I had a nice chat with Vonnie Quinn of Bloomberg Television on Monday concerning the state of the Manhattan housing market, following a highly read Bloomberg article on the terminal covering our Elliman Report results for Q3-2019 as well as a followup on Bloomberg Radio here and here.
This week’s Bloomberg Trifecta…
After the publication of our Q1-2019 Manhattan Sales Report for Douglas Elliman, there was a coverage by Bloomberg (and others): Bloomberg reporter Sydney Maki, anchor Vonnie Quinn on Bloomberg TV and a subsequent drive-time Bloomberg Radio interview with Denise Pellegrini.
(For a more detailed analysis with charts, commentary and reports, subscribe to my weekly Housing Notes, published on Fridays.)
For the record, this is the first time I recall using the word “cognizant” on national television. A personal lexicon triumph.
There has been a lot of fanfare about the new Related Companies ‘Hudson Yards‘ mixed-use development being created over the West Side Yard in Manhattan and is connected to ‘The Highline.‘ The centerpiece or “hook” is a $2 billion mall in the middle of the complex. While ‘malls’ are generally a non-starter in Manhattan, there is a successful precedent. The same developer built Time Warner Center at Columbus Circle (southwest corner of Central Park) nearly twenty years ago and it was considered a significant success. I used to live two blocks to the west of Time Warner Center and it was a pretty rough area at the time but that submarket has been significantly upgraded.
Related has pushed out a media blitz on the mall opening this week. It is important to note that NYC gave Hudson Yards more tax breaks than were proposed for Amazon in Long Island City. However, as Barry Ritholtz writes in his excellent comparison between the two deals (LIC v. Hudson Yards) offered by the city. Related seemed to do this deal right and Amazon came across as greedy in the end.
The $3.4 billion dollars committed to parks, subways, etc. in the Hudson Yard project is exactly what the government is supposed to do. You can create incentives for companies to relocate in a way that directly benefits every taxpayer in the region. The incoming company could have burnished their reputation as a good corporate citizen, instead of being perceived as rapacious and greedy.
Here is a rendering of the completed Hudson Yards. I think it looks spectacular. And don’t forget ‘The Vessel.‘
Teachable moment for condo development naming strategies that include a company: Don’t do it.
The Time Warner precedent-setting mall scenario included a condo offering plan circa 2000 named “AOL Time Warner Center” and then the project was renamed “Time Warner Center” after they sold off AOL (Someone named Jonathan Miller took over AOL strangely enough). Deutsche Bank is replacing Warner Media as the anchor tenant in 2021 so the project will be renamed for the new tenant. However, Deutsche Bank has been having its share of financial problems and is considering a merger with Commerzbank. Uh-oh.
Perhaps that’s why Related went with ‘Hudson Yards.’ 😉
As always, I had a wonderful conversion with Vonnie Quinn, anchor of Bloomberg TV’s Markets today. It was a long interview where we discussed national and NYC metric trends. The following portion covered the Amazon HQ2 story in Long Island City, NY.
I enjoyed my sit down with Vonnie Quinn and Shery Ahn on Bloomberg Markets yesterday. The discussion focused on the release of the Elliman Report: Q2-2018 Manhattan Sales that I have authored since 1994 and the Bloomberg story that covered it.
So I was walking down Fifth Avenue in Midtown Manhattan in the late morning after a meeting and got a call from Bloomberg TV. Apparently, two different stories that featured two of the market reports I author – published by Douglas Elliman – were the number one and two most emailed on the Bloomberg Terminals worldwide. They wanted to talk about them.
So I took a left and walked over Bloomberg HQ. Got to speak with Vonnie Quinn and Shery Ahn on set – who knew how to make an interview go well.
On the last day of 2015 I was invited to guest host for the 6am hour on Bloomberg TV’s Surveillance with Mike McKee, Vonnie Quinn & Erik Schatzker. I was paired with Michael Holland, Chairman at Holland & Co. I’ve never met him before but really enjoyed his insights on the stock market.
The first segment was largely stock market talk which was out of my bailiwick but in the second segment I got to articulate my views on the New York City super luxury market. Today’s Max Frankel New York Times editorial was brought up – “Make Them Pay For Views” – which I thought was a ridiculous premise – despite the legendary author.
And a second segment talking about professional services used for acquiring assets.
Gotta go. The Spartans are playing in the Cotton Bowl now.
Yesterday, Oshrat Carmiel’s real estate piece: Manhattan Homes Under $3 Million Never Harder to Buy hit the terminals and web site rising almost immediately to the most emailed and most read article of the day. The starting point for her article was based on my firm’s data – extracting the luxury market data from the overall market – to observe what’s happening to “non-luxury” real estate. I define luxury real estate as the top 10% of all sales prices in a period. This analysis looked at the remaining 90% and as it turns out – the Manhattan market is a lot tighter there.
I had a fun discussion with Erik Schatzker and Alix Steel about the “non-luxury” Manhattan market on their Bloomberg TV show “Market Makers.”
As of today, the Bloomberg article is still the most read on Bloomberg worldwide. Apparently there is interest in the housing market beyond the super wealthy’s real estate exploits.
It was a busy day.