Staying on Top of the Heap: Connect NY Experts Map the Challenges and the Successes

“We can throw rocks at New York, but it’s got transparency, liquidity and high volume,” said Philip McAndrews, head of real estate equity at Aegon USA.

McAndrews’ comment summed up one of the key themes of this year’s Connect New York event, held Tuesday at the Royalton Park Avenue. The city’s undeniable leadership as both a financial and real estate epicenter remains steady despite the headwinds that occasionally blow through it, notably the current political climate in both City Hall and the state legislature.

Over the course of the afternoon, some 250 industry professionals heard from experts across a variety of disciplines, from institutional asset management to development and finance. The panelists delved into New York’s successes along with its challenges.

On the success front, for example, several speakers detailed the increasing diversification of the city’s economy, citing the rise of a local tech sector that now rivals Silicon Valley. A key factor in the growth of the tech industry in New York—where Google, Facebook and, yes, Amazon all have a major presence—has been its magnetism as a live/work destination.

“They can attract and retain talent in New York,” Boston Properties’ Andrew Levin said of major tech firms. “If they offer New York as a location to attract talent, more than likely people will come here.”

Levin made this observation in the context of a panel on the city’s office market. In fact, the conference took a deeper dive into the growth of tech here with a stand-alone panel on the subject.

However, the Connect New York panelists didn’t shy away from examining the issues, political and otherwise. The Real Estate Board of New York’s Reggie Thomas provided an eye-opening look at the question of commercial rent control via legislation, which recently has resurfaced in the City Council.

Often touted as a means of protecting small retailers from escalating rents, the legislation’s implications are considerably broader. “It applies to all commercial leases, from a hedge fund on the 100th floor to Joe’s Pizza in Bay Ridge,” Thomas told the Connect New York audience.

Check back over the next few days for more in-depth coverage of individual Connect New York panels.

For comments, questions or concerns, please contact Paul Bubny