♪ [THEME MUSIC] ♪>>IT’S ABOUT 25 MILES AWAY BY TRAIN. A PLACE PEOPLE LIVE, WORK, SHOP AND VISIT. IT’S WESTCHESTER. TODAY I’VE ASSEMBLED TWO DEVELOPER OWNERS AND THE BANKER WHO GIVES AWAY MONEY. WHAT’S HAPPENING IN WESTCHESTER? MY GUESTS INCLUDE ROBERT WEISZ, FOUNDER, CHAIRMAN AND CEO OF RPW GROUP. MATT GUTAUSKAS, WHO IS THE ADMINISTRATIVE VICE PRESIDENT, COMMERCIAL REAL ESTATE FOR M&T BANK. AND CEO OF NATIONAL RESOURCES, JOE COTTER. YOU HAVE BEEN IN WESTCHESTER FOR 35 YEARS?>>35 YEARS.>>JOE?>>30.>>10.>>OKAY, SO, WHAT’S HAPPENING OVER THERE IN 2019? SIGNIFICANT AMOUNTS OF DEVELOPMENT TAKING PLACE IN WESTCHESTER, WHAT DO YOU ATTRIBUTE TO CHANGE?>>WESTCHESTER IS AN INTERESTING STORY. ONE OF THOSE FEW SITUATIONS WHERE GOVERNMENT CAN BE HELPFUL AND CAN MAKE A DIFFERENCE. THE REASON WHY I SAY THAT IS, BECAUSE IN WESTCHESTER YOU COULD NOT BUILD APARTMENT HOUSE UNLESS YOU ARE DOWNTOWN IN SOME OF THE CITIES. EVERYTHING WAS SINGLE-FAMILY HOMES, OLDER POPULATION, FAMILIES, AS A RESULT OF THAT, COMPANIES COULDN’T FIND YOUNGER EMPLOYEES BECAUSE THE STAFF HAD TO COMMUTE LONG DISTANCES TO BE ABLE TO GET TO WORK. IN THE LAST 10-15 YEARS DIFFERENT TOWNS HAVE CHANGED THE ZONING. NOW THEY ALLOW MULTIFAMILY HOMES IN LOCATIONS WHERE IT WAS ONLY INDUSTRIAL OR MOSTLY OFFICE SPACE. AS A RESULT OF THAT, A LOT OF THE OFFICES HAVE GONE AWAY, A LOT OF BUILDINGS KNOCKED DOWN.>>RIGHT, MAJOR CORPORATIONS LIKE PEPSI AND OTHERS NO LONGER OCCUPIED, PHILIP MORRIS.>>SOME ARE STILL AROUND. NEW COMPANIES HAVE COME IN. I THINK THE MOST IMPORTANT FACTOR IS NOW WE HAVE PROBABLY CLOSE TO 5000 UNITS BEING DEVELOPED IN WESTCHESTER THAT ARE MOSTLY ADDRESSED TO YOUNGER PEOPLE. THAT IS WHAT COMPANIES ARE LOOKING FOR. FROM THAT POINT OF VIEW, THERE IS A DRAMATIC CHANGE. AT THE SAME TIME, THE ZONING CHANGES ALLOWED FOR RETAIL TO COME TO WORK, ONLY OFFICE BUILDINGS WERE ALLOWED. SITUATIONS LIKE LIFETIME FITNESS AND WEGMAN COMING INTO A LOCATION WHERE THERE WERE OFFICE BUILDINGS BEFORE. NOT ONLY ELIMINATED SUPPLY OFFICE SPACE –>>WHICH HELPED THE OWNERS.>>OBVIOUSLY THE OWNERS, BUT ALSO HELPED RESIDENTS IN AREA TO HAVE THE SERVICES THAT DID NOT EXIST BEFORE.>>YOU’VE DONE REPOSITIONING, LET’S TALK ABOUT THE OTIS ELEVATOR BUILDING AND TALK ABOUT WHAT YOU’RE DOING RIGHT NOW WITH LIONSGATE.