The Leasing Laureate: Centric Real Estate Advisors’ Gregg Lorberbaum on His New Book, Leasing NYC

What makes New York such a difficult market, and why are leasing issues magnified?

The first reason is there are more Fortune 500 companies in New York than any other city. The demand exists here.

If you look at L.A., L.A. is an entertainment town. New York is driven by many different industries that work in tandem to balance out. If you look at the financial sector, they’re laying people off, while technology is hiring people.

New York is the fashion capital, and it’s also got the medical industry, entertainment and tourism. When you have all those things, you have an acute demand, and that makes competition.

There is also an inconsistency of service—skill sets vary significantly. What are you paying per square foot? That’s the nomenclature, but what it doesn’t address is the amount of square feet, the efficiency and condition of the space.

The book has a number of case studies. How did you choose them? Is there a particular one that stands out?

The thing I’m most proud about is 92 percent of my clients are repeat business. Some of my clients I have done three, four or five different transactions for, and these are 10-year leases. The case studies are long-term clients that were comfortable. Clients don’t want their spaces published, generally, so it was a very kind gesture that my clients agreed to have their space photographed, because at the time, they didn’t know it was Adrian Wilson.

It was very touching to me that my clients were willing to have their spaces photographed. After the book has been released, they will be very pleased. They were selected based on being my long-term clients, and each company is a best-in-class privately owned company.

If a company is looking to transition for the first time, what are the key pitfalls to avoid?

The biggest mistake would be to not buy the book, if you were looking.

Next thing, people don’t understand it’s a process. If you have a real estate department, then you are in good hands. The industry is very adept. But if you are a one-off company, you don’t have the proper personnel, necessarily.

How important is time as a factor?

Orchestrating the timing is most important—underestimating the construction process. It’s very nuanced, building office space in New York City. Largely it’s still a union town. You need to partner with someone who understands the entire process.

Can you cite any examples of businesses that handled the acquisition of new space particularly well or poorly?

The one that comes to mind would be right after 9/11, and it was Morgan Stanley. Morgan Stanley had given up their space, and after 9/11, they realized they had to stay. But the landlord had already committed the space to a new tenant.

There were five companies that had to move simultaneously to accommodate Morgan Stanley, and all five companies benefitted from the transaction.

How can an efficient use of space benefit a company?

The companies that work the best, they have a horizontal structure. The most important thing is to share light. It’s important for the human condition. Form follows function and behavior follows design. Anything that has creature comforts is beneficial. The office is a very effective way to reduce employee turnover.

Toward the end of the book, you summarize chapter takeaways. Is there one point or theme you would highlight as a takeaway from the book as a whole?

I would sum up: your office space is far more important than almost anything else. Most people I know have spent more time working in their office than at home in some point in their career. Because it matters to them, it matters to me.

It’s way more complicated than it seems. Availing yourself of the resources that are out there is my message.