Commercial Real Estate Trends

We're seeing technology change how we do business and real estate is used,said Richard LeFrak of The LeFrak Organization.We're seeing clicks taking the place of bricks.It turns the shopping center more into entertainment and less retail activity.You have to be a little cautious about it-whether,in the long term,they're still gonna be in business.
Tech isn't a bad thing;it's just intruded in the business.It has disrupted the real estate business a little bit.The placement of columns and the power grid have to be rethought now.The traditional model may not apply.
In the Northeast,multifamily residential has very strong demand.Occupancy rates and rentals are going up.
If the Empire State Building goes public,its shares will have an emotional premium.It's an iconic building that symbolises New York.The ESB has been in the families of some of the current owners for a long time.They have an emotional attachment to it.
Miami has had a tremendous resurgence in a very short period of time,confounding the pundits.It's Latin American money and conversions to rentals.The inventory in general is pretty low.They are all-cash buyers now.There is very little new product.Miami is a young place,an exotic city in a first world country,international in character.
The LeFrak Organization owns an extensive portfolio of real property in New York,Los Angeles and London,concentrated in residential and office,but with significant hotel and retail assets as well.It develops and builds the majority of its own portfolio.Founded in 1901,the company also owns oil and gas properties.

Richard LeFrak:A Brightening Business Picture

For Richard LeFrak,billionaire head of The LeFrak Organization,it's clear that business conditions are getting better.He sees it in his real estate and hotel businesses.There is also some improvement in his mall sales.
Indeed,they are ready to build a high-rise multifamily project on the New Jersey waterfront in March or April.They have to be a little ahead of demand.It's their first new development in two and a half years.
Mr.Lefrak is starting to see pretty good uptick in certain submarkets,the best of which is Miami.The majority of the buyers are coming from Latin America-all cash buyers looking for income.There's a vigorous demand everywhere in Miami.All those markets are red-hot.
Banks are a little more confident,ready to play with the borrowers.As conditions get better,the problem is shrinking of its own accord,and there's no supply coming on the market.All of these things make it look a little better,Mr.LeFrak observes.
The LeFrak Organization is a multifaceted holding company with extensive properties in New York,Los Angeles and London.

Rental Apartments Reveal Facts

Richard LeFrak,head of The LeFrak Organization,a major developer,says he deals with consumers at an interesting level.In certain markets,there's an increased demand for rental apartments.It means the sale business has been tainted,but it also means people are able to deal with their necessities.
Mr.LeFrak thinks there's some recognition by the government that the flailing of the past 18 months didn't achieve what they wanted to achieve.This coming election is gonna have to do with people's attitude about the future:optimism or pessimism.Hiring follows optimism.We'll have to see what November brings.
The LeFrak Organization,which is privately held,was founded by Mr.LeFrak's grandfather,Harry,in 1901.Besides large scale residential and commercial real estate development and management in New York,Los Angeles and London,it holds onshore energy assets and a securities portfolio.

Richard LeFrak:Man of Many Insights

Prominent investor Richard LeFrak,head of The LeFrak Organization,who is ranked number 212 on the Forbes list of billionaires,is a man of many business insights.For instance,he notes that the Chinese are going from a rural to an urban setting,and that's a tremendous change in the population.We wish the people well.The Chinese government has its own agenda,in Mr.Lefrak's view:to stay in power.
Mr.LeFrak says it's a good time to own a bank with a clean balance sheet.They've been investing money in certain banks,such as Bank United in Florida and Metro Bank in London.The London bank is friendly,open seven days a week.They will open 12 branches in the next two years.It's meant to be a nice place to hang out.
The Lefrak Organization has a property in Panama City,Florida.They're struggling because,what with the oil spill,no one wants to commit to travel.It's having a serious effect on the market now.They went from 80% pre-book to 30% pre-book for Memorial Day.This is the high season for that part of the world.
Mr.Lefrak has an easy,unaffected manner on his business television appearances.His family business,The Lefrak Organization,founded in 1901,builds and owns a vast amount of real estate in the New York,Los Angeles and London metro areas.It focuses on residential and office property,but its affiliates also own substantial hotel and retail assets.LFO has an investment management division as well,combining traditional merchant banking with value-based equity and fixed income investing strategies.Since 1971,LFO has been a major investor in oil and gas holdings.