USA - NEW YORK Law and Practice Contributed by: Adam S. Walters, Erin C. Borek, Timothy P. Moriarty and Kelly E. Marks, Phillips Lytle LLP
1. General 1.1 Main Sources of Law
comeback post-pandemic. Consumers have adjusted to and embraced online shopping, but a stronger desire from people to make physical connections with brands and products is leading to improvements in in-store experiences for con - sumers. Developers continue to try to get crea - tive to breathe new life into traditional shopping malls by converting them into mixed-use lifestyle centres with a focus on residential, restaurants, and other experiential features. Similarly, the outlook for dated commercial office space is trending towards residential conversion. Res - taurants and hospitality continue to rebound as more and more people are getting back to nor - mal and travel increases. Looking ahead, the big question is how the real estate-related trends that the pandemic accelerated will evolve over time. The “work-from home” model appears to be holding strong, and the impact on the com - mercial office space and dependent retail/res - taurant sectors remains unclear. Employers are either getting creative in order to entice work - ers back to the office, or simply mandating new rules about required office presence. 1.3 Proposals for Reform New York State Governor Kathy Hochul recently signed new legislation aimed at ending New York State’s dependence on fossil fuels. The state’s pending ban on natural gas is one of many steps to achieve the proposed goal of creating zero- emission buildings and reducing greenhouse gas emissions by 40% by 2030 and 85% by 2050 from 1990 levels. The natural gas ban will be effectuated through amendments to the State Energy Conservation Construction Code and the State Uniform Fire Prevention and Building Codes (“Codes”). Specifically, the natural gas ban legislation amends the Codes to prohibit the installation of fossil-fuel equipment and building systems, including plumbing, heating, electrical,
Real estate law encompasses a broad range of skills and practice areas. To adequately repre - sent a client, a real estate attorney must under - stand the nature of the client’s business and the client’s willingness to take risks. A real estate practitioner must understand the myriad of potential issues that may arise for a given real estate project (typically within tax, finance, corporate, securities, environmental, energy and land use, bankruptcy, government relations, insurance, and construction, among others) and have access to the breadth and expertise necessary to effectively represent cli - ents on all relevant issues. To that end, most matters require a team approach, with lawyers who have differing expertise. In addition, prac - titioners must be resourceful and have the abil - ity to communicate and negotiate effectively. Current trends typically do not impact the skills required to practice real estate law; however, one must remain aware of them to effectively assist clients in moving their real estate projects forward. 1.2 Main Market Trends and Deals The dominant trend in real estate in 2024 remains rising interest rates and economic uncertainty, especially in an election year. The pipeline of new development projects has slowed signifi - cantly as higher rates and somewhat flat demand make it harder for projects to “pencil out.” If rates continue to rise, or remain stagnant, there could be significant impacts on over-leveraged commercial owners. Industrial properties con - tinue to grow at a steady rate as the amount of e-commerce grows and federal stimulus targets expansion of US-based manufacturing capabili - ties. Brick-and-mortar retail is slowly making its
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