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Gus Delaporte

ICSC 2013

NYC Retail Heat Map

New York retail comes in sizes large and small, from spaces of only a few hundred feet in Soho
to the city’s massive department stores. As developers continue to find new parcels of land to build upon, new opportunities for retail take shape.

Downtown continues to be repositioned as a retail destination with Brookfield Place, One World Trade Center and the redeveloped South Street Seaport expected to house hundreds of thousands of square feet of shopping space. Not to be outdone, Herald Square is looking at a repositioning, aimed not at discount stores but full-priced international retailers.

After the jump, The Commercial Observer pinpoints 10 retail trends impacting New York City. Read More

By Gus Delaporte 5/21 10:00am

ICSC 2013

The Walmart Conundrum: Four Brokers Weigh In on Behemoth’s NYC Struggle

If one hot-button retail issue has dominated the New York real estate landscape in recent years, it’s been Walmart. The giant discount retailer has been trying to find a suitable location in the city for nearly a decade, but resistance has been fierce. The reasons for this resistance range from the big-box store’s labor practices to the perceived threat to local retailers.

The conflict came to a climax last year when Christine Quinn, democratic candidate for mayor, snarled, “As long as Walmart’s behavior remains the same, they’re not welcome in New York City.” Last week, The Commercial Observer spoke with some of New York’s leading retail brokers about the role of politics in retail real estate, what Walmart can do to ingratiate itself and which locations, if any, are suited to its footprint.

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By Gus Delaporte 5/17 11:00am

Food & Drink

The Four Seasons Restaurant Faces Rent Hike

The Four Seasons Restaurant, home of the “power lunch,” is facing a six-fold rent increase when its current lease expires in 2016, The Huffington Post reported yesterday. The iconic New York eatery, which currently pays $19.74 per square foot, could be looking at rents of $125 per square foot for its 29,476-square-foot space inside the Seagram Building at 375 Park Avenue.

Documents viewed by the Huff Post indicate that as part of the owners’ $782.8 million mortgage deal, financed jointly by Citigroup and Deutsche Bank and being marketed to investors via commercial mortgage backed securities, bankers expect management at the property to begin charging the The Four Seasons market rents, which according to the documents are determined to be $125 per square foot. Read More

By Gus Delaporte 5/16 10:00am

The Plan

Check Out Prebuilts and PIOs at W&H Properties’ 250 West 57th Street

W&H Properties, a subsidiary of Malkin Holdings, has instituted two leasing programs at the repositioned 250 West 57th Street, whose operator has updated the lobby, added new elevator cabs, and renovated the public corridors, bathrooms and building systems.

The first offering is a prebuilt program, which Delta Dental has taken advantage of on the building’s sixth floor in a 2,348-square-foot space. The other is the PIO, or prepared for immediate occupancy program, which law firm Weinman Schnee Morais has opted for in a 1,862-square-foot suite on the 22nd floor.

Fred Posniak, senior vice president of Malkin Properties, spoke to The Commercial Observer about both leasing programs and spaces, offering details on the differences between them and how they appeal to individual tenants. Read More

By Gus Delaporte 5/16 7:30am

Lease Beat

Trading Up: Boutique Financial Services Firms Flock to 540 Madison Avenue

Boutique financial services firms have recently secured over 20,000 square feet at 540 Madison Avenue, where asking rents range from $80 to over $100 per square foot.

“Boutique financial firms are still the sweet spot for the building,” Cynthia Wasserberger of Jones Lang LaSalle, told The Commercial Observer. The majority of the spaces at the property are prebuilt or that the landlord, Boston Properties, is building for the tenant. Read More

By Gus Delaporte 5/15 12:00pm

Lease Beat

Lenox Hill Hospital/North Shore-LIJ Renews at 110 East 59th Street

Lenox Hill Hospital/North Shore-Long Island Jewish Health System has signed a 15-year renewal for 70,434 square feet at 110 East 59th Street. Asking rents were in the $70s.

“They had a lease that had a little bit of term left to go, but they want to do some work in the space, so they just wanted to put a little bit more term on the lease,” Dennis Brady, executive managing director at Jack Resnick & Sons, the landlord, told The Commercial Observer. Read More

By Gus Delaporte 5/15 10:30am

Lease Beat

Nonprofit Relocates to 120 Wall Street

The American Institute of Chemical Engineers has signed a long-term, 16,506-square-foot lease at Silverstein Properties’ 120 Wall Street, it was announced today.

