Grand Central retail management up for grabs.

A healthy competition is brewing for many of the nation's biggest real estate firms, now that the Metropolitan Transportation Authority has announced it is looking for a property manager at Grand Central Terminal. The space, which includes the retail and restaurant section of the station, is bound to bring a great deal of prestige to whichever firm undertakes it.

Grand Central Terminal is currently managed by Jones Lang LaSalle, the company responsible for transforming the station into the financially booming, tourist-friendly facility, it is today.

The MTA began the proposal evaluation process July 7, and the winner will be announced at the end of the month. The new contract will go into effect December 1. Fifteen companies have already expressed interest in the project.

Cubie Dawson, senior vice president and general manager for Jones Lang LaSalle's Grand Central Terminal sector, who oversaw the station's rehab since 1994, said he feels good. about his company's chances of getting its contract renewed for the next five years. "Our firm is the best fit for this job, and we have a good working relationship with the MTA. In our contract proposal, we responded to all of the property management needs, including leasing and consumer marketing. We definitely feel that our work at the station should give us an edge over other companies involved in the bid."

According to Dawson, the company that will undertake the management of Grand Central Terminal will need to be familiar with transportation facilities: "That firm would have to have a vast amount of experience in managing a mixed-use transportation facility - it is a very sensitive, very specialized project to undertake. We have done similar projects in the past, including the Union Station in Washington, DC, and Chicago's Union Station, so we came to MTA with a solid background in managing such properties."

Faith Hope Consolo, vice chairman of Garrick-Aug Worldwide, has witnessed the transformation at Grand Central first-hand and said she agrees with Dawson. "Of course, whoever, undertakes this space will have to be a transportation specialist - it is a transportation mecca, and there are a lot of tourist needs there that have to be dealt with."

"Plus," she added, "this property has a lot of security needs, internal and external operations -- it's not for a small term operator. It has to be maintained as a Class A office retail space that it is -- it needs the same attention as the World Trade Center and Rockefeller Center."

According to Consolo, it is hard to determine offhand what the fair bid would be for the place.

"Grand Central Terminal is a very unique property, and it presents a tremendous opportunity for retailers. So the new price will probably depend on demand, and what the situation will be."

She does, however, have a few suggestions for future managers.

"I think the food court on the lower level should finally be completed, and they need to add some more upscale accessories stores, and some business gift shops -- they don't have enough of those."

Dawson agreed. "At Grand Central Terminal, the leasing and merchandizing plans are the most important issues. But the merchandizing plan could always be further refined -- that's what, you learn with these projects." Although he has confidence in his firm, Dawson said it's going to be a tough battle: "I don't know who else is on MTA's list right now, but I am sure all of the bidding firms are equally qualified."