AI is Coming For You, Are you Ready?
First it came for the call centers, and I did not speak out—because I wasn’t impacted. Then it came for the executives, and I did not speak out—because I wasn’t impacted. Then it came for the coders, programmers, doctors, lawyers and finance bros, and I did not speak out—because I wasn’t impacted. Then it came for me—and there was no one left to speak for me. In 2025, the power of AI and its multitude of applications will manifest itself—are you safe? Probably not, but it’s not personal, it’s just capitalism at work.
Interest Rates Elevated and Here to Stay
The Fed reduced the overnight lending rate in 2024, but unfortunately the 10-year yield didn’t get the memo. It spiked and remains high in 2025. For troubled landlords, refinancing is a luxury afforded to those with the ability to infuse new capital. With banks all but done with the “pretend and extend” charade, expect more distress in the commercial real estate space. Any unforeseen inflation resulting in the Fed responding with increased rates could prove apocalyptic for certain asset classes.
Housing Supply Constraints = Higher Rents
With vacancy rates under 2% in NYC and housing supply severely constrained, expect rents to continue to creep higher. Yes, good cause eviction caps those increases but expect landlords to extract every dollar available to them. The City of Yes may—to some extent—mitigate the lack of supply but developers can’t build fast enough in the short term. And don’t expect any legislative changes to the rent regulatory regime to save the day. Looks like mom and dad will need to continue bankrolling junior’s rent until they too break.
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