>>TO PICK UP WHAT BOB SAID, RENAISSANCE OF THE CITIES. YOU HAVE YONKERS, NEW ROCHELLE, AND WHITE PLAINS, MOST OF WESTCHESTER. I DISAGREE WITH BOB, MUNICIPALITIES HAVE NOT BEEN PROGRESSIVE IN TERMS OF ALLOWING ZONING.>>CHAPPAQUA TOOK YEARS.>>EXACTLY. IN MY OPINION, HURTING THEMSELVES, BECAUSE THEY ARE NOT CREATING OPPORTUNITIES FOR THE MILLENNIALS AND YOUNG PEOPLE TO COME BACK TO CHAPPAQUA. AS A RESULT, WE END UP WITH A VERY AGING POPULATION. WITH THAT BEING SAID, WHOLE IDEA OF LOCAL GOVERNMENT HELPING HAS REALLY BEEN THE STORY. NEW ROCHELLE HAS DONE A GREAT JOB, BUT YONKERS, IN PARTICULAR, THE TEAM THAT THE MAYOR PUT TOGETHER HAS DONE A GREAT JOB ATTRACTING NOT ONLY RESIDENTIAL DEVELOPMENT, WE’VE RECENTLY ATTRACTED LIONSGATE STUDIOS. WE ARE GOING TO BUILD A 100,000 SQUARE-FOOT MOVIE AND TELEVISION STUDIO AT THE TRAIN STATION IN YONKERS. TRANSFORMATIONAL FOR THE CITY. NOT ONLY WILL THEY COME, BUT THE WHOLE ECOSYSTEM OF THE FILM INDUSTRY, PRODUCTION, LIGHTING, THINGS LIKE THAT. WE THINK IT WILL CREATE 200-500 JOBS WITHIN FIRST TWO YEARS.>>HAS THE BANK LOOKED AT THE WESTCHESTER MARKET?>>WE ARE EXCITED ABOUT THE EVOLUTION OF THE MARKET AS A WHOLE. I THINK IN TERMS OF WHEN I KIND OF RESTARTED IN THIS MARKET A FEW YEARS BACK AND LOOKED AT THE BREADTH OF VACANT OFFICE SPACE, LACK OF DIRECTION IN MANY RESPECTS, DIFFERENT MUNICIPALITIES, NOW SEEING WEGMAN’S GOING UP, SEEING REPURPOSE OF AN OFFICE BUILDING. NEW HOUSING IN AREAS THAT WE DIDN’T EXPECT TO SEE ABOUT 10 YEARS AGO TO GO ALONG WITH INFLOW OF MONEY THAT GOES INTO PLACES LIKE NEW ROCHELLE AND YONKERS. WE ARE EXCITED ABOUT THE DIRECTIONS GOING. A LOT OF IT IS CAUTIOUS OPTIMISM. OBVIOUSLY REQUIRES ABSORPTION TO SATISFY AND FULFILL, YOU KNOW, FINANCIAL GAIN.>>SIGNIFICANT PORTION OF THE UNITS THAT ARE PLANNED, OR TRANSIT-ORIENTED DEVELOPMENT, CLOSE TO THE TRAIN. OR NOT FAR AWAY DRIVING THERE. HEALTHCARE — WHAT HAS CHANGED OVER THE LAST 10 YEARS IN HEALTHCARE IN WESTCHESTER. ROBERT?