Scandal won't deter Times Square Tower.Andersen's dire straits Noun 1. dire straits - a state of extreme distress desperate straits straits, strait, pass - a bad or difficult situation or state of affairs notwithstanding, the chairman of Boston Properties Boston Properties, Inc. (NYSE: BXP) is a self-managed real estate investment trust (REIT) based in Boston, Massachusetts. Its primary focus is "Class A" office space which it acquires, develops, and manages in the major markets of Boston, New York City, Washington, D.C. is confident that the Enron debacle won't forestall them from anchoring his $625 million Times Square Tower. "They're better than a solid anchor tenant. They are a huge worldwide business and this will not diminish their status as such," said Zuckerman, adding that Andersen committed to a 15-year lease on floors 3-27 of the building. The project remains "well under way," said Zuckerman. Andersen, which employs 85,000 people in 84 countries, has endured increasing scrutiny for covering up information about Enron's books. Just last week, they dismissed a senior executive, citing his central role in the scandal. How this will affect their status as anchor tenant is uncertain, but a rising tide Noun 1. rising tide - the occurrence of incoming water (between a low tide and the following high tide); "a tide in the affairs of men which, taken at the flood, leads on to fortune" -Shakespeare flood tide, flood of negative press suggests that the firm has a challenging future. The skyscraper skyscraper, modern building of great height, constructed on a steel skeleton. The form originated in the United States. Development of the Form Many mechanical and structural developments in the last quarter of the 19th cent. will not be completed for another two years. Brokers contacted for this story refused to comment, citing their working relationship with Boston Properties. Other sources also declined to speak on the record. The site for the 47-story tower is located on a block bound by Broadway, Seventh Avenue and 41st and 42nd Streets. Andersen agreed to pay Boston Properties $67.50 a SF for the space. The tower--a Skidmore, Owings & Merrill design--will support approximately 1.2 million SF of office space. Insignia's leasing deal with Andersen was one of 2000's largest, signing the firm to over 620,000 SF. The deal was prominent enough to earn the Robert Lawrence Robert Lawrence is the name of:
This isn't the only Times Square project for Boston Properties. Directly across from the new tower is the nearly completed 5 Times Square. This 37-story building is pre-leased to one of Andersen's competitors, Ernst & Young. A spokesperson from Andersen said that the firm had no comment on their plans to occupy the building. One source speculated that the full court press of negative publicity could hasten Andersen's demise. "Perception is reality. If people perceive that Andersen will go under, they'll go under," said Lawrence Fiedler, a real estate professor at New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of University's Real Estate Institute. One possible outcome is a merger, said Fiedler, since reports have indicated that Andersen is looking to be bought. If that happened, their space needs could be reconsidered. "Boston Properties could ride out this storm even if Andersen filed for Chapter 11," said Fiedler. Boston Properties, a publicly-traded real estate investment trust, boasts over 40 million SF of office space reportedly worth $4.7 billion. The firm concentrates on the development of Class A office space in four major U.S markets: Boston; Washington, D.C.; Midtown Manhattan and San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden . "The intrinsic value Intrinsic Value 1. The value of a company or an asset based on an underlying perception of the value. 2. For call options, this is the difference between the underlying stock's price and the strike price. of a property is in the location. That's what future tenants will find attractive," said Professor Lynne Sagalyn, a real estate professor at Columbia Business School Columbia Business School (part of Columbia University), officially named the Columbia University Graduate School of Business, and also known as CBS, was established in 1916 to provide business training and professional preparation for undergraduate and graduate . Last year, Sagalyn wrote a book called "Times Square Roulette" which explores the redevelopment of this corridor. "Times Square will survive the loss of any one tenant. Still, the more flexible the space is, the more likely it will be to attract new tenants," she said. If SOM had designed the building for a financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. firm--who typically require custom-built trading floors, among other specifications--the space would be harder to market to the average office tenant, she said. |
|
||||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion