THE REAL ESTATE BOARD OF NEW YORK - Axxx,2019-01-17,ZM,001,Bs-4C,E1 - REBNY.com
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
CMYK Axxx,2019-01-17,ZM,001,Bs-4C,E1
THE NEW YORK TIMES, THURSDAY, JANUARY 17, 2019 ZM1
ADVERTISEMENT ADVERTISEMENT
THE REAL ESTATE BOARD OF NEW YORK
Photo: Getty Images
This special advertising feature is sponsored by participating advertisers. The material was prepared by T Brand Studio and did not involve the news or editorial staffs of The New York Times. ©2019 The New York Times
CMYK Axxx,2019-01-17,ZM,002,Bs-4C,E1
ZM2 THE NEW YORK TIMES, THURSDAY, JANUARY 17, 2019
ADVERTISEMENT ADVERTISEMENT
NEW YORK CITY’S
COMMERCIAL REAL ESTATE MARKET
Photo: Getty Images
As the New York real estate industry gathers for the Real Estate Board of New York’s (Rebny) 123nd
Annual Banquet, the industry is enthusiastic about its success in 2018 and is looking forward to
a strong 2019. This success — bolstered by job growth, as well as unemployment and crime rates
at historic lows — is attracting the country’s leading entrepreneurs and technological innovators.
Generating billions in annual tax revenue that funds vital city ser-
vices, New York City’s real estate industry remains the engine
behind the city’s economy. “As the Real Estate Board of New York
celebrates its 123rd year, we are proud to report that Rebny is just
as vibrant as the city itself,” said John H. Banks, president, Rebny.
John H. Banks
“Rebny’s outlook for the city’s future is an optimistic one,” he
President, Rebny
continued, “as our industry helps to guide the city forward with
advocacy to advance sensible urban planning, responsible devel-
opment and environmental sustainability to keep New York the
greatest city in the world.”
the Bronx,” said Banks. “We look forward to the upcoming legisla-
Rebny Takes Issue With Commercial tive session in Albany, where we will work with Governor Cuomo
Rent Control and the new State Legislature. As the state’s rent regulations are
scheduled to expire in June, Rebny will advance policies to ensure
Rebny was active at the city, state and federal levels in 2018, advo- investment in our housing stock, job growth and the creation of
cating for the real estate industry in New York. A major effort much needed housing, particularly affordable rental units.”
undertaken by the group was a campaign to educate and inform
the public about a misguided New York City Council bill innocu-
ously titled the “Small Business Jobs Survival Act” (S.B.S.J.A.). Rebny Leads Environmental Efforts in City
“The bill is commercial rent control because it would mandate
arbitration between landlords and commercial tenants for lease In 2018, Rebny and its members were once again leaders in New
renewals, allow a lease renewal term of 10 years at the tenant’s York’s environmental efforts, committed to working with the city
option and require the property owner to accept the results of the to build a more environmentally friendly New York, and to helping
arbitration,” explained Banks. “The impetus behind the legislation reduce citywide greenhouse gas emissions 80 percent by 2050.
is the mistaken belief that the apparent increase in vacant store- Recognizing the difficulties in finding a realistic path to achiev-
fronts is solely the result of landlords either refusing to negotiate ing the City’s sustainability goals, Rebny hired a team of consul-
a lease renewal or the landlord frequently asking for an untenable tants to help develop an appropriate energy-efficiency metric and
rent increase — but those allegations do not have merit.” formed a coalition of allies, according to the group.
Rebny’s Retail Reports and its numerous analyses pushing back In December, Rebny testified before the New York City Council in
on false narratives around this issue gained considerable public conjunction with the National Resources Defense Council and 32BJ
attention in 2018, according to Banks. “We organized more than SEIU to voice its general support of Intro 1253, which would set a
100 commercial brokers and property owners to attend and tes- path toward achieving greenhouse gas (GHG) reductions by 2050.
tify at the City Council hearing on this legislation in October,” said The joint testimony emphasized the need to implement a reduc-
the Rebny president. “We were joined by a coalition of groups tion regimen focused on long-term goals, but cognizant of short-
representing homeowners, building service workers and business term realities, according to Rebny. Other environmental advocates
improvement districts from across the city. The New York City and organizations like the Rent Stabilization Association, the Council
Bar Association issued a report that found the Council lacked the of New York Cooperatives and Condominiums and the Archdiocese
authority to enforce legislation on this issue and Mayor de Blasio of New York voiced similar concerns with the legislation before the
signaled that there were legal hurdles with the current legislation.” City Council, according to Banks.
Rebny testified that it would bring a lawsuit if the bill passed.
Although the bill gained additional sponsors following the hearing,
Rebny will continue to advance its fact-based advocacy in 2019.
Pushing Transportation and Infrastructure
COVER: An aerial view of Manhattan,
Rebny continues to stress transportation and infrastructure devel- with the Empire State Building
opment as it has for many years because it is vital to the city’s
continued health. Rebny is pushing for the Gateway Project, for
TOP:The lake at Central Park,
example, which would create a new rail tunnel under the Hudson
with Central Park South in
River to connect Manhattan and New Jersey, would alleviate many
the background
of New York and New Jersey’s pressing infrastructural demands
and help keep the Amtrak rail system productive for the entire
RIGHT: One World Trade
northeastern United States.
Center
“Rebny strongly supports the Gateway Project and encourages
elected officials from across the country to provide New York and
New Jersey with the vital federal funding the project needs to
advance,” declared Banks. “We will continue to partner with like-
minded organizations to advance this effort in 2019.”
Good Jobs and Affordable Housing
Thanks to New York’s sparkling economy, its population continues
to grow and will likely reach 9 million by 2030. Rebny said that in
2018 New York City’s elected officials continued to support poli-
cies that would help the city to address its need for more good
jobs and affordable housing to meet the enormous demand of its
growing population.
