"This is a proactive move, from a market standpoint, because the market isn't going to stay wonderful forever," explains Posniak, vice president of W&M Properties and the director of marketing and supervisory services for Wein & Malkin LLP, the building supervisors. "This will position us in a very good way when a down-cycle comes."
This new space coming online is not entirely a sudden decision--ownership has been considering similar improvements for over a year. "It has been in the planning stages for a while, but we're ready to let the whole world know about it now," says Posniak. "There was never really a consensus about what was going to be done exactly, until recently."
As to what improvements the building has experienced, "the property has just gone through a $30 million capital improvement that includes things like new windows, elevator cabs, bathrooms, up-grading building systems and a host of other features," according to Posniak. In an attempt to make the space as user-friendly as possible, ownership is providing free design services to potential tenants so that these firms can see if the space will work for them.
At the special broker party yesterday to let the industry know that it's ready for occupancy, 30 Cushman & Wakefield brokers were introduced to the new space. Peter L. Malkin, chairman of Wein & Malkin, provided the brokers with a tour of the renovations. Standard ownership policy, underscored at the event, is to give a 100% commission payment upon the signing of the lease.
A recent office market report by CB Richard Ellis supports the need for this office space. The report puts fourth quarter 2000 vacancy rates in the vicinity of the Lincoln Building at below the 2.51% rate the entire Manhattan area is sporting, indicating that the new space will be a welcome addition.
"We recognize the shortage of space in the 10,000-sf range," relates Kevin Driscoll, the building's general manager, "and hope to fill the gap."
As GlobeSt.com reported on Jan. 5, the Lincoln Building began 2001 with 55 signed leases in the recent renewal period with rents jumping from an average of $31 per sf to about $50 per sf. More than 65,000 sf was leased. The general manager, speaking at the time, credited the strong office market and the capital improvement project with the leasing success.
Anthony Garritano is Assistant Editor of Real Estate New York and Real Estate New Jersey.
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