will be when we start seeing competitive bid processes run by high-profile investment sales brokers that actually result in a transaction, not a pulling of property off the market.

How do you think the 2024 presidential campaign will impact the commercial real estate market?

Public policy has a large effect on the marketplace, but I believe it’s more on a local level than tied to national politics. That said, higher government spending levels will likely lead to higher inflation and interest rates, but that also pumps government money into real estate through rent vouchers, commercial space use, and other offerings that could benefit the real estate market. 

If you were to invest your own money in someone else’s real estate, who do you like and why?

If investing in someone else’s real estate, it would be in safe, strong residential in various markets and with owners that have a proven track record. Many of the other owners in this issue would be great choices.

What business advice are you most tired of hearing?

“Be greedy when others are fearful, and fearful when others are greedy.” Sometimes you should listen to your fear. And sometimes you should be fearful of greed, especially when you have a large portfolio to preserve with integrity and we are in uncharted waters. I know that advice has worked well for Warren Buffet, but I don’t really think he’s motivated by greed or fear when it comes down to it. It’s intelligent decisions and making a rational choice when opportunities arise. 

What’s the biggest market opportunity as we round out 2023?

I recently heard Barry Sternlicht say the number one thing to avoid in real estate today is San Francisco and New York City office buildings. If you don’t think he’s vigorously underwriting and investigating distressed opportunities in that space, then you’re naive. So, that’s my answer. If nobody wants it, don’t be fearful or greedy. Be smart.

Do you feel personally safe moving through NYC? Yes, but that doesn’t mean we are in good shape. There are clearly some people on the streets who are dangerous to themselves and others. And some who are just dangerous to others. It needs to be addressed.

Jerome Powell: Are you a fan or critic? I don’t think he has the power to truly rein in inflation. In the meantime, he went so far with rates the broader economy is in danger.

Can’t-live-without technology now? ChatGPT. How do you think I’m answering these questions? Just kidding — but that and other AI functions are going to dramatically change the world. I’m going to also mention Google Maps. It’s not by any means new, but with traffic today it’s more essential than ever!

Elon Musk is…? Sanely insane.

Taylor Swift or Beyoncé?  Taylor Swift.

Artificial intelligence — good or bad? Very good.

Mischa’s or Nathan’s for a hot dog?  Mike’s Bistro.

Netflix or Hulu?  Netflix by a huge margin. 

What character are you in “Succession”?  Couldn’t get past the first few episodes.