IBM office space: what's it worth?IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) is looking to lease out 300,000 to 500,000 square feet of its eponymous e·pon·y·mous adj. Of, relating to, or constituting an eponym. [From Greek ep  numos; see eponym. tower at 57th Street and Madison Avenue Madison Avenue, celebrated street of Manhattan, borough of New York City. It runs from Madison Square (23d St.) to the Madison Bridge over the Harlem River (138th St.). In the 1940s and 50s, some of the major U.S. , or it might sell it
for the right price, said a company official.
"We have made an assessment of our needs for office space and are making space available for lease," said spokesperson John Boudreaux. "And we would consider any substantial offer for sale." Reports have the "substantial offer" tabbed at $350 million, a price that so far, no one is willing to pay. The computer giant is not officially marketing the building for sale, however, "but if someone came to us and made a significant offer we would consider it," he added. Construction began on the elegant black 1.1 million square foot high-rise in 1978, while IBM began moving in 1981. It was dedicated in 1983. But as the company has downsized, its needs have changed. Several of the IBM properties in Westchester are on the market as the company shrinks and regroups its workforce. "We have less space because we have consolidated a lot of offices and increased the use of technology," Boudreaux explained, pointing to mobile technology, notepad The text editor that comes with Windows. It is a very elementary utility, but gets the job done most of the time. See text editor and WordPad. (text, tool) Notepad - The very basic text editor supplied with Microsoft Windows. computers and a policy of encouraging the marketing and engineering people to be with their customers rather than in company offices. They are not doing a lot of desk sharing, he said, although there is some at 590 Fifth Avenue, where there are other company offices. Bruce Bruce, Scottish royal family descended from an 11th-century Norman duke, Robert de Brus. He aided William I in his conquest of England (1066) and was given lands in England. E. Mosler, vice chairman of Galbreath Riverbank Realty realty n. a short form of "real estate." (See: real estate) REALTY. An abstract of real, as distinguished from personalty. Realty relates to lands and tenements, rents or other hereditaments. Vide Real Property. , said, "There is no finer building in that given location anywhere in the world," pointing to the location, the quality of construction, and "terrific" floor plate sizes. He believes the IBM building's ability to do well in this market will be reflected in a continuing improving marketplace and one that drives up rents quickly. But Mosler also cautions the concessions, the $40 work letters and 12 months of free rent are not dying so quickly in this town. "It could turn on the dime," he added. "It could be the $300 [a square foot] is a reasonable price." If the building is sold for $350 million, reflecting the $300 a square foot price, Mosler says it has less chance of succeeding for the new owners because rents would have to cover the higher costs. "If a rising tide lifts all boats The aphorism "a rising tide lifts all boats" is associated with the idea that improvements in the general economy will benefit all participants in that economy, and that economic policy, particularly government economic policy, should therefore focus on the general macroeconomic and we are in a marketplace place that is improving, then it will do well," he said. But the market isn't there yet, he explained. "At a $200 a foot purchase, the [buyers] can do well. At $250, then it becomes a tighter deal. But at $300 you are banking on achieving a mid- mid- pref. Middle: midbrain. 40s rental," he said, something so far, only a few niche deals are achieving. He does believe IBM would do well renting the space itself because spaces of that size are few and far between and many tenants are out looking to lock in rents at the bottom because the perception is that things are getting better. Depending upon where they are looking to lease in the building, Mosler said, it could be a deal that averages $40 a square foot throughout the building. "That building will exceed the standard on a lease basis," he said. "You have to be more cautious on a purchase." Whatever happens, however, the IBM building IBM Building can refer to one of the following:
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