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August 17, 2009
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COLLIERS ABR;
LUXURY RETAIL;
HEALTHCARE & HOUSING
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| Big shoutout to great new sponsor Sun & Moon Marketing Communications! This fine ad agency, specializing in real estate, has a full-time staff (project managers, art directors, copywriters, web designers, media buyers) covering everything that stresses you out: strategic review; budget development; logo and positioning; concept, design and implementation of materials, media placements and more. Welcome aboard! |
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| We love this surge of optimistic news in the leasing market, and Colliers ABR chairman Mark Boisi (right) and research guru Robert Sammons confirm the summer months have been positive for the firm. There are 700 tenants in the market with 33M SF in demand, many running against lease expirations. |
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Approximately 16M SF is maturing in ’09 and 19M SF in ’10; and tenants who considered leaving are now staying and locking in great rates, Robert adds. In June, the firm repped AEW Capital Management in Anheuser-Busch InBev’s 10-year, 31.6k-SF lease at 250 Park, and most recently repped Fairfield-Maxwell Services in its 9.6k SF penthouse lease at One Grand Central Place. The market will still take a while to work through, he adds, and it will ebb and flow for the next three to four quarters before we see significant positive absorption.
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LUX RETAIL!
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Thursday morning, we dropped by ICSC’s Sixth Ave. HQ for its Next Generation program on luxury retail. Saks chairman Stephen Sadove (second from right, with Sperry Van Ness’ Neil Golub, ICSC’s Marvin Morrison, and Pryor Cashman’s Andrea Gendel), tells us that the market is less worse than it was, but not much better, although we’re seeing a stabilizing consumer market. People are buying but are looking for uniqueness or value, so look for an L-shaped recovery. The upside? Shoppers are still brand loyal and not trading down.
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National Realty & Development Corp.’s Dovid Spector, RIPCO’s Bradley Cohen, and Acadia Realty Trust’s Lindsey Smookler. Contrary to trends during the upswing, Brad’s seeing a lot of mom-and-pop stores expanding. He just signed a 6k-SF Applebee’s at 1 W. 125th St. in Harlem. (We realize it’s a national chain, but, he points out, it’s a local franchisee.) He’s now wrapping up an 11k-SF office lease above the restaurant. No truth to the rumor that if you sign the lease after 10pm, appetizers are half off.
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King Penguin Properties’ Matt Delicata, EBI Consulting’s Justin Smith, CS Commercial Group’s Neal Ohm, and Bohler Engineering’s Kevin Haney. Quite the busy group: Justin says his firm is assisting Goldman Sachs in the environmental due diligence of a 52-property DDR portfolio. (How many of you saw DDR and thought of the videogame Dance, Dance, Revolution? Sounds like a synergistic marketing opportunity.) Neal recently leased two UES restaurants, which he said required a lot of creativity and handholding. Kevin's seen an uptick on the land development side these past five months, particularly in NJ and Virginia.
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NO FLATLINING HERE
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Thursday morning also included a REBNY seminar on healthcare and student housing opportunities (and who said August is not busy in real estate?) Noyack Medical Partners founder CJ Follini tells us that healthcare-related real estate is practically recession-proof, with strong cash flow, a 90% renewal rate, and pricing premium, with the bonus of an increasing aging population. The only effect of the downturn is that product is not changing hands, he says. Healthcare will be a savior for vacant retail space, and NYC should see an explosion in offices like primary care physicians and diagnostic centers.
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On the other side of the age equation, Campus Habitat CIO Oliver Swan tells us that student housing in NY is one of the last fragmented frontiers, with universities only housing 25% of their students. As enrollment figures increase, many of these school dorms are fully occupied. Supported by Fannie and Freddie, balance sheet lenders are also still involved in financing off-campus properties. He brought up the requisite Animal House mention, but notes that student damage per unit is less than your typical multifamily unit, making co-eds some of the best tenants around.
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UPCOMING EVENTS
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August 19 – YREPNY and UpWorld’s networking event (Info)
August 26 – NYCREW’s summer breakfast series with NYU’s Vicki Been (Info)
Bisnow's side effects include feeling smart, in-touch, and optimistic. Send your FDA-approved story ideas to amanda@bisnow.com
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This newsletter is a journalistic news source which accepts no payment for featured interviews. It is supported by conventional advertisers clearly identified in the right hand column. You have been selected to receive it either through prior contact or professional association. If you have received it in error, please accept our apologies and unsubscribe at bottom of the newsletter. © 2009, Bisnow on Business, Inc., 1323 Connecticut Avenue, NW Washington, DC 20036. All rights reserved.
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