Page 19 - RE-NJ

OWNERS COUNCIL Q&A
KATIE KURTZ
CEO
DENHOLTZ PROPERTIES
How do you feel about the
market?
In many property types, the
market remains at somewhat of
a standstill, with the high cost
of capital making desired return
metrics hard to hit. However,
the strength of the multifamily
and industrial sectors allows
smart investors to transact.
The promise of further rate cuts
does bring reasons for optimism.
Predicting the exact industry re-
sponse is challenging though, as
it will take time for the market
to adjust to the new rates and
benchmarks before transaction
volume picks up.
Did you learn anything new
about your business (or the
industry) in 2024?
The pandemic underscored the
vital importance of proactive
asset management, a lesson
that continues to resonate as
we navigate its long-term mac-
roeconomic and social impacts
in 2024. For owners to succeed
in today’s market, agility and
effi ciency are essential to keep
assets ahead of changing condi-
tions. Whether through capital
improvements or a new proper-
ty management strategy, iden-
tifying an asset’s weaknesses
before the market does — and
addressing them proactively —
will be key to long-term success.
How quickly (or slowly)
do you expect the lending
environment to improve as
expected rate cuts take hold?
Interest rates aren’t the only
factor slowing the market, so rate
cuts will likely have a delayed
impact. Adding to the uncertain-
ty are a contentious election, a
wide valuation gap between buy-
ers and sellers and banks grap-
pling with non-performing CRE
debt. While deal fl ow is expected
to improve, it will take time.
Besides the capital markets,
what is a major challenge that
the industry still faces?
For businesses like ours, con-
trolling development and con-
struction costs remains essential.
During the pandemic, prices
surged due to various economic
pressures, and since then, costs
for land, materials, labor and in-
surance have stayed high and, in
some instances, continue to rise.
This makes it more important
than ever to be prudent develop-
™ 17
ers with strong partnerships and
a focus on effi ciency and val-
ue-engineering opportunities.
What can the state or federal
government do to help?
Federal and state governments
need to continue viewing devel-
opers as partners in transfor-
mative investments within our
local communities. We strongly
support tax breaks and incentive
programs designed to att ract
investment to underserved areas.
This spirit of cooperation is vital
to aligning our shared goals and
building economically vibrant,
resilient communities.
Where do you see opportunity
outside the Garden State?
While we continue to execute our
development pipeline throughout
New Jersey, our team is continu-
ally identifying opportunities in
emerging markets throughout
the U.S. We already have built a
presence in promising growth
markets like Florida, Georgia,
North Carolina, Tennessee, New
Hampshire and Texas and are
continuing to identify ground-up
development and strategic acqui-
sitions to expand our footprint in
each of those regions.
How is technology helping
your business these days?
Real estate technology is a vital
part of our operations. Our team
constantly seeks tools that will
deliver the data and insights we
need to work faster and more
effi ciently. Platforms like Yardi
and VTS are integrated into our
core processes, alongside Pow-
erBI for data visualization and
Juniper Square for investor re-
lations. We’ve also equipped our
building engineers with iPads
to manage work orders more
eff ectively in the fi eld.
Getting To Know You
FAVORITE JERSEY DINER
My family enjoys spending our summers on Long Beach Island
and — while they’re not your typical diner — we frequent
Wally’s and LBI Table.
YOUR NEWEST HOBBY OR INTEREST
I have always been an avid Peloton rider, but I recently
bought a road bike and spent many mornings this
past summer riding outside.
FAVORITE DAY TRIP OR VACATION SPOT
My family and I really enjoy skiing together. Th is upcoming winter
we have planned a repeat trip to Deer Valley in Utah. Th e ski school
is wonderful for my daughters, and we all love the mountain.
TV SHOW, MOVIE OR BOOK YOU’D RECOMMEND
My daughters and I have recently started watching Gilmore Girls,
which is a show I watched with my mother and sister as a child.
IF I WEREN’T IN COMMERCIAL REAL ESTATE, I’D BE…
I’ve always gravitated toward politics. As anyone in the
commercial real estate industry knows, strong relationships with
offi cials in the local, state and federal government are pivotal to
bringing a project to life.