>>SURE. I THINK THE PROCESS REALLY HAS BEEN CONSOLIDATED OVER THE PAST TEN YEARS. THE REALITY IS THAT PEOPLE ARE NOT MOVING TO FLORIDA FOR WINTER THE WAY THEY USED TO. A PROCESS THAT STARTED MAYBE 20 OR 30 YEARS AGO. SOME PEOPLE ARE NOT GOING LONG PERIOD OR SOME PEOPLE ARE GOING FOR A WEEK OR TWO WEEKS AT A TIME. YOU HAVE AN OLDER POPULATION THAT STAYS IN WESTCHESTER AND LIVE THERE PERMANENTLY. A POPULATION THAT NEEDS MEDICAL SERVICES THE MOST. OBVIOUSLY, IT’S TREMENDOUS BUSINESS, DEMAND IS THERE. JUST BUILT TREMENDOUS FACILITY HUNDREDS OF MILLIONS OF DOLLARS. ANOTHER ONE BUILT IN OUR BUILDING. MONTEFIORE IS THROUGHOUT THE COUNTY BUILDING NEW FACILITIES, BRAND-NEW CHILDREN’S HOSPITAL WITH JOE’S FIRM. THE EXPANSION OF THE HOSPITALS IS DRAMATIC. AT THE SAME TIME THAT BRINGS MANY OTHER ACTIVITIES RELATED TO MEDICAL THAT ARE COMING IN. WE ARE NOW SIGNING A LEASE WITH A MAJOR LAB THAT IS TAKING A BIG BLOCK OF SPACE THAT WERE NOT IN WESTCHESTER BEFORE. WE SHOULD MENTION REGENERON, NOT THE TYPICAL MEDICAL FACILITY. THEY HAVE A MILLION SQUARE FEET UNDER CONSTRUCTION.>>RIGHT, LIFE SCIENCE, BIO SCIENCE INCREASED. SPECIFICALLY IN WESTCHESTER. THEY CAME TO NEW YORK CITY, LARGE — IN HEALTHCARE MARKET. IT’S REALLY HELPING. AS YOU SAID, MONTEFIORE, WE BROUGHT IT UP AS LARGEST EMPLOYER IN WESTCHESTER COUNTY — HSS HAS THEIR PRESENCE. NORTH WELL HAS A COUPLE. ONLY ONES THAT ARE NOT PART OF THE SYSTEM IS MOUNT SINAI AND LARGE HOSPITALS. BUT THEY ARE ALL THERE, HOW DO YOU LOOK AT NEXT LEVEL SENIOR HOUSING?>>JUST TO FOLLOW UP, THE WHOLE NOTION OF AGE AND PLACE. YOU SEE A LOT OF THAT IN OTHER COMMUNITIES. I’M INVOLVED IN LONG ISLAND. NEW DEVELOPMENTS IN, WHAT IS IT, IN PURCHASE FOR 120 OR SO AGE RESTRICTED TOWNHOMES. I SEE A LOT MORE IN AND AROUND OUR MARKETS. TO THE EXTENT PEOPLE ARE STAYING. ONLY GOING TO GO TO DIFFERENT PLACES LIKE ARIZONA OR FLORIDA FOR SHORT AMOUNTS OF TIME. IT’S MORE SUSTAINABLE FOR HAVING SOME HOUSING DEVELOPMENTS IN AND AROUND DIFFERENT MARKETS.>>TALK ABOUT YOUR RESIDENTIAL DEVELOPMENTS. I WAS TALKING ABOUT OTIS AND TALK ABOUT DOWNTOWN YONKERS.>>I MEAN, DOWNTOWN YONKERS HAS BECOME INSTITUTIONALIZED. WE HAVE BIG PLAYERS THAT HAVE DEEP POCKETS. CERTAINLY MAKE ESTABLISHED RESIDENTIAL COMMUNITY. WE HAVE RXR, I BELIEVE 600 UNITS. AVALON IS THERE, CHINA CONSTRUCTION, MILLCREEK. THE UNITS ARE UP, THEY’RE LEASING. THEY ARE DOING QUITE WELL. WE HAVE ONE PRODUCT CALLED UNO, MICRO APARTMENT BUILDING, 100 MICRO APARTMENTS. BETWEEN 400-500 