Rudin: One of the reasons I came over was to really be part of two developments: one, the World Financial Center, which is going to be one of the most exciting neighborhoods in the city; and also a development site we have at Manhattan West, so we are really only going to be here part of the next five years because we are transforming New York City. If you look at the Financial District, it is really well underway. You no longer question if this is a 24-hour environment; it is. When you see the extent of the retail that’s here and the people living down here and the commitments that have been made by Conde Nast and other companies. For me, when I look out the window and I see how it’s changing almost daily here. It is really exciting to be part of it. I just got home from a trip in LA, and the Financial District in New York is very much a model for Downtown in LA, which is lagging quite a bit. They are endeavoring to become that 24/7 environment. You are starting to get life in the city in a way that has been here for a very long time. And we’ve show that new industry is prepared to come down here.

And I think Nassau, John and Fulton streets are part of the charm of the neighborhood. You’ll see tenancies that’ll change, but you’ll have a certain class of retail at the World Financial Center and other classes of tenancies over there. I think you are going to see it throughout.

GlobeSt.com: Overall, what challenges does Lower Manhattan still face post-9/11 and how does it affect commercial real estate decisions? And what deals, if any, are in the pipeline?

Rudin: I really look at it not so much as challenges; I would call them opportunities. So if you look at the $20 billion in public-private funds that are being invested in this neighborhood, you’ve created a neighborhood unlike any other in the city right now, and you’ve accomplished what very few cities in the United States have, which is to have a multiplicity of tenancies. If there is a decline in any particular industry, you are able to position that by bringing in new. It’s not just the Financial District anymore. It’s entertainment, it’s the publishing industry, it’s the legal industry. In prior cycles, you had to create this huge economic differential for tenants. Now tenants are coming because they want to be here. There are things that have probably hit the rumor mill that I can’t confirm or deny, but there is a very significant amount of activity in our portfolio and others down here.

GlobeSt.com: On the leasing side, do you believe rents in Lower Manhattan will gradually catch with Midtown and Midtown South as a result of this activity?

Rudin: There is a decrease in vacancy rates and you’re seeing an increase in rents Downtown, and you’re going to continue to see that increase in rents. It depends on the product. The highest end product in Midtown is not going to be met by the highest end product in terms of pricing. There will always be a significant differential. In terms of new product Downtown and best in-class product like the World Financial Center will be on competitive footing with best in-class in Midtown.

GlobeSt.com: On the special servicing side, since you were formerly involved with Insignia before it merged with CBRE, what are your thoughts on the NAI Global/C-III Capital Partners agreement? Are we going to see more of these types of mergers on the private equity front?

Rudin: I think if you look at the real estate service industry, I do believe that you will continue to see consolidation. And I think if you look at the history of professional service firms, whether it is accounting firms, or advertising agencies or management consulting firms, once consolidation has started, it doesn’t reverse itself. There has been fairly significant consolidation in that industry and then a number of other players who are now just starting to sort it out. Earlier this year we saw the Newmark transaction and then we saw this NAI, and I anticipate that you’ll be seeing others.

GlobeSt.com: You are a governor at the Urban Land Institute and a board member of the Alliance for Downtown New York. What other organizations are you involved in, and how has it shaped your decision-making in the real estate industry and as an individual?

Rudin: It is always important to give back. There are numerous not-for-profit opportunities particularly in this city, and some of them satisfy your personal needs and also, fortunately, some of those also satisfy your professional needs. I’ve been involved with NYU’s Schack Institute of Real Estate, St. Francis Friends of the Poor and active in a number of others in terms of their fundraising efforts, and will continue to do so.