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THE REAL ESTATE BOARD OF NEW YORK

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NEW YORK CITY’S COMMERCIAL REAL ESTATE MARKET

As the New York real estate industry gathers for the Real Estate Board of New York’s (Rebny) 122nd Annual Banquet, the industry is hopeful that the vibrant economy experienced throughout the city and region in recent years will continue in 2018 and attract new jobs, residents and high numbers of tourists to the city.

Rebny is pleased with its accomplishments at both the city and Housing Program (ANYHP), formerly known as 421a. The program state level over the past year. For example, Rebny was heartened provides fair wages for construction workers while producing sub- by the final passage of Midtown East rezoning, according to John stantially more affordable rental housing. H. Banks III, president of Rebny. “It will mean new private sector investment in modern offices, mass transit and new and enhanced public spaces. The rezoning will be a crucial tool for ensuring that Economic Incentives Program Extension East Midtown remains one of the world’s leading office districts.” The Greater East Midtown rezoning was enacted in August 2017, Equally important is making New York an affordable place for busi- establishing a plan to revitalize the district by increasing allowable nesses to function and grow. “The governor and state legislature floor area for the development of new office buildings. Rebny played approved a three-year extension of state economic incentives for an active role in this rezoning including serving as a member of the commercial and industrial projects,” said Banks. “These programs East Midtown Steering Committee, which established a framework encourage job creation and economic growth, while ensuring that for the plan and continually advocated for modifications on issues our city is an affordable location for companies to thrive.” including light and air rules, enlargements and midblock devel- Banks explained that companies in the Bronx, Brooklyn, Queens opment. The rezoning plan will enhance New York City’s ability to and Staten Island are twice as likely to hire local residents, unlike recruit international talent and maintain its competitive advantage. Manhattan employers. Between 2005 and 2014, more than 334,750 “Now the hard work begins to deliver a fully revitalized and competi- private primary jobs were created [in the city], and that number tive East Midtown in the coming decades,” said the Rebny president. will continue to grow with the passing of these incentives. “Rebny applauds Governor Andrew Cuomo, Assembly Speaker Carl Heastie, Senator John Flanagan, Senator Jeffrey Klein, and the 200,000 Affordable Housing Units Needed members of the Assembly and State Senate for the leadership they have shown in renewing these vital economic programs,” said Banks. “New York is forever young, ever changing and continually grow- ing,” asserted Banks. “New York continues to be the place where people want to visit, live, work and raise a family.” Infrastructure Needs to Be a Priority If there is anything that threatens that bright present and future for the city, it is the need for more affordable housing. “New York’s Nowhere is the issue of infrastructure more important or press- affordable housing crisis can only be addressed by increasing our ing than it is in New York metropolitan area, according to Banks. production of new housing,” Banks stressed. “We will need approxi- “The Gateway project is an essential step toward addressing the mately 200,000 additional affordable units if we are to close the gap region’s infrastructure needs. The centerpiece of the project would between the number of households at median income and the num- create a rail tunnel underneath the Hudson River to provide New ber of existing units at rents they can afford.” Jersey Transit and Amtrak with a new way to access Midtown,” said Banks noted that by 2030, New York’s population is expected to Banks. A new tunnel was important even before Hurricane Sandy exceed nine million. “Unless we rapidly and steadily produce more flooded the existing tunnel — a disaster from which Amtrak has housing every year — affordable and market rate — adequate sup- not yet recovered. In the coming decade, warned Banks, Amtrak ply will become even scarcer and more expensive,” he said. “It is may have to close portions of the existing tunnel to make emer- imperative that elected officials and community leaders support gency repairs. Good infrastructure policy is proactive, not reactive, critical projects, especially those with an affordable component.” according to Banks. Although the cost of the tunnel alone would The Rebny president commended the de Blasio administration be $13 billion, it will save the country money in the future. for its efforts in this area. “The de Blasio administration deserves credit for the amount of time and resources that have been put into housing for New York’s growing population, especially for low- Where Will Rebny Focus in 2018? income families that struggle under the burden of rent,” he said. Banks added that the governor and the state legislature were In 2018, Rebny will continue improving services for its members and also doing their part to push for more affordable housing, not- advocating for smart public policies. “We are confident in the future ing that in 2017 Governor Andrew Cuomo and the state legislature because we understand that the success of our endeavors and mem- took decisive action to further spur the production of affordable bers means the success of New York City,” said Banks. housing and job creation by enacting the Affordable New York One critical area of focus is real estate technological innovation: “Our members formed the REBNYTech Committee, which hosted our first #REBNYTech Hackathon. The Hackathon provided a plat- form for Rebny members to connect with emerging tech talent to create cutting-edge solutions and new tools designed to improve efficiency,” said Banks. “Hackathon teams worked throughout a weekend-long competition to address and solve some of the most ABOVE AND BELOW: The JACX, Long Island City. common problems observed across all areas of the real estate Renderings: Tishman Speyer industry. There is tremendous enthusiasm surrounding this issue.”

Creating a Better Environment

In 2017, Rebny members were once again leaders in New York’s environmental efforts, according to Rebny president Banks. “Our Sustainability Committee joined Mayor de Blasio’s NYC Carbon Challenge, committing to working with the city to build a more environmentally friendly New York, and to helping reduce citywide greenhouse gas emissions 80 percent by 2050. “City council legislation to mandate fossil fuel use limits on com- mercial and residential buildings over 25,000 square feet was introduced in 2017. The breadth of this mandate will dispropor- tionately affect multifamily buildings, as they are predominantly powered by natural gas and oil. Rebny met with the administration and city council to stress the unintended consequences of these mandates.”