“The mayor and City Council put in place several crucial zoning
changes last year, in the process generating thousands of new units
of affordable housing and driving economic investment in areas
like Manhattan’s Garment District, Inwood, and Jerome Avenue in
Photo: Getty Images
CMYK Axxx,2019-01-17,ZM,003,Bs-4C,E1
THE NEW YORK TIMES, THURSDAY, JANUARY 17, 2019 ZM3
AS WORK
TRANSFORMS,
SO DOES
NEW YORK CITY.
Companies today are hunting for vibrant, wired, amenity-rich spaces to attract and
retain the best talent in the center of the global business marketplace, New York City.
Where they do business not only showcases the investment in their operations and
talent, but also embeds them in the fabric of their neighborhoods—where you live
and work becomes a part of who you are. As innovative brands move to new spaces
in unexpected places, they trust CBRE to guide them and pioneer this renaissance.
We are proud to enable our clients to realize their potential in the new spaces they
occupy—turning their real estate into real advantage.
CMYK Axxx,2019-01-17,ZM,004,Bs-4C,E1
ZM4 THE NEW YORK TIMES, THURSDAY, JANUARY 17, 2019
ADVERTISEMENT ADVERTISEMENT
Technological Needs of the Industry Seeking More Construction Jobs
Like every industry today, the technological needs and demands An important program that Rebny strongly supports is Building
of the real estate industry are rapidly changing. In 2018, Rebny Skills New York (BSNY), a not-for-profit organization that helps New
advanced various initiatives to help meet those changes. Rebny’s Yorkers find construction jobs across New York City. It was founded
Residential Listing Service (RLS) celebrated the one-year anniver- in 2015 and began connecting workers with historically high rates
sary of Syndication. The launch of RLS Syndication has empow- of unemployment and poverty with access to quality training and
ered Rebny brokers and salespersons to send residential listings expanded career opportunities.
via the RLS to a growing network of local, national and interna- “In 2017, I became the chairman of Building Skills New York,” said Banks.
tional consumer websites, and has ensured the accuracy of list- “Since then, Rebny made a substantial investment in BSNY and supports
ings by centralizing listing data through a single feed. The success its expanding mission of helping underemployed and underserved New
of this effort is demonstrated by the participation of 600 resi- Yorkers find continuous employment in the construction industry.
dential brokerage firms with 98 percent of them having adopted In 2018, according to Rebny, BSNY placed individuals in over 220
Syndication. The RLS also developed and launched a new compli- constructions jobs, an increase of more than 90 percent over 2017.
ance tool, which is a critical milestone in its commitment to clean BSNY had its most active month ever in October 2018, with 28 con-
and accurate residential listing data, according to Rebny. struction placements. Of those placed, 100 percent are New York City
Rebny was successful with another technological initiative as residents and 96 percent identify as black or Latino. BSNY has also
well. “Driven by the demand for real estate technology innovation, placed over 50 individuals in additional jobs after their initial placement
the Rebny Tech Committee hosted a global competition called the was complete. Ensuring that workers, who successfully complete one
PropTech Challenge that tapped into the entrepreneurial spirit of job are then successfully placed in their next job is a priority for BSNY.
the tech community and put forth innovative ideas for solving the “In 2019, Rebny will continue to support and grow BSNY. We see
complex challenges facing our industry,” said Banks. tremendous opportunity for the organization to engage more local
residents and help to develop and grow a skilled construction work-
force,” said Banks.
HONOREES AT REBNY BANQUET
At each annual Rebny banquet, the association honors a distinguished group of leaders who
are presented with top honors for their outstanding professional success and exceptional con-
tributions to the real estate industry. 2019 is no exception.
“The Rebny Banquet is more than a celebration of real estate’s best “The Rebny Banquet is real estate’s most important evening of the
and brightest. It is an acknowledgement of how important our indus- year,” said Banks. “The event brings the whole industry together
try is to New York and how much we love this city. The honorees for a night of making connections and catching up with friends
reflect the kind of excellence and dedication that we all strive for. and colleagues. This Rebny banquet will be a great celebration of
They have made exceptional contributions to both the real estate excellence, dedication, and public service that is represented by
industry and our entire city,” said Rebny Chairman William C. Rudin. each of our distinguished honorees.”
The following honorees will be recognized at the event:
Daniel R. Tishman Bernard Warren
Principal and Vice Chairman, Chairman and President,
Tishman Webb & Brooker
Daniel R. Tishman, principal and vice chairman of Tishman, will Bernard Warren, chairman and president of Webb & Brooker, will
receive the Harry B. Helmsley Distinguished New Yorker Award, receive the George M. Brooker Management Executive of the Year
which is presented to an industry member for their invaluable con- Award, which recognizes individuals of superior accomplishment
tributions to New York’s civic welfare and the real estate community. in property management based on outstanding professionalism,
civic achievement, and contributions to the real estate industry.
Diane M. Ramirez
Chairman and C.E.O.,
Ira Z. Fishman
Halstead Real Estate
Partner, HSP Real Estate Group
Diane M. Ramirez, chairman and chief executive officer of Halstead
Real Estate, will receive the Bernard H. Mendik Lifetime Leadership Ira Z. Fishman, a partner at HSP Real Estate Group, will receive the
in Real Estate Award for her exceptional accomplishments in the Louis Smadbeck Memorial Broker Recognition Award, which cele-
profession, leadership and service to the real estate industry over brates a commercial broker with exceptional personal and profes-
the course of her career. sional integrity, leadership, prominence in the brokerage
community and service to Rebny’s committees.
