Tech Money to Dramatically Change Real Estate: Sitt

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March 6 (Bloomberg) -- Joseph Sitt, founder and CEO at Thor Equities, examines the impact of technology on real estate value on Bloomberg Television’s “In The Loop.”

The stories in metlife, a a company going into apartment buildings in places like new york city.

[opening bell] just another example of companies, you say, that want to buy long assets, right?

Buying quality assets and holding them for the long run.

It is not something that is a fashion statement.

Good quality you are supposed to buy and hold.

You are doing the same thing.

Very much so.

I think there is still value to be had.

There are four different residential projects here in manhattan.

We are still a believer in the market and the value of buying and holding those things for the long run.

There is another big trend here in new york.

The tech companies that are moving here, they are either hide quartering -- headquarter inc.

In new york or putting a satellite office here.

You are seeing a lot of companies saying they will build the next tech campus here.

Will that raise the rent as well?

I think the tech wave will dramatically change the landscape in so many ways.

When you see a company like whatsapp get sold for $19 billion, every kid with the dollar and the dollar and a dream is tempted to be the next, or hoping to be.

One of the things you will see is a big change in the landscape and where is prime real estate and where people want to live, work, and play.

What will be different?

The financial district in manhattan.

Brooklyn is being called the tech triangle.

Silicon beach, it is being called.

Spittle field outside of london.

I think the tech wave and the tech dollars that are moving toward it will change the landscape in terms of where the office demand is, in particular in so many markets around the united states and around the world.

And you were trying to play in this space as well.

How will?

We are focused on silicon beach, as i called it.

We have purchased a property across the street from the mayor's office to play on that wave of tech businesses that are opening up.

It is a phenomenon that is only just starting.

With this new wealth that is being obtained by either -- by the megacompanies, the google and facebook in terms of valuation to go out and buy tech is mrs.

As well as nick -- to buy tech businesses as well as new venture capital money will provide greater demand in the market.

When you are reaching out to a goldman sachs or the like, you kind of think it will be around for a long time.

Whatsapp is a $19 billion valuation, but will that company be around?

How long-term are some of the companies echo first, -- are some of these companies?

First, a company like goldman sachs, you are never going wrong with that.

You're the gold standard.

If tenant like that is a dream for someone like myself.

But i think the days of thinking that the bubble happening again are starting to have -- to come to an end.

So many around the states and even globally are saying that we stafford -- suffered so badly that we want to allocate assets.

The wave now is to reverse cross, regret every property they sold and chase those markets.

It is no longer just a risk phenomenon.

It is something that is here to stay.

There are risks because it is similar to the restaurant industry or something less risky.

I think there will be something else chasing it.

There will be companies in san francisco in particular where we have had them over time as our tenants in our building, and yes, we have seen them leave, but what happens is another tenant covenants -- comes in and they pay more rent than the previous tenants because of the increasing propensity of the tenants to want to be in the right location.

And there is that momentum.

What about the retail, though?

What about the struggling retailers like sears and jcpenney?

Will we see a lot of action?

You know these guys pretty well.

What should be done with these assets?

For jcpenney or sears, that might be their most valuable asset, not the merchandise itself, right?

As i said, four years ago, a lot of those businesses are dinosaurs.

Unless they make the changes they need to make, they will become forgotten businesses and someone else will come along and eat their lunch.

And we see that already.

That is happening already, right?

So much so.

America used to be the place for you thought of as the melting pot of creativity, but a place to establish merchants.

I think many companies fell asleep at the wheel.

And then companies come in and

This text has been automatically generated. It may not be 100% accurate.


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