ConnectOne CEO Frank Sorrentino on NY Business, Housing, and Economic Outlook

Economic Optimism and Outlook

• 🚀 Frank Sorrentino expresses strong optimism for the economy, particularly for the end of 2025 and into 2026, anticipating less market noise and more focus on economic strength.
• 💡 He believes the foundation laid in 2025 has created an "unbelievable ramp" into 2026, suggesting a period of sustained economic growth.

New York City Business Sentiment

• ⚠️ Sorrentino notes that while the general economy is strong, there's a concern that changes under the incoming Zohran Mamdani administration could negatively impact New York City's business-friendly sentiment.
• 🤝 He is encouraged by the involvement of business-minded individuals like Kathy Wilde on the mayor's transition team, seeing it as a positive sign for addressing business concerns.

Housing Affordability and Supply

• 🏗️ Discussing housing, Sorrentino highlights that a builder's primary motivation is profitability, and current conditions in New York City make it difficult to build.
• 🏠 He points out that there are approximately 50,000 rent-stabilized units in New York City that are currently unoccupied because they are uneconomical to renovate and bring back to market at their stabilized rent.
• 🔑 Potential solutions for filling vacant apartments include means-testing for rent-stabilized units, city incentives for builders, and vacancy decontrol, which could bring units back online quickly.

Market Dynamics vs. Government Intervention

• 📊 Sorrentino emphasizes that economic laws, like the laws of physics, are immutable; increasing supply naturally leads to lower prices, a concept he feels politicians often overlook.
• 🧠 He contrasts government control with free-market approaches to affordability, suggesting that markets are generally more efficient at solving problems.

Small Business Landscape

• 📈 Small businesses, particularly those represented by ConnectOne, are generally doing very well, with strong pipelines and backlogs extending into 2026.
• 🧑‍💼 A significant challenge for small businesses is the difficulty in hiring qualified personnel to fill open positions, despite broader economic stability.