Craig Deitelzweig — President and CEO at Marx Realty & Improvement Co.

Are you going to buy in `25? If so, what asset class?

Definitely. We will be buying office buildings in 2025, as we believe we are experiencing a once-in-a-generation-type of buying opportunity. Of course, we will be selective in our purchases with an emphasis on location and the bones of the asset.

Is there a single “good” sign you see in a distressed property that makes you want to buy it?

We often think about how the asset could be transformed. We love to see assets that were performing well at some point and have just lost their edge because the property is not properly catering to the market. We see this often as some landlords have not evolved, and have assets that seem stuck in time or have undergone mediocre and uninspired repositionings.

What real estate or tax policy would you like to see from a Trump administration?

It would be great to see incentives encouraging owners to invest in transforming the nation’s older office buildings into world-class assets. We have long believed that, much like some of the best hotel assets, heritage office buildings with modern upgrades tend to attract tenants seeking spaces with a strong sense of history, authenticity and soul. There are also strong environmental reasons for transforming older office buildings into state-of-the-art office spaces, and it would be helpful if there were more tax incentives to accelerate this transformation.

If you could stack the new administration with people you know and do business with, who would you choose?

Max Gross and Cathy Cunningham. [“We will not accept if nominated, and will not serve if elected.” — M.G. and C.C.]

Let’s talk about office. Is the worst over?

Yes. But not for everyone. Marx Realty assets are seeing incredible leasing velocity, record rental rates and robust demand from all different sectors of the economy, particularly from private equity, fintech, tech and fashion. This speaks well for the future of New York office. Lastly, physical occupancy in our buildings is better than pre-pandemic, which also signals this is a great buying opportunity.

On Thanksgiving Day, we delivered the Meeting Galleries, another 11,000 square feet of amenities to complement the building’s current amenity offering. We are seeing such strong demand for our spaces in the building that we have been able to raise rents two times this year — and that’s before delivering our new Meeting Galleries. I don’t think we have ever seen demand like this for our buildings.

Which market (outside of NYC) do you like best? Which market (including NYC) are you most fearful of?

We have purchased two office buildings in D.C., as we believe this market is well-positioned to attract higher-end law firms, lobbying and strategist groups, associations, and technology firms that seek quality office spaces like ours.

San Francisco just seems like a disaster, given the amount of crime and unpleasantness of the streetscape. The vacancy rate for office space in that city is just scary. I can’t tell you how many times I hear leaders in New York and D.C. say they don’t want to be like San Francisco. Miami also seems to be in a downward trend for office buildings, and we are avoiding that market.

How’s the financing climate for new development and redevelopment — hot, cold or just right?

Cold still, unfortunately.

What are your predictions for the mayor’s City of Yes, especially given the controversies within the Adams administration?

The City of Yes is quickly becoming the City of Maybe.

Do you still like Eric Adams?

Mayor Adams has very good intentions, but hasn’t been as effective as we need him to be. That said, he is terrific compared to his predecessor.

Lightning Round:

Your social media of choice?
LinkedIn for work, X and Instagram for non-work.

AI: Helpful in CRE or a fad?
Ultimately, very helpful.

Last movie you saw in a theater?
I can’t recall, which is kinda telling.

You’re going on a six-month expedition into the Amazon rainforest. What’s your last meal before you get on the plane?
KFC.

Tesla or BMW?
One of our all-electric MarxMobiles: the Porsche Taycan, Tesla Y or Rivian.

Will interest rates be below or above 4 percent on July 1, 2025?
Slightly below.

If you could partner with one person in the business on a property, who would it be?
Ian Schrager.

What are you tired of talking about?
The existential threat to office — we always have been believers in hospitality-infused office product and the need to collaborate and grow better together.

ned a five-year, 3,200-square-foot lease on the building’s ninth floor, while investment bank Peel Hunt signed a six-year, 3,000-square-foot lease on the 16th floor. Both firms will move into pre-built suites as part of the MarxReady program.

Hillcrest Finance was represented by Cushman & Wakefield’s Pierce Hance while Peel Hunt was represented by Scott Ansel of JLL. JLL’s Mitchell Konsker, Carlee Palmer, Simon Landmann and Thomas Schwartz lead a team handling leasing for Marx Realty.

“This continual stream of new leases at 10 Grand Central further validate the value of our MarxReady pre-built series and the hospitality-infused repositioning of the property,” said Craig Deitelzweig, president and CEO of Marx Realty. “These two new leases highlight 10 Grand Central’s thoughtfully crafted, turnkey spaces that embody the building’s unique blend of hospitality and modern office design.”