Outside a new event space on the far west side of Manhattan, a line of more than 100 people dressed in cocktail attire waited to enter New York’s biggest real estate networking event, a festival for hobnobbing where guests hope to springboard their careers while catching whispers of potential big industry deals.
Roughly 2,000 people, including New York Gov. Kathy Hochul, turned out for the 126-year-old Real Estate Board of New York gala, an annual event that was held in person for the first time Thursday since the onset of the pandemic. The party took place at The Glasshouse, a midtown venue near the Hudson River and the historic Intrepid aircraft carrier.
The Glasshouse, which opened in September, wasn’t the only fresh thing about the event attended by a who’s who of deal-makers and power brokers, many of whose transactions affect markets beyond New York. REBNY for decades had hosted its gala in January at the New York Hilton Midtown, a little over a mile to the east.
The more casual cocktail attire this year marked a departure from the traditional black-tie requirement. And instead of sit-down dinners served at grand tables, about a dozen food and drink stations, managed by some of the city’s top chefs and mixologists, offered canapes including citrus-marinated shrimp, champagne oysters and pulled-pork sandwiches.
“Real estate is not about brick and mortar,” REBNY President James Whelan said in an interview at the event, recalling what a top New York broker told him. “It’s about people. What’s important about this event is networking. ... Great food, great drinks [and] great people provide great networking. ... People are just yakking away and having a great time. This is what this event is about. … We were getting feedback about the black-tie dinner that it was becoming a little stale and dated. The pandemic provided the opportunity to give a fresh look.”
Other major players spotted at the event included Marc Holliday, CEO of SL Green Realty; Joel Picket, chairman at Gotham Organization; Mary Ann Tighe, CEO of CBRE’s New York tri-state region; Bess Freedman, CEO of Brown Harris Stevens; Leslie Himmel, founder and co-managing partner of Himmel + Meringoff Properties; Bob Knakal, chairman of investment sales at JLL Capital Markets; Bruce Mosler, chairman of global brokerage of Cushman & Wakefield; Douglas Durst, chairman of the Durst Organization and REBNY chairman; and Andrew Kimball, president and CEO of New York City Economic Development Corp.
The yakking away served up fodder for the rumor mill, with The New York Post reporting from the event that talks about a possible tie-up between major brokerages Cushman and Newmark were going on — only to reverse itself later by reporting that no talks ever took place.
The gala, REBNY’s highest revenue-generating event of the year, marked another sign of New York’s recovery and a return to its pre-pandemic gusto even as rising interest rates, high inflation and other market uncertainties linger in the background. The turnout didn’t disappoint either. Whelan said the event, titled “New York Forever. A Celebration of Our City,” traditionally garnered anywhere between 1,600 to 2,000 people. “We hit the number,” he told CoStar.
Support for Restaurants
The decision to host stations featuring chefs such as Daniel Boulud for the first time also showcased support for the hard-hit restaurant industry, which is also a key tenant group for real restate. With companies seeking to bring workers back to the office, and neighborhoods wanting to drive buzz and coveted foot traffic, relevant food and drink concepts have played growing roles as touted amenities by both commercial and residential buildings.
“The power of New York is the real estate,” Boulud said in an interview. Many different people here “are the ones who are going to make New York City basically. I love my industry, but I love the people in real estate. They are reinventing themselves for the time also. We are compatible. We offer service, and we offer hospitality. There’s nothing better in office buildings than to have hospitality together to lure tenants.”
Boulud said his involvement at the event came about after SL Green’s Holliday approached the French chef with the idea. Last year, Boulud opened Le Pavillon inside One Vanderbilt, a trophy tower owned by SL Green, Manhattan’s largest office landlord.
While business has seen signs of rebound, it’s not back to the pre-pandemic level yet, chef Ash Fulk of Hill Country Barbecue Market told CoStar, adding during its most successful years, his business would have been doing these types of events once a month. Also in a sign of the hybrid work schedule that’s in vogue, he said the middle of the week from Tuesday through Thursday is when lunch business is bigger at Hill Country, which also has a location in Washington, D.C., besides its New York locations in the Chelsea neighborhood and at La Guardia Airport.
Cautiously Doing Deals
Talk of real estate’s current condition was also on the menu.
After a “tough couple of years,” Robin Abrams, a vice chairman doing retail leasing at the brokerage firm Compass, said she is back doing deals with some companies that had pulled back during the pandemic. Abrams has attended REBNY’s galas for about 40 years, even before she became a broker.
“Fashion tenants are reengaging,” as are international labels, she said, adding food and health concepts are also among active tenants. “Digital native brands are locking in long-term [deals]. … We’ve been very busy.”
However, potential market wildcards are certainly on the minds of retail tenants as Abrams said they are also cautious. “A lot of them are doing deals with new deal structures where they want the ability to exit if their sales are not where they need to be to support the rent,” she said. They want “more flexibility. … There are no rules now. Everything is being reinvented.”
James Nelson, principal and head of tri-state investment sales at Avison Young, said he’s a fan of the new gala format after having attended for at least 20 years.
“This is like embracing what this event has always been about,” he told CoStar.
That’s not to mention the exchange of ideas with industry peers and heavyweights.
“At times like this, a broker’s role is that much more important, to make sense of what’s going on and find opportunities,” Nelson said. “There are opportunities in every market. You can buy a deal at the peak of the market or the bottom of the market as long as you know how to find the right opportunity and how to capitalize on the opportunity.”