Latest news with #CommercialObserver
Business Journals
a day ago
- Business
- Business Journals
49% of CRE leaders want more AI – Here's why
The commercial real estate market still faces many challenges and executives are looking for ways to lower costs — many are turning to technology. In Citrin Cooperman's latest survey of 440 commercial real estate leaders in conjunction with the Commercial Observer, respondents said AI was their number one opportunity over the next 12 months. They ranked it above new property management systems, better cybersecurity, more process automation, solar, listing services, and all else. Though as we will explore, AI has potential to help in nearly all of these areas as well. Using AI to model building information The No. 1 AI use case, 34% of respondents Leaders say the most common use for AI right now is modeling building information. In some cases that means working with geospatial information, such as using AI to visualize floorplates or run feasibility studies. A feasibility study provider can now use software to generate dozens of options for consideration in days rather than months. But modeling can also mean financial modeling, such as running the numbers on what it will take for a property or portfolio to achieve NOI. Current AI technologies can also help corporate development teams determine where buildings should go. The AI platform SiteZeus can ingest cell phone, traffic, parking, real estate, walkability, weather, and other data sources to show teams on a map the exact spots they should select. Some franchisors are providing this tool to their franchisees. AI cannot do everything, however. At least not without assistance. It cannot, for example, figure out how to actually put those real estate deals together. It cannot validate those decisions, run studies on the revenue or tax impact implications, nor advise on which financial instrument to use. To discuss how to turn the information generated by a real estate AI tool into reports, decks, and models your team can make decisions on, please reach out to Citrin Cooperman's Digital Services Practice. Using AI to source and match deals The No. 2 AI use case, 20% of respondents Teams can use AI to source and sort through deals. AI tools can scan all possible opportunities and rank them by the commercial team's requirements. Typically, commercial teams lose a great deal of time on market research, outreach, screening, and due diligence. AI tools are one way for them to reclaim and repurpose it. The software Skyline AI by JLL, for example, provides real estate investors with a data-driven view of their market that goes much deeper than typical census data, with a view of factors such as opportunity zones. offers automated commercial property appraisals and automatic document review, so brokers can save hours on reviewing leases, loan agreements, operating agreements, and more. Tools like Vena or Power BI can also reveal deal insights within your existing data: Your team can use them to create smart dashboards to forecast continuously without requesting new reports. AI tools do have one weakness: They are only as good as the data within your ERP system, which most real estate firms have not updated in years. A Citrin Cooperman survey of 1,000 private companies found that 42% of real estate companies say their number one blocker to adopting AI is 'integrations with existing enterprise resource planning (ERP) systems.' Our Digital Services Practice can review your ERP system to understand if your workflows and data are set up for you to use in deal-sorting AI. Property management The No. 3 use case, 20% of respondents Commercial real estate companies are using AI to directly manage their properties, plugging it into property management software to spot trends. This allows managers to see if vacancies are subtly rising so they know to invest in more marketing or start offering concessions. Similarly, they can spot fluctuations in utility and repair costs. Some smart devices like Omnidian for solar or Checkit for commercial appliances can detect near-imperceptible shifts in electrical device power signals to understand when they need maintenance — and auto-dispatch a technician for preventative maintenance. The 'smart' property trend can also be smart for tax reasons — investing in your building's service-layer can help you improve the amenities and take advantage of tax credits. Smart and environmentally rated devices may pay for themselves. More smart-devices and self-serve check-in kiosks and building management apps can also mean less need for staff walking the floors. This does not always mean fewer employees, but it does mean shifting those roles to other departments and may require you to review your union contracts and local employment regulations. Finance The No. 4 use case, 9% of respondents Finally, commercial real estate teams are using AI to complete finance tasks. Many of these AI systems are coming into the real estate world through general applications, such as how Google's Gemini assistant is now available in Google Sheets. Whereas some are specific to real estate. The software Yardi offers a type of smart spreadsheet reporting that Citrin Cooperman Managing Partner of Business Process Outsourcing Mike Zyborowicz calls the Swiss Army Knife of property management and notes that, 'It enables you to do everything from managing your assets to crunching numbers so you can better manage tenant satisfaction or overhead expenses.' What AI tools will not do, however, is certify the results of studies around how to increase occupancy and improve company profitability. Nor can AI tools yet look forward to advise on where