trending Market Intelligence /marketintelligence/en/news-insights/trending/ubuet_bctvozrphciud2yw2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Fascitelli: For big returns in New York real estate, be contrarian

Gauging Supply Chain Risk In Volatile Times

The Commercial Real Estate CRE Sector Feels the Impact of the Coronavirus

Credit Analytics Case Study Poundworld Retail Ltd


IFRS 9 Impairment How It Impacts Your Corporation And How We Can Help

Fascitelli: For big returns in New York real estate, be contrarian

Investors must be willing to ride the wave of structural change in New York City real estate to achieve double-digit returns in current market conditions, according to Michael Fascitelli, co-founder and managing partner of Imperial Companies.

"If you can figure out a little bit of a differentiated edge in that, or be a contrarian in that, I think you can make outsized returns," Fascitelli said March 28 at iGlobal Forum's Real Estate Private Equity Summit in New York. "You could also get killed."

The former Vornado Realty Trust CEO, in a conference-opening Q&A, cited three areas of ongoing change in New York City real estate: consumer preferences, product and location. All three can be observed in the market's slide to the west and south, away from Midtown, the historical center of the city's commercial property market.

SNL Image

Former Vornado Realty Trust CEO Michael Fascitelli during a Q&A at iGlobal Forum's Real Estate Private Equity Summit this week.

Source: S&P Global Market Intelligence

Fascitelli acknowledged the weakness in the city's retail scene, noting the decline by roughly half in the square footage of the average retail storefront. But there is still opportunity in value-add strategies, he said.

"There's a lot of opportunity for people active in the business to retrofit, to put their brains to work," he said. "But I do think it's a little harder. Prices got a little ahead of themselves. It's a little harder than just playing a flow game. You have to fight [with] a value-added game."

Fascitelli framed recent market volatility in a somewhat positive light, insofar as it may help rein in runaway valuations. He does not anticipate any near-term market correction playing out like 2008's crash.

"It's really a frothy market out there," he said. "But it is adjusting. Pricing is adjusting all over the place. Real estate pricing is coming in. Real estate companies are coming in. Some of the frothiness in the market is being taken out."

Fascitelli later took an impromptu poll of the audience about the prospect of a continued rise in interest rates, which he said would lead to a "diminution" of real estate values. Most in the audience said they expect rates to rise steadily over the next two years.

"So, that probably means they're going down," Fascitelli joked. "The majority of the people in the room think they're going up."