Hundred-a-foot for Mr. Clinton.

Space called 'primo,' but price irks GOP

Not only is former President Bill Clinton's office space near the top of Carnegie Hall Tower, it's near the top of the New York City real estate market, said brokers familiar with the space.

"Aesthetically, the building is gorgeous," said Erik Harris, a director of Newmark & Co. Real Estate Inc. "[Clinton's office] has arguably the best views of the city."

Harris -- who has represented several tenants recently in their bids to lease space at the 60-story building at 152 W. 57th St. -- said he had a client lined up for the 8,300-square-foot space that Clinton plans to turn into his post-presidency office. Harris backed off the deal, however, when he was told another high-profile tenant wanted to lease the 56th floor space, which was being listed at $100 per square foot or $830,000 yearly. He did not learn until later that Clinton was the interested party.

"The landlord wanted to do a deal in the mid- to high-$90 range," Harris said. "The northwest corner office on that floor is probably the best in the city."

Rockrose Development Corp., which leased the space to Clinton, declined to be interviewed for this story.

Clinton's choice of office space has sparked controversy recently because of its high price tag taxpayers are asked to pay. The approximate $800,000 cost far exceeds the $285,000 price tag for former President Ronald Reagan's office in Century City, Calif., and the $93,000 cost of former President Jimmy Carter's office in Atlanta.

At least one congressman, Rep. Ernest Istook (R-Okla.), has vowed to block the lease, which must be approved by the federal General Services Administration. The building's management, through a spokesman, said they would not make any public statements until after the lease was signed.

And because the space could serve as a fundraising Disneyland for Democrats as well as the former president's office, Republicans such as Istook are loathe to approve the lease without a fight.

It's unclear exactly how much the space will cost. In a recent report, Istook said the price was $811,000, but Clinton spokesman Jake Siewart denied that the bill would exceed $800,000. He said the terms of the lease call for an annual base rent of $711,000, a yearly public security building fee of $42,000 and a General Services Administration management fee of $36,000 -- for a total of $789,000, according to a report in the New York Post.

In response to the criticism, Clinton agreed to pay $300,000 of the annual rent with his private foundation money, saying that he would be doing some foundation work at the 57th Street office.

Although politicians and others may balk at the price tag, brokers say Clinton is paying the market rate for the space in the building. Constructed in 1990, it was designed by Cesar Pelli to complement the Renaissance Revival style of Carnegie Hall next door. It fashions a dramatic architectural presence and therefore commands sweeping panoramic views of Central Park, the Hudson River, and the Manhattan skyline, according to a Costar Group database description of the property.

"The views are in all directions to the river and to the city," said one broker who did not wish to be identified. "There might be more expensive space in a building like the Seagram building, but this is primo space."

The views command such a high premium that spaces lower down in the building rent at rates far less than those on upper floors did. The asking price for space on the 55th floor of the building was recently listed at $100 a square foot, but space on the 9th floor was listed at $58 a square foot.

In addition to its posh lobby and panoramic views, the building also boasts a high-profile list of tenants. Among them are film and television executive Barry Diller, former Viacom and HBO chief executive Frank Biondi, and music industry executive Allen Grubman. Comedian Eddie Murphy used to have an office in the building and comedian Jerry Seinfeld is reportedly in negotiations to lease space there. Talk Magazine used to be located on the floor Clinton is planning to lease.

Some have criticized Clinton's selection, saying he could have selected another midtown space that was just as suitable but rented at rates closer to the midtown average of $55 to $60 a square foot.

So what exactly is available? According Costar Group's commercial property database, last week there were 38 full-floor office spaces ranging in size from 6,000 to 10,000 square feet available for rent in midtown. The face rent on the spaces ranged from $49 per square foot for a 6,000-square-foot space on the fourth floor of a building at 60 E. 56th Street to $105 a square foot for 8,800 square feet on the 18th floor of the General Motors Building at 767 Fifth Ave. The asking rent for the majority of the available spaces listed by Costar were in the range of $60 to $80 per square foot.

Other available spaces listed on Costar were an 8,800-square-foot space on the second floor of 809 United Nations Plaza, which is renting for $60 a square foot. A description of the space describes it as being "ideal for government consulate, embassy or diplomatic administrative functions."

A 7,000-square-foot space on the 62nd floor of the Chrysler Building, which is currently undergoing major renovations, is listed at $90 per square foot. Down the street from Clinton's new office is an available 8,000-square-foot space on the 34th floor of the Squibb Building at 40 W. 57th Street, which was listed at $100 per square foot.

When asked about their new neighbor, Carnegie Hall Tower tenants offered a wide variety of opinions. Many would offer no comment, but others said they were pleased with Clinton's decision to lease space there.

"It will certainly be an honor to have the former president in this building," said Andy Typaldos, chairman of Netgain Development.

Michael Hirkenstein, president of Westcom Corp. which leases 24,000 square feet on the 37th floor, said he understands why Clinton chose the building. Like others, Hirkenstein raved about the building views but also mentioned that he could walk to work from his Upper West Side home.

"To me this is the nicest building in the city," Hirkenstein said. "There's a combination of businesses and residences and a tourist element in this neighborhood. It has it all."

Hirkenstein said he doesn't pay much attention to the high-profile nature of the building's tenant list and, in that regard, is neutral with respect to Clinton's occupying space there. He said he wasn't concerned about security issues, saying Westcom employees currently use a key card to access the 37th floor. Employees must also have a key card to enter the building after 6 p.m.

"There's a lot of loonies out there, but I don't think there's ever been one who's gone after an ex-President," he said.

Harris said the 56th floor has a large office in the northwest corner, where Clinton would most likely locate his office. In the vicinity of that office is a conference room and four offices. In addition to those offices, there are an additional 9 offices with windows. He said the floor could accommodate 15 people "very comfortably." The space is in move-in condition, but most tenants like to do cosmetic work prior to moving in, he said.

Existing security for the space is solid, with the ability to lock off the elevators at each floor. Many offices in the building require card key access, he said.

"He may have to hire an extra bodyguard when he moves in because of all the attention he's receives, but in five years, the attention will probably have died down," Harris said.