Carol Kellermann
President, Citizens Budget Alex Bernstein
Commission Executive V.P., New Business,
Bernstein Real Estate
Carol Kellermann, president of the Citizens Budget Commission,
will receive the John E. Zuccotti Public Service Award. This award Alex Bernstein, executive vice president/new business at Bernstein
recognizes a New Yorker who has displayed exceptional accom- Real Estate Group, will receive the Young Real Estate Professional of
plishments and service in the public’s interest. the Year Award. This award, from the Young Men’s/Women’s Real
Estate Association of New York, is presented to a member who
exemplifies strong integrity, professionalism and personal ethics.
Helena Rose Durst
Principal, The Durst Organization
BELOW:A completed 725,000-square-foot
Helena Rose Durst, a principal at The Durst Organization, will industrial property developed by Rockefeller
receive the Kenneth R. Gerrety Humanitarian Award, which recog- Group in Piscataway, N.J., in 2018.
nizes a Rebny member’s meritorious service to the community.
Photo: Rockefeller Group
CMYK Axxx,2019-01-17,ZM,005,Bs-4C,E1
THE NEW YORK TIMES, THURSDAY, JANUARY 17, 2019 ZM5
WE ARE THE
FUTURE
OF REAL ESTATE
NEWMARK KNIGHT FRANK IS BREAKING
BOUNDARIES IN REAL ESTATE TECHNOLOGY
and advancing the way owners and occupiers achieve
their business objectives.
Developing the industry’s premier suite of proprietary
and cutting-edge technology tools, we help our clients
improve their real estate functions and rapidly track,
record and maximize the value of their data in markets
throughout the world. Our innovation and foresight leads
to business success. Businesses looking to the future
look to Newmark Knight Frank.
ngkf.com
CMYK Axxx,2019-01-17,ZM,006,Bs-4C,E1
ZM6 THE NEW YORK TIMES, THURSDAY, JANUARY 17, 2019
ADVERTISEMENT ADVERTISEMENT
OUTLOOK FOR NEW YORK REAL ESTATE
Major real estate companies, like the Real Estate Board of New York itself, were pleased with
the New York City market results in 2018 and look forward to a strong 2019. Here is the outlook
and analysis from some of the key companies in the New York City marketplace.
with the direct Class A vacancy rate sitting at approximately 14 per-
Manhattan Leasing Shifts Into Higher Gear cent, according to Cushman & Wakefield. The booming multifamily
market in White Plains, which registered a 5.8 percent year-over-year
Manhattan office leasing has reached its highest level in five years increase in inventory and 3,361 units either planned or approved, has
and this is a major trend to watch in 2019, according to John C. helped business relocation decisions into downtown White Plains.
Santora, vice chairman, president, Tri-State Region at Cushman & “We can expect continued long-term growth for New Jersey’s indus-
Wakefield. “As 30 percent of large tenants commit at least four years trial market. E-Commerce sales, which in large part have fueled this his-
in advance of their current lease expiration, it has become a trend toric industrial expansion cycle, now account for $127.3 billion nationally
to monitor as larger corporate users make forward commitments. — totaling 9.6 percent of all retail sales,” said Santora. “This along with
Although big deals drive the market, 92 percent of deals in 2018 were strong port activity has fueled New Jersey’s industrial market in reach-
from tenants 30,000 square feet or less. Net effective rents are up ing historical highs in the third quarter for both new leasing activity and
2.5 percent year over year — largely attributed to more expensive overall net absorption. Vacancy rates have remained at historic lows,
deals being done in Midtown South and Downtown. Although, net and asking rents hit another all-time high rising up 14.4 percent since
effective rents are up, the discount between starting rental rates and one year ago. A healthy local economy and consumer confidence will
net effective rents grew from 14.9 percent to 16.7 percent with land- keep the New Jersey industrial market on its current path.”
lords offering more concessions to attract tenants.”
Since 2017, reported Santora, Manhattan vacancy rates increased
70 basis points, but much of that increase can be attributed to new Durst Is Bullish on New York
construction and large blocks in renovated buildings entering the
market in Midtown South and Downtown. Midtown South will absorb
and Philadelphia
much of the vacancy increases as quality space leases up relatively “The commercial market is robust and we are seeing considerable
quickly. “Midtown vacancy is unchanged compared to the end of activity in our portfolio,” says Jordan Barowitz, vice president of
2017 at 9.5 percent. A trend we noticed in the second half of the Public Affairs for the Durst Organization. “Commercial rents are mov-
year is that landlords across all markets are actively marketing large ing up and we are leasing up Condé Nast’s space at 4 Times Square
blocks that are two to four years from possession, even if a tenant quickly. We should have all of its space leased by the time it moves to
has not committed to a new location,” he said. One World Trade Center next year. The residential market is not quite
“In retail, we see a more tenant friendly market,” noted the Cushman as strong because of all the product that has come on the market.”
& Wakefield executive. “We are seeing shorter or flexible terms on Barowitz is excited about the activity at One World Trade Center,
retail leases allowing start-up retailers, such as those moving from which the firm co-developed with The Port Authority of New York
E-commerce to brick-and-mortar, to experiment with product and and New Jersey. “We’ve seen an increase in leasing activity over the
merchandising without long-term commitment or major capital last six months down at One World Trade Center,” he notes. “We have
expense. Also, landlords are more amenable to different uses including done more than 210,000 square feet of leases this year.”
restaurants, food halls and fitness concepts for their vacant spaces.” These companies are so called TAMI (technology, advertising,
On the capital markets side, Santora said: “Our dominance in media and information) tenants, according to Barowitz. “We are
Manhattan continued. Our market share in Manhattan increased year pleased that One World Trade Center has emerged as the largest
over year from 20 percent to 64 percent for all deals over $75 million.” community of TAMI tenants in New York City with 28 different TAMI
Santora said that overall, office and multifamily dollar volumes tenants occupying 1.8 million square feet of space. We are looking
still make up a majority of the core property types in New York City forward to attracting more of these tenants in 2019.”