Rebny Honors Leonard Litwin’s Legacy

Rebny honors the memory of Leonard Litwin, its lifetime honor- ary chairman, who passed away in 2017. Litwin loved New York City. He was a dedicated philanthropist and demonstrated his confidence in the city’s future by building the first new rental apartment building in lower Manhattan after the terrorist attacks of September 11, 2001. He will be deeply missed by all. CBRE REBNY 6Tx21 2327476_1 ADVERTISEMENT ADVERTISEMENT

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 contributions to the real estate industry. Among those to be honored at the dinner are Rob Speyer, Rebny’s outgoing chairman; New York Senator Charles Schumer; and other real estate professionals. “Rob Speyer’s generosity of spirit and strategic guidance throughout his tenure as Rebny chairman represents the very best of New York City. I want to thank him and each of the award winners for their extensive contributions to our industry through their professional accomplishments, leadership and dedicated service,” said Rebny president Banks.

Here are the honorees: serves on Rebny’s board of governors and was previously honored with the Rebny Residential Brokerage Division’s Henry Forster Award for Lifetime Achievement for outstanding excellence, ethical con- duct and contributions to the real estate industry and community- Rob Speyer at-large. Additionally, she serves as chairman of the French Heritage President and Chief Executive Officer Society and on the board of directors for the Women’s Committee Tishman Speyer of the Central Park Conservancy, New York Landmarks Conservancy and the American Hospital of Paris Foundation, according to Rebny. She was previously a trustee of The Hewitt School and served on the board of directors for the Foreign Policy Association, Cambridge in Rob Speyer, president and C.E.O. of Tishman Speyer, will receive America, the French-American Foundation and the Institut Pasteur. The Harry B. Helmsley Distinguished New Yorker Award. The award is presented to an industry member for his or her invaluable con- tributions to New York’s civic welfare and real estate community, according to Rebny. Speyer has served five years as Rebny chair- man. Since 2013, he has led Rebny through the first change in Rebny Richard LeFrak presidents in 30 years and two mayoral administrations. Chairman and Chief Executive Officer “Rob Speyer’s record of service and civic leadership as Rebny LeFrak chairman will be a tough act to follow,” said incoming Rebny chair- man William Rudin in making the announcement. “His vision and dedication to the industry has made Rebny a stronger and better organization than ever before.” Richard LeFrak, chairman and C.E.O. of LeFrak, will receive The Speyer has guided his firm’s growth into a leading global real Kenneth R. Gerrety Humanitarian Award, which recognizes a Rebny estate investment management firm with assets under manage- member’s meritorious service to the community. The Kenneth ment in excess of $45 billion, according to Rebny. Under his leader- R. Gerrety Humanitarian Award was first given in 1989. It recog- ship, the company has delivered more than 36 million square feet nizes Rebny members’ outstanding service to the community. The of development and redevelopment across 30 markets, serving the award memorializes Kenneth Gerrety who served Rebny as execu- needs of 2,300 industry-leading tenants around the world. tive vice president for 18 years. The award is presented at Rebny’s In addition to his work with Rebny, Speyer is chairman of the advi- annual banquet, according to Rebny. LeFrak, which owns more than sory board of the Mayor’s Fund to Advance New York City. He serves 40 million square feet of real property across the United States, is on the board of trustees of New York-Presbyterian Hospital and St. a 116-year-old firm whose portfolio is primarily focused on the New Patrick’s Cathedral in New York City, where he was co-chairman of York Metropolitan area with significant interests in South Florida and the construction committee overseeing its restoration and reno- the West Coast, according to Rebny. The LeFrak family and LeFrak vation. He is also a member of the Shanghai Mayor’s International charitable foundations have supported many philanthropic organi- Business Leaders Advisory Council. zations and projects including the Guggenheim Museum, New York- Presbyterian Hospital, the American Museum of Natural History, Prospect Park, Barnard College, the New York Philharmonic and the Metropolitan Opera. In addition to his service on Rebny’s board of governors, LeFrak has served on the Prostate Cancer Foundation’s Charles Schumer board of directors and as vice chairman of the board of trustees for United States Senator the American Museum of Natural History. He was previously a trustee New York of Amherst College and of Trinity School, Rebny reported.

