Outlook Greg David City’S Climb Will Continue P
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CROSSFIT GAINS TRACTION This super-gym is CRAIN’S® growing fast P. 21 NEW YORK BUSINESS VOL. XXIX, NO. 1 WWW.CRAINSNEWYORK.COM JANUARY 7-13, 2013 PRICE: $3.00 More outlook Greg David City’s climb will continue p. 1 1 Chinese invade And they’re here to shop p. 11 Temporary gains Temping is NYC’s hottest job sector p. 12 Borough bites A post-Sandy look beyond Manhattan ECONOMIC OUTLOOK p. 12 Drought fears Property sales GROWING PAINS will slow after 2012’s frenzy Experts say the city won’t sustain its jobs p. 14 boom in 2013. But wait till next year BY ANNIE KARNI It’s going to be a year of slow growth. Even though Congress didn’t send the country over the fiscal cliff and Sandy rebuilding efforts will spur construction, the city will add about one-third fewer jobs than last year. Wall Street will be the key culprit as layoffs continue, and a global economic downturn will curtail the expansion in sectors like tourism. “I would expect the rate of job growth to slow substantially after two very strong years in the face of a sluggish national economy and a weak financial-services sector, particularly early in the year,” said Ken McCarthy, chief economist for Cushman & Wakefield. ELECTRONIC EDITION The city is expected to add only 51,000 jobs over the next 12 months, according to an estimate by the city’s Independent Budget Office, compared with 76,000 See GROWTH on Page 14 NEWSPAPER guy parsons STATS AND THE CITY BIENVENUE! WILLKOMMEN! Tourism surged last year as one in three of the city’s visitors came from overseas, a record proportion. FYICRAINSNEWYORK.COM 52M $36.9B RECORD NUMBER TOTAL tourist MANHATTAN’S$334 AVERAGE daily of tourists who spending hotel room rate in November, up visited NYC in 2012 3.6% from a year earlier Wall Street bets $504M $1.2B RECORD HOTEL BROADWAY on lucky 2013 TAXES collected by GROSS revenue NYC in 2012 for 2012, up arty hats stayed out on 10.6% from 2011 Wall Street last week. 356K PFollowing news of an eleventh-hour deal in NEW YORKERS newsbloomberg EMPLOYED in the Washington to keep the hospitality sector, nation from going over the so-called fiscal cliff, the Dow jumped 308 points, its biggest gain in where average earnings top $52K more than a year. Investors are betting that absent Washington screwing things up, the ingredients for a stronger economy—and fatter corporate profits—this year are falling into place. Among other encouraging signs, an index of the confidence level among American consumers—whose spending drives much of the economy—ended the year 12.9 points higher than where it had begun. It was the biggest such swing in the Bloomberg Consumer Comfort Index in 24 years. Sources: NYC & Company, PKF Consulting, the Broadway League buck ennis In a grittier measure of consumer confidence, a group of major retailers reported that their sales YELLOW GOLD in the crucial holiday month of December bumped up an average 4.5% over December 2011, Driven by rising demand, the average price of a taxi medallion transfer despite all the talk of another meltdown in D.C. Nordstrom, the Seattle-based chain that will open between individuals hit the gas in 2012. its first Manhattan location in five years, saw sales spike by 8.6% at stores open at least a year. $900,000 Even a closely watched manufacturing index, which had slumped to a three-year low in $808,000 November, managed to bounce back a bit in December.The Institute for Supply Management’s $800,000 index hit 50.7, up 1.2 points in the month—a reading that signals a return to growth in the sector. —erik ipsen $700,000 SAFE CITY. Dying by unnatural causes Lhota has yet to officially declare his HOORAY! $600,000 in New York is getting rarer.Last year, mayoral run, but Rudy Giuliani is al- 1/12 6/12 12/12 the number of homicides and fire- ready putting his political muscle be- HILLARY Source: Taxi & Limousine Commission related deaths plumbed historic lows. hind his former deputy’s candidacy. CLINTON was As of Dec. 28, there were only 414 Mr. Giuliani, who successfully en- released from New York- ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY killings in 2012,the lowest body count dorsed Michael Bloomberg to succeed Presbyterian since police began keeping track. him as mayor, wants to make sure that Hospital after Guns were the leading cause of mur- 12 years later the city does not fall into three days of treatment for a ders in the city last year, killing 237 the hands of a liberal Democrat. Just life-threatening THIS WEEK IN CRAIN’S people, but still, the number of shoot- how much influence the former may- blood clot in ings fell to a record low of 1,353. or and wildly unsuccessful presidential her brain. IN THE BOROUGHS-------------------------- 3 Meanwhile, the city recorded just 58 candidate has remains to be