By Konrad Putzier
Former Governor David Paterson sees a tough year ahead for New York’s commercial real estate sector.
“The main challenge is that the Fed is pouring money into the economy, but the economy is not moving. This has to end at some point, and I anticipate a rise in interest rates,” he said, adding that Bill de Blasio hasn’t weighed in on this issue yet.
“We could be going into a difficult period for commercial real estate.”
On Monday, December 9, Paterson will be speaking at the Real Estate Breakfast Forum, sponsored by EisnerAmper LLP and Real Estate Weekly. Along with fellow panelists Mitchell Rudin, Steven Witkoff and Glenn Rufrano, the former Governor will give his outlook for 2014. Paterson may be pessimistic on interest rates, but he said the real estate community has no reason to fear the new mayor.
“They will find de Blasio a lot easier to work with than feared,” he said. “He knows the value of real estate, and he would want to have a good relationship with the sector.”
Paterson reminisced that he himself had some “very progressive political points of view” when he became New York’s Governor in 2008, but quickly became more pragmatic and moderate in office.
“Leaders realize that they have a personal responsibility — as I did in 2008. They become a lot more big-picture in thinking: what’s good for the city.”
The former Governor also offered some advice for de Blasio on one of his most pressing issues: affordable housing.
According to Paterson, clustering affordable housing units — rather than scattering them across new developments — is the best way to go.
He argued that putting several affordable housing units in one place would create a “good mix of people” and prevent aggregate rents in new developments from falling.