Charles Schumer, New York’s senior United States senator will receive The John E. Zuccotti Public Service Award. This award recognizes Joanne Podell a New Yorker who has displayed exceptional accomplishments Executive Vice Chairman and service in the public’s interest. It is named for the late John E. Cushman & Wakefield Zuccotti, chairman of Rebny from 2004 to 2006 and a longstand- ing member of its executive committee. Zuccotti also had a distin- guished career as a public official, including serving as first deputy mayor and chairman of New York City’s Department of City Planning Joanne Podell, executive vice chairman at Cushman & Wakefield, during some of the city’s most difficult times, according to Rebny. will receive The Louis Smadbeck Memorial Broker Recognition Throughout four senate terms, Schumer has worked across the Award, which celebrates a commercial broker with exceptional aisle to protect the middle class and find common sense solutions to personal and professional integrity, leadership, prominence in national issues, said Rebny in announcing the honor. Rebny further the brokerage community and service to Rebny’s committees, stated that Senator Schumer has dedicated his career to being a tire- according to the association. This award was established in 1991 by less fighter for New York. From authoring a permanent tax credit to Rebny’s Commercial Brokerage divisions; it honors a Rebny bro- offset the rising costs of college tuition, to protecting Social Security ker with personal and professional integrity, long-term leadership and Medicare, and encouraging job-creating infrastructure projects, and prominence in the brokerage community and participation in he has worked to successfully retain New York jobs that were at risk Rebny’s committees. Named for an exemplary broker who died of leaving and to attract many new firms to New York to create many shortly after being selected to receive it, the award is presented thousands of new jobs. at Rebny’s annual banquet, according to Rebny. In 2016, Podell “We are delighted to honor New York’s senior senator. Chuck became the first broker in Cushman & Wakefield’s retail services Schumer’s tireless commitment to New York captures the very spirit division to receive the title of executive vice chairman. With nearly of the Zuccotti Award. Our 122nd annual banquet will be a night 25 years of commercial real estate experience, extensive market to remember as we celebrate all our honorees, and the entire real knowledge and a client-focused approach, Podell continues to estate community,” added Rudin. solidify her reputation as one of the most respected retail brokers In addition to Speyer and Schumer, Rebny announced five award in New York City, according to Rebny. A three-time recipient of winners who will be recognized at the largest annual real estate net- the prestigious Rebny Retail Deal of the Year Award, Podell was working event in New York City. declared Cushman & Wakefield’s 2016 global top broker, the first time that a retail broker has been the sole recipient of such a recog- nition. Podell was named Cushman & Wakefield’s overall top retail broker in the United States for both 2014 and 2015. She is consis- tently ranked as one of the company’s top-ten U.S. brokers across Elizabeth Stribling all service lines. Podell serves as a member of Rebny’s Commercial Chairman Brokerage Division board of directors, Retail Committee, and Stribling & Associates Lower Manhattan Office Building Committee.

Elizabeth Stribling, chairman of Stribling & Associates, will receive Gene Boniberger The Bernard H. Mendik Lifetime Leadership in Real Estate Award Senior Vice President and Director for her exceptional accomplishments in the profession, leadership of Building Operations and service to the real estate industry over the course of her dis- Rudin Management Company, Inc tinguished career, according to Rebny. This leadership award, first bestowed in 2003, is presented to Rebny members who have dis- played exceptional service to the real estate industry and profes- sional accomplishments over the course of distinguished careers. Gene Boniberger, senior vice president and director of building It is named for the late Bernard Mendik, chairman of Rebny from operations for Rudin Management Company, Inc., will receive The 1992 until his passing in 2001 and longest holder of that title in the George M. Brooker Management Executive of the Year Award, board’s history. She founded Stribling & Associates in 1980. Since which recognizes individuals of superior accomplishment in prop- then, it has grown to include four offices and over 300 agents across erty management based on outstanding professionalism, civic Manhattan and Brooklyn, noted Rebny. She oversees sales and mar- achievement and contributions to the real estate industry, accord- keting efforts for a vast portfolio of new development offerings. She ing to Rebny. The management division of Rebny created this NEWMARK GRUBB KNIGHT F REBNY 6Tx21 2331993_1 ADVERTISEMENT ADVERTISEMENT

award in 1976 to recognize accomplished individuals within the management area. Winners display outstanding professionalism in property management, civic achievement and contribution to Ron Lo Russo the real estate industry. Named for its first recipient, a past vice President president of the management division, the award is presented Cushman & Wakefield’s Agency yearly at Rebny’s annual banquet. Boniberger started his career Consulting Group at Rudin Management Company, Inc. He has served in various capacities including chief engineer and building manager in sev- eral different properties. He joined the commercial operations group as operations manager in 1987 and in 1999 became vice Ron Lo Russo, president of Cushman & Wakefield’s Agency president, commercial building operations, overseeing the daily Consulting Group, will receive The Young Real Estate Professional of operation of over 10 million square feet of commercial offices. A the Year Award. This award is selected by the Young Men’s/Women’s leader in PropTech, the joining of technology and real estate to Real Estate Association of New York and presented to a member propel the industry forward, Boniberger is the co-inventor of the who exemplifies strong integrity, professionalism and personal eth- Digital Building Operating System (DiBOSS) and NANTUM — a ics, according to Rebny. The Young Real Estate Professional of the real-time building operating system/integration platform that pro- Year award is presented by the Young Men’s/Women’s Real Estate vides a microsuite of cloud-based applications for building owners Association each year to a member whose knowledge, skills, integrity and operators developing sustainability strategies — by internet of and high degree of ethics has contributed most to his or her pro- things (IoT) startup Prescriptive Data launched by Rudin in 2015, fession and the community. Lo Russo’s leadership experience and according to Rebny. Boniberger is a board member for Donate background in agency leasing drives new business opportunities for Eight, a non-profit affiliated with LiveOnNY, (formerly known as the firm by creating and executing strategies for leasing campaigns. The New York Organ Donor Network). He is a board member of Formerly, Lo Russo served as president of the tri-state region, where the LiveOnNY Foundation and additionally supports Outreach and he oversaw all facets of operations and performance of the 15 regional most recently the Torch Foundation — all charities dedicated to offices throughout New York, New Jersey, and Connecticut. Prior to helping children. He is also a member of the Real Estate Board of joining Cushman & Wakefield, he spent 16 years with Vornado Realty New York’s Management Division board of directors, Commercial Trust — seven of these as vice president of leasing for the New York and Residential Management Councils, and Sustainability Office Division — where he oversaw a portfolio of commercial real Committee, according to Rebny. estate transactions totaling more than 6.5 million square feet.

