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 response 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 macroeconomic and social impacts in 2024. For owners to succeed in today’s market, agility and efficiency are essential to keep assets ahead of changing conditions. Whether through capital improvements or a new property management strategy, identifying 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 uncertainty are a contentious election, a wide valuation gap between buyers and sellers and banks grappling with non-performing CRE debt. While deal flow 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, controlling development and construction costs remains essential. During the pandemic, prices surged due to various economic pressures, and since then, costs for land, materials, labor and insurance have stayed high and, in some instances, continue to rise. This makes it more important than ever to be prudent developers with strong partnerships and a focus on efficiency and value-engineering opportunities.
What can the state or federal government do to help?
Federal and state governments need to continue viewing developers as partners in transformative investments within our local communities. We strongly support tax breaks and incentive programs designed to attract 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 continually 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 acquisitions 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 efficiently. Platforms like Yardi and VTS are integrated into our core processes, alongside PowerBI for data visualization and Juniper Square for investor relations. We’ve also equipped our building engineers with iPads to manage work orders more effectively in the field.
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. This upcoming winter we have planned a repeat trip to Deer Valley in Utah. The 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 officials in the local, state and federal government are pivotal to bringing a project to life.
