T
he owners featured in this year's Commercial Observer Owners Magazine are a pragmatic bunch, having weathered the easy credit and low insurance costs of the past. As they look to 2025, however, practical considerations will take center stage. Margins will be thin, expenses will matter more than ever, and American Express bills may be higher than ever.

    Insurance is the expense that most owners dread, with many citing its rising costs as a major concern. "It's going absolutely crazy," said Larry Silverstein, attributing it to the frequency and intensity of storms. Insurance was the most frequent answer among those polled, with Will Blodgett warning that it has both short- and long-term implications for affordable housing.

    Other expenses are also on owners' minds, including return expectations in a market where supply constraints have driven up vacancy and rent growth. "Our biggest cost across our operating portfolio of office buildings is real estate taxes," said Oliver Carr, citing the mismatch between market values and tax-assessed values as a major issue.

    Interest rates and the cost of capital are also top concerns for some owners, with Michael T. Cohen hoping for rates to come down quickly. Inflation is another ongoing problem, with Gregg Schenker noting that construction costs continue to rise. While some expenses are unavoidable, others may be worth it – Camber's Rick Gropper cited his team as both the biggest expense and greatest asset.

    Capital improvements will remain significant for some owners, while labor, materials, and land costs are also major concerns. As MaryAnne Gilmartin put it, "All of the above!" But especially labor.