seen. AL-JAZEERA GETS CURRENT. IN THE MARKETS----------------------------------4 fire-related deaths in 2012, four fewer … Al- than the previous low. Fueling that Jazeera, the international news net- OY VEY! THE INSIDER -----------------------------------------------6 progress on both fronts were factors work owned by the Qatari govern- WEAK BOLTS were used to anchor SMALL BUSINESS ------------------------------7 ranging from more ment, is buying many of the steel panels that clad much police officers in high- Current TV for an es- of the Barclays Center in Brooklyn. They CORPORATE LADDER --------------------9 crime neighborhoods ‘It was timated $500 million. are now being replaced. OPINION --------------------------------------------------------10 to better fire-safety It will use the cable FRACKING disappointing REPORT: rules. … channel, with a reach DEBATE ROLLS ON. and disgusting of 60 million house- ECONOMIC OUTLOOK----------11 Drilling for natural holds, as a launching gas can be done safely to watch’ pad for Al-Jazeera GREG DAVID--------------------------------------------11 if strict rules are fol- —New Jersey Gov. Chris America, a news net- newsbloomberg FOR THE RECORD---------------------------15 lowed, according to a Christie, responding to the work that will be study last year of hy- House GOP’s decision to based in New York from its service. … FEAR FIRES UP REAL ESTATE DEALS-------------------16 BUSINESS PEOPLE drofracking by New table a vote on the with a staff of 300. PROPERTY MARKET.Last year went out State Sens. Dean Skelos, a CLASSIFIEDS -----------------------------------------18 York state’s Health $60 billion Hurricane Current co-founder with a bang in the Manhattan condo Department, leaked Sandy relief package Al Gore was quick to and co-op market,according to sever- Republican, and Jeff Klein, a NEW YORK, NEW YORK ----------21 Democrat, will share the role to The New York Times praise the new owner. al market reports. Douglas Elliman of Senate president in an SOURCE BREAKFAST-----------------22 last week.But the state Department of “We are proud and pleased that Al- and Miller Samuel Inc. reported sales Environmental Conservation said the Jazeera, the award-winning news or- hit levels not seen in at least 25 years, unorthodox arrangement. P. 8 OUT AND ABOUT ------------------------------23 study is dated and will be revised. ganization, has bought Current TV,” in the normally quiet final quarter.Re- CORRECTIONS Meanwhile, a decision by Gov. An- he said in a joint statement with his co- tail and office space also traded at a drew Cuomo to frack or not to frack As of early December, attendance at Broadway theaters during the current season— founder,Joel Hyatt.Meanwhile,Time healthy pace as sellers raced to close on which started in late May—had dropped 2%, to 6.2 million, while gross revenue had will have to wait. … THE RUDY & JOE Warner Cable was just as fast in an- deals before feared year-end tax hikes. risen 3%, to $600 million. The average paid admission had increased 6%, to $102.70. SHOW. Former MTA head Joseph nouncing it would drop the station —amanda fung The figures were misstated in the Dec. 17 “Broadway season a big flop.” Advertising and public-relations firm RF|Binder includes Wisconsin-based financial- services technology company Fiserv among its clients. That information was misstated in the Dec. 3 Best Places to Work section. STORIES TO WATCH THIS WEEK vol. xxix, no. 1, january 7, 2013—Crain’s New York Business (issn 8756-789x) is published weekly, except for double issues the weeks of July Fourth, Labor Day and Christmas, by Crain Communications Inc., 711 Third Ave., New York, NY 10017. Periodicals postage paid at Jan. 7: NYU Jan. 9: Gov. Jan. 10: Manhattan Jan. 10: New York, N.Y., and additional mailing offices. Postmaster: Send address changes to: Crain’s Langone’s Andrew Cuomo and Brooklyn 4Q Community leaders New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: Call (877) 824-9379. Fax (313) 446-6777.$3.00 a copy, $99.95 one Congenital gives his annual ’12 rental market mull $1M wetland year, $179.95 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2013 by Crain Communications Inc. All rights reserved. Cardiovascular State of the State reports are released. at East River Park. Care Unit reopens. address. 2 | Crain’s New York Business | January 7, 2013 IN THE BOROUGHS Developer turns flops to gold BROOKLYN Parsing MAN OF ACTION: While others sat on the sidelines, Ziel Feldman the tech scooped up distressed properties. campus Residents, advocates fret over changes to Roosevelt Island BY GALE SCOTT As the former site of a city jail, a lu- natic asylum, a poorhouse and a hospital for smallpox victims,Man- hattan’s Roosevelt Island has a checkered past that includes having been the place where mobster Dutch Schultz was arrested, and where both William M.