Transit Oriented Developments | The Stoler Report

Transit Oriented Developments | The Stoler Report


♪ [THEME MUSIC] ♪>>SO THEY CALL IT TRANSIT ORIENTED DEVELOPMENT. A LOT OF PEOPLE HAVE DIFFERENT UNDERSTANDINGS OF WHAT THE TERM IS, WHERE IT’S GOING, WHAT IS HAPPENING, AND WHAT TAKES PLACE IN THE TRANSIT ORIENTED DEVELOPMENT IN THE TRI-STATE AREA. I HAVE ASSEMBLED THE LEADING EXPERTS ON THE TOPIC TO TALK ABOUT TRANSIST ORIENTED DEVELOPMENT IN THE AREA. MY GUESTS INCLUDE SETH PINSKY, EXECUTIVE VICE PRESIDENT AT RXR REALTY, DEBORAH TANTLEFF, PRINCIPAL AND FOUNDER OF TANTUM REALTY, ADAM ALTMAN, PRINCIPAL AND CO-FOUNDER OF KABR, AND JONATHAN SCHULTZ, THE PRINCIPAL AND CEO OF ONYX EQUITIES. DEBORAH, YOU HAVE BEEN HELPFUL TODAY, BRINGIN A COUPLE OF PEOPLE ON THE SHOW. WHAT IS THE TRANSIT ORIENTED DEVELOPMENT?>>IT REALLY DEPENDS ON WHERE YOU ARE. THE COMMON PERCEPTION IS TRANSIT ORIENTED DEVELOPMENT — >>A TRAIN?>>A BUILDING WITH APARTMENTS, RETAIL, ON TOP OF A TRAIN. THAT IS WHAT MOST PEOPLE ASSUME IS TRANSIT ORIENTED DEVELOPMENT.>>WE’VE HAD TRANSIT ORIENTED DEVELOPMENT IN NEW YORK CITY WITH BUILDINGS ON FORDHAM ROAD AND OTHER PLACES, WE HAVE ALWAYS HAD TRANSIT ORIENTED DEVELOPMENTS IN THE CITY OF NEW YORK. NOW WE ARE TALKING ABOUT EXPANDING IT, CORRECT?>>YOU HAVE TO ALIGN THE USE OF TRANSIT IN SUBURBIA THROUGHOUT THE TRI-STATE REGION. OTHER THAN THE FIVE BOROUGHS, THERE ARE DIFFERENT MODES OF TRANSPORTATION AND DIFFERENT PATHS THEY WILL TAKE YOU TO, AND DIFFERENT USES FOR DIFFERENT REASONS. IT IS UNDERSTANDING THE EMPLOYMENT DRIVERS AND WHERE THE PEOPLE ARE COMMUTING TO, COUPLED WITH THE QUALITY OF THE MASS TRANSIT TO UNDERSTAND WHAT YOU SHOULD REALLY BE DEVELOPING — ON TOP OF, OR NEARBY TRANSIT.>>WE DISCUSSED WITH JONATHAN, YOU WERE TALKING ABOUT RIDGEWOOD. LET’S TALK ABOUT RIDGEWOOD AND TRANSIT ORIENTED DEVELOPMENT. MAY NOT BE DIRECTLY IN NEW YORK CITY, IT MAY BE IN NEW JERSEY, CORRECT?>>WE HAVE OFFICE TENANTS IN NEW JERSEY, NEW YORK IS NOT THE ONLY PLACE THAT HAS A BIG PRESENCE OF COMPANIES WORKING HERE. SO I THINK EVERYONE IS WAY MORE FOCUSED ON LABOR. IT’S EVERYTHING. OTHERWISE YOUR COMPANIES CANNOT GROW AND YOU CANNOT SUCCEED. BEING NEAR A TRAIN, IN THEORY, MAKES PEOPLE FEEL IT IS EASIER TO GET TO WHEREVER THEY HAVE TO GO IN TODAY’S DAY AND AGE. BUT WE ARE STILL A DRIVING STATE, YET AS THE GENERATIONS SWITCH, THE BABY BOOMERS — EXCUSE ME, THE MILLENNIALS AND GEN Zs SWITCHOVER AND START TO COME OUT TO THE SUBURBS, IT IS A PLUS.>>SETH, YOU HAVE TRANSIT ORIENTED DEVELOPMENT IN WESTCHESTER COUNTY AND STANFORD TODAY. WHAT IS YOUR THOUGHT TO THAT KIND OF TRANSIT ORIENTED DEVELOPMENT?