Google signed a $1.8 billion contract to purchase 111 Eighth Avenue in the meatpacking district. The deal is the largest US commercial real estate purchase by a tenant ever. Google currently occupies about 500,000 square feet in the building and plans to expand. Google’s purchase sets a huge example of how companies are better off owning their office space, rather than renting.
The Economist recently highlighted the fact that 7.% of new private-sector job creation since the beginning of the year occurred in New York City. This is impressive because city has less than 3% of America’s population.
Other great facts about NYC’s strong economy discussed in the article include:
– Average weekly wages in Manhattan jumped by 11.9% over the year in the first quarter of 2010, while wages nationally rose by only 0.8%.
– New York has over 600,000 students, more than Los Angeles, Chicago and Washington, DC, combined.
– New York is second behind Silicon Valley in venture-capital investment.
– 35.7% of the city’s residents are foreign-born.
– Times Square rents asked for retail space have doubled in the past year.
– Office vacancy rates have declined.
A creative, functional office can set the tone for everything a company does. So Inc.com teamed up with Architizer to identify the best offices on the planet. Here’s what they have found.
Steve Jobs’ 2005 Stanford Commencement Address is thought to be the greatest commencement speech of all time. Drawing from some of the most pivotal points in his life, Steve Jobs, chief executive officer and co-founder of Apple Computer and of Pixar Animation Studios, urged graduates to pursue their dreams and see the opportunities in life’s setbacks — including death itself.
Time Equities Inc. recently closed on the sale of the entire 7th floor (11,294 rentable square feet “RSF”) at 70 West 36th Street to a software developer based in Beijing and New York City.
We’re pleased to announce the introduction of Rudder Property Group, a brand new commercial real estate brokerage and advisory firm specializing in the New York City office condominium market.
At Rudder Property Group, we represent purchasers, sellers, developers, owners and lenders in the acquisition and sale of office condominiums throughout the city. We also provide third-party consulting services for officecondominium conversions. From conversion plan development to due diligence to Attorney General approval, we orchestrate the entire process in order to meet your exact goals and specifications.
We look forward to working with you soon.
Following the August 24th article in the NY Times titled “When Feng Shui Helps Determine a Deal’s Fate”, CNN International decided to run a piece on how Feng Shui has played a part in the office condominium market in New York. In the past year we have closed 11 deals with buyers of Indian or Chinese decent, totaling over 60,000 square feet and nearly $30 million.
My article in the New York Times came out today on the unique aspects of doing business with the international community. While I do enjoy learning about the different cultural traditions, the real story is in how active the Chinese-American community have been.
In the past three months I have sold nearly $30 million worth of office condominiums to business owned by Chinese-Americans. They have a preference towards ownership since, from what I understand, in Asia they only own their office space, rather than rent. The buyers have also been very shrewd business people who recognize that the market is down 40% and it is a great time to buy. I expect that they will build great wealth in the next decade as values appreciate.
I congratulate all of our recent purchasers on a very wise decision, and I look forward to working on many more deals with people of all cultures.
New accounting standards are in the works that will require companies to recognize new and existing lease payments as a liability on their taxes.
In this market most companies are burdened with poor financials and heavy debt. According to Shahab Moreh, a partner with accounting firm WeiserMazars LLP “Additional liabilities on the balance sheet for these companies will impact debt covenants with lenders, alter investor perception, and possibly affect credit ratings.”
If companies are required to record significant lease liabilities, they will choose to sign shorter leases. Alternatively, companies will likely consider the option to own their space.
The changes in accounting laws will make office condominiums an even more attractive option for all companies.
For more information on the changes in the accounting laws please read the article from the NY Times titled “New Accounting Rules Ruffle the Leasing Market.”
New York City has been denied by the U.S. Department of State in its attempts to make foreign missions to the United Nations pay taxes on property they own in New York. Missions, like 501 C-3 non-profits, are exempt from paying real estate taxes when the own their space, including office condominiums. However, missions and non-profits have to pay an above a base year on real estate taxes if they rent. This tax exemption is one of the many reasons why it is so compelling for organizations to own their office space.
