Fashion tenants are back in style.Fashion tenants in the Fashion Center are back in style. The commercial real estate market in the neighborhood has been very active for the first half of 2004, due to newcomers to the area, expansions, and numerous renewals. Of this new business, the percentage of office tenants to fashion tenants is leveling out for the first time since 9/11. Post-9/11, the fashion industry saw a period of downsizing (1) Converting mainframe and mini-based systems to client/server LANs. (2) To reduce equipment and associated costs by switching to a less-expensive system. (jargon) downsizing that affected the Fashion Center commercial real estate market. Small companies either went out of business or were acquired by larger companies. Many tenants would double (or triple) up, and in some instances, six leases were condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. to one. But this trend is reversing. For example, in the Children's Wear Building, 112 West 34th Street, many big-player tenants who had moved out to save money are now moving back in. The Fashion Center will always attract fashion tenants for a number of reasons. First, fashion companies like to "stick together." They see the neighborhood as the epicenter ep·i·cen·ter n. 1. The point of the earth's surface directly above the focus of an earthquake. 2. A focal point: stood at the epicenter of the international crisis. of not only fashion in the city, but also of fashion in the country--or even the world. Rents in the neighborhood remain fair. Space in the area is often ideal for the tenants--commercial loft space with high ceilings, open plans, natural light and versatility Versatility Franklin, Benjamin (1706–1790) American statesman, inventor, printer, author, scientist. [Am. Hist.: Benét, 366] George . The final reason is economic in nature; competition is good for business. Being in one area makes things easier for buyers and keeps the customer base together for tenants. In this market, it is important to position buildings properly. If one considers what is good for tenants' business when doing this, the tenants will often follow. Helmsley-Spear Inc., for instance, has recently renamed 1400 Broadway Broadway, famous thoroughfare in New York City. It extends from Bowling Green near the foot of Manhattan island N to 262d St. in the Bronx. Throughout its length Broadway is chiefly a commercial street. from the Better Dress Building to the Contemporary Apparel Building. As modern women veered away from dresses towards trousers Trousers (or pants in Canada, South Africa and the United States, and sometimes called slacks or breeches — often pronounced /bɹɪtʃɪz/ and skirts, the older name was no longer appropriate. The Contemporary Apparel Building gives a more modern message to both prospective tenants and their clients. Although the area has recently seen more office tenants, these "fashion-related offices," such as accountants or lawyers, are businesses that typically specialize spe·cial·ize v. 1. To limit one's profession to a particular specialty or subject area for study, research, or treatment. 2. To adapt to a particular function or environment. in the industry. The advantage of the area for these tenants again has to do with geography geography, the science of place, i.e., the study of the surface of the earth, the location and distribution of its physical and cultural features, the areal patterns or places that they form, and the interrelation of these features as they affect humans. . It is simply more convenient to be in the same neighborhood as the clients you are servicing. Having these companies in the neighborhood is also beneficial to the fashion industry as a whole, as fashion tenants do hot have to look elsewhere for these services. Helmsley-Spear Inc. is maintaining the renewed re·new v. re·newed, re·new·ing, re·news v.tr. 1. To make new or as if new again; restore: renewed the antique chair. 2. strength of the Fashion Center through several initiatives. First, we are custom-building showrooms and offices with substantial work-letters. With 2.8 million square feet of rental space currently, we are also looking to acquire management of more properties. We continue to develop new programs to effectively position buildings that may have, in the past, had lower occupancies. To generate these fresh ideas, we have added to our sales and leasing team by hiring and promoting people with years of experience at various buildings who tan bring their own creative approaches to the table. Helmsley-Spear Inc. is looking forward to the second half of 2004 and plans on remaining a key force in the Fashion Center. As fashion tenants flourish in the area, we look forward to providing them, and the service industries that are following them, with top-class top-class adj → de primera clase top-class adj → de première classe; (Sport) → de haute compétition space. After all, great commercial real estate never goes out of fashion. DONNA M. ZAVATTIERI, EXECUTIVE DIRECTOR LEASING, HELMSLEY-SPEAR, INC. |
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