>>WHAT WE HAVE SEEN IN THE MARKET IS THERE IS SIGNIFICANT DEMAND FOR WALKABLE, DIVERSE, TRANSIT ACCESSIBLE HOUSING THAT IS ALSO AFFORDABLE. THAT IS A PARTICULAR INTEREST TO TWO ENDS OF THE DEMOGRAPHIC SCALE. ON ONE END, YOUNG PEOPLE WHO ARE JUST STARTING OUT THEIR CAREER, WHO ARE LOOKING TO LIVE IN THESE MORE URBAN STYLE ENVIRONMENTS. ON THE OTHER HAND, YOU HAVE AGING EMPTY-NESTERS WHOSE KIDS HAVE GONE AWAY. THEY DO NOT WANT TO HAVE TO WALK UP AND DOWN STAIRS AND SHOVEL THE FRONT WALK, THEY DON’T WANT TO HAVE TO DRIVE EVERYWHERE BUT STILL WANT TO STAY IN THEIR COMMUNITIES. THE FEELING THAT WE HAVE IS THAT THE TRANSIT NODES IN THE SUBURBS COULD BE PARTICULARLY ATTRACTIVE TO THOSE GROUPS, AND THOSE ARE GROUPS, BY THE WAY, THAT SUBURBS ARE HAVING A VERY HARD TIME RETAINING, WHICH IS CREATING SECONDARY PROBLEMS FOR THE SUBURBS THEMSELVES.>>AND SOME OF YOUR DEVELOPMENTS, YOU ARE LOOKING AT, AS OPPOSED TO WHAT JONATHAN WAS TALKING ABOUT WITH THE OFFICE SPACE IN NEW JERSEY, MANY PEOPLE WHO ARE RENTING RIGHT NOW IN YONKERS, YOU ARE LOOKING AT THEM TRAVELING INTO THE CITY.>>IT IS REALLY A COMBINATION OF BOTH. YOU HAVE SOME PEOPLE FOR SURE WHO ARE LOOKING TO DO THE DAILY COMMUTE INTO THE CITY, BUT YOU ALSO HAVE LARGE NUMBERS OF PEOPLE WHO WORK IN WESTCHESTER COUNTY, FAIRFIELD COUNTY, AND OTHER SUBURBAN COUNTIES, BUT WHO STILL WANT TO HAVE THIS LIFESTYLE AND DO NOT WANT TO HAVE TO DO THE REVERSE COMMUTE FROM MANHATTAN OR ELSEWHERE, WHO ARE INTERESTED IN LIVING IN THESE AREAS. JUST TO SEE THE POTENTIAL FOR THAT MARKET, ALL YOU HAVE TO DO IS JUMP ON A TRAIN AT GRAND CENTRAL HEADING UP TO A PLACE LIKE WHITE PLAINS OR STANFORD. IT IS AMAZING, THE NUMBER OF PEOPLE IN THE MORNING WHO ARE GETTING OFF THOSE TRAINS IN THE COMMUNITIES, GOING TO THEIR WORKPLACES. OUR THOUGHT IS IF WE COULD PROVIDE THEM WITH THE KIND OF HOUSING THEY ARE LOOKING FOR AT A SIGNIFICANT DISCOUNT AND CLOSER TO THEIR WORKPLACES, THAT IS AN ADVANTAGE.>>WHAT AGE GROUP ARE YOU TALKING ABOUT?>>WHEN YOU LOOK AT THE REVERSE COMMUTE, THAT TENDS TO BE YOUNGER PEOPLE. HOWEVER, THESE DOWNTOWN MARKET AND THE SUBURBS ARE CAPTURING PEOPLE AT BOTH ENDS OF THE SPECTRUM, YOUNGER AND OLDER.>>IT USED TO BE ONE WAY INTO THE CITY, AND I FEEL IT IS A TWO-WAY, PUSH-POLL, IN AND OUT OF THE CITY OR SUBURBS, DEPENDING ON WHERE THEY ARE IN THEIR CAREERS AND HAVING A FAMILY.>>WHAT DO YOU SEE IN YOUR STANFORD PROPERTY?