Lance Korman’s workplace at Newmark Knight Frank is scattered with cans of the energy drink DefCon3, but the cans are unopened. The commercial real estate broker may have them around as tokens of respect to his client, hip-hop artist and entrepreneur Russell Simmons, but he doesn’t indulge.
And Korman doesn’t seem to need the stimulation of an energy drink to keep his career as a managing director at the brokerage from flagging. The 35-year-old broker has carved a niche for himself in the media and entertainment worlds that promises to sustain him for a while — and keep him up all hours.
“I find business at weird times,” said Korman, whose daytime mien sometimes includes an exhausted squint reminiscent of the actor Michael Madsen. “I’ll be at a restaurant at one o’clock in the morning with a bunch of guys. I get a lot of business from going out a lot.”
Or as his Newmark partner, president James Kuhn, casually ribs him: “Your clients don’t get up before noon.”
His clients may not, but Korman does. And he’s worked long hours to cultivate his connections among the social circles of media and entertainment. Notable on his roster of tenant clients are rappers Jay-Z and Sean “Puffy” Combs, along with media magnates Tommy Mottola and Harvey and Bob Weinstein.
The media and entertainment industries have become Korman’s toehold in the commercial real estate world — one that he believes will become a stepping stone to larger customers.
“My goal in the next five years is to be the number-one media and entertainment guy out there,” he said. “Not only for the users, but for the parents. I’m talking Sony, Universal, BMG, Viacom, ComQuest, CBS, Disney, ABC. You name it — Lance is the guy.”
Korman appears to be on his way. In 2005, he completed more than 27 transactions, totaling about 750,000 square feet valued in excess of $275 million, ranking him 15th in earnings out of Newmark’s 150 New York brokers. With Newmark team members Kuhn and executive vice president Brian Waterman at his side, he has closed a number of high-profile deals during his six years at the brokerage. He was able to find rap entrepreneur Simmons a space in the Garment District in 2000 and located a 35,000-square-foot space for rap artist Jay-Z’s Rocawear at 1411 Broadway in 2002.
Korman also located an office space with about 55,000 square feet for rapper Combs at Broadway and 54th Street in 2003. Even more recently, he turned up an expansive, column-free space at 1515 Broadway for A.E.G. Live to open a mid-size concert venue for about 2,000 people. The Nokia Theatre Times Square was born in the former site of the largest single-screen movie theater in New York City, called Astor Plaza. The space is owned by SL Green Realty Corp. Lately, Korman has been working with the owners of the iconic New York City punk club CBGB to renegotiate the lease in their current Lower East Side home or find a new locale altogether.
Korman said he goes the extra mile for his clients.
“These spaces are not the type of spaces listed in Costar,” he said, referring to the data service that provides listings to commercial real estate brokers. “I have to go out and find these spaces.”
But that’s not a problem for a man who left a privileged background to forge his own identity. After growing up on Manhattan’s Upper East Side and attending the prestigious Horace Mann School, Korman went on to receive a bachelor of science from the School of Management at Boston University. He then served as the operational/sales manager for his family’s dress manufacturing business, Christy Lyn Inc., founded by his father Larry Korman.
With what might be considered a cushy background by some, Korman could have stayed where he was and done well. But he soon realized he was cut from other cloth.
“I wasn’t really happy in the apparel business,” Korman said. “I wasn’t being challenged every day, and I didn’t see much growth in the business. I had gone to BU with a couple guys already working at Newmark. It takes a certain personality to be a broker, and they thought I had it.”
Korman took advantage of some of the connections he made as a youth — including a mentoring relationship with entertainment lawyer Allen Grubman, father of notorious public relations agent Lizzie Grubman — to fuel his brokerage business. Though he started out as a regular commercial real estate broker in 2000, he soon found his specialty. That strength attracted his current partners.
“We saw Lance’s potential and thought there was more he could do with his skills,” Waterman said. “At first, he didn’t have the niche in the entertainment-related field. That was developed.”
So how did a Jewish boy from the Upper East Side attract the figureheads of rap culture as clients? In part, it may be Korman’s strong sense of identity. He said he has no qualms playing the “suit” in business negotiations, even if that inspires humor.
“I treat people the way they treat me, and if they respect me, I respect them,” he said. “I don’t care where they grew up. If my friend from Brooklyn, who’s now successful, can’t deal with my stuck-up Upper East Side girlfriend from Park Avenue, that’s an issue for them, not for me.”
In the competitive world of real estate, it’s rare to find brokers who doff their hats to competitors — and it’s no different in Korman’s case, though he has been nominated three consecutive years for the Real Estate Board of New York’s “Most Promising Commercial Salesperson of the Year” award. Other brokers can be grudging with praise, but they know who he is.
“He’s a very nice guy,” said Scott Gottlieb, a vice chairman at CB Richard Ellis, who worked with Korman in 2003 to find space for Tommy Mottola’s Champion Entertainment. “He’s going to be a star in this business some day. He’s very persistent and aggressive, and he’s the kind of guy that I’d like to work with at some point in my career — and I’ve tried to recruit him over the years.”
Michael Forrest, a former Newmark broker who currently works at Marcus & Millichap Real Estate Investment Brokerage Company, agreed: “Lance has definitely carved himself out a place in the New York real estate world as this sort of entertainment-slash-music leasing agent, and all the power to him. Does he rub people the wrong way sometimes? A lot of successful brokers do, but he’s generally a good guy, and he gets the job done for his clients.”
While Korman’s foothold in New York City’s real estate world currently involves media and entertainment clients, he said he has other aspirations. Yes, there are the plane rides in private jets and awards ceremonies, but celebrities can be tricky to handle as clients, he said.
“They require a lot of time,” Korman said. “And that’s OK — I do OK. Still, there are a lot of guys out there who represent these hedge funds that are paying $100 a foot, and they’re easier deals. I’m representing these guys who take up a lot more time, and they’re paying $45 a foot. But you’ve got to start somewhere.”
Korman said he someday hopes to leave the plush red-carpeted entertainment world behind.
“Celebrity events tend to be more fun because you have lots of good-looking models, and they often go over the top and spend money,” he said. “But how are you going to compare Puffy’s pocket to Goldman Sachs’ pocket? If Goldman Sachs wants to do a party, they’re going to do a party. That’s the business I’m interested in.”