Summer Series
Oliver Petrovic
Executive Director @AY - I solve real estate challenges for occupiers
Happy Cinco De Mayo.
I’ve rewired my entire thought process around my daily schedule. I’m officially an early bird. Everyone loves making lifestyle changes on New Years Eve; the second most popular date in my mind? the first signs of warmer weather.?
While the early bird doesn’t always get the worm, you put yourself in a better position for success to find you. You have more time and I feel I have a more focused and open mind at 5am to tackle the day ahead.??
Kicking off a summer series this week where I’ll be chatting with leaders within their respective disciplines - a supplement to last month’s edition.?This week you get me!
What part of town do you think is the most undervalued right now?
By far the consensus industry-wide is Lower Manhattan. Arguably harder to get to for mass transit commuters, businesses are rethinking location strategy more than ever. That extra transfer on the subway or an added 20 mins is just another reason dissuading companies from exploring Downtown.??
But that means tremendous opportunity for others. ?Just last week rumors were circulating that a 200,000 sf financial services tenant is issuing rfp’s to properties Downtown. ?It’s not all doom and gloom. Remember post Hurricane Sandy???Companies were able to structure deals 40% below market and are just now coming off those decade low leases.? Also, if you’re adopting a hybrid model going forward, commuting in 2-3 days per week is going to be feel far less arduous than conventional 5-day in office commute.?
What’s your level of workload today vs 12 months ago vs 24 months ago?
It’s not that we’re any less busy, rather we’re busier in different aspects of a deal cycle; tours, evaluation, strategy development, decision timelines - are all taking longer than before. The process is more prolonged with a greater emphasis around?keeping employees happy and safe.
Competition over inventory, direct or otherwise, has also caused a lengthier site selection period.?It’s not uncommon to be in a bidding war with other companies at the moment, especially if the building/location/space/amenities support the future workforce.
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What’s the reoccurring Q you’re being asked by clients?
The answer hasn’t changed in a number of years – which is how to best integrate my business with my physical space – size and design.?Design has certainly taken on a new form and many businesses are actively working through a retrofit period as they plan for the future. Those establishing new environments are giving this area more consideration than simply an office/workstations/conference room count. ?Size still remains a constant concern which is why building in optionality and flexibility during lease negotiations is so critical.
What can a company do to make the entire process a better experience?
Don’t overthink it.?Every day we’re inundated with new material, thought pieces and studies on what the perfect solution is or what MAMAA are doing; link here on what that now means ;
Trust your (in this instance, broker) advisor.?As I explained to a client last year “You didn’t just hire me to find you 15,000 sf, you can do that on your own.?You hired me for my experience - relative to your business, to help you navigate this market dynamic and to make sure the physical space needs align with your business objectives.”
Too often I'm hearing stories where executives want to do it all. The best client results I’ve had in my career have come from those who allowed me to do my job. They weren’t entirely hands off, but respected my role and experience.?Part of that comes in the form of having an open mind. Knowing when to relinquish control and when to step in.
Lastly, it wouldn't be a true Real Estate newsletter if I didn't include some recent industry news. For those still wondering who and what industries are leasing space in NYC - this tells an accurate story - Everyone!
Go enjoy your margaritas today but don’t chase THAT worm. ???
OP
Questions/comments: [email protected]