We sat down with Remy Raisner, Founder and CEO, The Raisner Group, to explore how adaptive reuse strategies, technological advancements, and economic trends are shaping the future of the industry. Read on for insights on these topics and more.

Q. As we approach 2025, what do you identify as the most significant opportunities and challenges in the real estate sector, particularly concerning high-growth assets like life sciences facilities and data centers?

Real estate in general is having the most headwinds from interest rates falling slower than many had anticipated.  

New York City where we uniquely operate however features a favorable outlook.  The population continues to grow, the job base continues to diversify and increase, the City is creating 25% of the tech jobs in the country now, and in general, the Big Apple continues to recover from covid.  Since last year, a big development has been the return of institutional investors, especially in the multifamily asset class.  In addition, the office market has stabilized. 

We will have to see what in 2025 the new administration implies for business.  I think the biggest surprise this year will be not to have a big surprise.

Q. Given your involvement in PropTech ventures, how do you foresee technological advancements shaping the development and management of life sciences and data center properties in the coming years?

We did about 10 PropTech angel/VC investments, starting long ago -in 2013.  So we have been considered pioneers in this space.  This is a much, much smaller involvement than what we do in bricks-and-mortar, but it is complementary and has been successful.

That said, the space has been quieter with the overall state of the VC market since 2021, and as capital dried up, many exits did not occur.  Our last PropTech investment dates 2021, even though we are happy to consider new ones opportunistically.

I think PropTech will continue to touch and improve the management of all types of real estate, especially as AI develops and leads to AGI and other novelties.  On our side, we have invested a lot in technologies enabling us to better cut operating expenses like boiler costs, while making properties more environmentally friendly.

Q. With your focus on urban renewal in Brooklyn, do you see the potential for the borough to emerge as a hub for life sciences or data center developments? What factors could drive or hinder this transformation?

That won't happen overnight, but it could. One positive attribute of Brooklyn is that it is large and still features space to develop.  There are also numerous industrial zones featuring warehouses that could be converted or expanded into data centers. The City could create tax incentives to spur this should it want it, as it has to create affordable housing or preserve manufacturing jobs in warehouses.

It is a hub for high-tech industries: startups like Etsy, newer ones, incubators like the Navy Yard, and even entrepreneurial ventures in more recent industries like blockchain/cryptocurrency.  Not to mention the large population of remote tech workers living in the Borough.  I could see life sciences becoming a sizeable employer in Brooklyn as the sector develops in NYC in general.

Q. Your firm has a history of rehabilitating properties in emerging neighborhoods. How do you evaluate the viability of repurposing existing structures for specialized uses like laboratories or data centers versus pursuing new developments?

Converting properties is more difficult than meets the eye.  Take the example of office-to-residential conversions.  Most distressed office properties are not fit to be converted, even at very low purchase prices, and for multiple reasons including layered lease expirations from existing tenants, inadequate floorplates, or unattractive residential locations.

That said, there is no doubt that many properties in Manhattan and Brooklyn could be converted into labs or data centers as the presence of these uses increases in the City and with that the rents they command.  The growing market should find a clearing price.  

Q: As a speaker at the upcoming event, what aspects of the discussions on life sciences, data centers, and high-growth assets are you most eager to engage with, and what insights do you hope to share with attendees?

We are multifamily investors primarily.  Thus far, we have stayed in this asset class mastered it, and been extremely successful with it.  We do not intend to change our focus in the foreseeable future.  Brooklyn is growing enormously.  It is one of the prominent urban renewal stories of the world.  In light of this, I am most interested in hearing other attendees' and speakers' views on and endeavors in the aforementioned asset classes in the Borough.  All types of real estate are complementary to some degree, and I am always eager to think of ways to keep developing Brooklyn as a destination to live, and potentially numerous other things. It is extremely exciting.

Remy will join us at the event for a panel discussion on "Breaking Ground in Life Sciences: The Next Frontier for Investors,” together with fellow panelists Chris Allman (CIM Group), John Randall (PCCP LLC), Stephen Woodard (Westport Capital). They’ll discuss how to identify emerging science hubs, capitalize on adaptive reuse, and align with the evolving needs of a high-growth, high-stakes industry. Register now to join us.