>>STANFORD IS A REALLY INTERESTING COMMUNITY. IT IS HIGHLY TRANSIT ORIENTED, BECAUSE IT IS QUICKLY COMMUTABLE AND ACCESSIBLE TO NEW YORK, BUT IN BOTH DIRECTIONS. AND YOU SEE THAT HAPPENING DAILY. YOU ALSO SEE THE PROLIFERATION OF SOME OF THE KEY DRIVERS FOR COMMUNITIES AND FOR — TO MAKE THESE COMMUNITIES ATTRACTIVE TO MILLENNIALS AND TO EMPTY-NESTERS, WHICH IS RESTAURANTS, ENTERTAINMENT, UNIVERSITY, MEDICAL — ALL THOSE THINGS ARE COMING TO STANFORD, AND THAT IS REALLY DRIVING BOTH THE OFFICE AND THE RESIDENTIAL GROWTH IN THE COMMUNITY. BECAUSE THERE HAS BEEN A LOT OF RECENT RESIDENTIAL DEVELOPMENT, I THINK SOME OF THE RENTAL GROWTH IS NOT HAPPENING AS QUICKLY AS SOME DEVELOPERS WOULD LIKE, BUT IF YOU ARE LIVING IN THE COMMUNITY AND PARTICIPATING IN THE COMMUNITY THERE, IT IS REALLY A ROBUST EXPERIENCE.>>DEBORAH, LET’S TALK ABOUT SOME OF YOUR DEVELOPMENTS YOU ARE DOING IN NEW JERSEY. WOULD YOU CONSIDER THEM AS TRANSIT ORIENTED?>>ADAM JUST DESCRIBED IT VERY WELL. WE COMPLETED A DEVELOPMENT IN RED BANK, WHICH IS A TRANSIT ORIENTED COMMUNITY. IT IS A FIVE-MINUTE WALK FROM THE TRAIN STATION, BUT THE REASON YOU ARE LIVING IN RED BANK IS NOT NECESSARILY TO TAKE THAT TRAIN EVERY DAY TO MANHATTAN. IT IS A LONG TRAIN RIDE, BUT YOU HAVE THE ARTS, CULTURE, THEATER, THE ANTIQUES DISTRICT AND THE WATERFRONT, DOWNTOWN, THE RESTAURANTS AND THE NIGHTLIFE. IF YOU ARE LOOKING AT TRANSIT ORIENTED DEVELOPMENT IN NEW JERSEY, IT IS AGAIN, WHERE IS YOUR LIFESTYLE TAKING YOU ON ANY COURSE OF DAY? WE ARE WORKING ON A MAJOR REDEVELOPMENT IN EAST ORANGE, AS AN EXAMPLE. THE ESSEX COUNTY TRANSIT ORIENTED OPPORTUNITY IS A UNIQUE OPPORTUNITY, WHERE THE END-USER IS POTENTIALLY COMMUTING TO MANHATTAN, BUT ALSO COMMUTING WITHIN ESSEX COUNTY FOR WORK OR INTO HUDSON COUNTY. EAST ORANGE, AS AN EXAMPLE, HAS TWO MIDTOWN DIRECT TRAIN STATIONS AND IS STARTING TO SEE A LOT OF MULTIFAMILY DEVELOPMENT OPPORTUNITIES HAPPENING. THE CHALLENGE IN EAST ORANGE IS THE INTERNAL INFRASTRUCTURE IN THE CITY AND THE CONNECTIVITY WITHIN THE CITY. THERE IS AN INCREDIBLE ARTS DISTRICT AND COMMERCIAL BUSINESS DISTRICT, AND THEY HAVE INCREDIBLE MUSIC FESTIVALS AND SPECTACULAR EVENTS, BUT IT IS THE OPPORTUNITIES OF ALIGNING THE END-USER, WHO IS COMMUTING ON A DAILY BASIS, TO COMING HOME AT NIGHT AND WALKING TO THE TRAIN.>>WHAT ABOUT MONTCLAIR?>>ALSO A SPECTACULAR COMMUNITY WHERE THE TRANSPORTATION ACCESS IS REMARKABLE. UNDERSTANDING NEW JERSEY’S TRANSIT OPPORTUNITIES IS AS MUCH ABOUT UNDERSTANDING THE QUALITY OF THE TRANSPORTATION AND THE LENGTH OF THAT COMMUTE.>>WITH REGARD TO THAT, JONATHAN, A COUPLE MONTHS AGO, ACQUIRED A PROPERTY WHICH IS PROBABLY ONE OF THE BEST TRANSIT ORIENTED DEVELOPMENTS IN NEWARK. LET’S TALK ABOUT THE GATEWAY.