OUTLOOK FOR NEW YORK REAL ESTATE

Major real estate companies heavily involved in the New York City marketplace contacted for this section — like The Real Estate Board of New York itself — were pleased with the New York City markets in 2017 and look forward to a strong 2018. Here is the outlook and analysis from some of the key companies in the New York City marketplace.

to go up in Midtown and it will be interesting to see what happens Flight to Quality Projects Will Continue there given the rents associated with that property. I think it will be John Santora, vice chairman, president of the tristate region for well received by the tenant community.” Cushman & Wakefield predicts a continued move by companies to As new and revitalized projects come on the market, landlords new construction in 2018. “In 2017, we saw major corporations move will be increasingly competing for tenants, according to the Downtown and to the far West Side for newer product. I believe this Newmark executive. “Rent concessions are way up in all three trend will continue as companies not only move to newer space, but markets—Midtown, Midtown South and Downtown. The competi- also make future commitments to office space currently being built.” tion for landlords to procure tenants is as fierce as it’s ever been. Another trend he sees for 2018 is Fortune 500 companies leasing There are great opportunities for tenants in this market.” full boutique office buildings in the Meatpacking District, Chelsea and the Flatiron District. “We saw this trend come to fruition with Aetna and Mastercard in 2017, and more corporations will take this route Confidence to Invest in Significant to secure the attractive neighborhood and branding opportunities. Co-working office spaces will also continue to thrive in 2018 as the Renovation and New Construction industry continues expanding partnerships with large enterprises like The economic recovery has persisted for a long period without a IBM and KPMG.” pullback, which has given commercial property owners and devel- Additionally, says the Cushman & Wakefield vice chairman, land- opers confidence to continue to invest in significant renovations and lords will be entering the co-working arena, creating space within new construction, suggested Dan Rashin, co-president and C.E.O., their existing buildings. This may also result in shorter lease terms Rockefeller Group. “At the same time, we see a competition for talent, moving forward as co-working and workspace flexibility become and more rapid adoption of newer workplace strategies by businesses more popular and appealing to prospective tenants. of all sizes. Because of this, companies are increasingly looking for New neighborhoods like Hudson Yards on the West Side of amenity-rich buildings or neighborhoods, and more efficient and open Manhattan will cause landlords throughout the city to up their game floorplans that foster engagement, collaboration and productivity. to compete, according to Santora “The impact of these major com- “For the owners and developers who have invested in existing and panies heading to the West Side will be felt throughout Manhattan as new assets, they are benefiting from the fact that so many compa- it nudges existing older product to invest in infrastructure, including nies are reevaluating their workplace strategies, and as leases expire updating lobbies and modernizing amenities, in order to compete.” choosing to relocate to new offices that can be built to today’s stan- dards. That is driving a disproportionate amount of leasing to new construction on the far west side and Lower Manhattan, as well as Real Estate Cycle Seems Strong pockets of Midtown, especially Avenue of the Americas, Park Avenue and Broadway, where institutional ownership has reinvested in build- Moving Into 2018 ings to enhance their attractiveness to tenants in the market today.” Jared Horowitz, vice chairman Newmark Knight Frank, is generally Rockefeller Group made the commitment to renovate and rei- optimistic about the market in 2018, but he cautioned: “We live in a magine 1271 and 1221 Avenue of the Americas, two of the largest world of cycles in the real estate business and the cycles in this busi- ness last seven to 10 years. If we look at 2009 as being the last down- cycle, we have to ask ourselves where are we in this cycle? Are we approaching the cliff, or will it continue to go up? In the last quarter of 2017, we were strong; we were stronger than we typically are at this time of year. So that is encouraging for 2018.” Nevertheless, Horowitz agrees that there is a strong flight to BELOW LEFT: The Wheeler, Downtown Brooklyn. Rendering: Tishman Speyer quality by many tenants as the success of Hudson Yards indicates. “Tenants, whether or not the area has been developed fully, are BELOW RIGHT: A view north from 1271 Avenue of the looking to the future as they choose to move to new construc- Americas, Rockefeller Center. tion. We have seen that at 10 Hudson Yards, 30 Hudson Yards, 55 Photo: Rockefeller Group | Kevin Chu Hudson Yards and we have seen that with 4 World Trade Center and 3 World Trade Center starting to fill up. One World Trade Center continues to draw tenants. One Vanderbilt Avenue is the next one CUSHMAN & WAKEFIELD NY REBNY 6Tx21 2331472_1 ADVERTISEMENT ADVERTISEMENT