commercial sales at 48 percent and 41 percent through Q3 [2018], In midtown, Barowitz said that the Third Avenue corridor is strong
respectively, and both property types were expected to end the with a low vacancy rates. Over on Avenue of the Americas, its 1133
year with strong, positive volume growth for the first time since 2015. Avenue of Americas building is 100 percent occupied. Its 1155 Avenue
Retail sales have also re-emerged in 2018 with volumes through Q3 of the Americas has been repositioned and features a rooftop pavil-
already exceeding 2017 levels. Industrial is the only major asset sec- ion that will provide access of outdoor space and floor-to-ceiling
tor expected to come in under 2017-dollar volume for 2018, but this glass windows with dramatic views of the Empire State Building and
is mostly attributed to lack of inventory. all of Midtown Manhattan.
Commenting on the new Amazon headquarters move here, “On the West Side of Manhattan, most of our activity is at 151 West
Santora explained that New York City has always been a hub for 42nd Street or 4 Times Square,” said Barowitz. “We built out a large
the best and brightest talent and this announcement further con- amenity space on the fourth floor of the building where we updated
firms that major companies still want and need a strong presence in the old Frank Gehry Cafeteria into a food hall that is operated by
New York City. “We are still uncertain on the specific impacts that Claus Meyer Cafeteria and Commissary.”
Amazon’s headquarters will have in Long Island City and on New Durst is partnering with Convene to add premium conference
York overall, but we know it will be positive. Amazon’s confidence in space to the fourth floor. The company has also built out an area
New York City is certainly a very encouraging sign.” that is a coffee bar during the day and a drinks bar at night. “We
Cushman & Wakefield noted that interest in the outer boroughs is find that smaller to midsized tenants need to have amenity space
growing as the city continues to thrive: “Larger companies no lon- within the building to attract the talent that they require,” said
ger view New York City as only Manhattan, and there is interest in Barowitz. “Common amenity space is becoming a necessity to meet
investing in the outer boroughs like the Bronx,” he said. “I think we the demands of the market.”
can expect to see continued appetite and activity in the Bronx market In upper Manhattan, Durst is developing plans for its site at 1800
especially with recent legislation regarding Opportunity Zones. We Park Avenue, which is on the corner of 125th Street. “We are concep-
continue to invest in our Bronx and outer-borough teams as we see tualizing a development there,” explained Barowitz. “We have a great
demand for these markets continue to grow.” opportunity for both residential and commercial at the site because
In looking at the tristate region, Cushman & Wakefield said that of the rich transit resources in the area.”
Fairfield County started off 2018 well, registering a 5.8 percent Looking at Queens, The Durst Organization is about to add the
uptick in overall leasing activity. Since then, however, velocity has superstructure to its 900-plus unit residential building in Long Island
tapered quite significantly. “Year-to-date, overall leasing activity City. The building is not far from where Amazon is planning its sec-
for the county is projected to be 40 percent lower than last year’s ond headquarters, which Durst sees as a real shot in the arm for New
annual demand, despite notable leases finalizing earlier in 2018. York City. The Durst building will be one of the tallest buildings in
Nonetheless, submarkets with efficient public transportation contin- Queens when completed. Included in the development is the adap-
ued to do well in 2018. The Stamford and Greenwich Central Business tive reuse of the historic Clock Tower building, a landmark 1927 build-
Districts (C.B.D.) showed a year-over-year increase in the share of ing that originally housed the Bank of Manhattan.
leasing activity relative to countywide demand. Building amenitiza- Moving north in Queens, Durst is excited about its Halletts Point
tion, transportation efficiencies, as well as the proximity to housing project in Astoria. 10 Halletts Point will open early in 2019. The proj-
and urban life have attracted tenants to move into more urban sub- ect offers residents immersive amenities, panoramic city views and
markets such as the Greenwich and Stamford C.B.D..” premium rental residences.
Overall leasing activity in Westchester County contracted sharply The Durst Organization also sees great potential in the Philadelphia
in 2018. Every submarket, except for the northern submarket, marketplace and has acquired a substantial site with waterfront views,
recorded a year-over-year decline in leasing demand. Demand in the just north of Ben Franklin Bridge. Look for more news on this project
White Plains C.B.D. slowed again in 2018 due to a tightening market, as plans are developed by the company.
Companies Electing to ‘Reinvent’
BELOW LEFT: 1133 Avenue of the Americas
Themselves With New Office Space
“In New York City, one trend I can point to is the number of com-
BELOW RIGHT: Halletts Point panies relocating to new space. Historically, one quarter of all deals
done in a given year are renewals” said Mary Ann Tighe, C.E.O. of
the New York Tri-State Region of C.B.R.E. “But for 2018, renewals
totaled just under 15 percent. Companies are electing to completely
reinvent their businesses and they are doing it, in part, with space.
Photo: Vanni Archive
Rendering: March
CMYK Axxx,2019-01-17,ZM,007,Bs-4C,E1
THE NEW YORK TIMES, THURSDAY, JANUARY 17, 2019 ZM7
Midtown
Means
Business.
With appreciation to REBNY on the occasion of its
123rd Annual Banquet, we thank the following brokerage
professionals for their contributions to our leasing success
at 1271 Avenue of the Americas, 1221 Avenue of the Americas
and throughout our entire New York City portfolio in 2018.
DAVE CAPERNA ROBERT FLIPPIN YIN LI KEN RAPP
CBRE CBRE Savills Studley CBRE
JOHN CEFALY SCOTT GAMBER ROBERT LOWE CRAIG REICHER
Cushman & Wakefield CBRE Cushman & Wakefield CBRE
LAUREN CROWLEY CORRINET MICHAEL GOLDMAN JOHN MAHER KENNETH SIEGEL
CBRE Savills Studley CBRE JLL
TIMOTHY DEMPSEY PIERCE HANCE DAN ORGAN ANDREW SUSSMAN
CBRE Cushman & Wakefield Cushman & Wakefield CBRE
THOMAS DOUGHTY EVAN HASKELL JOHN PAN MARY ANN TIGHE
JLL CBRE Top Real Estate & Management CBRE
PAIGE ENGELDRUM PEYTON HORN JONATHAN PLOTKIN MARIA TRAVLOS
Cushman & Wakefield Cushman & Wakefield Colliers Cushman & Wakefield
WILLIAM FANG LISA KIELL SARAH PONTIUS ZACHARY WEIL
Block & Lot Realty JLL CBRE CBRE
HOWARD FIDDLE DAVID KLEINHANDLER MICHAEL PUORRO KENNY YIP
CBRE CBRE Hanover Bank Colliers
SUNNY YU
PD Properties
RockefellerGroup.com
© 2019 Rockefeller Group International, Inc. All rights reserved.
CMYK Axxx,2019-01-17,ZM,008,Bs-4C,E1
ZM8 THE NEW YORK TIMES, THURSDAY, JANUARY 17, 2019
ADVERTISEMENT ADVERTISEMENT
Q. AND A. With Rebny Chairman
Bill Rudin, C.E.O. and Co-Chairman, Rudin Bill Rudin
Chairman
Management Company, reflects on his Real Estate Board of New York (Rebny)
C.E.O. and Co-Chairman
first year as chair of the Real Estate Rudin Management Company
Board of New York (Rebny).
Q: What do you consider the most important
factors in the city’s continuing success? Q: Turning to Rudin, how is your development in
A: New York City has seen tremendous success driven by a strong Brooklyn going?
economy, record job growth and a booming population. But A: Rudin Development is completing construction on Dock 72 at
with this success comes a number of challenges. Our infra- the Brooklyn Navy Yard with our partner Boston Properties and
structure is the lifeblood of New York. We desperately need co-developer WeWork. Public-private partnerships are driving
increased investment in our subways and buses. Our city’s pub- growth at the city-owned Navy Yard, which is now home to more
lic housing, the New York City Housing Authority, is crumbling than 400 businesses and more than 7,000 employees. Dock 72
due to a culture of disinvestment. Preserving New York City’s was designed to be a perfect addition to that ecosystem and to
housing stock requires a reliable income stream to meet oper- meet the needs of creative firms that are continuing to pour into
ating expenses, prepare for capital improvements and keep up our city and looking at Brooklyn for space. The project includes
with repairs. All stakeholders must work together to actively 35,000 square feet of state-of-the-art amenities, including a
plan and achieve common-sense solutions. food hall, health and wellness center, conference center, bas-
ketball court, open lawn space and multiple terraces. We’re also
Q: What do you consider Rebny’s biggest thrilled about plans for a new N.Y.C. Ferry stop outside Dock 72,
accomplishment in 2018? which will provide yet another transit option alongside the Navy
A: In December, the City Council approved a plan to change zoning Yard’s connectivity to local subways, on-site CitiBike stations,
restrictions in Manhattan’s Garment District. This plan lifts strin- and new car-share and bike-valet services.
gent regulations that limited new development and provides
investments to preserve the district’s historic apparel manufac- Q: Can you discuss Rudin’s focus on technology,
turing industry. It also represents an opportunity to unlock the particularly as it relates to sustainability and
transit-rich neighborhood’s true potential. Rebny participated in energy savings?
a steering committee composed of community stakeholders and A: By successfully integrating technology throughout the Rudin
testified in favor of the plan throughout the public approval pro- portfolio we have reduced emissions by 44 percent, shrinking
cess. Mayor de Blasio, the Economic Development Corporation, our carbon footprint while also realizing cost savings of roughly
Council Speaker Corey Johnson, the entire City Council and 30 percent. Our start-up subsidiary, Prescriptive Data, and the
Manhattan Borough President Gale Brewer all deserve credit for Nantum Building Operating System captures data in real time
this pragmatic and innovative plan. so that building operators can make informed decisions that
result in improved comfort for tenants and energy efficiencies
Q: What are Rebny’s most important goals for 2019? and savings. The system uses machine-learning technology
A: We recently formed a new Rebny working group, which began to positively predict, prescribe and influence building perfor-
meeting and setting goals to prioritize increasing diversity and mance. It is this type of application of technology in real estate
inclusion in New York City real estate. Among our 2019 goals that shows the nexus of good business and public policy.
is to continue focusing on empowering women and people of
color in the real estate industry. Q: What does it say about New York that with
Rent regulations expire in June and will be a top agenda item a whole country to choose from, Amazon
during the Albany legislative session. Rebny will be focused on decided to come here?
rational changes that balance the need to address the city’s A: Amazon’s decision sends a clear message that New York City
affordability crisis with the need to ensure the private sector is a global tech hub and that our outer boroughs are stron-
continues to invest in, and build, the rental housing this city ger than ever. It is also a recognition of the incredible talent
critically needs. We also expect the issue of congestion pric- pool of our city’s diverse and dynamic tech workforce. The
ing to play a major role in Albany this coming year, just as it did 25,000 jobs generated by Amazon’s headquarters will bene-
in 2018. Rebny has partnered with the Environmental Defense fit the entire city and this project will help generate thousands
Fund, Riders Alliance, Uber and other groups to form a coalition of additional jobs in the surrounding communities. Let’s also
that will campaign for congestion pricing. Funds generated by remember that the incentives in this deal weren’t designed
congestion pricing would help reduce traffic in Manhattan and just for Amazon — they are economic development tools that
finance much-needed mass transit improvements.” the city is using effectively to diversify our economy across
the boroughs and create new opportunities for New Yorkers.
It is expensive and fairly disruptive to move to new space. So when in East Midtown will be announced in the coming year,” she predicted.
83 percent to 84 percent of people who have the option of staying A major issue for the city and the real estate industry is infra-
in the space they currently occupy elect to move, that tells you a lot structure development, according to the C.B.R.E. executive: “Rebny
about the change in the business environment today.” was well ahead of its time raising the alarm about the need for new
A second trend noted by the C.B.R.E. executive is the strong pref- infrastructure and transit improvements. As proof, just look at the
erence by tenants for new or renovated buildings. This year, she success of the area around the Fulton Center Transit Hub in Lower
noted, of all deals 100,000 square feet or greater, 60 percent were Manhattan. I am absolutely certain that we would not have tenants
done in brand-new or fully renovated buildings. By definition these like McKinsey leaving Park Avenue to go to the World Trade Center
buildings are the highest priced, according to Tighe. had there not been perfect transit access. We need to get aggres-
“A third trend has to do with the nature of tenancy right now,” she sive and creative about new transit. We need to get the Gateway
continued. “The tech companies have come on very, very strong. They project underway as well as the BQX [Brooklyn Queens Connector].”
traditionally represented about 4 percent of the space in the city, but C.B.R.E. is working on many exciting projects around the city as
they closed 2018 occupying 8 percent of space. 2018 ended up with 2019 begins, but Tighe underscored three projects including 550
2.5 million square feet going to companies that define themselves as Madison Avenue, The Wheeler and the World Trade Center. “The
tech companies. Landmark tech deals include Google’s purchase of redevelopment of 550 Madison will offer a 21st century building with
Chelsea Market and Facebook taking the rest of 770 Broadway.” a lovely Midtown park, a real benefit to the community. As for The
A fourth trend that she sees is the growth of companies that offer Wheeler, it is a Brooklyn redevelopment plus new construction on
flexible office space: “Flexible office space has become a sizable top of the Macy’s department store. The store will be reimagined
part of the market. These companies occupy 12 million square feet and smaller, but remain operational. Above it will be an extraordinary
of space. They more than doubled the amount of space they occupy office building with all the infrastructure that you would expect to
this year compared to 2017,” she said. find in a top Manhattan building. Regarding the World Trade Center,
While companies are indeed moving to new, more expensive space, in 2019 there is a high probability that we will finish the leasing of 3
they seem to be making the decision to save on rent overall: “One World Trade Center. This will mean that most of the Trade Center
reason people are moving to new, more expensive spaces is that their space will be committed, with the exception of 2 World Trade Center.”
employees will occupy less space in the new offices,” she said. “So Although Tighe is optimistic about the future of the city and the
while a tenant may be paying more per square foot for rent, his or her real estate industry, she has some concerns about legislation that
overall rent expense may be the same or less. People are paying more may come out of Albany. “There is legislation that may be com-
for space, but concession growth has been significant. In 2013, tenant ing out of Albany that is well intentioned, but not fully informed.
improvement allowances on average were $75 per square foot. Today, Fortunately, we have a governor who is savvy about real estate,
tenant improvement (T.I.) allowances are $100 per square foot.” but that’s not necessarily true of all the members of legislature.”
As former chairman of Rebny, Tighe strongly pushed for the rezon-
ing of Midtown East. As that rezoning has come to fruition, she was
asked about its impact: “With the Greater East Midtown rezoning, we
are seeing proof of concept that the new plan is working and working
well. The first is One Vanderbilt. The building will not be finished for a
BELOW LEFT: 550 Madison
couple of years, but it is already 52 percent leased for triple-digit rents.
The second is JP Morgan Chase’s decision to demolish and rebuild BELOW RIGHT: 3 World Trade Center
270 Park Avenue. The current building houses 6,000–7,000 Chase
employees. Under the new zoning plan, Chase will be able to con-
struct a larger building that will house 15,000 employees. More deals
Photo: Joe Woolhead
Rendering: Snohetta
CMYK Axxx,2019-01-17,ZM,009,Bs-4C,E1_K1
K THE NEW YORK TIMES, THURSDAY, JANUARY 17, 2019 ZM9
THANK YOU TO OUR WORLD-CLASS CLIENTS FOR MAKING NKF
THE LEADING DEBT ADVISOR IN NYC
$12+ BILLION
OF FINANCING IN 2018
$8+ BILLION
OF ACTIVE FINANCING ASSIGNMENTS
JORDAN ROESCHLAUB DUSTIN STOLLY
Vice Chairman & Co-Head Vice Chairman & Co-Head
212.372.0755 212.372.2019
jroeschlaub@ngkf.com dustin.stolly@ngkf.com
850 350 80-90 1180 AVENUE OF THE
THIRD AVENUE MADISON AVENUE MAIDEN LANE AMERICAS
New York, NY New York, NY New York, NY New York, NY
HNA / MHP / ATCO RFR / QIA Meadow Partners /Normandy / Northwood Investors
AM Property
$342,000,000 $250,000,000 $236,000,000
$250,000,000
799 114 WEST MOXY AUSTELL
BROADWAY 41ST STREET DOWNTOWN PLACE
New York, NY New York, NY New York, NY Long Island City, NY
Normandy Clarion Tribeca Associates Normandy /
Drake Street Partners /
$187,000,000 $141,000,000 $105,000,000 GEM Realty Capital
$75,000,000
CMYK Axxx,2019-01-17,ZM,010,Bs-4C,E1
ZM10 THE NEW YORK TIMES, THURSDAY, JANUARY 17, 2019
ADVERTISEMENT ADVERTISEMENT
First completed in 1959, 1271 Avenue of the Americas was originally
‘Like-New’ Office Buildings Spur designed by Harrison & Abramovitz & Harris, the architects for all
Tenant Demand of Rockefeller Center, and developed in partnership by Rockefeller
Group and Time Inc., the building’s original anchor tenant. The build-
While the newest office projects in New York City have received a lot ing was built by George A. Fuller Company, which was known for its
of well-deserved attention, in 2018 the Class A occupier market has construction of many other prominent New York buildings including
clearly demonstrated that “like-new” office product in the traditional the U.N. headquarters, the Seagram Building and Lever House.
heart of Manhattan remains very much in demand, according to Daniel The redesign of 1271 Avenue of the Americas is being handled by
Moore, Rockefeller Group president and chief executive officer. Pei Cobb Freed & Partners. The redevelopment project includes
He cited the firm’s success of its $600-million repositioning pro- a new glass curtain wall, restoration of the building’s landmarked
gram at 1271 Avenue of the Americas, the 48-story skyscraper devel- lobby, new elevators, plazas and building systems. Work is sched-
oped in the modern expansion of Rockefeller Center on the west side uled for completion by Q1 2020.
of Sixth Avenue. In the two years since this program commenced, The neighborhood’s amenities around 1271 Avenue of the
the company has entered leases totaling more than 70 percent of Americas, within a five-block radius, include 10 parks, 10 museums,
the office space in the building with Bessemer Trust, Blank Rome, 65 hotels, 115 theaters and more than 400 restaurants and 2,000
Latham & Watkins, Major League Baseball and Mizuho Americas, retail stores. In-building amenities include well-known and estab-
according to the C.E.O. lished restaurants including Capital Grille, Ted’s Montana Grill and
Le Pain Quotidien, as well as direct access to the B, D, F and M
subway lines and the shops at Rockefeller Center.
Photo: Kevin Chu, Jessica Paul
What does Rockefeller’s C.E.O. predict for the New York City real
estate industry in 2019? “Heading into 2019, the office market will
be one of the ‘haves’ versus the ‘have nots.’ New or ‘like-new’ prod-
uct in great locations will successfully compete. Older buildings in
need of material capital reinvestment will be in a much tougher situ-
ation,” he said.
The Rockefeller Group C.E.O. noted that access to talent is a key
driver, maybe the key driver, of office leasing decisions in New York
City. “Over the next few years, as the generation that grew up with
smartphones and social media begins the family formation chap-
ter of their lives,” he said, “their priorities will be informed less by
‘live/work/play’ and more by ‘live/work/educate (the kids).’ Quality
housing options, great schools and reasonable commutes will
become more important and the value of Midtown’s unparalleled
transit network and proximity to Grand Central and Penn Station
will be rediscovered. The amenities found in Midtown and its unri-
valed access to transportation are like a tailored blue suit or a black
cocktail dress — they never go out of style.”
In addition to its office properties, The Rockefeller Group has wisely
made a strong commitment to warehouse and industrial development
as more and more consumers shop online for merchandise rather than
visiting brick and mortar stores. Warehousing is in huge demand today,
particularly in markets like northern New Jersey, which is extremely
close to major consumer markets. “We expect the strong fundamentals
supporting the industrial market to continue, particularly in New Jersey
and other port-centric markets across the U.S. like the Inland Empire [in
California],”said C.E.O. Moore. “Modern facilities with clear-heights that
allow for state-of-the-art logistics operations will be in high demand
by occupiers and investors alike. But there are no easy Greenfield sites
in the best submarkets. New development will require demolition of
existing properties and mitigation of environmental issues — not for
the faint of heart or the inexperienced [developer]. Multistory industrial,
while successful overseas, is still in its early days here. Construction
costs and truck sizes are complicating factors.”
THANK YOU
ADVISORS REAL ESTATE FOUNDATION RE ADVISORS PRIME MANHATTAN REALTY
James Cleary Jeff Lerch Jeff Hersh
Jeffrey Rosenblatt
HUDSON REAL ESTATE PARTNERS RELO REDAC
We are grateful to the CBRE Alexander Schwartz Shinya Sangu
Scott Bogetti
New York brokerage Cara Chayet JONES LANG LASALLE RETAIL WORX BROKERAGE
Stuart Eisenkraft Bob Ageloff Jonathan Krieger
community for your Ramsey Feher Christian Allen
Benjamin Friedland Kirill Azovtsev ROBERT K. FUTTERMAN
support in helping us Annette Healey David Dusek Michel Cohen
Brendan Herlihy
lease over 1,100,000 SF David Hollander
Paul Ferraro
Paul Formichelli
Neal Ohm
Gary Kamenetsky
in 2018. David Kleinhandler
Erin Grace
Deborah van der Heyden
SAVILLS STUDLEY
Joseph Mangiacotti Nate Brzozowski
Simon Landmann
Lewis Miller Nicholas Farmakis
Matt Ogle
Robert Myers Zev Holzman
Bill Peters
Michael Poch Dan Horowitz
Jason Schwartzenberg
Zachary Price John Johnson
Patrick Smith
Jesse de la Rama Jeffrey Peck
Derek Trulson
Kenn Rapp Richard Schuham
James Wenk
Douglas Durst Clyde Reetz Corey Zolcinski
Stephan Steiner
Scott Sloves Greg Taubin
Andrew Sussman KASSIN SABBAGH REALTY
Mike Wellen STISSING REALTY
Albert Manopla
Sacha Zarba Steven Solomon
Marc Sitt
COLLIERS INTERNATIONAL WHARTON PROPERTY ADVISORS
LEE & ASSOCIATES
Jonathan Durst Jedd Horn Ruth Colp-Haber
Peter Braus
Michael Joseph
JP Sutro
Mike Stone
WINICK REALTY GROUP
David Tricarico
NEWMARK KNIGHT FRANK Steve Baker
CRESA David Falk Louis Eisenger
Noel Flagg Ken Hochhauser
Jane Roundell
Ryan Gessin Danielle Winick
Barry Spagna
Stephen Gordon Jeff Winick
Bob Stella
Jason Greenstein
Scott Gutnick
CUSHMAN & WAKEFIELD, INC.