>>YEAH, THE NAME “GATEWAY” IS APROPOS. TO ME IT’S THE SINGLE BEST TRANSIT ORIENTED LOCATION IN NEW JERSEY, BECAUSE IT IS CLOSE TO THE CITY AS WELL. WHAT IT ALLOWS YOU TO DO, COMPANIES WANT TO LOCATE AN AREA SO YOU CAN LIVE IN THE AREA AND HAVE EXPERIENTIAL THINGS TO DO IN THE AREA, BUT THEY ALSO WANT TO KNOW THEY CAN RECRUIT FROM FURTHER DISTANCES, RIGHT? YOU CAN GET PEOPLE FROM NEW YORK TO COME HERE, YOU CAN GET PEOPLE FROM LONG ISLAND AND OTHER PARTS OF THE SURROUNDING AREA AS A POTENTIAL RECRUIT FOR YOUR COMPANY. LABOR IS THE NUMBER ONE, I THINK, FOCUS OF CORPORATIONS TODAY. THEY KNOW THAT IS HOW THEY ARE GOING TO BE SUSTAINABLE IN THE FUTURE, AND IT IS GETTING TIGHT. IT IS A VERY IMPORTANT FACTOR.>>RIGHT, AND I THINK THAT IS A REALLY INTERESTING INSIGHT. IT IS WORTH DWELLING ON THAT FOR A MINUTE, THAT IN THE PAST, SUBURBAN DEVELOPMENT AROUND TRAIN STATIONS WAS PRIMARILY FOCUSED ON COMMERCIAL DEVELOPMENT, ESPECIALLY IN PLACES LIKE STANFORD AND WHITE PLAINS. THE CHALLENGE THAT OCCURRED WAS THAT ORIGINALLY THEY WERE LOCATED THERE BECAUSE THAT IS WHERE THE CEOs WERE, AND COMPANIES MADE THEIR LOCATION DECISIONS BASED ON WHERE THEIR CEOs LIVED. OVER THE PAST 10 OR 20 YEARS, THAT HAS BEEN COMPLETELY FLIPPED, AND COMPANIES ARE NOW MAKING DECISIONS BASED ON WHERE THEIR WORKFORCE IS. THAT HAS CREATED A CHALLENGE ON THE COMMERCIAL SIDE FOR THE SUBURBS, BECAUSE THE WORKFORCE HAS BEEN MOVING INTO THE CITIES. THE SUBURBS HAVE HAD A HARD TIME COMPETING. THAT HAS UNDERMINED THEIR TAX BASES, WHICH HAS CREATED ALL THE PROBLEMS WITH HIGH PROPERTY TAXES THAT WE SEE IN THE SUBURBS. WHAT IS NOW HAPPENING IS THAT I THINK A LOT OF ENLIGHTENED SUBURBS HAVE REALIZED A NEED TO ATTRACT THAT WORKFORCE FIRST TO THEIR DOWNTOWNS, AND THEN THE BUSINESSES WILL FOLLOW.>>I THINK WHAT RXR AND MY FELLOW PANELISTS HAVE RECOGNIZED IS THAT THE DEFINITION OF TRANSIT ORIENTED HAS REALLY EXPANDED, THE PEOPLE WHO WERE FOCUSED ON LIVING IN THE CITY, THE MILLENNIALS — MILLENNIALS ARE ALSO GETTING OLDER NOW AND SHARING AN APARTMENT IN MANHATTAN WHERE THE RENTS ARE 2X OR 3X MIGHT NOT BE AS PALATABLE AS LIVING IN A LUXURY BUILDING IN WHITE PLAINS, STANFORD, NEW ROCHELLE, JERSEY CITY WHERE ANY OF US ARE DEVELOPING.>>JERSEY CITY HAS PROBABLY SEEN OVER THE LAST 10 YEARS THE LARGEST NUMBER OF NEW RESIDENTIAL APARTMENT HOUSES AND OFFICE BUILDINGS. YOU ARE INVOLVED WITH THAT. LET’S TALK ABOUT JERSEY CITY AND LIGHT RAIL AND OTHER THINGS.>>JERSEY CITY IS AN EASY TRANSIT ORIENTED DESTINATION IN NEW JERSEY. WHEN PEOPLE TALK ABOUT TRANSIT ORIENTED, THEY USUALLY MEAN IN PROXIMITY TO MANHATTAN. THE DEFINITION HAS EXPANDED. IT IS NOW A WORD FOR LIVABILITY, COMMUTABILITY, AND LIFESTYLE. MAYBE THEY WANT A LARGER METROPOLIS. JERSEY CITY OFFERS ALL OF THOSE THINGS IN SPADES, SO YOU REALLY HAVE THAT ABILITY. WE LIKE JERSEY CITY AND THE DEVELOPMENT THERE, BUT WE WILL SEE HOW MUCH DEVELOPMENT CONTINUES IN JERSEY CITY. THE PAST DECADE IN JERSEY CITY HAS BEEN AMAZING, BUT WITH SOME OF THE AFFORDABILITY, 20% AFFORDABLE AND THESE OTHER THINGS THEY ARE LOOKING TO — IT INTO THE PROCESS, THAT COULD CHANGE THE DYNAMIC.