Speakers included Rodger Parker, SVP of Corporate Administrative Services for AXA Financial; Scott Salmirs, Lehman Brothers' SVP of Corporate Real Estate and Dan Sitomer, counsel at Jenkens, Gilchrist, Parker, Chapin. As the execs discussed the effects of the Sept. 11 attacks and how companies can effectively manage emergencies, security and insurance ranked high on the list of priorities.
Lehman Brothers, which held about 1.5 million sf Downtown, was one of the companies most affected by the attacks. Salmirs discussed how his firm reacted to the destruction of its headquarters and the recovery following Sept. 11. After leasing short-term space across the city to house their displaced employees, the firm purchased and relocated to Morgan Stanley's 1.4-million-sf Times Square headquarters. Salmirs stressed that strategic planning is key to a firm's recovery following an unexpected disaster such as the terrorist attacks.
AXA, though not directly affected by the attacks, provided space to two displaced WTC companies. Parker gave an overview of his firm's security plans, which he described as "perfect" on the day of the attacks. Like many companies, AXA made safety and security a priority following the attacks, according to the SVP, in order to attract and retain employees.
"I think there are three things that we now have to consider very carefully," explained Rodger Parker. "Is the location of the office a safe and secure work environment? Second, do we provide the technology services our peers have? We have to stay competitive on the technology side of the business. Our third objective is that we have to provide an ergonomic office; the utilization of space is very important."
Sitomer, who has worked with the secret service, concurred, stating that a company's real estate strategy influences its level of security and potential risks. Though he admitted that avoiding a disaster altogether is near impossible, he said there steps a firm could take to deter possible attacks, such as installing security systems. The consultant stressed that lease documents contain a great deal of information regarding security, claiming that it is the most important article to review when developing an effective strategic plan.
"A lease tells you who is responsible for security," he said. "There are also issues raised throughout the lease that impact this--management agreements and vendor contracts, for instance." Additionally, he pointed out that building owners are taking measures to increase security in order to avoid lawsuits in the case of an attack, especially since insurance coverage is becoming harder to obtain.
It is clear that concerns over safety and security are still looming large over the heads of many within the industry. Yet, when Dan Sitomer asked how many people have taken measures to safeguard against possible emergencies, less than one-quarter of the 200-plus guests in the audience raised their hands.
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Sule Aygoren
Aygoren oversees the editorial direction and content for ALM’s Real Estate Media Group, including Real Estate Forum and GlobeSt.com. In her tenure with ALM, she’s held roles of increasing responsibility, including Managing Editor. Aygoren has received several awards for her coverage including Best Trade Magazine Report from the National Association of Real Estate Editors and the James D. Carper Award for Young Journalists. Under her direction, Forum has received four national NAREE awards for Best Commercial Real Estate Trade Magazine.