SQUARE FEET, BUT VERY HIGH CEILINGS. THAT’S WELL-RECEIVED. OUR BIGGEST DEMOGRAPHIC RENTER ARE THE HOSPITAL. A LOT OF MEDICAL RESIDENT NURSES, 50% RESIDENTS, NURSES AND TEACHERS. OUR RENT STARTS ABOUT $1600. THEN CAN MAKE THE CREDIT CHECKS, THEY CAN LIVE ALONE, DON’T HAVE TO HAVE ANYONE COSIGN. GREAT ENVIRONMENT FOR THEM, RIGHT AT THE TRAIN.>>TALK ABOUT THE FOR-SALE DEVELOPMENT, ARE THERE MANY FOR SALE OVER 55 COMMUNITY, OR IN GENERAL THE FOR-SALE COMMUNITY. ONE OF THE BIGGEST PROBLEMS WESTCHESTER OVERTIME, TAXES. REAL ESTATE TAXES.>>WE HAVE ONE OF THE LARGEST ONES, HUDSON HARBOR, TARRYTOWN, WE’VE SOLD OVER $400 MILLION HOMES OVER THE LAST SIX YEARS. THE NEW TAX CODE HASN’T HELPED. BUT OUR TAXES ARE RELATIVELY LOW COMPARED TO THE SINGLE-FAMILY. WE STILL SEE PEOPLE GRAVITATING FROM LARGER COMMUNITIES. OUR TAXES ARE ROUGHLY ABOUT 15,000 PER MILLION. WHEREAS IN SOME OF THE SUBURBS, THEY ARE PAYING CLOSE TO 30,000 PER MILLION. I THINK YOU’LL SEE THAT TREND WHERE PEOPLE TRYING TO GET OUT OF LARGER HOUSES, BECAUSE TAXES ARE BRINGING DOWN THEIR VALUES.>>YOU’VE ALWAYS BEEN CONSIDERED ESPECIALLY IN WESTCHESTER COUNTY AND NEW YORK CITY, OWNER OF OFFICE BUILDINGS, HOW COME YOU’RE GETTING INTO THE RESIDENTIAL BUSINESS?>>A VERY SIMPLE ANSWER TO THAT. MY SON IS IN THE BUSINESS NOW, AND HE HAS A LOT OF NEW IDEAS. AND THAT’S ONE OF THE INITIATIVES HE HAS TAKEN. WE HAVE PROPERTY IN SOME OF THE OFFICE BUILDINGS, OFFICE BUILDINGS THAT WERE LEASED, FULLY OPERATIONAL. SO THERE IS NO REPURPOSING OF AN OFFICE BUILDING. BUT WE DO HAVE VACANT LAND. THAT’S THE CASE OF 1133 WESTCHESTER AVENUE. A SITE WITH 80 ACRES. WE’RE CUTTING 20 ACRES OUT OF THE 80 AND BUILDING 300 UNITS. YOU WERE SAYING EARLIER THAT PEOPLE ARE COMMUTING TO THE TRAIN STATION. THE TRAIN STATION IS DEFINITELY A FACTOR AND THE DISTANCE. IN THIS CASE, IN ADDITION TO COMMUTE TO THE TRAIN STATION, THEY WILL BE ABLE TO WORK RIGHT ON SITE. BECAUSE ACROSS TO A PARKING LOT IT IS GOING TO BE AN OFFICE BUILDING, CLOSE TO 2000 EMPLOYEES. SOME OF THOSE COULD LIVE ON SITE.>>WHICH I STARTED THE SHOW WITH LIVE, WORK, SHOP AND VISIT. ARE YOU GOING TO BUILD RETAIL?