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Chairman, President and CEO of the Red Apple Group, John Catsimatidis talks about Warren Buffett’s involvement in New York City real estate. In an interview Catsimatidis explained that if Buffet finds it good to invest in New York, it must be a good investment.
Asked whether rising rents make it harder to do business, Catsimatidis answered that yes, it is “very, very, hard to operate.” Rents for grocery stores are ten times higher in New York than just outside of the city. The high rents then cause the cost of the groceries to go up, and then there is a spiral of increasing prices which becomes a burden on the consumer.
Discussing the overhaul of property taxes in New York City Catsimatidis stated that although he would hesitate to raise taxes to single family home owners, but he also does not think it is a good idea to raise taxes and chase people away from New York.