Broker Blood Feud

From the "New York Observer." View Story On One Page Print This Story Share This Story By Dana Rubinstein
July 31, 2009 | 8:05 a.m.

It’s the end of July, and for the brokerage community, that means one thing: Crain’s publishes its biannual list of Manhattan's top office leasing deals, using data from CoStar. Though, frankly, publishing the list this annus horribilis—and then writing about the publishing of the list—seems to border on the sadistic.

But hey! It’s our job!

Let's get the obvious out of the way. CB Richard Ellis, the city’s (and country’s) largest commercial brokerage firm, retained its position atop the heap, representing the tenant or landlord in 22 of the 50 biggest leasing transactions of 2009. As we said, that’s not surprising. Nor should we be surprised that the sum total of all 22 of those leasing transactions was pitifully small—but we were, because apparently we still retain some capacity for shock. Those 22 transactions totaled a mere 1.75 million square feet. This time last year, when CBRE also topped the list, its transactions totaled 4.9 million square feet.

In a market where everybody’s suffering, you find solace where you can.

“We feel great about the results,” said CB Richard Ellis executive managing director Matt Van Buren. “We think in a down market, more so than ever, market share matters.”

If that’s the case, then both Studley and Newmark Knight Frank, both firms specializing in tenant representation, should feel proud.

Studley had three transactions in the top 10 (including the top two), and seven in the top 50, totaling 808,686 square feet. This time last year, it appeared only three times in the list. Studley chairman and CEO Mitch Steir attributed his firm’s impressive showing to its focus on tenant representation (a not-so-subtle jab at some of his competitors, like Cushman & Wakefield and CBRE, which represent both tenants and landlords—sometimes at the same time!).

“We believe that it’s quite difficult to advocate for a tenant zealously when one also has a fiduciary responsibility to a landlord,” Mr. Steir pointed out.

CBRE is the Yankees. C&W is the Boston Red Sox. They’ve been beating each other up for years and years. Along come the Tampa Bay Rays. New team. Getting their legs. You know who went to the World Series last year, don’t you? - Newmark Knight Frank's Jimmy Kuhn

Newmark Knight Frank tied archrival Cushman & Wakefield in the number of deals it had on the list, appearing on at least one side of the negotiating table in 13 big leases in the top 50, totaling 868,265 square feet. This time last year, Newmark appeared only 11 times in the list. Cushman & Wakefield, also on at least one side of the table with 13 big leases, inched out a slight lead over Newmark in total area leased, with 892,284 square feet.

And while Cushman, like everyone else, saw a marked decline in transactional activity, its drop-off in big leases was not as severe as CBRE’s. Last year this time, Cushman had 1.9 million square feet of leases in the top 50, a decline of 53 percent to CBRE's 64 percent drop (note: not in total leasing, but in the number of square feet of leases that appeared in the top 50 this time in 2008).

Cushman & Wakefield did not respond to a request for an interview. But Newmark Knight Frank president Jimmy Kuhn described the brokerage hierarchy thusly:

"Let me give you an analogy. You probably won’t use it. Do you follow baseball?"

Not really.

"Everybody will tell you today that the three best teams in baseball all are in the American League East and nothing matters other than that: the Yankees, the Boston Red Sox and the Tampa Bay Rays. In the real estate world you can talk about the entire country all you want, but the only thing that really matters is New York City. CBRE is the Yankees. C&W is the Boston Red Sox. They’ve been beating each other up for years and years. Along come the Tampa Bay Rays. New team. Getting their legs. You know who went to the World Series last year, don’t you?"

No.

"The Tampa Bay Rays."

The above article can be found at http://www.observer.com/2009/real-estate/broker-blood-feud-mmix
Editor's note: Mr. Kuhn said "Tampa Bay Buccaneers," referring to the NFL franchise, and the original version of this story reported that. We believe, however, he was referring to the Tampa Bay Rays of Major League Baseball.

drubinstein@observer.com

Click on the "ReTweet" button below and follow me on twitter. I am LaneArch there.

Soaring with the NJ Nets

This is Brook Lopez of the NJ Nets next to me. He is at least a foot taller than I. Brook was the first round draft pick in 2008 and is the Center for the team. He soars at 7'-0" in height.

I asked Brook an experience architecture related question. He related to his own perceptions and past experiences. This is exactly what I discuss in my book, "The Designed Office." Check out the today's radio show (9-14-09) to hear his answer.

Also, during today's radio show, I will be sharing 10 fast money saving tips that you can implement right away to keep the green stuff in your pockets.

Oh, by the way, get dozen free stuff at www.MyDesignedOffice.com.

Click on the "ReTweet" button below and follow me on twitter. I am LaneArch there.

Ten Energy Saving Tips for New York City Residents

1. Live in NYC. Dense, urban living is the most sustainable, resource and energy efficient, and environmentally responsible way to organize modern society. Hard to believe? Consider this: ever drive to work? live in a space with more than 1000 ft2 per person? It’s true that NYC buildings can be horribly energy inefficient (and there are a lot of low cost, easy things to do about it), but density by far makes up for it, so that on a per-capita basis, NYC is the most energy and resource efficient places in the country.