>>YEAH, WE DO HAVE FULL-SIZE FITNESS CENTER. WE HAVE SHOPS, BEAUTY PARLORS, A DAYCARE CENTER. WE HAVE SERVICES THAT WILL BE — WE DON’T HAVE A RETAIL SITE, A REAL FOCUS ON RETAIL, BUT WE WILL HAVE SERVICES THAT WILL BE ADDRESSED TO OFFICE BUILDING AS WELL AS TO RESIDENTIAL.>>WITH REGARD TO THAT, TALK ABOUT RETAIL IN WESTCHESTER. WESTCHESTER HAS HAD FANTASTIC RETAILERS, TOP NOTCH. RETAIL IS HURTING, HOW DO YOU SEE RETAIL MARKET IN WESTCHESTER?>>RESTAURANTS AND THE FOOD SEEM TO BE QUITE STRONG. RECREATION SEEMS TO BE STRONG. HEALTH CLUBS, THINGS LIKE THAT. IN TERMS OF IMPACT OF AMAZON, BIG BOX RETAILERS, YOU KNOW, IT’S HARD TO SAY.>>I WAS REALLY EMPHASIZING, I THINK, WHITE PLAINS, YOU HAVE CERTAIN MARKETS AREN’T — WHITE PLAINS MIGHT BE CONSTITUTED LOOKING AT THE AMOUNT OF TENANTS OVER THERE IS BEING OVER RETAILED. A NUMBER OF THEM HAVE LEFT. MACY’S SOLD THEIR PROPERTY — HOW DO YOU LOOK AT THE RETAIL WORLD?>>RETAIL IS SUFFERING THROUGHOUT THE COUNTRY, FOR OBVIOUS REASONS. AMAZON, IT’S TAKEN A BIG CHUNK OF THEIR BUSINESS. FRANKLY, INDIRECTLY AFFECTING ALL OUR BUSINESSES. WE ARE IN WAREHOUSING BUSINESS, EVEN THOUGH WE ARE IN OFFICE MARKET, OUR NEEDS FOR STORAGE OF WHERE PEOPLE ARE BUYING IN AMAZON EVERYDAY BECOMES –>>– I DON’T KNOW WHAT YOUR PLANS WERE, NEW RESIDENTIAL DEVELOPMENTS AND RENTALS, THERE ARE BUILDINGS BASICALLY LOCKER ROOMS FOR AMAZON AND OTHER.>>ALMOST A MUST NOW.>>A NECESSITY.>>WE HAVE A LARGE RENTAL PROJECT IN EDGEWATER, NEW JERSEY, WE HAD TO PUT THOUSAND SQUARE FEET FOR STORAGE, YOU KNOW, AT THE RECEPTION CONCIERGE, BECAUSE THEY GET SO MANY PACKAGES, DAILY, NOT JUST OVER THE HOLIDAYS. DAILY WILL GET NO FEWER THAN 200-300 PACKAGES. FULL-TIME JOB FOR CONCIERGE.>>THE RETAIL THAT WORKS IN TODAY’S ENVIRONMENT ARE SERVICES YOU CAN’T BUY ON THE INTERNET. SO, FOOD AND OTHER TYPE OF FACILITIES, HEALTH, ETC. THE MARKET IN WESTCHESTER IS SLIGHTLY DIFFERENT, BECAUSE IT HAS AN OLDER POPULATION. THAT POPULATION DOES NOT ADAPT SO WELL TO BUYING THINGS FROM AMAZON. I WILL SAY THAT, THE WESTCHESTER MALL, FOR EXAMPLE, A HIGH-END SHOPPING CENTER, DOING FAIRLY WELL. IT HAS SOME VACANCIES, BUT IT’S NOT A REAL CRISIS. OUR BUILDINGS IN CITY SUFFERING MUCH MORE IN TERMS OF RETAIL WE SEE IN WESTCHESTER.>>AS A BANK, HOW DO YOU LOOK AT RETAIL?>>RETAIL IS A CHALLENGING SPACE TO BE IN. AT THE END OF THE DAY, IT’S SERVICE-LEVEL RETAIL. YOU CAN’T GET YOUR NAILS DONE IN AMAZON. YOU CAN’T BUY A SANDWICH IN AMAZON. CERTAIN THINGS, FUNDAMENTALLY YOU NEED TO HAVE SERVICES AVAILABLE TO YOU. — RETAIL, GROCERY ANCHORED, GOOD SPACE FOR US. RETAIL IS ABOUT LOCATION AS WELL. FUNDAMENTALLY WHEN WE’RE LOOKING AT RETAIL, LOOKING IN TERMS OF WHAT THINGS PEOPLE NEED TO LIVE THEIR DAILY LIVES. WHETHER IT’S GO TO A WALK IN, GET THEIR DRY CLEANING DONE –>>WHAT ABOUT INDUSTRIAL? ANY NEW INDUSTRIAL BEING DEVELOPED IN WESTCHESTER?>>DEMAND IS TREMENDOUS, NO LAND, NO VACANCY.>>I JUST HEARD 60 ACRES OF THE SITE. YOU’RE TAKING 20 ACRES TO UTILIZE FOR RESIDENTIAL.>>WE’RE NOT DOING THAT. BUT, NO — HARDLY ANY SITES IN WESTCHESTER.>>WE JUST ACQUIRED A 300-ACRE — 20 MILES NORTH OF WESTCHESTER LINE, 3 MILLION SQUARE FEET, PROBABLY LEASED CLOSE TO 600,000 SQUARE FEET IN LAST YEAR FOR MANUFACTURING AND WAREHOUSE. IT’S VERY HOT. AS THE RENT GETS MORE EXPENSIVE IN THE CITY, BROOKLYN, BRONX, ETC., IT’S PUSHING OUT SOME OF THESE OTHER USERS. AS ROBERT SAID, THERE IS NOT MUCH SPACE, SO IT’S GETTING PUSHED FURTHER NORTH. WE ARE RIGHT AT THE HIGHWAY ON ROUTE 84, THAT’S HAVE BEEN VERY SUCCESSFUL FOR US.>>WITH REGARD TO WHAT ROBERT WAS SAYING — ALL OF YOU WERE SAYING ABOUT PEOPLE STAYING HERE, NOT GOING TO FLORIDA, ARIZONA AS MUCH. THERE IS A NEED FOR ASSISTED LIVING. ARE WE SEEING MORE BEING BUILT TODAY IN WESTCHESTER?>>PEOPLE TO ENTER ASSISTED LIVING IS LIKE 83 YEARS OLD, AS WE DO AGE THERE IS A NEED FOR MORE AND MORE. IN TARRYTOWN, THERE HAS BEEN A NUMBER OF NEW FACILITIES. WE GET APPROACHED QUITE REGULARLY DOING THESE CONTINUING CARE AND THINGS LIKE THAT. FOR US, 55 AND OVER, I’M NOT A BIG BELIEVER IN THAT. AS WE AGE, PARTICULARLY BABY BOOMERS, NO ONE WANTS TO BE THINKING THAT THEY ARE IN A SENIOR COMMUNITY. EVERYONE WANTS TO, AT LEAST, ELUDE THEMSELVES THAT WE’RE STILL YOUNG, CLOSE TO KIDS, GRANDCHILDREN, BE VIBRANT. I DON’T SEE A GOOD FUTURE IN THAT. I THINK MUNICIPALITIES STARTED TO GET OVER THAT — SCHOOLCHILDREN. OUR SCHOOLS ARE VERY SHORT OF STUDENTS.>>I THINK YOU BROUGHT UP AN APPROPRIATE COMMENT. IF I DID A SHOW ON WESTCHESTER OR LONG ISLAND OVER THE PAST TEN YERS, THE SUBJECT WAS ALWAYS THE SCHOOL SYSTEM. NOBODY WANTED NEW SCHOOLS, MORE TAXES.