“We’re not having a flush year” as an industry, said Alan Johnson, managing director of Johnson Associates…

When it comes to real estate, Johnson noted the 2017 federal tax overhaul’s impact. He said the capping of state and local tax deductions has made living and working in New York City more expensive for many companies and individuals. Though the changes were first felt in 2018, Johnson said the fallout is only beginning now.

“It usually takes people two to three years to get their heads around [tax changes],” he said. He said several clients are looking at quietly relocating employees to Florida, Texas or Utah.

“New York is just very, very expensive,” he said. When it comes to wealthy financiers buying apartments, “why buy it here if you can buy it in Miami?” he asked.

Johnson did note, however, that there’s a bright spot for bankers compensated in equity in recent years. With bank stocks up, they could have “more money in their pocket than they thought.”

The Real Deal / February 14, 2020