Navigating New York's Real Estate Renaissance: Insights from Industry Leader Nathaniel B. Mallon
In the ever-evolving landscape of New York City’s real estate market, Nathaniel B. Mallon, Managing Partner at Verada, has seen it all. With a career spanning nearly two decades and a trophy case full of industry accolades, Mallon offers a unique perspective on the current state and future trajectory of the Big Apple’s commercial property scene.
Founded just two and a half years ago, Verada has quickly established itself as a formidable player in New York’s commercial real estate sector. The firm specializes in leasing and selling commercial retail space, with a particular focus on new developments. “About 95% of our inventory is new development,” Mallon explains, highlighting the company’s niche in a market hungry for fresh opportunities.
Verada’s approach is notably balanced, with Mallon reporting a “55 to 60% landlord representation to tenant representation across sales and leasing divisions.” This dual perspective allows the firm to navigate the complexities of the market with a comprehensive understanding of both sides of the transaction.
Mallon’s expertise hasn’t gone unnoticed in the industry. He is the recipient of the Real Estate Board of New York’s Henry Hart Rice Achievement Award for the “most ingenious commercial transaction of the year.” Additionally, he has clinched quarterly deals awards in both office and retail leasing, as well as the coveted Power Broker Award for the outer boroughs of New York City.
His involvement extends beyond transactions, with positions on REBNY’s Brooklyn committee and retail committee, showcasing his commitment to shaping the future of real estate in the city.
While Manhattan has long been the epicenter of New York real estate, Mallon’s focus on Brooklyn reveals a shifting landscape. “Ninety percent of all Verada’s business is in North Brooklyn,” he states, highlighting the area’s growing importance. The firm manages an impressive portfolio of 100,000 to 130,000 square feet of retail space in the borough, stretching from Greenpoint to Carroll Gardens along the waterfront.
In an industry often perceived as traditional, Verada is embracing technology to stay ahead. Mallon reveals the firm’s use of machine learning and advanced marketing techniques, leveraging data integrations from companies like Placer and Retail Lease Trac. The integration of these technologies with more traditional marketing approaches demonstrates Verada’s commitment to innovation in a competitive market.
The New York real estate market, like many others, faced significant headwinds in recent years. Mallon candidly discusses the impact of COVID-19, logistical challenges, rising material costs, and the high cost of capital, which “really put a damper on the new development work.”
Despite the challenges of recent years, Mallon’s outlook is cautiously optimistic. He reflects on the industry sentiment from early 2023, when the mantra was “stay alive until 2025.” Now, he sees a brighter horizon. “The sun is going to come out tomorrow,” he muses, suggesting that while the market may not immediately return to pre-pandemic levels, there’s a growing confidence in a return to normalcy by Q4 2025.
Mallon predicts a “three to five-year slow and low upward momentum” following this recovery period. He also points to changing political will as a potential catalyst for growth, potentially reducing project timelines and costs.
While the overall outlook is positive, Mallon doesn’t shy away from discussing ongoing industry-wide challenges. He anticipates “a little bit more pain with the lenders” as some projects may struggle to meet financial obligations. The office sector, in particular, faces significant hurdles, with Mallon suggesting that rezoning will be crucial for real growth.
A key development to watch is the upcoming vote on the “City of Yes” initiative in November. This could lead to significant rezoning, particularly in areas like Midtown East, potentially opening up new opportunities for residential development in traditionally commercial districts.
As New York City’s real estate market enters a new phase, industry leaders like Nathaniel B. Mallon and firms like Verada are at the forefront, navigating challenges and seizing opportunities. With a blend of deep market knowledge, technological innovation, and a finger on the pulse of policy changes, they are well-positioned to shape the future of real estate in one of the world’s most dynamic cities.
