Stephen G. Kliegerman
President of Development Marketing
When GP met with Halstead’s Stephen Kliegerman in his fantastic (and kinda fantastical) Village office on Broadway the other day, we asked the veteran real estate pro the inevitable questions about the market…and got an interesting perspective that comes from his decades in the business. Kliegerman noted that 9/11, in an unpredictable way, was the “catalyst to skip a cycle” in real estate.
The pre-9/11 real estate market in New York was already seeing a fall off in absorption, a moment in the market swing that might have well led to stability, a bit of stagnation. “Then the world flocked to New York City to support the City,” he noted. Money poured in, the economic programs we are all aware of for Downtown happened and bond issuance helped the City recover… “So it’s not surprising we (the real estate market) was on a high,” he points out.
Without 9/11, there would probably would have been some “minor adjustment,” around that time, he advised. And that would have lessened today’s market blow.
The loosening of credit also created tremendous opportunities in the financial world…a giant source of employment for the City. This also contributed to the outsized rise in prices.
Kleigerman is responsible for the operations, direction and management of new business, client relations, pre-development planning, marketing and sales, consulting with developers bringing new product to market.
In the present market, he is spending considerable time talking with developers to find better ways for them to market their inventory, including developing a strategy to shift condos to the rental market, although most are still holding off on that.
Despite the talk of a dead market, like many others GP has spoken to, his team is still closing deals.
For the rest of the year? Kleigerman thinks the market will start to turn towards the end of 2009… “Buyers who need to move are going to believe the market has bottomed,” he advises. And rates should still be low and attractive. But prices won’t go up until 2011, driven in part by the ongoing scarcity of multifamily housing in the City, where housing remains, pretty much, he says, “at capacity.”
Tuesday, February 10, 2009