Stay Put Or Cash Out? Media Buyers Say, Making It Likely That the Local Market Will Be Down by Double Digits for the Second Gone Before Long
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CNYB 05-19-08 A 1 5/16/2008 8:03 PM Page 1 TOP STORIES REAL ESTATE Coping with a market slowdown ® PAGE 19 Peace groups try to influence the vote PAGE 2 VOL. XXIV, NO. 20 WWW.CRAINSNEWYORK.COM MAY 19-25, 2008 PRICE: $3.00 Pro sports leagues beef up Web sites Ad decline PAGE 3 Shoppers go wild pummels for Heath Ledger’s Joker face local TV NEW YORK, NEW YORK, P. 6 stations Political grease is infuriating in tough times Lower ratings, weak ALAIR TOWNSEND, PAGE 13 economy lead to double-digit losses BUSINESS LIVES BY MATTHEW FLAMM RICHARD HODOS of CB Local golf courses Richard Ellis says that a slowing economy and changes fit New Yorkers many people are waiting in viewing habits are combining to to a tee for Britain’s Topshop to beat the daylights out of the New come to Broadway. York local television marketplace. PAGE 35 Advertising revenue for the area’s six English-language sta- buck ennis tions fell an unheard of 10.8% in April, according to an industry in- FEELING THE PINCH sider with access to the confiden- tial Ernst & Young audit report that the stations receive. May is not tracking any better, Stay put or cash out? media buyers say, making it likely that the local market will be down by double digits for the second gone before long. New York. quarter, compared with the year- Rising rents push International retailers such as With money like that up for ago period. SoHo’s Broadway Topshop, the British version of grabs, many retailers—not to Major cuts in spending by key H&M, and American chains, in- mention their landlords—are opt- advertisers have fed the decline.In- retailers to sublease cluding Aldo,have been using piles ing to cash out and allow that cor- siders say auto insurance company AT DEADLINE to foreign shops of cash to take over Broadway ridor of SoHo to finish its out- Geico pulled all of its local adver- storefronts between Houston and door-mall transformation. tising for the second quarter. Low- TONY-NOMINATED BROADWAY Canal streets in rapid fashion. Take Yellow Rat Bastard, for er prime-time ratings, a long-term SHOWS HAVE SEEN MAJOR BY ELISABETH BUTLER CORDOVA In the past six months alone, example. The quirky clothier is problem for the broadcast networks box-office gains since the the shopping corridor’s average re- said to be seeking a deep-pocketed that was aggravated by the writers nominations were announced here’s some advice for shoppers tail asking rents rocketed 32% retailer to take over its 20,000- strike, also hurt the stations. last week.The biggest winner who love the mom-and-pop compared with the year-earlier pe- square-foot space at 483 Broad- “In the New York market,this is in nominations, In the Heights, stores on Broadway in SoHo: Get riod, to $424 per square foot, ac- way. It relocated there just three one of the worst second quarters expected to sell about $1 there soon, ’cause they may be cording to the Real Estate Board of See RETAILERS on Page 8 See AD DOWNTURN on Page 8 million worth of tickets last week, or double its average. August: Osage County, which garnered seven nominations, had a bump of close to 40% in MTA begins Hudson Yards search anew sales each day last week. IN A SIGN OF THE ACUTE DEMAND FOR NURSES IN NEW Agency insists that it can get a deal done, BACK AT THE TABLE York City, last week’s but some argue project should be shelved The three developers that submitted losing bids graduates at New York for Hudson Yards are talking to the MTA again. University’s College of lion deal for the 26-acre site col- Nursing received higher- BY THERESA AGOVINO lapsed, some experts suggested Developers The Durst Organization, paying job offers than any that the Metropolitan Transporta- Vornado Realty Trust other undergraduate school the plan to redevelop the Hudson tion Authority should put the proj- Office space 5.4 million square feet there—even beating offers for Rail Yards has been taking a beat- ect on the back burner because of Residential space 6.4 million square feet See AT DEADLINE on Page 2 ing, but don’t count it out just yet. the sputtering economy. Sen. Public space 15.6 acres After Tishman Speyer’s $1 bil- Charles Schumer then criticized Developer Extell Development Co. the city’s focus on the yards to the Office space 5.8 million square feet detriment of what he believes is the 20 Residential space 5.6 million square feet 5 more important West Side project: Public space 19 acres Moynihan Station. Despite the one-two punch,the Developer The Related Companies MTA confirmed last week that the Office space 5.7 million square feet ELECTRONIC EDITION three teams that lost