The 16th New York Real Estate Expo was held in grandeur at the Hilton Hotel in the heart of Manhattan on October 16th. The event attracted about 200 exhibitors and nearly ten thousand attendees, with 150 industry experts taking the stage to cover various fields including construction, technology, energy, banking, and real estate brokerage, providing a significant platform for industry communication and learning.
Experts at the conference believe that despite the unpredictable political and economic situation, the outlook for the real estate industry remains optimistic, especially in the Manhattan area of New York. Bob Knakal, Chairman and CEO of New York real estate company BKREA, stated that currently Manhattan real estate may offer the best buying opportunity in New York in 40 years. He pointed out that many buildings are selling at the same price per square foot as they did 20 or 25 years ago, emphasizing that now is the time to consider commercial real estate in the city if you believe in New York’s future.
Knakal, a prominent figure in New York commercial real estate, has facilitated the sale of 2,341 buildings valued at approximately $22 billion since 1988, including $7 billion in real estate development projects. He currently advises investors to focus on two types of investments: undervalued real estate in Manhattan presents a prime investment opportunity, and suburban areas near public transportation hubs are also a good choice for investment.
After the pandemic, with rising prices and a sudden increase in property prices and mortgage rates, the real estate market has seen a resurgence. While interest rates have started to decline, as the real estate market recovers, new technology companies are entering the field.
One such example is the New Jersey startup company Realm AI. The company’s Chief Operating Officer, Jackson Reiter, mentioned that following the pandemic, they saw an opportunity and are currently developing a high-tech platform for real estate search and leasing, aimed at reducing costs for intermediaries and consumers. The new platform was launched in New Jersey in July and similar real estate search platforms are planned to be introduced in New York later this month.
Reiter explained the motivation behind creating a real estate tech company, stating that the company has three co-founders, with the CEO being his college friend, Reiter himself was a real estate broker in New York and New Jersey before the pandemic, and another co-founder is a finance industry Ph.D. Currently, they have all resigned from their previous jobs and fully devoted themselves to this new venture.
Chinese-Americans have a special interest in real estate, and at the real estate expo, Paul Loute, President of Essencap Funding, a credit capital company, mentioned in an interview that for Chinese people, real estate is a long-term investment that can preserve value and be profitable but requires prudent management.
Essencap Funding is a boutique financial company with branches in Florida, providing investment options different from those in New York. Customer Manager Kayan Chow specially travelled from Florida and pointed out that the investment environment in Florida differs from that in New York, with vacation homes being a good investment choice locally. However, she emphasized that regardless of the location, investing in real estate is a highly effective hedge against inflation.
To compete with banks, the company’s lending business focuses on serving small and medium-sized enterprises and commercial real estate loans. Recently, they have been offering highly competitive rates for borrowers of 1 to 9 residential units, with features including large financing amounts, fast approval, and no need to provide tax returns.