Rockefeller Center office towers developed in the center’s expansion during the 1960s and 1970s. Both buildings have had substantial rein- Durst Sees Strong Year Ahead vestment, with corresponding leasing activity as a result. Over the past 18 months, the two buildings have attracted more than 1.5 million Throughout Its Portfolio square feet of new leasing and renewals, from companies as diverse The Durst Organization is looking forward to a strong 2018 as Major League Baseball and Deloitte. throughout its portfolio with exciting new projects coming out of “We are well under way with the $600 million redevelopment of the ground, reported Jordan Barowitz, vice president of Public of 1271,”continued Rashin, “with the first tenants taking occupancy in public affairs for the company. 2018 and completion scheduled for 2019. We also completed a major In Manhattan, Durst is working on plans for a site it acquired at renovation of 1221 Avenue of the Americas in 2016, and occupancy 1800 Park Avenue, which is on the corner of 125th Street. The loca- rose in tandem with that construction to more than 95 percent today. tion, according to Barowitz, has tremendous potential as a mixed- Now we are looking at other aspects of the building, such as the retail use building, and the company is readying plans. and public plazas, and asking ourselves how we can improve those “On the commercial side,” explained Barowitz, “we are very spaces as amenities for the tenants in the building and the neighbor- proud of what we have achieved at One World Commons, the hood in general.” amenity space that we opened on the 64th floor of One World In looking at the overall market, Rockefeller Group expects to see Trade Center. It has been fabulously successful. It is a place for ten- growing tenant demand from traditional sectors of the market includ- ants of the building to interact with one another and also a place ing finance, insurance and legal services, as well as the TAMI [tech- where we are building community between tenants and offering a nology, advertising, media and information] tenant sector. “However, diversity of programming such as instructional classes on improv- with new construction and densification trends being employed by ing organizational efficiency to yoga to wine tasting. the majority of companies, which are reducing square footage per “It is a model that we are expanding to our other properties, includ- employee, there will be increasing competition for tenants in the mar- ing 4 Times Square, where we are converting the Frank Gehry caf- ket over the next 12 to 36 months. We expect that this will put down- eteria into an amenity floor for the building’s tenants that will be ward pressure on rent growth and upward pressure on concession anchored by a Claus Meyer cafeteria and commissary. Convene, the packages in the near term — but in the context of an overall balanced company that offers premium conference space, will operate a con- market,” concluded Rashin. ference center there. This will be a compelling asset for the building.” Durst has undertaken a $100 million repositioning of its 1155 Avenue of the Americas building, which occupies the block front Location Secondary to between 44th and 45th Streets. Among other improvements, the company is creating a rooftop pavilion that will include indoor and Building Environment outdoor spaces. On the corners of the building, it will install floor- Tenants put aside that old real estate mantra “location, location, to-ceiling windows to take advantage of the dramatic views of location” in 2017 and started searching far and wide for the “right” Bryant Park and the Empire State Building. office space, according to Mary Ann Tighe, C.E.O. tristate region of Another property where it has completed major improvements, CBRE. “Tenants said they would look everywhere from the Battery 1133 Avenue of the Americas, is nearing 100 percent occupancy. all the way up to 60th Street, from east to west across Manhattan, “We have new elevators, a new lobby and we converted setbacks for office space. Companies want a work environment that supports along Avenue of the Americas on top of the Steinway and TD the recruitment and retention of employees. People want new or Ameritrade spaces into beautiful tenant terraces that have been like-new space because they cannot do business without it. In 2017, rented to a gaming company called Take Two,” said Barowitz. over 40 percent of the big leasing deals [50,000 square feet or In Queens, Durst topped out its Halletts Point Building One in what greater] took place in post-2000 buildings or buildings renovated will be a large-scale development in Astoria, Queens. The company extensively post-2000. This trend will continue in 2018.” will begin marketing the building in the spring and open it in summer. The Midtown East rezoning plan is the stimulus that the area Additionally, Barowitz said that the company has broken ground needs because 75 percent of buildings in this district are over at its new Queens Plaza Park development in Long Island City, 50 years of age, according to Tighe. “Congrats to the de Blasio which will have 958 residential units and be 750 feet tall. administration for pulling the rezoning over the finish line in 2017. In 2018, we are likely to see the first transactions occur under the new zoning, probably for building renovations. As far as ground- up development, we will wait and see what happens with 425 Park Avenue and with One Vanderbilt before we see more new office buildings in Midtown East. We will see the Pfizer site trade in 2018, which will get people talking about what will be built there. No one will acquire that site without using the air rights available through the rezoning.” Tighe finds the growth of specific neighborhoods great news for the industry: “Related Properties is doing a great job with Hudson Yards on the West Side. Another exciting neighborhood is Downtown; it is extraordinary to see what is happening with office, residential and retail there. In 2018, we will see Spotify and GroupM move into the World Trade Center, bringing 10,000 employees to Lower Manhattan. “In addition, the South Street Seaport will become one of the great entertainment centers of the city. In 2018, we will watch Pier 17 open up. ESPN has signed a lease to put its studios at the Seaport and it will broadcast from there every day. “Another new neighborhood that came on the map in 2017 is Roosevelt Island. Companies are establishing presences at Cornell Tech so that they can have direct access to the talent that is based there.” The CBRE executive noted that there are a number of proj- ects to watch in 2018. These include: 3 World Trade Center, 550 Madison Avenue and 787 11th Avenue. “Finally, expect to see 1271 Avenue of the Americas fully leased in 2018. The Rockefeller Group’s renovation has been one of the biggest leasing successes of 2017,” she said.

ABOVE RIGHT: 1133 Avenue of the Americas, Rockefeller Center.

RIGHT: 1155 Avenue of the Americas, Rockefeller Center.

BELOW: Cornell Tech, Roosevelt Island. Photo: Iwan Baan ROCKEFELLER GROUP COMM REBNY 6Tx21 2331456_1 ADVERTISEMENT ADVERTISEMENT

Q. AND A. WITH REBNY OUTGOING CHAIRMAN Rob Speyer International builder and developer Outgoing Chairman, Real Estate Board of New York Rob Speyer, president and chief executive (Rebny) officer of Tishman Speyer, reflects on his President and C.E.O., Tishman fifth and final year as chair of the Speyer Real Estate Board of New York (Rebny).

Q: What do you consider your most important Q: Turning to Tishman Speyer, how are your development accomplishments as Rebny chairman? projects in Long Island City going? A: “From an organizational perspective, I am proud to have guided A: “Tishman Speyer is in the midst of transforming six acres of the search that led to the appointment of John Banks as Rebny essentially vacant Long Island City land into a dynamic 24/7 president and the seamless transition from Steven Spinola, who community, which will represent the new way that people are served in that post for three decades. Working together, we thinking about urban life. They want to be able to work, live, significantly increased membership and successfully recruited shop and eat all within authentic, transit-rich neighborhoods. a new generation of industry leaders to the executive commit- “We are currently putting the finishing touches on Jackson tee and board of governors. Park, a trio of rental apartment towers that will feature a park “If I had to pick two key achievements on the policy front, and more than 120,000 square feet of residential amenities. it would have to be the creation of the Affordable New York Across the street, we are just now coming out of the ground Housing Program and the rezoning of Midtown East. Both initia- on The JACX, a creative office and retail campus that is already tives are vital to the city’s economic future, and each required a over 70 percent pre-leased to fashion and tech industry leaders. great deal of perseverance to get across the finish line.” “When all is said and done, we will have produced 1,900 apartments, 1.2 million square feet of office space and more Q: Can you talk a bit more about what it took to get the than 50,000 square feet of shops and restaurants for the Long Affordable New York program adopted? Island City community.” A: “The old 421a housing program was a vital tool for creating affordable housing across the five boroughs, but in the pro- Q: Can you update your other New York City cess of renewing the program, it became clear that a simple development projects? re-authorization would not suffice. We needed to fundamen- A: “We are in active construction on The Wheeler, a 10-story verti- tally re-invent the program to reflect the changing New York cal office campus that will rise above Macy’s historic Downtown City landscape and address the needs of multiple stakeholders. Brooklyn department store. It is a complex project in which we It was not easy, and we certainly faced some setbacks along are integrating new construction into the upper floors of the the way. But we never wavered in our pursuit and kept bring- existing Macy’s building. The finished product will feature enor- ing everyone to the table in search of practical solutions. The mous floorplates, 16-foot ceilings, an acre of outdoor terraces end result is a program that will spur more affordable hous- and roof decks, a dedicated amenity floor and sweeping views ing where it’s needed most, while ensuring that all construction of Lower Manhattan and New York Harbor. workers are paid a fair wage.” “As a companion to The Wheeler, we are in the design and preconstruction phase at 11 Hoyt, a mixed-use project that will Q: What is the industry’s most pressing challenge today? include 475 condos, a full suite of indoor and outdoor amenities A: “As an industry and a society, we must confront our enor- and more than 40,000 square feet of shops and restaurants for mous infrastructure needs. New York City has experienced the community. phenomenal economic growth — with jobs, residents, tour- “In Manhattan, we are in preconstruction on The Spiral, a ists and commuters all in record territory. In order to accom- 2.85 million square-foot office tower located at the intersec- modate such rapid growth, we need major and sustained tion of the High Line and Hudson Park Boulevard. The tower investment in the infrastructure that underpins our econ- design features a cascading series of landscaped terraces and omy and quality of life. This means mass transit, roads and hanging gardens as its signature element, both functionally bridges, airports, tunnels, schools and parks. At the same and visually. In addition, we have assembled a second prime time, we need to invest in making our infrastructure systems Hudson Yards development site, where we plan to construct a more robust, resilient and connected.” 1.3 million square-foot office tower.”

Fisher Brothers Modernizes Office Properties Fisher Brothers is undertaking an extensive capital improvement program to modernize its office properties. Fisher Brothers part- ner, Ken Fisher, said: “[We are] in the midst of an aggressive asset renewal program to reimagine and modernize our entire port- folio of premier Manhattan office towers. Working with leading designers and architecture firms, we are transforming the aes- thetic of our buildings with updated entrances, more welcoming lobbies and enlivened outdoor spaces. “We have already completed our reinvention plan at two of our Midtown towers. At 605 Third Avenue, we completely over - hauled the lobby with an ideal blend of corporate and cutting- edge design. The centerpiece of the project is the installation of two oversized digital glass windows, which were designed by the Rockwell Group and serve as giant kaleidoscopes visible from the sidewalk as well as inside the building. Our renova - tion at Park Avenue Plaza included the redesign of the building’s 13,000-square-foot public arcade, which now features a light- infused, double-height colonnade; redesigned water feature; and new art displays. Both properties have been well-received by our tenants.” Fisher Brothers partner Winston Fisher said that at 1345 Avenue of the Americas, the company recently completed the first phase of its capital improvement program in the lobby. 1345 is one of a select few office towers that offers sweeping views of Central Park, so Fisher Brothers’ goal is to extend the open- ness and light of the Park down the Sixth Avenue corridor and up through the entrance of the building. To accomplish this, the firm worked to create a much brighter and more spacious lobby. ABOVE: 111 Murray Street, TriBeCa. “We opened and extended the main entrance, and continued the Rendering: Redundant Pixel theme of digital art with our LED feature wall. Our next steps there will be expanding and refreshing the building’s amenities, BELOW: 605 Third Avenue, with a brand new amenity center designed by David Rockwell Murray Hill. Photo: William Taufic and the Rockwell Group. We are redesigning the plaza with a new landscaping program and outdoor seating, which will make the environment more welcoming and communal,” he said. The company is also set to commence its renovations at 299 Park Avenue. Working again with the Rockwell Group, Fisher Brothers is reinventing the building with a sleek design that truly reflects its prestigious address. It plans to upgrade the lobby with a high-end style and a more open feel and transform the entrance to allow natural light to fill the lobby. In addition to its office projects, Fisher Brothers has an exten- sive portfolio of residential properties. Ken Fisher offered this update: “House 39, our new rental building at 225 East 39th Street, opened earlier this year and the response in the mar- ket has been fantastic. It offers a combination of sleek modern design, resort-style amenities and stunning views that are unique to Murray Hill. We have focused on positioning it as a community with great programming for its residents.” Winston Fisher added: “We are nearing completion on con- struction at 111 Murray, a 58-story Tribeca condominium tower that we are co-developing with Witkoff and New Valley. The 800-foot glass tower, which was designed by Kohn Pedersen Fox Associates, has recently taken its place on the new Downtown skyline and will open for occupancy this spring.” FISHER BROTHERS REBNY SPECIAL SECTION, 6Tx21 2334522_1 ADVERTISEMENT ADVERTISEMENT