Michael Ippolito
Stephen Bellwood Dan Katcher
Peter Berti Ross Perlman
Conor Daugstrup Peter Shimkin
Lou DeVanzo Hal Stein
Gordon Hough Travis Wilson
Jamie Katcher
David Mainthow
Douglas Regal
David Rosenbloom
Justin Royce
Aron Schier
Jonathan Schindler
Tara Stacom
Robert Tanzmann
Peter Trivelas
Brian Weld
Barry ZellerCMYK Axxx,2019-01-17,ZM,011,Bs-4C,E1
THE NEW YORK TIMES, THURSDAY, JANUARY 17, 2019 ZM11
ADVERTISEMENT ADVERTISEMENT
2018 Strongest Leasing Year in
City’s History
As 2018 closed, New York was having its strongest leasing year
in the city’s history, according to Brian Waterman, executive
vice chairman, Newmark Knight Frank. “We are on track to have
42 million to 43 million square feet of office space leased. In
addition, a bright spot for the city is the diversification of the OPPOSITE: 1271 Avenue of the Americas,
tenant base and the people who are committing to office space the former Time & Life Building, which is
in the city.” undergoing a $600 million redevelopment
Waterman said that the city no longer needs to rely on the
financial services sector to lease space. The leasing market is BELOW: Downtown New York City skyscrapers
now a cross section of industries. “The Amazons and the Googles
who have announced recently that they are making major com-
mitments to the city are a positive change,” he said. “They
enhance New York as an intellectual power center of the world.
Additionally, the biotech industry and the health care industry
are both rising in New York.”
Newmark has a cross section of product in the New York City
marketplace and a number of opportunities in Long Island City
that will benefit from Amazon’s move there. In addition, the firm
is coming to market with 460 West 34th Street for SL Green,
which is right across from Hudson Yards and offers 450,000
square feet of space. Waterman said that what’s exciting about
the project is that it is a Midtown South/Chelsea type offering
with a great “cool” factor around many glass and steel build-
ings. The firm is also marketing One Soho Square for Stellar
Management and will bring an additional 250,000 square feet
of space to market. Another exciting project for Newmark is the
former McGraw-Hill Building at 330 West 42nd Street that will
be repositioned in the future as a first-class asset with a large
block of space.
For New York to continue on its path of a bright future, “We
need to have good governance, focus on quality-of-life issues
and transportation in the city,” said Waterman. “It doesn’t feel
like these are a major focus today. By moving here, Google and
Amazon are saying that they believe in the intellectual capacity
of the city, but at the same time, the quality-of-life issues, the
homelessness, must be dealt with. We are going through a trans-
formative period right now with the urbanization of America.
People want to live in New York, but they want leaders who will
focus on the quality of life of the city.” n
Photo: Getty Images
AT THE
CENTER OF
WHAT’S
NEXT
Cushman & Wakefield is proud to support REBNY and the talented real estate professionals
that help shape New York City and the world around us. Congratulations to the honorees of
the 123rd Annual Banquet and to our previous REBNY award winners for their outstanding
contributions to the industry and dedication to their clients.
REBNY Most Ingenious Deal of the Year
JONATHAN SERKO MARK WEISS RICHARD BERNSTEIN
Executive Vice Chairman Executive Vice Chairman Executive Vice Chairman
Henry Hart Rice Achievement Award Robert T. Lawrence Memorial Award
REBNY Most Significant Retail Deal of the Year
KENJI OTA NEIL SETH
Executive Director Director
cushwakenytristate.comCMYK Axxx,2019-01-17,ZM,012,Bs-4C,E1
ZM12 THE NEW YORK TIMES, THURSDAY, JANUARY 17, 2019
THIS WILL BE THE VIEW
FROM YOUR BALCONY
Hamptons? Miami Beach? Exotic Island Resort?
No...It’s Coney Island!
OPENING SPRING 2019 “Coney real
Island sees a budding
estate boom - CNBC 12/30/18
“Coney Island is seeing a wave of
new investment”- The Real Deal 8/1/18
Rental Applications Available Now! ”
INTRODUCING A
MAGNIFICENT NEW LUXURY
APARTMENT COMPLEX
• Next to Sea Gate on Surf Avenue
• Luxury Rentals – Studio, 1 & 2 Bedrooms
& 3 Bedroom Penthouses
• Right on the Ocean & Boardwalk
• Full Luxury Amenities
• Trolley to the Subway
COMING SOON
ST. PETERSBURG, FLORIDA
• One of the tallest buildings in Western Florida
• In the heart of downtown St. Petersburg
• Breathtaking views of Tampa Bay
• Luxury condominium residences designed by
award-winning architect Arquitectonica
• Exclusive full-service boutique
Hotel & Event Space
DRAFT
John Catsimatidis Andrea Catsimatidis John Catsimatidis Jr. Bob Zorn
Chairman & CEO Principal Principal Executive Vice President
DEVELOPMENT | CONSTRUCTION | INVESTMENT | MANAGEMENT
800 Third Avenue, 5th Floor, NYC, New York 10022
For inquiries, please call 212-956-5803 or email: investments@ragny.comYou can also read