“After a two-year search of both Midtown South and Downtown, which included inspections of over 50 properties, AIChE elected to relocate to 120 Wall Street, one of the few buildings to provide an incentive program for not-for-profits,” said Leon Manoff, vice chairman at Colliers International, who represented the tenant, in a prepared statement. Read More

By Gus Delaporte 5/15 9:00am

Postings

Real Estate’s Biggest Philanthropists, Annotated

Last week, Stephen Ross, chairman of Related Companies, became the latest signatory of the Giving Pledge. The campaign, an effort to invite the world’s wealthiest individuals to pledge to donate half of their wealth—or more—to philanthropic causes, was started by two of America’s richest men: Warren Buffett and Bill Gates.

Mr. Ross, worth $4.4 billion according to Forbes, is perhaps best known in philanthropic circles for his $100 million donation to the business school at the University of Michigan, his alma mater.

The donation, the largest ever to an American business school, resulted in its renaming as the Stephen M. Ross School of Business. Inspired by Mr. Ross’s pledge, The Commercial Observer checked in on the philanthropic efforts of other real estate titans. Read More

By Gus Delaporte 5/15 7:30am

Lease Beat

World Class Capital Opens in New York at 540 Madison Avenue

Real estate investment and private equity firm World Class Capital has signed a lease for 2,723 square feet at Boston Properties’ 540 Madison Avenue, where asking rents range from $80 to $90 per square foot.

“They were looking to open up a New York office that reflected their business model,” Gabe Marans of Studley, who represented the tenant, told The Commercial Observer. “They wanted to be in a boutique building that had easy access to transportation and that was centrally located on the island.” Read More

By Gus Delaporte 5/14 12:15pm

Lease Beat

Sister Companies Expand at 757 Third Avenue

Sister companies Aerotek and TEKsystems have signed 10-year leases for 13,551 square feet and 15,115 square feet, respectively, at RFR Realty’s 757 Third Avenue, it was announced today. Asking rents at the property range from the low $50s to low $60s per square foot and the total value of the transaction is over $16 million, according to a press release.

“The RFR team always works hard to provide the best services and amenities that attract and retain the best quality tenants,” said Aby Rosen, co-founder and principal at RFR, in a prepared statement. “That’s the secret of our success here and throughout the RFR portfolio.” Read More

By Gus Delaporte 5/14 7:30am

Lease Beat

Marketing Firm Moves to 440 Ninth Avenue

LeadDog Marketing Group has signed a 10-year, 24,929-square-foot lease at 440 Ninth Avenue. Asking rents were $45 per square foot.

“It was the right balance; nicer than what we currently have, but not super corporate,” Donna Providenti, chief operating officer at LeadDog, said of the space. “We are coming from old loft spaces that aren’t really suited for office use.” Read More

By Gus Delaporte 5/13 1:00pm

Lease Beat

Residential Property Manager Relocates to 440 Ninth Avenue

Century Management Services, a residential property manger, has signed a lease for 11,373 square feet on the 15th floor at 440 Ninth Avenue, where asking rents are $45 per square foot.

“The tenant was looking for a strong landlord, one that had a reputation of working with their tenants in a partnership,” Gregg Lorberbaum, principal at Centric Real Estate Advisors, who represented the tenant, told The Commercial Observer. Read More

By Gus Delaporte 5/13 9:00am

Lease Beat

LH Financial Relocates to 510 Madison Avenue in High-Priced Deal

LH Financial has signed a 10-year, 6,553-square-foot lease at 510 Madison Avenue, where asking rents start at $100 per square foot, The Commercial Observer has learned.

“[The firm's current] layout and configuration are no longer conducive to their business and operations,” said Lance Leighton, assistant director at Studley, who represented the tenant. “As a result, they wanted to find a space that was more efficient for the firm.” Read More

By Gus Delaporte 5/10 1:00pm

Lease Beat

Nonprofit Relocates Downtown to 80 Broad Street

Behavioral Ideas Lab, Inc., a nonprofit, has signed a 10-year lease for the entire 9,155-square-foot 30th floor at Savanna’s 80 Broad Street. Asking rents were in the mid- to upper-$30s.

“It’s the kind of location they wanted to be in,” James Emden, vice chairman at Colliers International, who represented the tenant, told The Commercial Observer. “The economics made sense; it is still a cheaper deal than Midtown.” Read More

By Gus Delaporte 5/09 11:15am

Lease Beat

Goldstein Hill & West Architects Expands at 11 Broadway

Goldstein Hill & West Architects has expanded by 2,500 square feet at 11 Broadway, bringing the firm’s total occupancy to approximately 11,000 square feet. Asking rents were in the mid-$30s per square foot.

“We love this building and we love this location,” Stephen Hill, partner at GHWA told The Commercial Observer. “We are spoiled with views of the harbor; we wouldn’t want to be anywhere else.” Read More

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