COMPETITION FOR TENANTS GROWS AS SUBMARKETS COMPETE

With the fabulous new buildings coming out of the ground and the capital-intensive renovations taking place in existing build- ings, the competition for tenants is intense, according to Jonathan Resnick, president, Jack Resnick & Sons. “It seems as though all the submarkets have been pulling against each other. From the Plaza District to Downtown; Midtown South to the Far West Side; Sixth Avenue to Third Avenue; and the World Trade Center to the Finan- cial District, every market is directly com- peting for tenants, and every market has its pros and cons. This city has great chal- lenges, which seem to grow by the day. The state has its own challenges as well. That said, the global desire for people to visit, live, work and succeed in New York is alive and well; and the city’s real estate remains an essential ingredient for people to fulfill that desire.” Burton Resnick, chairman and C.E.O. of Jack Resnick & Sons, said that with office rents and occupancy rates holding steady, savvy tenants are leveraging their existing spaces and their landlords’ desire to retain them against moving to new spaces. “To relocate, tenants are increasingly demanding prebuilt, finished space, with flexible, sometimes short-term leases. Fortunately, there is still demand for quality space in first-class buildings, at substantial face rents, and we think the demand for office space will continue.” The chairman said that the firm is in the midst of “reinventing” a number of its projects including a $65 million reinvention of its building at 315 Hudson Street, which is slated for completion in 2019. The renovation will include the conversion of the existing rooftop into a new 10,000 square foot landscaped green roof that will have both indoor and outdoor space for building ten- ants. In addition, it is finishing a major façade replacement at its headquarters building at 110 East 59th Street. “We also have five elevator modernizations in progress; two lobby renovations under way; and various portfoliowide infrastructure upgrades planned for 2018. Add that to the leasing, management and construction of office space for new tenants, as well as our ongoing management of more than 800 rental apartments, and you can say we’re rather busy — just like everyone else.” “Hudson Square, believe it or not, still has room to run, said the Resnick president. “Some tech users are now going for glass-and-steel towers, but Hudson Square buildings with large floorplates, heavy floor loads and robust electric and telecom infrastructure continue to be a major draw. As neighboring hotels and residential buildings continue to come on line — and with access to the waterfront — Hudson Square is poised to become even more of a 24/7 live-work community.”

ABOVE LEFT: 110 East 59th Street, Turtle Bay. Photo: Jack Resnick & Sons

BELOW: 255 Greenwich Street, TriBeCa. Photo: Jack Resnick & Sons

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The New York Times and Rebny RETAIL IN NEW YORK: Work Together on Exclusive Listings on NYTimes.com ‘IT’S A WALKING CITY’ The New York Times is working with Rebny to feature exclusive New York City residential listings in its Real Retail has its challenges today, from the strong move of consum- Estate section on NYTimes.com. The Times Company ers opting to shop online to rising retailer rents. Yet New York will also make exclusive New York City–based real City seems to be a special market when it comes to retailers: Said estate listings free for brokers, a major shift in its tra - Jonathan Resnick: “There is no greater retail market than New York ditional approach in which brokers paid to list proper - City. It’s a walking city with almost 62 million visitors a year, 8.5 mil- ties on NYTimes.com’s Real Estate section, said The lion residents, plus daily commuters. With different neighborhoods, Times in making the announcement. different consumers and different vibes, every submarket has great, The Times will utilize the Real Estate Board of New unique potential. Retail rents have become out of balance over the York’s (Rebny) Residential Listing Service listing syn- last 10 years, but now it’s time to re-set and fill the storefronts with dication program, which will allow for exclusive list- goods and services that office workers and residents need — and ings to be displayed on NYTimes.com. An exclusive it doesn’t necessarily mean “stuff” to buy. It could be an experi- listing is one in which a broker has an exclusive deal ential store that merges technology, entertainment and traditional with the property’s seller to represent that listing. shopping. But the storefronts need to be filled and put to use, and Andy Wright, senior vice president, advertising, we think that is more important in most cases than holding out for The New York Times Company, said, “New York City the highest rent, regardless of the use. Recent changes to the city’s is home to the most lucrative, fast-paced and unpre - commercial rent tax laws will have a positive effect by lowering dictable real estate market in the world. For decades, overall rent costs for smaller businesses.” buyers, brokers, developers and curious readers have turned to The Times to keep up with industry news, seek guidance on how to choose the best prop - erty and discover more about living here. Adopting Rebny’s syndication feed means that our listings will be as comprehensive as our coverage, making The Times’s Real Estate section the definitive source for everything you need to know about New York real estate.” Vivian Toy, editor, Real Estate news, The New York Times, added, “These expanded listings will be a ser- vice to our readers that perfectly complements the newsroom’s goal of providing comprehensive cover- age and guidance on how to navigate an often-bewil - dering real estate landscape.” “The Real Estate Board of New York and the New York Times have both served the city since the 19th century. Today’s New York City renters and home buyers will benefit from expanded access to the most accurate listing information powered by this natural and significant partnership,” said John Banks, Rebny president. “This agreement supports our commitment to meet the ever-evolving needs of the real estate consumer as well as our industry.”

