By Isaac Mansoura, CPA and Dmitriy Gelfand, CPA
The Second Annual EisnerAmper Real Estate Private Equity Summit on October 1 featured investing legend Sam Zell as the keynote speaker. In an interview focusing on topics that crossed the globe and spanned decades, Zell provided great insight and commentary on the state of the real estate industry.
He offered his own version of the Tale of Two Cities, in that New York and San Francisco have and continue to show tremendous growth in real estate, while the rest of the country remains in equilibrium at the moment.
Zell lamented the fact that, in his view, there has been no significant new office construction in New York City other than the World Trade Center. He further shared that leases are being renewed for less space, not just in New York City, but countrywide, affecting commercial real estate in every market.
He disagrees with the popular notion that foreign investment represents a significant factor in the growth of New York City real estate pricing. Zell also expressed that the availability of local capital is abundant.