>>NOW WE HAVE NO CHILDREN. THEY’VE WON. HERE WE HAVE A HOSPICE CALLED WESTCHESTER WITH THE OLDEST POPULATION. VERY WEALTHY. THAT’S WHAT WE HAD OTHER THAN CITIES.>>WHAT ARE OPPORTUNITIES FOR DEVELOPER IN WESTCHESTER TODAY? IS IT RESIDENTIAL? I’VE SEEN YOUNG GUYS HAVE GONE UP TO YONKERS TO READAPT CERTAIN BUILDINGS. WHERE ARE OPPORTUNITIES FOR DEVELOPERS OR DEVELOPMENT IN WESTCHESTER?>>DEFINITELY RESIDENTIAL. HARRISON HAS DONE A MAGNIFICENT JOB, REZONING AND ALLOWING A LOT OF RESIDENTIAL. IT’S EXPANDING AND THE RESIDENTIAL POTENTIAL IS TREMENDOUS. IN OUR MARKET, THE OFFICE MARKET, BEGINNING OF A NEW BOOM BECAUSE INVENTORY HAS BEEN DEPLETED. BUILDINGS HAVE GONE AWAY. THERE IS POTENTIAL, NOT FOR NEW DEVELOPMENT, WE HAVE NOT REACHED YET REPLACEMENT COST IN SALES. BUT IN REDEVELOPMENT, YES. WE CONTINUE TO BUY BUILDINGS. WE’RE BUYING A BUILDING SOON AND WE THINK THAT THERE IS A TREMENDOUS POTENTIAL IN THAT. THE HOTEL MARKET SEEMS TO –>>WE WERE TALKING ABOUT THE 450-ROOM HOTEL IN NEW ROCHELLE. THE LARGEST NEW HOTEL IN ABOUT 25 YEARS IN WESTCHESTER.>>I THINK THE ONLY OPPORTUNITIES FOR THE CITIES. I’M NOT AS OPTIMISTIC ABOUT SOME OF THE TOWNS. I DON’T THINK THEY GOT THEIR HEADS AROUND TO ATTRACT YOUNG PEOPLE AND MILLENNIALS AND HAVEN’T REALLY ALLOWED THE MULTIFAMILY THEY NEED TO RESTORE TAX BASE AND SCHOOL SYSTEMS, THEY’RE STILL NOT GETTING THE POINT. BUT THE CITIES, WHITE PLAINS, NEW ROCHELLE, AND YONKERS. YONKERS HAS A PRETTY ENLIGHTENED ADMINISTRATION. THAT’S WHERE THE OPPORTUNITIES WILL CONTINUE AS IN THE THREE CITIES.>>I AGREE WITH YOU, BUT FEW EXCEPTIONS. I WILL POINT OUT TO HARRISON, AS THE BIGGEST EXCEPTION. THEY ARE THE ONES THAT REALLY STARTED THE ENTIRE CONCEPT OF CHANGING ZONING. NOT ONLY BUILDING DOWNTOWN RIGHT BY THE TRAIN STATION –>>HOW LONG DID IT TAKE HARRISON TO DO THAT, THE TRAIN STATION PROJECT? HOW MANY YEARS? 10 YEARS, IF YOU’RE 25 OR 30 –>>IT’S HAPPENING NOW. LIFETIME IS THERE. THAT WAS AN OFFICE BUILDING. WEGMAN IS THERE, THAT WAS AN OFFICE BUILDING. THE DOWNTOWN PROJECT IS TAKING FOREVER, I AGREE. LIKE SUBWAY IN NEW YORK CITY, TOOK 100 YEARS, BUT NOW IT’S DONE. IT’S ONE STEP AT A TIME.>>YOU’RE PATIENT ABOUT IT.>>WHAT ABOUT OFFICE MARKET IN WHITE PLAINS, CENTRAL WHITE PLAINS.