The City's real estate is in bad shape but will recover.

0:00 Speaker 1 What is today is Bruce Mosla, chairman of Coachman in Wakefield. One smart guy knows our city inside out and Bruce Mosla, good morning on Sunday morning. How are you today and give us a report? How is our city?

0:17 Speaker 2 John, Great to be back with you. Our city is doing just fine. Look, we had the job support coming today on a national basis, it was more positive most people expected, generally speaking. A comment on that. In my view, we should be careful because I think the big businesses are still cutting jobs. I think it applies more to

0:39 small and MidCap businesses. That’s a good thing. On the other hand, what people aren’t pointing out as unemployment is rising slightly, but it is still rising and the Fed should be very careful in my view about raising interest rates.

0:54 Yet again, I truly think chasing and chasing interest rates is causing good business is to go tilt for no reason. As to New York, New York is doing well, John. At the end of the day, the first quarter was a tough quarter. Demand was down by forty percent. I’ve mentioned that before. But the pipeline is looking better for

1:14 Q two and Q three. But let’s be clear, business is on pause, looking to see which way interest rates go, looking to see how the economy fares, and I think New York is no different. I will say this, we need to be careful not to compare New York to other gateway cities that are suffering far more. New York

1:34 just has we just learned, has had more tech startups in the first quarter than Silicon Valley. Now that’s a pretty impressive statistic, if in fact where that statistic came from as accurate. But the bottom line is this business in New York. Q one is on hold. Q two I think will be cautious if we see interest rates pause.

1:55 I think business is going to take that in mind, and we’ll begin to see decision making take place again. In Q three and quture for growth, and.

2:06 Speaker 1 We are we swapping people people that are tired of New York and are leaving, versus a younger technology, technological crowd that’s coming in.

2:20 Speaker 2 John. That’s a really, really good question, and that data I don’t have. But here’s what I’ll say. I think the tech sector in New York is growing faster than the financial service sector. Financial services still make up a significant part of our occupancy, and they are doing reasonably well here’s the thing people forget. And it’s important to

2:44 remind folks that New York still from the talent pool perspective, from the educational support perspective, there is no other city like it. It’s why you have to be here. If you’re going to scale your business to a certain size past business and mid cap businesses, you’ve got to be in New York to tap the talent pool. They’re still here,

3:05 they’re still going to school here, They’re still enjoying what you can get out of New York City and the live work, play, vibrancy of everything that’s at their fingertips. Again, the point and if you want to go to Miami, and there are people that are developing outposts in Miami, that’s terrific. But if you look at what’s being developed

3:26 there total size of development. Right now, two new buildings are going up that are between three and four million they will lease very well. That’s the size of a building and a half in Hudson Yards in New York City.

3:39 When you want scale, you need to be here. So, you know, we need to put perspective on this.

3:44 Speaker 1 Yes, and the New York has always made a comeback. You know, I’d like to have confidence in New York. New York has always made a comeback, and I feel, you know, we need a little bit of cooperation from some of our politicians. And there’s an electionists November. Fifty one city council seats are up out of fifty one.

4:05 Speaker 2 Do you think people, John, you’ve put your finger on the pulse. Two things that we need to be very very cautious with. One in a city legislation, we need an understanding that for us to maintain and looking forward our position, we have got to have affordable housing. The only way we’re going to get affordable housing at the

4:29 end of the day. And I’m not just saying this as a real estate person. I’m saying this because from a logical perspective, we need affordable housing for those young graduates to be able to house themselves here in a reasonable fashion. That is a big issue coming our way and we still I think the mayor works hard to

4:47 do this, but we need at the end of the day to be wary. On the crime scene side, we have to have, at the end of the day, bail reform reformed because we’ve got to put violent offenders behind bars.

5:00 Speaker 1 And that’s what I said to everybody. I don’t care about the person that steals a loaf of bread, I don’t really care. But professional shoplifters that steal thousands of dollars, professional shoplifters, professional violent criminals, maybe they should not live among the civilized society. Somebody has to think about that.

5:25 Speaker 2 John. The good news is that New York’s crime compared to other major gateway cities is faring well. From the standpoint of violent crime, from the standpoint of crime period, repeat offenders, violent offenders. We need to do better. I think our mayor and our governor know this, but we need action on this. It is it is the way

5:47 to stability. And again I just want to put my you know, sort of point out there that affordable housing is essential for the future of New York and in keeping young, talented, bright people here for the next generation.

6:03 Speaker 1 Well, thank you so much for coming on, Bruce Mosen and we pray for New York. We pray for New York’s come back, and God bless you and have a great weekend.

6:13 Speaker 2 Thank you, John. It will be there, New York will be there. Thank you for everything you do.