The Real Estate

Sign O' the Times: Morgan Stanley Cuts Back Cab Reimbursement

Lysandra Ohrstrom — Fri, 09 May 2008 12:37:14 -0400

That perspiring, uncomfortable-looking Wall Streeter you sat next to on the subway this morning might have been a Morgan Stanley banker. Dealbreaker reports that as part of the firm's new "new cost-cutting initiative, taxi reimbursement will not be provided until after 10 pm."

Morgan Stanley posted its first-ever quarterly loss at the end of last year after taking a $9.4 billion dollar write-down on subprime mortgage investments. read more »

Economy in 'Double Bubble' Trouble?

Dana Rubinstein — Fri, 09 May 2008 12:12:09 -0400

Looking for some depressing news to read during lunch? See below.

Gene Sperling, top economic adviser to the Clintons, argues today in a Bloomberg column that the economy may be in for double-real-estate-bubble trouble.

That's right. Not just one deflating bubble. Two.

We all know about the recently poppped residential real estate bubble, but is there a second commercial real estate bubble that is on the brink of bursting, too? read more »

The Local: Bridal Industry Remains Very Marry

Lysandra Ohrstrom — Thu, 08 May 2008 20:56:24 -0400

Luke and his fiancé are getting married at the Foundry in Long Island City this weekend. Like many of the New York couples tying the knot in this uncertain economic climate, they are still going all out for the big day. “We just said ‘let’s hang the cost because it’s only going to happen once right,'” said the British native.

His American-born fiancée’s parents have thrown in $30,000 from their 401K to help foot the bill for the 125-person reception. The newlyweds will cap off the celebration with a two-week honeymoon in Bali, which Luke just bought new scuba gear for.

Based on reports from about a dozen of the city's bridal retailers, the economic slump has done little to dilute the appetite for lavish weddings. Like Manhattan's luxury real estate market, the wedding industry here not only appears to be impervious to a recession, but also has been buoyed by Europeans taking advantage of the almighty euro. read more »

Real Estate Industry Still a Sausage Party

Chris Shott — Fri, 09 May 2008 10:17:14 -0400

Merle Gross-Ginsberg recalled a dinner hosted by the Real Estate Board of New York back in 1975, where she, Leona Helmsley and one other woman were grossly outnumbered by some 1,800 men -- "all smoking the most enormous cigars you've ever seen," she said.

The industry's vast gender gap has slowly begun to close in recent years. Yet, even at the Association of Real Estate Women's 30th Anniversary gala at the Mandarian Oriental Hotel at Time Warner Center on Thursday night, males still dominated the crowd by about 2 to 1. Maybe even 3 to 1. read more »

The Round-Up: Friday

Lysandra Ohrstrom — Fri, 09 May 2008 08:52:00 -0400

Tenant advocates claim they have begun to see a pattern of "predatory equity" and harassment of rent-stabilized apartment dwellers. [NY Times]

For the time being Cipriani's won't be serving Bellinis until the family resolves a dispute with the State Liquor License Authority. [NY Times] read more »

Tishman Speyer, M.T.A. Call Off West Side Rail Yards Wedding

Eliot Brown — Thu, 08 May 2008 22:23:22 -0400

The deal for billions of dollars worth of development over the West Side rail yards collapsed Thursday afternoon, with the Metropolitan Transportation Authority and Tishman Speyer hitting an impasse in negotiations. The failure to reach a deal came more than five weeks after the M.T.A. announced Tishman Speyer as the winner of the development rights, after a months-long bidding contest between six of the city’s largest development firms.

According to a statement from the M.T.A., the failure to complete the deal came as Tishman Speyer refused to close on the agreement for the eastern half of the rail yards until the western half was rezoned, a process that could easily take until late 2009, if not 2010. The accord reached in late March held that Tishman would close on the eastern half; then, after the western half was rezoned, they would close the deal on that section, completing the deal. The total deal was estimated to bring the M.T.A. about $1 billion from Tishman.

The collapse in talks came one day after the M.T.A. passed a self-imposed seven-day deadline to finish negotiations and sign a conditional letter of designation, a document that was not signed when Tishman won the bidding. Officials said at the time of that announcement, in late March, that they were highly confident a final deal would be reached, characterizing the designation letter as something of a formality. read more »

The Afternoon Wrap: Thursday

Lysandra Ohrstrom — Thu, 08 May 2008 17:10:04 -0400

Let's hope the Christian Right doesn't drink a lot of coffee, otherwise Starbucks is in for agita. [Gawker]

The annual Dumbo designers showcase kicks off this weekend. [Dumbo NYC]

Hundreds of security guards marched on Midtown this afternoon to demand better benefits in a new contract being negotiated. [Crain's] read more »

Stat of The Day: Negative Equity and Lots of New Rentals

Tom Acitelli — Thu, 08 May 2008 17:36:36 -0400

From a new report (PDF) by the Center for Economic and Policy Research and the National Low Income Housing Coalition:

According to the most recent Census numbers, in the past year, the number of renter households in the United States increased by nearly 1 million. By contrast, the number of homeowner households increased by just 139,000. The ability for metropolitan area housing markets to accommodate this shift to rental will vary considerably. read more »

More One Bryant Park! The Front Desk...

Tom Acitelli — Thu, 08 May 2008 16:50:45 -0400

First Photos Inside One Bryant Park!

Tom Acitelli — Thu, 08 May 2008 16:47:22 -0400

My colleague Dana Rubinstein broke the news earlier this week that the new One Bryant Park unofficially opened on Monday. Over 300 Bank of America employees took to their desks in the 54-story, Durst-developed skyscraper in midtown.

Above is a photo of the lobby earlier today. Life! At last!