Crexi's Conversation with the Chairman | April 2026

1. Crexi: You’ve recently spoken a lot about the state of the market and how there is opportunity within uncertainty. A lot of uncertainty right now is being driven by policy, especially things like 485x. Do you think owners are asking the wrong questions because of that uncertainty?

Knakal: I do. And I think policy is a big part of it.

When you have programs like 485x that are intended to stimulate development but introduce requirements that make projects harder to pencil, it creates hesitation. Not just from developers, but from landowners, lenders, and equity partners.

So instead of asking, “How do I maximize value in this environment?” people default to, “Should I just wait until Albany fixes this?”

The problem is, you can’t build a strategy around hoping someone else solves your problem.

The better operators are saying, “Given the rules as they exist today, what still works?” That’s a very different mindset.

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2. Crexi: Have you seen that hesitation show up in the land market specifically?

Knakal: Absolutely. The land market is probably where you see it most clearly.

Development is the most sensitive to policy, and when the economics get squeezed, transactions slow down. Buyers step back because they can’t underwrite with confidence, and sellers hold because they don’t like the pricing they’re seeing.

That creates a stalemate.

But here’s what’s interesting. Even in that environment, there are still transactions happening. Not a lot, but enough to tell you something important.

The buyers who are active today are not guessing. They’ve done the work. They understand the constraints, and they’re finding ways to make deals work within them.

That’s where the market is being set right now, not by the people on the sidelines.

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3. Crexi: Do you think there’s a disconnect between what policymakers intend and what actually happens on the ground?

Knakal: There almost always is.

The intention behind programs like 485x is to encourage development and address housing needs. That’s the goal. But if the requirements push costs to a level where projects don’t make economic sense, then the outcome is the opposite of the intention.

You don’t get more housing. You get less.

And the market adjusts accordingly. Land values come under pressure because the residual value after construction costs and required wages just isn’t there.

That’s not a political statement. That’s just math.

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4. Crexi: So how should owners and developers be thinking strategically in an environment where policy is constraining feasibility?

Knakal: They need to get much more granular.

In easier markets, you can rely on broad trends. In markets like this, you have to really understand your specific asset. What can actually be built? What are the real costs? Who are the realistic buyers?

And just as importantly, you have to think about optionality.

Maybe it’s not a ground-up development play today. Maybe it’s a repositioning. Maybe it’s selling to a user. Maybe it’s holding and improving cash flow while you wait for better development conditions.

The point is, there’s almost always a path to creating value. It just may not be the one that was obvious two years ago.

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5. Crexi: For owners who are thinking, “I’ll just wait until the policy environment improves,” what’s the risk in that approach?

Knakal:  The risk is that you’re giving up control. When you wait, you’re essentially saying, “My outcome is dependent on factors I don’t control.” That could be legislation, interest rates, capital markets, any number of things. Meanwhile, the market keeps moving.

There are always participants who are willing to act in uncertain environments. And those are often the people who set the next pricing benchmarks. So while waiting feels safe, it can actually be more risky than acting with a well-thought-out strategy.

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6. Crexi: With more transparency today through platforms like Crexi, do you think inefficiencies in the market, especially around land and development sites, are shrinking?

Knakal: They’re definitely shrinking, and platforms like Crexi have played a big role in that shift.

What Crexi has done really well is bring a level of transparency and accessibility that didn’t exist before. It’s made it significantly easier for buyers and sellers to discover opportunities, understand what’s on the market, and connect in a more efficient way. From that standpoint, it’s been a real positive for the industry.

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7. Crexi: Given everything we’ve discussed, policy uncertainty, tighter economics, shifting buyer pools, what’s the mindset owners need right now?

Knakal: They need to embrace the fact that this is a more difficult environment and adjust accordingly. Things are getting better in almost every sector except rent regulated housing which will get worse before it starts to get better.

Every market cycle requires a different playbook. The strategies that worked in 2021 are not the strategies that work today.

But that doesn’t mean there aren’t opportunities. There are always opportunities.

The people who succeed are the ones who recognize the environment for what it is, adapt their strategy, and move forward with conviction.

Because at the end of the day, uncertainty doesn’t eliminate opportunity.

It just redistributes it.