BAD NEWS is easy to find. Signs of economic downturn, risky or misguided economic policies, market trends, local push and pull on development incentives, interest rates, political polarization, worldwide pandemics, the AI takeover, war… It’s easy to be …uneasy.

IT IS NORMAL to be concerned when things are clearly ABNORMAL.

It’s helpful to remember….We’ve been here before, and it’s going to be ok.

Just in the last century, we have navigated:

• The Great Depression
• World War II, Vietnam War
• The Dot-com crash, 9/11 (and $8 trillion spent not to mention so many lives lost on subsequent wars in the Middle East)
• Katrina and other environmental disasters
• The Great Recession (Housing crash, 8 million jobs lost, 10 million homes foreclosed, global financial crisis)
• COVID
• Massive Inflation (what did I just spend on those apples?)
• Social Media Misinformation and Disinformation
• Not to mention the ominous feeling that our country is becoming more divided while our standing in the world diminishes…

To my local friends in NYC Real Estate and Construction… Some things to keep in mind…

NYC remains a GLOBAL INVESTMENT MAGNET with strong recovery patterns after many of the stated downturns.

Demand remains high in a variety of market sectors, and anecdotally I speak with owner operators in commercial office who are optimistic, high end residential builders who are optimistic, architects who are busy, and we can look to statistically validated demand in multifamily, life sciences, industrial, data, and other sectors.

CONSTRUCTION is diverse. Asset classes and project types range from civil, to utilities, to building residential, industrial, mission critical, pharma, healthcare, education, nonprofit, to modular, to fit out, to conversion. There are always overperforming, underperforming and stable market sectors, and I predict that technology will make it easier for construction, development and asset managers to pivot from sector to sector.

REAL ESTATE DEVELOPERS know that Market Corrections are also opportunities. Smart companies change the kind of activity they engage in during downturns, they don’t retreat from the market place.

THIS ISN’T THE BEGINNING, IT’S PROBABLY MORE LIKE THE MIDDLE.

We’ve been in a 2 year downturn in the NYC Development market, with some exceptions like Affordable Housing. Interest rate hikes started in 2022. Permits have been down for 2 years. Lending has tightened. Tariffs are a risk that has been known for years, and many companies have diversified supply chains, and also…let’s be honest, no one really knows what tomorrow will bring from DC. On the upside, many anticipate better legislation around development, and office probably has hit bottom, leasing is up with many owners, and the outlook is: recovery on the horizon.

“OK…but what about AI, this is all happening with the tariffs, and the stock market, and I’m already hearing about AI taking jobs in entry level coding, accounting, legal, (recruiting!), even construction!”

AI’s impact on Construction and Real Estate is considered a low to moderate impact industry. Construction is resilient. Construction requires human skill, human leadership, negotiation, collaboration and with the help of technology this industry will become more efficient. Roles in scheduling and estimating will ultimately change somewhat. Generally, we will see a sustained and even growing need for tech adjacent skilled labor, for tech savvy project management, for tech savvy field supervision, and always for executive leadership.

As new leaps in technology, energy, building methods take form, there will always be more for humans to learn, to engage and grow professionally. At least this will be the way for our children, and likely our grandchildren. The truth is that the more technologically savvy we become as an industry, the easier it will be for construction managers, development managers, asset managers to switch from one asset to another. Remember – Construction is diverse. Data, workflows, systems of management and accountability will be transferable and leveraged.

SO …don’t worry, too much. The ebb and flow of markets is nothing new. Our industry will survive the day, the season, the year.

AI Is here, and it is changing our landscape ….I’m not here to sugarcoat it, changes will take place…but this will not happen overnight in Construction Management and Real Estate Development.

Times have been tough. Tariffs are real, and there will be an impact, but many developers have already taken this into consideration, supply chains can adapt, and remember that predicting the unpredictable is an exercise in futility – adapt, react, but don’t panic.

Tangible forces like tariffs and technology will have an impact on our professional lives….but remember how much of our economy relies on psychology, on our mental well being, on fear and on optimism. In that way, we do actually have control.

Keep finding those spots – those corners – those opportunities for productivity, for mutual value. Stay sharp, stay engaged. There is still so much work to be done, and you are needed.

David Cone-Gorham is owner of NYCM Search, a talent acquisition firm in Westchester County focused on the Real Estate and AEC industry. He brings 27 years of experience in real estate and construction management recruitment, staffing real estate investment operations, owner operators, REITs, private equity, family offices, design and construction firms, specialty contractors, nonprofits, owners reps and more.