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Those bets may yet pay off. But Rechler, who is also a board member of the New York Federal Reserve, is expecting a rough stretch in the months ahead. The sharp rise in interest rates from historic lows is threatening all sorts of businesses that were predicated on cheap and readily available capital, he noted. Even tech companies, one of the few remaining sources of office market expansion, are now jettisoning thousands of employees.
He has demonstrated a knack for timing. In January 2007, with the financial crisis looming, he sold the company, Reckson Associates Realty Corporation, to SL Green for US$6.5 billion.Article content New York’s office market recovered and, flush with foreign money, soon exceeded its previous highs. By 2016 the office market was peaking and RXR pivoted again. It switched its focus to apartments — so-called multifamily developments — in growing cities such as Denver and Phoenix, and industrial warehouses.Article content
In December, he asked his team to draw up a set of metrics that took account of the new reality and then ranked RXR’s office holdings accordingly. “I call it Project Kodak,” Rechler said, referring to the once-dominant film company that was upended by new technology. “Some buildings are film, and some buildings are digital. The ones that are film, you’ve got to be realistic about it.