Issue 117 – The Tokenization of 2026

With 2025 behind us, we now have some perspective on how the market is starting to shake out, and we begin to look ahead with some educated ideas of where 2026 may be heading in terms of real estate.

To look back: The year wrapped up with many legislative policy changes. Merrill Lynch’s implementation of tax plans included a mix of permanent extensions of 2017 tax cuts and new, temporary provisions that Governor Hochul and Albany sought to block. There was a lot to digest — and even more to chew on in the coming months.

Standard deductions increased, and in particular, SALT itemized deductions were temporarily raised.

But something even more notable happened: Despite predictions of slowdowns, the NYC real estate market achieved astronomical volumes and sales prices in the typically quieter summer “off-season.” This resilience reflected continued investor confidence in New York as a capitalist hub, even amid the socialist-leaning policies in city government.  

To me, one of the things that sets New York City apart — from many other cities, countries, or regions—is its core capitalist drive. Love it or hate it, it’s a fundamental motivator of human ambition. Think: Darwin’s the survival of the fittest.

What is amazing as well is that anyone from anywhere on the planet can come here and reinvent themselves, building wealth and forging a new identity, including a family legacy. Real estate has proven to be one of the most effective vehicles for generating strong, long-term wealth, so why wouldn’t it also become one of the biggest commodities to trade in the world? Spoiler alert: It has.

I, too, was an immigrant who came to this country with little more than a dream and a drive — which were everything. Like many, I’ve transformed my life through the American Dream, recreating myself in a place with no preconceived history and glass ceiling.

While I can’t predict what will unfold in NYC with our incoming mayor (Zohran Mamdani, who takes office on January 1, 2026), I can emphasize how important the dream of bettering oneself with hard work, gumption, and heart remains. The American Dream should stay at the forefront of all our city and state policies, regardless of who is in office. Whether capitalist or socialist in outlook, countless immigrants like me have come to NYC from far-off places to build something lasting. We have integrated and rallied through periods of discord and disconnection, finding equilibrium in our adopted home.

In a spirited way, these vignettes create a very rich tapestry for the year ahead.

One of the key predictions I see for 2026 is: Gone are the days of “listing gatekeeping.” The ‘Tokenization of 2026’ refers to a widely anticipated inflection point (not tied to a single law or event) in which real-world assets, including real estate, move at scale onto blockchain platforms, functioning like digital securities.

Tokenized assets are traded on open yet regulated (permissioned) platforms, providing qualified buyers with direct access to offerings. As a result, fractional ownership lowers barriers, removing the question of “who can afford it.”

This year favors a broker who can interpret data like an analyst, negotiate like a diplomat, and market property like a tech entrepreneur.

Our buyers expect real-time valuations, AI-powered negotiations, 3D-visualizations that vary by time of day, and predictive due diligence — all before they ever view a property in person. 

In that vein, tokenized title transfer and instant cross-border settlement will speed up transactions. Crypto and other blockchain technologies free transactions from the limitations of “bankers’ hours.” Additionally, fractional ownership makes luxury properties accessible to different forms of acquisition.

The traditional 90-day closing process will become obsolete in 2026. Brokers who are unable to deliver a 10-year ROI, carbon efficiency commentary, or local political risk assessment in under 30 seconds will be left behind. Closing within seven days (or less) will be the new standard; anything lower will be considered outdated. 

Merely keeping pace will be as if you are lagging behind. So, here’s to a dynamic, fast-paced, and prosperous year ahead!

I would like to acknowledge all the people in our sphere who have trusted us with their transactions — some laughing, much learning, and definitely growing together along the way. Each one of you has made a profound impact! Thank you to each deal which has been an opportunity for us to expand and cultivate more knowledge and reach by you. 

As we enter 2026 and beyond, I would like to wish you a meaningful year filled with empathy, momentum, and joy — forward, together.

Issue 127 – The Price Isn’t the Price

A new calculation is changing what a New York apartment is actually worth. For decades, NYC real estate has been obsessed with price per square foot. However, now we may be entering the era of cost per year.

Consider two apartments of the same size, price, amenities, light, view, and location. If one has $6,000 in carrying costs and the other $11,000, are they really worth the same amount?

Increasingly, I would argue they are not because buyers aren’t simply purchasing apartments anymore. They are purchasing the economics of the buildings they’re in, which are starting to matter enormously. Think: insurance, labor, utilities, repairs, taxes, assessments, energy compliance, staffing, capital improvements, and reserves. While monumentally important, none of these photograph well, but all determine whether an apartment is easy to own — and eventually sell.

We have always understood that certain characteristics affect value: a lower floor trades differently from a higher one, an awkward layout matters, a protected view commands a premium, and poor light equals a discount. However, I contend another discount is related to the aforementioned carrying costs.