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RESIDENTIAL MARKET STRONG: MILLENNIALS LOVE BROOKLYN

The New York residential market is strong and the millennials’ love affair with Brooklyn seems to be as powerful as ever: “I am optimistic about the residential real estate market in New York in general and Brooklyn in particular,” said John Catsimatidis, chairman and C.E.O., Red Apple Group, a diversified company involved in energy, real estate, finance, insurance and supermar- kets. “New York is the capital of the world — Manhattan is number one of the five boroughs and Brooklyn is number two and millennials love Brooklyn.”

Catsimatidis said that the company has four projects in the Fort 440 residential units and will include a fitness center, resident lounge, Greene section of Brooklyn that are steps away from 13 subway lines pet park, playground, landscaped terrace, rooftop deck and more.” and the Long Island Railroad. Three of the projects are open and the Red Apple is building a major new project on the Coney Island fourth is about to open. boardwalk. Catsimatidis noted that the foundations are in and it is The first three luxury rental projects in Fort Greene include: scheduled to be finished by the spring of 2019. “Our project is right n The Margo at 180 Myrtle Avenue in Brooklyn, which features on the beach, right on the Atlantic Ocean. Every apartment in the a private gym, 24/7 coffee station, space for private parties, building will have a balcony and residents can sit out on their balco- children’s playroom, rooftop terrace and more. nies and breathe in that fresh ocean air.” n The Giovanni, located at 81 Fleet Place, makes a dramatic first The project will be located nine blocks from a subway station, but impression with a light and airy lobby, 24-hour concierge. the developer is planning a trolley service from the development that Follow the lobby stairs to a lifestyle level where there are ame- will be open to the public, similar to the trolleys that carry people nities such as a residents’ lounge, media room, fitness center, through San Francisco. “We will charge for this service — a nickel a yoga room, game room, landscaped deck and more. ride,” said Catsimatidis. “If people happen not to have change, we’ll n The Andrea, at 218 Myrtle Avenue, offers contemporary style, trust them.” spacious interiors and tasteful appointments. The company is also working with the mayor’s office about getting Said Catsimatidis, “We are finishing The Eagle at 86 Fleet Place in high-speed ferry service in the area to Manhattan. “That way, you can Fort Greene. It is a 33-story luxury rental tower, featuring an elegant live in Brooklyn right on the ocean and get to Wall Street, Midtown curved facade and panoramic skyline views. The building will have Manhattan and the Upper East Side quickly,” said the C.E.O.

PEOPLE ARE FINDING SOMETHING TO LIKE IN EVERY NEIGHBORHOOD

Elizabeth Stribling, founder and chairman of Stribling & Associates, who is being honored by Rebny this year with the Bernard H. Mendik Life- time Leadership in Real Estate Award, said that the biggest change she has noticed in the resi- dential side of the business is that people today really do want to live ‘anywhere in’ New York. “There is no such thing as the best Zip code — people find something to appreciate in just about every neighborhood you can think of and that’s extremely exciting. You don’t need a mil- lion-dollar view anymore because no matter where you are, you become part of the dynamic New York skyscape. Take for exam - ple the new ferry system that traverses the East River — people are discovering new neighborhoods that historically were not as accessible, and buying and renting homes there. New York is constantly reinventing itself, and that’s what makes real estate so thrilling; you get to take part in these changes firsthand.” A good example of this is Long Island City, where Stribling recently expanded its footprint: “It is an enormously dynamic [market]. Ten years ago, the historically industrial neighborhood looked and felt very different. But as Manhattan and Brooklyn became increasingly expensive, people started turning to Long Island City as a relatively affordable alternative. There is an abun- dance of new development, trendy restaurants, and the com- mute to Manhattan is just a few minutes by subway or ferry. The Hunter’s Point section is experiencing median sales prices of $1.2 Million — that is a phenomenal achievement for a relatively young residential neighborhood.” Stribling’s growing international reach allows it to better serve TOP: The Shephard, Greenwich Village. its growing global client base. “We have a very strong relation- Rendering: Stribling Marketing Associates ship with Savills, as well as 24/7 access to their agents in all 700 ABOVE: 145 President Street, Carroll Gardens, Brooklyn. offices worldwide. Our national affiliates through Luxury Portfolio Photo: Stribling Marketing Associates also put us in the unique position to help buyers and sellers any- where in the country at any time. Most recently, we teamed up BELOW: From left to right, The Andrea (218 Myrtle with Cervera in Miami to create a seamless service experience for Avenue), The Margo (180 Myrtle Avenue) and The our clients who wish to buy, rent or sell in South Florida or here Giovanni (81 Fleet Place), Downtown Brooklyn. in New York. Our relationships are what set us apart and what we Rendering: Dattner Architects will continue to build on in the coming years.” n JACK RESNICK & SONS IN REBNY 6Tx21 2330009_1 RED APPLE GROUP - 6Tx21 2332869_1