the market is headed and suggest new configurations for your capital stack, such as preferred equity or mezzanine debt. AI works best when supported by a financial advisor AI has vast potential in the commercial real estate sector and is one sure way to help reduce costs. But it is never as easy as 'plug and play.' To turn your team's AI pilots into actionable insights your firm can place class-A bets on, you may need a financial firm that specializes in advisory, audit, assurance, tax, and technology. Only then can you ensure the data within your systems is worthy of basing decisions on, and that you have considered the full breadth of financial and tax implications. To discuss how Citrin Cooperman's Real Estate Industry Practice can help your business reduce operating expenses with investments in AI, and maximize the tax benefits of such investments, reach out to Jessica Garber or Adam Lazarus. Citrin Cooperman is one of the nation's largest and fastest-growing professional services firms. Since 1979 our daily mission has been to help middle-market companies and high net worth individuals find success in their business and personal financial lives through our proactive guidance, specialized services, and passion for excellence. Rooted in our core values, we deliver a comprehensive, integrated business approach, including tailored insights throughout the lifecycle of our clients. Whether your operations and assets are located around the corner or across the globe, we provide new perspectives on strategies that help you achieve your short- and long-term goals. With over 30 offices and more than 3,500 professionals, Citrin Cooperman is included in the Top 20 Firms by Accounting Today. Learn more about Citrin Cooperman at "Citrin Cooperman" is the brand under which Citrin Cooperman & Company, LLP, a licensed independent CPA firm, and Citrin Cooperman Advisors LLC serve clients' business needs. The two firms operate as separate legal entities in an alternative practice structure. The entities of Citrin Cooperman & Company, LLP and Citrin Cooperman Advisors LLC are independent member firms of the Moore North America, Inc. (MNA) Association, which is itself a regional member of Moore Global Network Limited (MGNL). All the firms associated with MNA are independently owned and managed entities. Their membership in, or association with, MNA should not be construed as constituting or implying any partnership between them.
Business Wire
05-05-2025
- Business
- Business Wire
Peachtree Group CEO Recognized as 2025 Industry Leader in Commercial Real Estate Finance
ATLANTA--(BUSINESS WIRE)--Peachtree Group ('Peachtree') is proud to announce that Greg Friedman, managing principal and CEO, has been recognized among the 2025 Rainmakers in CRE Debt, Equity & Finance by GlobeSt., and named to Commercial Observer's prestigious Power Finance list. These industry-leading accolades highlight Friedman's exceptional leadership, strategic innovation and enduring impact on the commercial real estate finance landscape. Peachtree Group's Greg Friedman was placed on GlobeSt.'s 2025 Rainmakers in CRE Debt, Equity & Finance and Commercial Observer's Power Finance list. Share Inclusion on the GlobeSt. Rainmakers list acknowledges Friedman's ability to navigate one of the most challenging commercial real estate finance periods. Amid elevated interest rates, tightening capital markets and declining valuations, Friedman has led Peachtree's vertically integrated management platforms with clarity and conviction. His approach has helped stakeholders unlock value, access liquidity and capitalize on market dislocation. Commercial Observer's Power Finance list further affirms Friedman's influence and adaptability. As lenders retracted and transaction volume slowed, Peachtree continued to deliver creative capital solutions from originating loans to establishing strategic partnerships and playing across the capital stack. Under Friedman's leadership, Peachtree has remained a dependable partner known for its certainty of execution, critical expertise and a solutions-driven mindset. 'These recognitions are a testament to Greg's vision and our entire team's commitment to being a steady force in an unpredictable market,' said Jatin Desai, managing principal and CFO of Peachtree. 'Our strategy has always centered on disciplined investing, innovation and building strong relationships. Greg has set the tone.' Peachtree's success is powered by a high-performing, deeply experienced team that brings together the full spectrum of credit, equity, development and asset management expertise. This collective strength allows the firm to respond decisively to market shifts, underwrite with conviction and deliver solutions others can't. Peachtree has executed over $12 billion in commercial real estate transactions since inception. Its integrated platform aligns real estate, credit and capital markets expertise, positioning the firm to identify opportunities, deploy capital efficiently and manage risk across cycles. Peachtree Group is a vertically integrated investment management firm specializing in identifying and capitalizing on opportunities in dislocated markets, anchored by commercial real estate. Today, the company manages billions in capital across acquisitions, development and lending, augmented by services designed to protect, support and grow its investments. For more information, visit
New York Times
31-01-2025
- Business
- New York Times
A Chelsea Arts Building Is for Sale, and the Artists Cry ‘Foul'