The sexiest amenity in New York real estate may soon be a healthy balance sheet. That sounds less exciting than a lap pool, unless you are the one writing the checks. Operating costs in New York have been rising, putting pressure on building budgets and making previously deferred capital projects harder to ignore.

The 2026 New York City Price Index of Operating Costs — which tracks expenses for the city’s rent-stabilized building stock — illustrates the broader pressure. Over the five years through 2026, insurance costs in that index increased more than 80%. Maintenance increased 29%, utilities more than 26%, administrative costs more than 21%, and labor nearly 16%.

Those figures aren’t a direct proxy for every condominium or cooperative in Manhattan. But they illustrate something anyone involved in operating New York buildings already understands: buildings are getting more expensive to run.

One mistake buyers can make is falling in love with the apartment and treating the building as secondary. In New York, you aren’t just buying four walls; you’re buying into a small economy. You’re inheriting its management decisions, staffing structure, physical plant, reserve philosophy, insurance exposure, and capital planning.

A building that deferred maintenance may appear inexpensive today because it hasn’t yet charged owners for the work it needs. That doesn’t necessarily make it inexpensive. It may mean the bill hasn’t arrived yet. Conversely, a building that recently completed an expensive façade project, replaced major mechanical systems, or invested in energy efficiency may initially appear less attractive because owners have already absorbed those costs. We need to consider which building presents the greater risk over the next decade. The answer isn’t always obvious from the monthly maintenance number.

Buyers understandably love low carrying costs, and brokers value them because they make a property easy to market. But low monthly charges deserve as much scrutiny as high ones. A good broker asks: Why are they low? Is the building extraordinarily well managed? Does it have other income? Are the reserves substantial? Or has the board resisted increasing common charges while postponing expensive work?

An important distinction exists between efficient and underfunded. A well-run building with appropriately funded reserves may ultimately be far more economical than one with artificially low monthly charges followed by recurring assessments. It’s not just the number that is meaningful, but the story behind it.

Few words cause more anxiety in a New York transaction than “assessment.” Even here, context matters because not every assessment is a red flag. An assessment financing a necessary capital improvement can actually strengthen the building. A new roof, elevators, façade work, upgraded mechanical systems, or energy improvements may protect long-term value.

The more important questions a sales pro considers are: What is the assessment for? Why didn’t reserves cover the expense? Is it part of a thoughtful capital plan or the latest in a recurring series of emergencies? And, perhaps most importantly, what comes next? A $500 monthly assessment with a clear end date concerns me considerably less than a building with no assessment, minimal reserves, and several million dollars of foreseeable work.

New York’s environmental requirements add another layer of complexity. Local Law 97 places emissions limits on many large buildings and creates increasingly stringent requirements over time. The encouraging news is that the overwhelming majority of covered privately-owned buildings are currently meeting the applicable limits.

But buyers should still understand what their particular building is facing; Has the Board commissioned the appropriate studies? What capital improvements may eventually be required? Has money been allocated? Is compliance incorporated into long-term planning? The concern isn’t whether a building faces a penalty today; it’s whether the building has a credible plan for tomorrow. That, increasingly, is part of due diligence.

New development creates its own version of this problem. Buyers are understandably attracted to pristine buildings with spectacular amenities and, sometimes, surprisingly reasonable initial common charges, but what will the building actually cost to operate when it is fully functioning?

Pools, spas, private dining rooms, screening rooms, landscaped terraces, playrooms, fitness centers, and mechanical systems all require staff, maintenance, and money long after the sales office closes.

The glossy brochure tells you what you’re getting. The budget tells you what you’re buying — both matter.

This conversation also requires nuance when comparing co-ops and condos. A co-op’s maintenance can initially look dramatically higher because it often incorporates expenses that a condo owner pays separately, including the shareholder’s proportionate share of the building’s real estate taxes. A condo may show a lower common-charge number while property taxes sit alongside it.

So, comparing maintenance to common charges without understanding what each includes is meaningless. The correct question isn’t: Which monthly number is lower? It is: What is my total cost of ownership, and what am I receiving in return? I believe strong building economics will increasingly become an amenity in their own right.

Brokers spend an immense amount of time learning how to talk about marble, appliances, ceiling heights, views, and finishes. We should be equally capable of explaining the financial health of the building we’re selling, because that is a big part of valuation.

None of this means price per square foot is irrelevant. It’s still an important metric. But like any metric, it becomes dangerous when used without context.

I’ve spent my career watching New York buyers pay premiums for things that cannot easily be replicated, including light, views, ceiling height, architecture, location, outdoor space, great proportions. But I always add another thing to the list: financial soundness. That may not command the same emotional response when someone walks through the front door. But increasingly, it may command something just as valuable – confidence, which matters in uncertain markets.

For years, we’ve asked buyers how much apartment they can afford. Now we need to start asking them how much building they can afford.  Because in New York, you don’t just buy the apartment — you inherit the economics beneath it.

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