Real estate developer Don Peebles told CNBC on Friday that he expected a slow economic recovery for New York City following the coronavirus pandemic.
“I think New York will come back eventually. It will come back differently. It will be a different place, and it will be much more affordable, ”said Peebles, CEO of privately-held Peebles Corp., which is headquartered in lower Manhattan.
He added on “The Exchange,” “I think it’s going to take New York City about ten years to get by. Maybe longer. But it won’t be soon. “
Peebles said he foresees challenges for New York City in attracting and retaining new residents and businesses in the future. Among them is the strength of other American cities, especially in places where the environment is more fiscally favorable, he said.
“New York can come back, if it gets competitive and if we all recognize that we have to go out and compete with South Florida,” he said. “We have to compete with Nashville, [Tennessee]. We have to compete with Austin, Texas, and Dallas, Texas. Without it, if we keep those blinders on, the New York hole is just going to dig deeper. “
Previously rumored to have weighed in on the New York mayoral bid, Peebles said on Friday that “I’ll probably just focus on my business, but we’ll see.” The city’s next mayoral election is 2021. The current attorney, Mayor Bill de Blasio, has a limited term.
The death of New York has often been debated, especially following such landmark events as the Great Recession, September 11, and the budget crisis of the 1970s. In each case, the most dire predictions for the city did not come true. are not materialized. But the coronavirus pandemic, Peebles argued, has been “worse than all three.”
The city – once the epicenter of the Covid-19 outbreak in the United States – has only seen an acceleration in troubling trends predating the health crisis, Peebles said.
“There was an exodus from New York before Covid. New York was becoming less competitive in the sense that it was becoming a good business environment. It was less competitive and less attractive to high net worth individuals. leave, ”he said.
Now Peebles said many have realized they can work from anywhere. From a real estate perspective, in particular, he said markets such as South Florida are expected to experience “massive growth.” Peebles Corp. has developments in this region.
“New York, I mean some big projects are now selling for 50% off new build,” he said. “I think it shows real stress. “
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