the bidding in Residential space 5.3 million square feet March are talking to the agency. Public space 15 acres NEWSPAPER See MTA on Page 8 getty images 71486 01068 0 CNYB 05-19-08 A 2,3 5/16/2008 7:35 PM Page 1 AT DEADLINE Continued from Page 1 begin this week. The airline students at NYU’s Leonard N. will take advantage of the more Stern School of Business.The relaxed trans-Atlantic flight class of 2008—at 396 members, regulations for which it is the nursing school’s largest named. This marks the first ever—is receiving job offers time that a British carrier with salaries that range between originates and ends all of its $69,000 and $77,000.The U.S. flights from outside the higher figure includes night United Kingdom. Before the shift differentials. agreement, European airlines could fly to the United States ON JUNE 3, THE LANDMARKS only from their home PRESERVATION COMMISSION countries. will begin public examination of the hardship application filed SEIU LOCAL 32BJ AND THE last week by Saint Vincent REALTY ADVISORY BOARD WILL Catholic Medical Centers to meet Tuesday and Thursday in demolish one of its buildings so an attempt to reach a contract that it can put up a new for the 1,500 security officers hospital. Additionally, a revised who guard commercial office plan for a related residential buildings in the city.The two development will be unveiled sides remain far apart on wages, today at a meeting of the local with the union demanding community board. Earlier this increases that cover the rising month, the commission costs of living in the area. The objected to many portions of guards are working under the both proposals without taking a terms of an expired contract formal vote. while negotiations continue. If JUDITH LEBLANC of there is no progress this week, a United for Peace & PACE LAW SCHOOL WILL strike will be possible. Justice says that LAUNCH THE METRO REGION’S volunteers are keeping the pressure on. first graduate-degree program LANDLORDS REMAIN BULLISH in real estate law this fall. It will ABOUT MANHATTAN’S RETAIL be the country’s third such real estate, despite the nation’s buck ennis program, in addition to similar dismal outlook. Asking rents ones at the University of Miami across Manhattan rose 3% in and John Marshall Law School the past six months from the in Chicago.The new master’s year-earlier period, to $111 a degree is a 24-credit, one-year square foot, according to a new Anti-war tactics program. study released by the Real Estate Board of New York.The OPENSKIES, THE FLEDGLING southern half of the Upper East Groups reach out to voters, focus on troop withdrawal OFFSHOOT OF BRITISH AIRWAYS Side saw the biggest jump: and the world’s only carrier Asking prices rose 51%, to $329 named after an international a square foot, along Third BY SAMANTHA MARSHALL treaty, received final approval Avenue between East 60th and Friday from the Department of East 72nd streets.The Flatiron hosting a potluck dinner on Staten Island and endorsing congressional candidate Steve Transportation to fly between District came in a close second John F. Kennedy International with a 50% increase, to $401 a Harrison, a Democrat, were all in a Saturday night’s work for Peace Action this past weekend. Airport and Orly Airport in square foot, on Fifth Avenue Like most other anti-war groups around the city, the organization is going to the grassroots Paris. Online ticket sales will between 14th and 23rd streets. level in its efforts to push its agenda in this year’s election cycle. “A borough on any given night has a meeting going on about the war,” says Judith LeBlanc, national organizing coordinator for United for Peace & Justice, a coalition of peace groups THIS WEEK IN CRAIN’S headquartered in Manhattan. “It’s amazing what volunteer peace-minded folks are doing to keep the pressure on.” NEW YORK, NEW YORK----------6 Whether they’re veterans groups, faith-based organizations or strident peaceniks, the scores ALAIR TOWNSEND -------------------13 of anti-war organizations born and based in the city are starting to step up efforts to influence See ANTI-WAR on Page 10 THE INSIDER------------------------------------14 WEEK IN REVIEW -----------------------16 THE WEEKS AHEAD ----------------17 REPORT: REAL ESTATE --------19 More can’t pay utility bills 37 DEALS--------------------------------------------------30 NEIGHBORHOOD in the city who are behind on their Con Ed’s deferred payment program Number in arrears payments was 5% higher in April in April, an increase of 9.6%. JOURNAL------------------------------------------31 rose 5% in April; than in the same month a year ear- Current trends in the price of CLASSIFIEDS ----------------------------------32 lier.They are also falling further be- heating oil do not bode well, either.