Pop! WHEN AJUICE CARROT TOP? CRAIN’S TIFFANY’S METRICS RIVAL P
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20140804-NEWS--0001-NAT-CCI-CN_-- 8/1/2014 7:35 PM Page 1 POP? CUOMO’S BUBBLE DEFLATES Guv’s landslide strategy at risk CRAIN’S® NEW YORK BUSINESS PAGES 2, 11 VOL. XXX, NOS. 31, 32 WWW.CRAINSNEWYORK.COM DOUBLE ISSUE AUGUST 4 -17, 2014 PRICE: $3.00 2,250 Pop! POINT AT WHICH THE S&P 500 INDEX will be blowing bubbles, says one prognosticator. That’s about 17% higher than current levels P. 5 6 NYC BIOTECHS LAND GRAB! IS THERE ANY LIMIT TO TO WATCH HOW MUCH THE SUPER-RICH WILL P. 12 PAY FOR A PIECE OF The NEW YORK? P. 26 +31% ONE-YEAR SPIKE in average prices for buildable land Bubble in Manhattan From manic Pop! Issue stock run-ups to the madness of crowdfunding, New CARROT TOP? York resembles a WHEN A JUICE BAR’S REVENUE bubble town METRICS RIVAL TIFFANY’S BY AARON ELSTEIN P. 27 $3K+ THE AVERAGE SALES Bubbles litter the news these days. Real PER SQUARE FOOT or imagined examples can be found in the at Juice Press, ORIGINAL similar to numbers soaring values of tech names like Airbnb, Snapchat for Tiffany & Co. BUBBLE BOY: and Uber. And who can forget Bitcoin, artisanal foods and crowdfunding? Then there are the usual suspects: real WHY THE NEW estate, small-cap stocks, fine art and just about any market in China. ¶ Even sober-sided Federal Reserve Chairman Janet AOL IS NOT LIKE Yellen is warning of bubbles, saying last month that prices for biotechnology and social-media stocks look “substantially Pop! THE OLD AOL stretched,” and noting a broader “deterioration in lending standards,” especially to less-creditworthy companies. ¶ All that P. 26 chatter has led to a certifiable bubble in mentions of the B-word.The term “market bubble”is on pace to appear 2,559 istock times in English-language media this year, according to Crain’s research. That would not only break last year’s 32 STATEN 5 record of 2,448 such mentions, it also would ISLAND: represent a 73% jump over 2006, when there WOULD-BE was a genuine market bubble. TECH MECCA See WELCOME on Page 5 NEWSPAPER 71486 01068 P. 27 0 20140804-NEWS--0002-NAT-CCI-CN_-- 8/1/2014 6:54 PM Page 1 REPORTER’S NOTE Doubling down FYICRAINSNEWYORK.COM July is usually sleepy in New York politics. Even so, Gov. Andrew City to Elmo: Get your Cuomo’s press shop maintains a steady flow of announcements to paws off the tourist lady reporters, averaging about 20 a lmo, Spider-Man and other week during that month. But after costumed characters parading The New York Times’ investigation around Times Square need to be Andrew J. Hawkins into his alleged interference in a E taught a lesson, lawmakers say. ¶ A recent state anti-corruption commission, spike in complaints of characters harassing Mr. Cuomo’s press office doubled tourists has city officials cracking down on its pace. I tweeted that the Second Floor was firing the impersonators. Most recently, a on all cylinders. Others noticed, too. “Empty the panhandler dressed as Spider-Man was hatches!” tweeted Business Insider reporter Colin arrested for punching a cop in the face Campbell.The governor’s office called me, saying after officers confronted him for there was nothing unusual going on. A challenge was overcharging tourists for photos. ¶ Even samuelson katrina issued to prove otherwise. We accepted. We counted Sesame Workshop has joined the campaign.The company is considering legal action against 39 press releases from July 23—the day of the Times performers dressed as Elmo and Cookie Monster who are running amok. ¶ “We care about our bombshell—through July 30, from the arguably fans and the image of our brand, and, like everyone else, we care about public safety on our important (“Governor Cuomo Directs State Labor streets,” the nonprofit said. ¶ The city is in the process of drafting legislation to clamp down on the Commissioner to Convene Wage Board”) to the costumed characters. As details are being hammered out, the issue at hand is whether these feel-good (“Governor Cuomo Signs Legislation to impersonators are performers protected by the First Amendment or solicitors engaged in Strengthen Penalties for Theft and Mistreatment of commercial activity. Under Mayor Bill de Blasio and Police Commissioner Bill Bratton, there has Pets”). Mr. Cuomo’s press people had produced 21 been an increase in arrests of aggressive panhandlers across the city. ¶ Mr. de Blasio recently releases the previous week, 14 the week before that announced his support of regulating the costumed characters and wants them to be licensed. and 20 during the first week of July. Our post-Times- story seven-day tally also exceeded the July 2013 LYFT ISSUES. After weeks of threat- plan. … NORDSTROM ON STATEN ISLAND. HOORAY! pace of 22 statements a week. Meanwhile, the man ening to launch in New York City, A 34,000-square-foot ride-sharing