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Adjusting to changes key to success in 90's.

Adjusting to changing market conditions is a key factor to success in today's real estate market.

One of the main reasons our company has been able to successfully rebuild and upgrade over three million-square-feet of office space in New York City, largely for our own account, is by drawing upon our in-house expertise to complete every aspect of the redevelopment process.

Today, the market has changed dramatically, and so has our focus. We are using our proven asset management skills to benefit others, particularly banks and lending institutions who are rapidly becoming some of the largest commercial real estate owners in New York City.

These institutional owners are rapidly discovering that development firms with in-house leasing, property and construction management, accounting and legal capabilities, are far better suited to the task of asset management than traditional promotional brokerage firms. That's because the principal function of a promotional brokerage firm is to lease space, while property management and improvement is often merely an afterthought.

Value-oriented management - coordinating all aspects of a redevelopment project with an emphasis on detail and a hands-on approach, ie. inspecting each property everyday, monitoring operational performance and building progress and tenant capital improvements - all improve a property's long-term profitability.

By adding value to our own buildings, rather than simply waiting for inflation to increase profitability, our company has earned widespread recognition as a hands-on asset manager with a remarkable track record for achieving bottom line objectives.

Our remarkable success in achieving a property's optimum value is part of our inherent approach to asset management, namely, to always involve each of our firm's principals in the leadership and implementation of every aspect of our service. Our firm's key executives ensure that every function reflects the owner's perspective.

The fact that our own portfolio has consistently outperformed the marketplace regardless of market conditions is the strongest evidence of the effectiveness of our hands-on asset management concept - the average vacancy rate at our buildings is currently about four percent.

An emphasis on relationships guided by principals for principals will always yield the highest profit for ownership and has led to the success of our asset-management program. Strategic and effective leasing programs, personalized management and creative capital improvements, combined with our relationships across the marketplace, give outside owners whom we represent an important edge in today's increasingly volatile real estate market.
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Title Annotation:Review and Forecast, Section IV; real estate industry
Author:Green, Stephen L.
Publication:Real Estate Weekly
Date:Jun 24, 1992
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