>>I THINK THIS IS SOMETHING THAT SETH AND RXR HAS DONE REALLY WELL. WORKING WITH THE MUNICIPALITIES IS REALLY IMPORTANT. LET’S TALK ABOUT THAT.>>A GOOD EXAMPLE OF THAT WITH THE EXPERIENCE WE HAD IN NEW ROCHELLE, WHERE INSTEAD OF THE CITY COMING UP WITH A MASTER PLAN FOR DOWNTOWN ON ITS OWN, IT PUT OUT AN RFP FOR A MASTER DEVELOPER. WE HAPPEN TO HAVE BEEN SELECTED. WHAT ENDED UP HAPPENING WAS WE WERE ABLE TO SIT AT THE TABLE WITH THE CITY AND WITH THE COMMUNITY AS THE MASTER DEVELOPMENT PLAN WAS PUT IN PLACE. THE BENEFIT THAT WAS PRESENTED WAS THAT ON ONE HAND YOU HAD THE CITY AND THE COMMUNITY, WHO WERE MAKING SURE THAT THE DEVELOPER WAS GOING TO SHARE THE BENEFIT OF DEVELOPMENT WITH THE LARGER COMMUNITY, AND THINGS LIKE AFFORDABLE HOUSING AND OTHER PRIORITIES WERE GOING TO BE PART OF THE MASTER DEVELOPMENT PLAN. ON THE OTHER HAND, HAVING THE DEVELOPER AT THE TABLE ALLOWED US TO SAY FROM TIME TO TIME WELL, THAT IS WORTHY AND IMPORTANT, BUT YOU CAN’T MAKE THE NUMBERS WORK. LET’S TRY TO FIGURE OUT THE WAYS TO GET TO YOUR GOALS WHILE ALSO STILL ENCOURAGING DEVELOPMENT.>>WHICH RELATES TO WHAT YOU JUST SAID REGARDING THE AFFORDABILITY COMPONENTS, WHAT REQUIREMENTS YOU NEED. BUT YOU NEED A MUNICIPALITY THAT IS OPEN. NEWARK, WE HAVE SEEN WITH THE MAYOR, CHANGES OVER THERE IN OPPORTUNITIES OVER THERE. LIGHT RAIL IS VERY IMPORTANT.>>I WAS ABOUT TO SAY, JERSEY CITY IS A TALE OF TWO CITIES. DEPENDING ON WHERE IN THE CITY YOU ARE LIVING, YOUR TRANSIT ACCESS IS VERY DIFFERENT. IF YOU LOOK AT THE WEST SIDE OF JERSEY CITY AND THE SOUTH SIDE OF JERSEY CITY AS COMPARED TO THE BAYONNE MARKET, WHICH HAS LIGHT RAIL AND A NEW FERRY THAT IS COMING, THE OPPORTUNITIES FOR DEVELOPMENT AND GROWTH IN BAYONNE ARE EXTRAORDINARY. AND YOU HAVE AN ADMINISTRATION THAT IS WORKING VERY PROACTIVELY WITH THE DEVELOPMENT COMMUNITY TO BRING IN NEW HOUSING AND INDUSTRIAL AND MIXED-USE. LOOKING AT A COMMUNITY LIKE HACKENSACK, WHERE WE ARE WORKING, HACKENSACK HAS NO TRAINS — THEY DO HAVE TRAINS, BUT THAT IS NOT THE NORMAL MINDSET OF THE RESIDENTS. THEY HAVE AN EXCEPTIONAL BUS SYSTEM AND A COUNTY SPONSORED BUS SYSTEM THROUGHOUT THE CITY. SO IT IS UNDERSTANDING THE LOCAL MUNICIPALITY, HOW THEY ARE OPERATING WITHIN THEIR COUNTY REGIME, AND THE COUNTY EMPLOYMENT DRIVERS THAT ARE BRINGING PEOPLE INTO THOSE URBAN HUBS IN THOSE MUNICIPALITIES AND HOW THEY ARE DOING THEIR PLANNING TO ALLOW FOR THAT GROWTH, UTILIZING THEIR TRANSIT SYSTEM.>>JONATHAN?