Losses for the global commercial services firm Cushman & Wakefield
doubled in 2009 compared to 2008, according to its Italian parent
company, even as Cushman’s main global rivals reported mixed results in
what was widely seen as the most difficult real estate environment in
decades. Cushman lost $32 million in 2009 on gross revenues of $1.5 billion,
compared with a loss of $14 million on gross revenues of $1.8 billion in
2008, its parent company, Exor, reported. The Cushman numbers were published on Exor’s Web site today as part of
the company’s annual shareholders’ meeting. The annual figures were
originally published last month, but were not widely reported in the
United States. [more]

From the April issue: The battle to be the top commercial listing brokerage in Midtown is surprisingly fierce between rivals CB Richard Ellis and Cushman & Wakefield. And successful leasing transactions over the coming months could determine who leads the way when the economy recovers. Top national firms represent more than 41 million square feet of vacant space in the Manhattan office market today, and every foot represents not only potential commission income, but also space that each company could fail to lease. While CBRE and Cushman are neck and neck when it comes to Midtown listings, Downtown is a different story. CBRE has made a strategic bet and taken on far more assignments than rival Cushman. And in the smaller Midtown South market, Cushman holds a comfortable advantage. [more]

Test-prep company Triumph Learning has upgraded its space at 136 Madison Avenue, more than doubling the seventh-floor space it had been subletting for the past six years. In a direct lease with the landlord, Triumph is now committed to 35,750 square feet on the seventh and eighth floors for the next five years. The asking rent was $37 per square foot. The building had been undergoing capital improvements and has seen an increase in leasing since the removal of scaffolding six months ago, according to Christel Engle of FirstService Williams, who brokered the deal with Michael Thomas, also of FirstService Williams. Home textiles importer Sunham Home Fashions took on 18,000 square feet in the building in a 10-year lease signed in January. [Crain's]

According to new research from Colliers International that examines the global shipping trade’s varied impact on industrial property fundamentals in the nation’s ten largest seaports, industrial occupancy rates for commercial space in and around the New York City and New Jersey property markets appear to have stabilized. Based on their total combined square footage of existing commercial space, the ports of New York City and New Jersey represent one of the largest shipping hubs on the East Coast. “As global economic growth continues to gain momentum in coming months and years, we expect to see demand for industrial space follow suit throughout our region,” said Joseph Caridi, executive vice president for FirstService Williams, which will become the tri-state region’s branch of Colliers International at the end of April. TRD

With his transition to CEO of Colliers International, a commercial real estate services firm, set for April 21, Mark Jaccom told the New York Times that Colliers is “in expansion mode.” Although his company manages around 20 million square feet currently, Jaccom said Colliers wants to double that within the next five years, a goal he recognizes is a “tall order.” But Jaccom said he’s adept at nabbing new tenants. “Anybody can lower the rent and throw more concessions,” Jaccom said. “You have to be flexible enough to give a tenant the right to give back space if necessary… we educated our landlords early enough.” Additionally, Jaccom told The Real Deal in the March issue that now may be the time for broker poaching.

From the March issue: There’s a recession. Deals are scarce. Commissions are shrinking. It’s a great time for broker rustling.
Commercial services firms are aggressively poaching their
competitors’ brokers and research analysts, figuring they will be
better positioned to win market share once a rebound takes hold. The
slow transaction volume means fewer money-making deals are tying
brokers to their firms, creating ripe opportunities for rival firms to
exploit the age-old tension between the lower-ranked agents and their
senior producers. [more]

From left: 399 Park Avenue, the site of Studley’s soon-to-be headquarters, and Michael Colacino and Mitch Steir

As it prepares to move to its new Midtown headquarters next month,
tenant representative advisory firm Studley is kicking tires at
approximately six companies to see which ones would make for a good
acquisition or joint venture partnership that could be worked out
before the end of the year, the firm’s top executives said. “We have about a half a dozen different companies we are looking at
right now about doing some sort of deal. Not all are acquisitions,”
company president Michael Colacino told The Real Deal in an exclusive interview last week. The company is looking to grow in the areas of brokerage, project
management and real estate investment banking and is eyeing companies
with a presence in New York City, Colacino said. In the interview with The Real Deal, Colacino and company
chairman and CEO Mitchell Steir discussed the various paths of growth
the firm is considering. The company is scheduled to move its
headquarters April 23 to 399 Park Avenue from 300 Park Avenue where it
will have the floor capacity to grow by approximately 60 percent from
the 136 professionals now. While they were not specific about their plans, some form of agreement is likely to be completed by the end of 2010. [more]

Cassidy Turley, the new St. Louis-based real estate corporation created by four former Colliers International affiliates, has officially launched its new brand, Web site and a national advertising campaign. Cassidy Turley filed with the Missouri Secretary of State to incorporate in May 2009, and announced its formation in January, after Colliers International announced its merger with FirstService Real Estate Advisors. Meanwhile, Colliers ABR split from the group to join Cassidy Turley. Mark Boisi, Colliers ABR chairman, told The Real Deal at the time that, “while we are the largest component of Colliers USA, we believe we have outgrown it.” TRD

From the March issue: Although they may be just beguiling mirages that will fade upon approach, there are some submarkets where asking rents have jumped in the past months, a trend that runs counter to the dour predictions from Manhattan leasing brokers that taking rents won’t rise for more than a year.

In the Meatpacking District, for example, Charles Blaichman’s CB Developers High Line building that remains under construction at 450 West 14th Street has asking rents above $100 per square foot. The space was added to the availability list in January, driving up average rates in the district, the most recent figures from commercial firm Jones Lang LaSalle show.

And in the Union Square submarket, the average asking rent rose by 14 percent with the addition of space at 300 Park Avenue South, commercial firm CB Richard Ellis’ latest report said.
[more]

As plunging rents and empty office and retail space continue to threaten the city’s commercial landlords, prospective tenants are increasingly looking at a building’s financial health before committing to a lease. “Maybe four or five years ago, there were only one or two landlords you’d have to watch out for,” says Ted Rotante, a senior managing director at FirstService Williams. “Now there’s maybe 10.” Even if a financially-strapped landlord doesn’t actually default, the strain often becomes obvious in the form of run-down lobbies and stringy heating or air-conditioning. Some commercial brokerages are developing ways to assess the likelihood of these kinds of situations. CresaPartners, for example, uses databases like Trepp’s CMBS Deal Library to analyze a building’s debt. In one recent transaction, the brokerage looked at an undisclosed Class A Midtown office tower and advised its client to go elsewhere when it found that the owner would have needed $50 per square foot, or $10 above the market rate, in order to cover its debt service and operating costs.