Exclusive: J.H. Snyder Senior Partner Michael Wise On The Challenges New Projects Face
Low interest rates are still on deck, but other challenges are beginning to loom on the horizon when it comes to building new projects, according to J.H. Snyder Co senior partner Michael Wise. Michael is one of the expert panelists speaking at Bisnow's Annual LA Construction and Development Forum on Thursday at the Montage Beverly Hills.
J.H. Snyder Co's strategy is to be cautiously optimistic, Michael (pictured with his wife, Sirah) tells Bisnow. He expects that outlook will remain for the rest of the year.
While there is a continuation of low interest rates, Michael says it's becoming increasingly difficult to underwrite new residential and commercial projects that reflect "aggressive cap rates, construction cost increases and the ability to forecast higher rents.”
J.H. Snyder just completed a 250k SF office building in Hollywood.
The company expects to complete another 115k SF building, at Hollywood and Vine, in February 2017 (pictured above).
Given the availability of capital as well as low interest rates, these factors should add up to be advantageous for the industry and keep it going for some time, according to Michael.
However, he warns "this cycle has been quite strong and may show signs of weakness."
When he's not in the office, Michael enjoys golfing, traveling, working with nonprofits and spending time with his family, including five grandchildren.
Hear more from Michael at Bisnow's Annual LA Construction and Development Forum at 7:30am Thursday at the Montage Beverly Hills.