>>I KNOW WE CALL IT TRANSIT ORIENTED DEVELOPMENT, BUT I THINK IT IS ONLY ONE PIECE OF WHAT YOU HAVE TO THINK ABOUT TODAY THAN THE PAST. HOUSING IS SO IMPORTANT. PEOPLE WANT TO LIVE, WORK, AND PLAY. IT IS A NEW GENERATION OF THINKING. WE ARE CHANGING HOW WE BUILD OUR BUILDINGS AND HOW WE DO TENANT FIT OUTS, WHAT AMENITIES WE WILL OFFER. SOME OF THE THINGS WE ARE PUTTING — I KNOW THEY ARE EXPERIMENTS AND WE WILL FIGURE IT OUT, BUT WE ARE FIGURING HOW WE WILL RENT THAT SPACE, AND MAKE A GREAT EXPERIENCE –>>FOR THE AGING BABY BOOMER, WANTING TO STAY IN THE REGION, THAT IS CHANGING THE MARKET ALSO. YOUR DEVELOPMENT ON THE LONG ISLAND EXPRESSWAY — >>NORTH HILLS.>>NORTH HILLS IS A PERFECT EXAMPLE.>>THE CHALLENGE IS OFTEN WITH THESE DEVELOPMENTS, YOU HAVE PEOPLE WHO GENERALLY WANT THE SAME ENVIRONMENT BUT ARE AT VERY DIFFERENT POINTS IN THEIR LIVES. HOW DO YOU ACCOMMODATE ALL OF THEM? THE AMENITIES THAT YOU PUT INTO THESE BUILDINGS ARE NOW INCREASINGLY IMPORTANT, AND NOT JUST THE AMENITIES IN THE BUILDINGS, THE AMENITIES OF THE COMMUNITY AS WELL. YOU HAVE TO THINK HOLISTICALLY ABOUT THESE THINGS. IT CANNOT JUST BE, WE WILL CREATE FOUR WALLS AND RENT SOMEONE A WHITE BOX, YOU ARE SELLING SOMEONE AN EXPERIENCE. PART OF THAT EXPERIENCE IS THE CONNECTIVITY TO NEW YORK CITY AND EVERYTHING IT HAS TO OFFER, BUT THERE HAS TO BE SOMETHING IN THE IMMEDIATE NEIGHBORHOOD AND IN THE BUILDING — CLASSES, EXERCISE ROOMS, PROGRAMS OF VARIOUS TYPES, AND THAT IS A KEY PART OF THIS WHOLE FORMULA.>>THESE COMMUNITIES ARE BECOMING MUCH MORE TAILORED TO DIFFERENT PARTS OF THE POPULATION, WHICH IS I THINK WHAT SETH WAS SAYING. BABY BOOMERS WANT A CERTAIN TYPE OF COMMUNITY, MILLENNIALS WANT A CERTAIN TYPE OF COMMUNITY, AND AS DEVELOPERS WE RECOGNIZE THAT AND ARE LOOKING TO TAILOR THESE COMMUNITIES TO THOSE POPULATIONS, TO THOSE GROUPS WITH BOTH AMENITIES AND OTHER LOCATIONS AND ACCESS POINTS.>>BUT IT IS STARTING TO BLUR, BECAUSE EVERYONE NOW IS CONNECTED. YOU KNOW, WE HAVE MILLIONS AND MILLIONS OF DEVICES FROM PEOPLE WHO ARE 80 YEARS OLD, ALL THE WAY DOWN TO 9 YEARS OLD, WHICH I THINK IS TOO EARLY ANYWAY. SO WE ARE LOOKING AT A DIFFERENT EVOLUTION OF THIS RIGHT NOW. I THINK PEOPLE ARE EXPECTING MORE. I DO NOT THINK IT MATTERS HOW OLD YOU ARE. YOU HAVE TO THINK ABOUT THAT WHEN YOU ARE BUILDING ANYTHING. WHAT THE COMMUNITY OFFERS MATTERS IN A HUGE WAY.>>HOW OPEN ARE THE LOCAL MUNICIPALITIES TO DISCUSSION OF DIFFERENT OPPORTUNITIES?>>I THINK IT VARIES COMMUNITY TO COMMUNITY, BUT I THINK THE TREND IS WORKING IN FAVOR OF THIS KIND OF TRANSIT ORIENTED DEVELOPMENT, OF MID-AND IN SOME PLACES HIGHER DENSITY DEVELOPMENT AROUND TRANSIT HUBS. THE REASON FOR THAT IS THAT COMMUNITIES ARE REALIZING THAT THE OLD MODEL JUST DOESN’T WORK, AND THEY HAVE TO DO SOMETHING IN ORDER TO CHANGE THE TRAJECTORY, IN ORDER TO DO SOMETHING TO GENERATE MORE TAX REVENUE SO THAT THE TAX BASE — >>WHAT ABOUT AFFORDABILITY?