BGC Partners plans to roll out its real estate derivative platform next year with the backing of three large banks, the firm’s CEO Howard Lutnick said at a real estate panel this morning in Midtown.
BGC owns the Midtown-based real estate brokerage Newmark Grubb Knight Frank, and Lutnick first suggested in 2011 that the company would offer a hedge against office leases in the form of a derivative.
Real estate derivates provide tenants or landlords a type of insurance against rising or falling rents, but have proven difficult to implement. Many real estate brokers are skeptical about the idea, but other industry insiders believe it will eventually take hold. [more]