2. Understand your energy usage. Dig out those old utility bills and familiarize yourself with how much energy you use each month. Develop an understanding of which appliances use the most energy, which can easily be replaced with Energy Star-labeled models (www.energystar.gov), and which you can turn off when you’re not at home or not using it. (Our energy guinea pig spent a month unplugging his “Ghost Loads” — all the stuff that’s plugged in and use energy when turned “off” like your VCR, TV, stereo, etc. — and cut his monthly energy bill by 30%! His comment was: How many flashing clocks do I really need anyway?”)

3. Use non-toxic materials and products. Here’s a simple rule of thumb: If it’s poisonous, carcinogenic, triggers asthma, or wreaks havoc on your nervous system, you probably don’t want it in your building. And yet most of the products we use to build and maintain our buildings - including paints, cleaners, insulation, cabinetry, and carpets - are portable Superfund sites, making their way Trojan Horse-like, into our common and living spaces. Fortunately, keeping the toxins out is a relatively easy thing to do.

4. Use high quality, energy efficiency compact fluorescent lighting and Energy Star appliances. Just because it saves energy doesn’t mean fluoresecent lighting looks good. Know what to look for when shopping for fluorescent lighting. Check out chapter 9 of The Designed Office for more information about this. The same points brought up in this book applies to your home too.

5. Use materials and products with post-consumer recycled content. Search for products that state the percentage of post-consumer recycled content. Paper is a biggie. So are plastic and paper packaging (essentially, anything you can recycle should be made from recycled materials to keep the cycle going). And if you’re buying wood, tiles, countertops, carpet, or insulation there are options recycled and resource minimizing options for these as well.

6. Increase your comfort and reduce your energy consumption by controlling the the indoor temperature. If you have a radiator, and control the heat in your apartment by getting up and adjusting the valves all winter long, or even worse, opening the windows, then having just the right temperature is probably a rare event. The same goes for cooling with AC — turning it off and on is a pretty crude way to control temperature. Erratic temperature is not only uncomfortable, but it wastes lots of energy, especially if the radiator’s kicking out heat or the AC’s keeping things nice and cool when nobody’s home. You can control the temperature in your living space by installing low cost, easy to use, thermostats and automatic radiator controls, simultaneously saving energy and increasing comfort.

7. Switch to Green Power. Two utility companies now offer “green power,” — electricity made from in-state wind and small, low impact hydro (no dams) — for utility customers in New York City. That means that city residents now have a low-cost, no-hassle renewable energy option. It costs a few bucks more a month, but that money helps grow the local renewable energy industry. The two companies are 1st Rochdale Cooperative (http://www.1strochdalenyc.net/cleanerElectricity.html), and Consolodated Edison Solutions (a subsidiary of the namesake parent: http://www.conedsolutions.com/Residential/GreenPowerMain.htm.

Or, see the testimonial of a recent Green Power at http://greenhomenyc.org/post/102.

8. Reuse and Recycle. The City has restored full recycling and your building is required to provide the appropriate bins. If you don’t have bins, ask your super or call your building management company. And check every now and again that the separated recyclables aren’t being tossed in with the trash when it’s all taken out to the curb.

9. Support Community Gardens. New York needs more greenspace and vegetation. It filters the air and the noise, reduces the summer heat, and cleans the water.

10. Get your copy of the book, The Designed Office. Read chapters 4, 6, 7, 8, and 9 to learn some energy saving tips (many of them are LEED friendly) that you are probably overlooking. Click on the book icon to the right of this article to preview the contents.

All tips except number 10 is directly from an article that you can find at http://greenhomenyc.org/tips.

Click on the "ReTweet" button below and follow me on twitter. I am LaneArch there.

How Strong is Legare Furniture?

As an architect, I fell in love with Legare furniture system. In fact, the design of this revolutionary furniture system impressed me so much that I persuaded Mike Markwardt, the owner of Legare Furniture, to allow me to represent their furniture line in the tri-state areas of NY/NJ/CT.


While sharing this “Fun to Assemble” furniture system with furniture dealers and end users, people would always ask me about how sturdy it is. This is one of the amazing parts of this furniture design. The folks that created Legare Furniture performed quite an amazing test at Entala Labs. They were able to prove their point about the furniture being strong and sturdy by placing 2000pounds (yes, a ton) of weights onto the furniture.

Here is a video that shows how incredible sturdy this furniture really is...



If you are interested in learning more about this outstanding solution for urban living, check out their web site at http://www.LegareFurniture.com. Don’t hesitate to call them at toll-free 877-2LEGARE (that’s 877-253-4273) to start profiting on the sale of this fabulous “Fun to Assemble” furniture from your showroom!

Some of you may have seen the other videos that I posted about Legare Furniture. If not, check them out at http://lanearchitecture.blogspot.com/search?q=legare+furniture and http://lanearchitecture.blogspot.com/search?q=fun.

Click on the "ReTweet" button below and follow me on twitter. I am LaneArch there.

Saving the Green Stuff

Here is a link to a web site that can help you make better decisions that will make your life better and help the environment.

Increase Profits Even During the Recession!

With the current recession, we really need an edge with our commercial real estate investments. I found some really cool ways to increase profits within our offices and wrote the book about it. Check it out at http://www.MyDesignedOffice.com.

If you can't wait to get your hands on your copy of this book, just click on the book icon at the top of the right column of this blog.

By the way, there are a dozen fee bonus items that you really need to see at that web site. Go now!

Click on the "ReTweet" button below and follow me on twitter. I am LaneArch there.