One tenant wore furry clogs with black ankle socks. Another recalled keeping bees on the roof and making 'High Line honey.' A third spoke of plans to invest thousands of dollars in air-conditioning. At a tenants' meeting earlier in January, dozens of artists and gallery owners gathered to protest the sale of their workplace: 508-534 West 26th Street. The 400,000-square-foot complex next to the High Line has long been an anchor of the West Chelsea arts district. But with the September 2022 death of its owner, the philanthropist and art collector Gloria Naftali, the building is in the hands of her estate, whose representatives say they do not consider it profitable enough to keep. It is currently on the market for $170 million. Dominick Porto, 91, the estate's co-executor, and Derek Wolman, 68, its lawyer, told tenants at the meeting that revenue from the sale of the building would be used to support the activities of the Raymond and Gloria Naftali Foundation, which was established in 2008 and of which both men are trustees. The organization supports not only the arts, but also initiatives that fight antisemitism. (Mr. Naftali, Ms. Naftali's husband, who died in 2003, was a Holocaust survivor.) Tax documents from 2023 show total foundation assets of $4.57 million. For many tenants, the decision to sell, which was first reported in the Commercial Observer in December, means not just a painful disruption in their lives but a nail in the coffin of their neighborhood. 'Artists and the art galleries bring a lot of money to the neighborhood and enlist services which will also sadly disappear,' said Judi Harvest, the beekeeping artist, who has rented in the building since 2001 and gives her age as 'over 65.' Ms. Harvest said she came to West 26th Street after being displaced from studios in TriBeCa, Chinatown and SoHo that became luxury residences. 'The West Chelsea Building is more than a piece of real estate — it is a vital part of our city's identity and a testament to the enduring power of art to bring people together,' stated a Jan. 17 letter to the Naftali Foundation signed by five local elected officials: Council Member Erik Bottcher, State Senator Brad Hoylman-Sigal, Assemblyman Tony Simone, Manhattan Borough President Mark Levine and Representative Jerrold Nadler. The building consists of two connected structures built in 1910 and 1927 that were used for printing and binding books. In the mid-1970s, Mr. Naftali (no connection to the real estate development family of that name) bought the property for use as a warehouse for his garment business. At that time, New York's arts scene was concentrated in SoHo, but Ms. Naftali, a French-born former actress and model, caught a whiff of where it was heading. In 1993, the couple turned the building into studios and exhibition spaces for artists and allied professionals, some very glossy. Among the roughly 200 tenants today are the Japanese artist Hiroshi Sugimoto, who built a teahouse on the 12th floor with Ms. Naftali's blessing, and the American painter Ross Bleckner. Galleries include Berry Campbell, Galerie Lelong and Greene Naftali, the last co-founded by Ms. Naftali and Carol Greene in 1995. After Mr. Naftali's death, his wife continued fussing lovingly over her creative brood, dancing at parties into her nineties and making pledges that the building would remain an artists' community forever, tenants said. It was a rude shock to many when they were informed that Ms. Naftali's will, executed in 2009, expressed her desire but not a legal directive to keep the building as it is. At the tenants' meeting, Mr. Porto and Mr. Wolman emphasized that they had a fiduciary duty to support the foundation's diverse interests. They also said the building lacked the liquidity to allow them to fulfill minimum annual distribution requirements of 5 percent of the foundation's assets, plus an additional 2 percent in excise taxes. Though at the time of her death, Ms. Naftali also owned a West Village townhouse, several New York City investment units, the Manhattan homes of her son and daughter, two houses in Southampton, N.Y., properties in West Palm Beach, Fla., and South Londonderry, Vt., as well as a substantial art collection, Mr. Wolman said at the meeting that the West 26th Street building represented most of her wealth. He and Mr. Porto declined to disclose to the Times the amount of rent the West 26th Street building collects , and the building's manager, David Smyth, did not respond to several requests for information. The building is profitable, Mr. Wolman said, 'just not profitable enough.' Emilio Madrid, 28, an entertainment photographer who was the tenant contemplating a large investment in air-conditioning, said he pays $8,000 a month for his roughly 1,650-square-foot studio, which he has occupied for less than four years. Ms. Harvest rents 550 to 600 square feet for $3,000 a month. The tenants pay for their own electricity, and hers averages $100 to $150 per month, she said. A licensed real estate broker, Ms. Harvest added that the average asking price of commercial loft space in West Chelsea is $40 to $45 per square foot, slightly less than what she pays. 'It is a nice building, but not a bargain,' she said of the complex. According to Mr. Madrid, a group of tenants is seeking a buyer who shares Ms. Naftali's dedication to the arts. They are also considering the possibility of tenants buying the building themselves, 'though that is a heavy lift,' which would mean higher rents, he said. Some tenants have also suggested classifying the building as a charitable asset of the Raymond and Gloria Naftali Foundation and removing it from the distribution requirements. Asked about this proposal, Mr. Porto said, 'If someone has an idea and they think it can work, and they show us feasibility, by God, I'll go to bat for it.'