>>VERY HOT, EXTREMELY HOT. I WOULD SAY OFFICE MARKET FOR OFFICE BUILDINGS IT’S THE BEST IT’S BEEN SINCE THE 70s.>>WITH REGARD TO THAT, EVERY DAY YOU PICK UP NEWSPAPER TALKING ABOUT CO-WORKING AND CO-LIVING, HOW DO YOU SEE THAT AFFECT WESTCHESTER?>>YOU HAVE TWO DIFFERENT LEVELS OF CO-WORKING. THE WeWORK CONCEPT AND THE TRADITIONAL CONCEPT THAT ARE MANY COMPANIES, THOSE ARE BENEFICIAL TO OUR BUILDINGS. CONSIDER THE POINT OF ENTRY FOR SMALL COMPANIES OR INDIVIDUALS WHO WANT AN OFFICE, WE CAN PROVIDE A SINGLE OFFICE. SO THE CONCEPT OF WeWORK, WHEN IT COMES TO TAKING A BIG CHUNK OF A BUILDING, THAT’S MORE CONCERNING. WE’RE NOT COMFORTABLE ALLOCATING MORE THAN MAX 10% OF A BUILDING FOR CO-WORKING FACILITY.>>I WOULD SAY, AS BOB WAS TALKING ABOUT THAT, THE DEAL WE’RE LOOKING AT RIGHT NOW HAS A COMPONENT OF CO-WORKING SPACE IN THERE. IN TERMS OF UTILIZATION, YOUR ACCOUNTANTS, LAWYERS, SINGLE PRACTITIONERS, ULTIMATELY IT MAY GROW INTO LARGER SPACE. IN TERMS OF CONCENTRATION, THAT BECOMES LIKE — MUCH MORE AWARE OF AND NOT AS INTERESTED IN.>>JOE?>>I THINK THEY DON’T HAVE CREDIT, — NOT NECESSARILY A CREDIT TENANT WHICH IS WHAT YOU GUYS ARE LOOKING FOR. AS A FEEDER, WE HAVE A SMALL CO-WORKING SPACE IN YONKERS. AS A FEEDER FOR SMALLER COMPANIES, IT’S GREAT. BUT TO GET MORE THAN A CERTAIN PERCENTAGE I DON’T THINK IT HELPS.>>WHAT ABOUT CO-LIVING?>>CO-LIVING, I DON’T THINK IT’S BEEN TESTED. ALL IT TAKES IS ONE SORT OF, YOU KNOW, BAD ROOMMATE SITUATION. MY PERSONAL OPINION, YOU’LL SEE A LOT MORE SMALLER INDEPENDENTS WITH COMMON SPACES. I THINK EVERYONE WANTS TO LOCK THEIR DOOR AND HAVE PRIVATE SPACE. THEIR OWN KITCHEN OR WHATEVER, MY OPINION.>>ROBERT?>>I HAVE NO EXPERTISE ON THIS.>>YOU’RE BUILDING APARTMENTS. WOULD YOU ALLOW CO-LIVING?>>WE ARE NOT PLANNING THAT. WE ARE BUILDING SMALL APARTMENTS –>>DO YOU THINK MOST PEOPLE MOVING THERE WILL BE YOUNG MILLENNIALS?>>IT’S GOING TO BE BOTH ENDS OF THE SPECTRUM. IT’S A BIG PERCENTAGE OF POPULATION.>>IN GENERAL, MY SHINY APPLE IS SHINY FOR WESTCHESTER. YEARS AGO, YOU’VE BEEN ON ROBERT, JOE HAS BEEN ON, WE WEREN’T THIS POSITIVE. I THINK THE STARS ARE ALIGNED FOR GOOD THINGS TAKING PLACE IN WESTCHESTER. THANK YOU ROBERT, MATT, JOE, AND SEE YOU NEXT WEEK.>>THANK YOU. ♪ [THEME MUSIC] ♪