News
YESTERDAY WITH REBNY & AREW
March 4, 2009
| Our deepest condolences to family, friends, and colleagues of Professional Women in Construction pioneer Gwendolyn Kushner, who passed suddenly on February 8. PWC just announced the establishment of the Gwendolyn Colbert Kushner Memorial Scholarship, which will provide tuition for a qualified woman with financial need toward an M.S. degree in Construction Administration through Columbia Univ's School of Continuing Education. |
| We don't know about the Post Office anymore, but neither snow nor slush seemed to keep many of you (or us) from appointed rounds yesterday. Last night, for example, we dropped by REBNY's Bernard H. Mendik Education Center at 570 Lex to hear some of Manhattan's top leasing experts and a landlord give an overview of the leasing market and strategies for trudging through. |
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| Colliers ABR's Nicky Heryet, CBRE's Sloane Rhulen, Studley's Bill Montana, REBNY Commercial Board of Directors chair, Vortex Group's Rick Marek, FirstService Williams' Bob Freedman, Tishman Speyer's Calvin Farley, and Cushman & Wakefield's Don Preate. The bottom line: It's an opportunistic market, but tenants and landlords must conduct real diligence before sealing deals. |
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| Without due diligence, tenants can lose a potential space opportunity, as "one size doesn't fit all," Don says, also noting that overall vacancy rates have the potential to surpass 13%. They add that it's important for tenants not to time the market, but tenants who've been through past cycles and know where they'll end up could be opportunistic. With increasing concessions, flexibility, and options, the market is tipping in their favor. |
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| Landlords also must conduct due diligence, both on the tenant and on a building's debt and maturity. They warn that re-trading can be dangerous in this market, and brokers must educate clients on the throes of negotiation. The re-emergence of an orderly market is yet to be seen, but Bob says that large transactions will re-establish the market. Calvin says he won't be surprised if there's a rush back in and elbowing for the same space. "I have faith that the crocuses will come up." |