app Lyft was permitted Nordstrom Rack store will open at MORE THAN A himself remained elusive. Mr. Cuomo did not appear to operate here, provided its drivers the future Empire Outlets on Staten DECADE after in public until five days after the Times story are licensed by the Taxi and Limou- Island. The discount retailer will the National Horse Show left dropped, when he took 30 minutes of reporters’ sine Commission.To lure more driv- anchor the new mall, which will be Madison ers, Lyft is offering them as much as located right next to a 625-foot Fer- Square Garden, questions on the Moreland Commission. On the $10,000 a month to work 60-hour ris wheel—among the world’s a four-day equestrian final day of the month,Team Cuomo responded to weeks.… NYU LANGONE GETS SANDY largest. … LUCKY NUMBER. The 7 program will Crain’s numbers with—what else?—a PowerPoint- CASH.The hospital will receive $1.13 train topped the Straphangers Cam- debut in Central ready chart that showed four years of total July press billion in Federal Emergency Man- paign’s ranking of the city’s subway Park Sept. 18. agement Agency funding to help re- lines for the seventh time since 1998, releases, peaking at 100 for July 2013 versus 97 as of pair Superstorm Sandy damage. based on its frequent service, cleanli- midday this July 31. “Unless we put out three more Some $540 million will be used to fix ness and seat availability. The 2 was istockphoto releases today,” a Cuomo spokeswoman noted that various buildings, and $589 million deemed the worst. … DONATIONS afternoon, “we will have put out fewer this July than will go toward flood-mitigation NEEDED. Just 22% of New York OY VEY! projects. It is the adults are registered last.” Promises, promises. IKEA IS PHASING OUT its minimalist second-largest ‘Even the organ donors—less Galant desk, a popular choice among FEMA award ever than half the nation- startups across the country. granted to a single sharknadoes wide rate of 48%— THIS WEEK IN CRAIN’S project. … POL CON- according to a study VICTED. After an are tougher in from Excellus Blue IN THE MARKETS--------------------------------- 1 eight-week trial and New York’ Cross Blue Shield. ... less than two hours of —Lead character in the WINTOUR’S DAY. IN THE BOROUGHS--------------------------- 4 jury deliberation,for- Syfy cable-channel Condé Nast an- THE INSIDER -----------------------------------------------6 mer Queens Coun- schlock flick Sharknado 2, nounced a long- cilman Daniel Hallo- which drew a record expected executive OPINION -------------------------------------------------------- 10 ran was found guilty 3.9 million viewers and transition, making president and nearly 40 years at the ALAIR TOWNSEND -------------------------11 of five counts of 581,000 tweets Vogue Editor in museum, Emily Rafferty, one of bribery and corrup- Chief Anna Win- Crain’s 50 Most Powerful Women in GREG DAVID-------------------------------------------- 11 tion. He faces 45 years in prison. … tour the top editorial voice for the New York, will retire from the Met- REPORT: HEALTH CARE ----------12 $350M FOR AFFORDABLE HOUSING. media giant. President Bob Sauer- ropolitan Museum of Art next The city will partner with major fi- berg was put in charge of all revenue- spring.Ms.Rafferty,65,was the mu- CLASSIFIEDS ----------------------------------------- 18 nancial institutions, including Citi- generating activities, while Editorial seum’s first female president. … REAL ESTATE-------------------------------------------22 group and Deutsche Bank, to create Director Tom Wallace and Chief Fi- R.I.P., ACE. Alan “Ace” Greenberg, a fund to construct or preserve 7,500 nancial Officer John Bellando will the longtime CEO of Bear Stearns, GOTHAM GIGS SMALL BUSINESS-------------------------- 23 apartments as part of the mayor’s leave the company. … MET MUSEUM died of cancer at 86. Fashion maven Aslaug NEW YORK, NEW YORK ----------29 200,000-unit affordable-housing PREZ TO RETIRE. After a decade as Magnusdottir is making a —emily laermer name for herself. P. 7 SOURCE LUNCH--------------------------------30 CORRECTIONS (SEE PAGE 28) STORIES TO WATCH vol. xxx, nos. 31, 32, august 4, 2014—Crain’s New York Business (ISSN 8756-789x) is published weekly,except for double issues the weeks of June 23,July 7,July 21,Aug.4,Aug.18 and Dec. 22, by Crain Communications Inc., 685 Third Ave., New York, NY 10017. Periodicals postage paid at New York, N.Y., and additional mailing offices. Postmaster: Send address changes to: Aug. 4: Aug. 6: City Aug. 6: AOL to Aug. 7: Contents Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Registration opens Planning hearing release 2Q earnings of abandoned Bank MI 48207-2912. for subscriber service: Call (877) 824-9379. Fax (313) 446-6777. $3.00 a copy, $99.95 one for the .nyc domain on Astoria Cove (see this week’s of America year, $179.95 two years.