>>IN NEW JERSEY, I DO NOT THINK THERE WAS AS MUCH OF AN UPFRONT, PROACTIVE, LET’S CHANGE OUR APPROACH. I THINK YOU ARE SEEING A LOT OF MUNICIPALITIES MOVING FORWARD NOW IN A DIFFERENT WAY, BUT THAT WAS THE RESULT OF LEGISLATIVE DRIVEN AND LITIGATION IN RESPECT TO AFFORDABLE HOUSING BEING TIED UP IN THE COURTS FOR SO LONG. THE FACT THAT MUNICIPALITIES — MOST MUNICIPALITIES IN THE STATE HAVE NEGOTIATED AND CREATED SETTLEMENT AGREEMENTS WHERE THEY HAVE OUTLINED THEIR AFFORDABLE HOUSING DELIVERABLES THAT THEY ARE GOING TO BE OBLIGATED TO BRING. TOWNS ARE NOW PROACTIVELY PLANNING AND IDENTIFYING OPPORTUNITIES FOR REDEVELOPMENT. WHAT GETS BUILT? WE’LL SEE.>>IN REGARDS TO THAT REDEVELOPMENT, AND I THINK YOU PEOPLE WERE INVOLVED WITH IT. SOME OF THESE OFFICE BUILDINGS THAT WERE BUILT OVER THE YEARS FOR THE CORPORATE EXECUTIVES, BECAUSE THEY LIVED IN THE NEIGHBORHOOD, A NUMBER OF THOSE PROPERTIES HAVE BEEN DEMOLISHED AND MADE PLACES FOR RESIDENTIAL HOUSING.>>YEAH. AND I THINK THAT HAS CREATED AN OPPORTUNITY FOR JOHN AND MYSELF, BECAUSE AS THESE OLDER, MORE OBSOLETE OFFICE BUILDINGS GET TAKEN OUT OF CIRCULATION AND LANDLORDS AND OWNERSHIP WHO HAVE NOT COMMITTED TO KEEPING UP WITH THE AMENITIES AND CHANGES, THOSE BUILDINGS ARE NO LONGER RELEVANT AND THAT EFFECTIVELY HAS SHRUNK THE MARKET.>>WHICH HAS HELPED IN THE WESTCHESTER MARKET, BECAUSE THE OFFICE SPACE HAS BEEN SIGNIFICANTLY REDUCED.>>IT IS HELPING IN NEW JERSEY, WESTCHESTER AND CONNECTICUT. IT IS HELPING ANY GOOD OFFICE OWNER WHO CARED ABOUT HIS BUILDINGS. THE MARKET IS AS TIGHT AS I HAVE SEEN IT NOW IN ABOUT A DECADE.>>I THINK A LITTLE LESS IN JERSEY. WHERE WE FOUND SUCCESS, IT IS HARDER TO STAY WHERE YOU ARE AND FIX YOUR BUILDING TODAY BECAUSE OF ALL THE DIFFERENT THINGS WE HAVE TO DO. SO EMPTY, EVEN THOUGH IT IS MORE OF A BINARY DEAL, BUYING AN EMPTY BUILDING AND HAVING TO LEASE IT, IT IS SPECULATIVE, YOU HAVE A MUCH MORE EASY TIME PUTTING TOGETHER WHAT THE RIGHT PROGRAM IS FOR THE TENANTS. WE HAVE BEEN REALLY SUCCESSFUL. THIS THING HAS GREAT BONES, GREAT CONNECTIVITY — BROOKFIELD PLACE HAS ALL THOSE BUILDINGS CONNECT IN THIS BEAUTIFUL ATRIUM. OBVIOUSLY THIS IS DIFFERENT, BUT WE HAVE ALL THE ESSENTIALS TO MAKE THAT EXPERIENCE COME TO LIFE. FROM F&B, DIFFERENT ENTERTAINMENT RETAIL THROUGH THE CONCOURSE, WE ARE A PUBLIC SPACE WALKING THROUGH. PEOPLE USE IT IN A VARIETY OF DIFFERENT WAYS.>>IN RIDGEFIELD PARK, NEW JERSEY, THE COUNTY HAS BEEN A BIG PROPONENT OF THE LIGHT RAIL, WHICH WE EXPECT TO HAVE COME IN IN THE NEXT HOPEFULLY THREE TO FIVE YEARS. SO THEY ARE TRANSIT ORIENTED. WILL NOT JUST BE ABOUT CONNECTING TO NEW YORK. TRANSIT ORIENTED FOR RIDGEFIELD PARK AND FOR THE MILLION SQUARE FEET THAT WE HAVE THERE WILL BE ABOUT CONNECTING TO ENGLEWOOD, CONNECTING TO OTHER SMALL URBAN, SUBURBAN COMMUNITIES WHERE YOU CAN DINE AND GO TO LUNCH OR BREAKFAST. THAT CONNECTIVITY AS A WHOLE –>>LET’S TALK ABOUT WEEHAWKEN, WHICH HAS A SIGNIFICANT TYPE OF REDEVELOPMENT.>>THE HUDSON COUNTY WATERFRONT, GOLD COAST AREA. YOU HAVE THE BENEFITS OF ALL THE AMENITIES OF WATERFRONT, ALL OF THE AMENITIES OF MASS TRANSIT. THE BENEFIT OF ACCESS TO MANHATTAN, IF YOU WORK IN MANHATTAN, BUT YOU HAVE A LARGE NUMBER OF EMPLOYERS NOW BASED ON THE JERSEY SIDE OF THE RIVER. NOW THERE ARE HOUSING OPPORTUNITIES FOR PEOPLE TO LIVE RIGHT THERE.>>IF YOU LOOK AT SJP AND OTHER GROUPS, IN FORT LEE, EVEN THOUGH THERE IS NO TRANSIT OVER THERE, THEY’VE CREATED THEIR OWN TRANSIT BY HAVING MINI BUSES.>>RIGHT.>>THEY HAVE A BUS INTO THE CITY TO PORT AUTHORITY.>>I WOULD ARGUE THAT IS TRANSIT ORIENTED. NOT ONLY DO YOU HAVE SHUTTLES, RIGHT SHARES, UBER, LYFT, ELECTRIC SCOOTERS, THERE ARE MANY WAYS TO ACCESS DIFFERENT PLACES.>>LET’S TALK ABOUT FERRIES. ISN’T THE FERRY IMPORTANT?>>MULTIPLE MODES OF TRANSPORTATION ARE USED THROUGHOUT THE REGION, AND THINKING ABOUT TRANSIT CONNECTIVITY NOT IN TERMS OF JUST TRAINS, BUT THINGS LIKE OUR WATERWAYS. THE CITY HAS DONE A GREAT JOB WITH ITS FERRY SYSTEM AND — WILL ALLOW PEOPLE TO COMMUTE INTO NEW YORK CITY FROM THERE IN 45 MINUTES ON A GREAT, BEAUTIFUL TRANSIT, TRANSPORTATION MODE, AND HAVE A NICE COMMUTE AT THE SAME TIME. YOU RAISED THE POINT EARLIER I WANTED TO TOUCH ON FOR A SECOND, WHICH WAS AFFORDABLE HOUSING — I THINK THE STORY HERE IS LESS TRANSIT ORIENTATION AND MORE ABOUT AFFORDABILITY. AND I THINK THAT IS REALLY THE KEY CHALLENGE THE REGION FACES, IS CREATING ENOUGH AFFORDABLE HOUSING OF THE TYPE THAT PEOPLE REALLY WANT, AND THE BEAUTY OF DEVELOPING IN THE SUBURBS IS THAT EVEN THE HOUSING THAT ISN’T AFFORDABLE HOUSING WITH A CAPITAL A, CAPITAL H, IS AFFORDABLE WITH A LOWERCASE A AND LOWERCASE H. THE RENTS YOU ARE CHARGING IN THE SUBURBAN DOWNTOWNS, ARE A FRACTION OF WHAT PEOPLE WOULD PAY FOR HOUSING OF THE SAME QUALITY IN THE SAME KIND OF ENVIRONMENT THAT YOU COULD FIND IN THE OUTER BOROUGHS.>>AND WITH THE MASS AMOUNT OF COLLEGE STUDENTS WHO COMPLETE THEIR EDUCATION AND WANT TO COME TO THE TRI-STATE AREA, WE NEED THE AFFORDABLE HOUSING. WE NEED ADDITIONAL HOUSING, AND THAT IS WHY THE REGIONAL SUBURBS ARE GROWING QUICKLY. I WOULD SAY IT SEEMS POSITIVE WITH REGARD TO DEVELOPMENT IN THE AREA. I WOULD LIKE TO THANK SETH, DEBORAH, ADAM, AND JOHN. THANK YOU, AND I WILL SEE YOU NEXT WEEK. ♪ [THEME MUSIC] ♪