Could a brutal work schedule be the deus ex machina commercial real estate’s been waiting for?
New York has long prided itself on being the city that never sleeps. But even by Big Apple standards, the latest mantra circulating among some AI companies sounds extreme: 9-9-6.
Don’t get it confused with 6-7: this new number means 9 a.m. to 9 p.m., six days a week, a work schedule with roots in China’s tech sector that’s been creeping into Silicon Valley, and now, Manhattan. The grind could be a boon for commercial real estate, driving demand for offices built for long hours and residential developments close to where people work.
“What interests me about the AI companies that we’re dealing with is that they’re very different in culture than what we think of as the typical tech companies,” Mary Ann Tighe said at this month’s NYU Schack Institute of Real Estate capital markets conference. In other words, they aren’t the typical tech firms with kombucha taps and casual Fridays. One AI executive allegedly told her bluntly that their culture is 9-9-6.
“Now you describe why we’re seeing such incredible growth here,” Tighe said of the AI sector. “How many workforces are there in our country where you can get a significant body of employees who sign on for 9-9-6?”
Long hours and the weekend grind aren’t new to sectors like finance and law. But a 72-hour workweek takes that hard-charging culture to a new extreme. The 9-9-6 buzz started bubbling up recently in Silicon Valley amid the AI arms race, with job listings hinting at 70-hour weeks and weekend spending spikes at office-adjacent businesses suggesting that people aren’t signing off, according to the New York Times.
That same relentless work ethic appears to be migrating east, where New York City-based AI startup Rilla’s website discourages candidates who aren’t “excited about” in-person, 70-hour workweeks from applying, as Fast Company recently reported.
New York office-to-residential developers are now targeting the 9-9-6 crowd. Rudin, for example, is converting 845 Third Avenue into 411 apartments and 355 Lexington Avenue into 297 units, betting that these well-paid professionals will opt for convenience and proximity over traditionally residential neighborhoods.
“The 9-9-6 is who our market is for,” Bill Rudin said at the conference.
“If you’re working at Citadel, Blackstone, Blue Owl or JPMorgan along Park, Madison or Sixth, chances are you’re already logging those hours, or worse,” Rudin said. “The question then becomes logistical: Do you want a 20-minute subway ride home just to turn around and do it again, or do you want to walk three blocks to a new apartment with a gym, workspaces and amenities built for people who might still be working on Sunday?”
The city that never sleeps may be living up to its name.
What we’re thinking about: At its most recent earnings call, CBRE Chairman and CEO Bob Sulentic said data centers produced nearly $700 million of revenue in the third quarter, up 40 percent year over year. Other brokerages have reported similar results. A new crop of young brokers is cashing in on data center land deals and racking up hefty commissions. Who are the top players? Send a note to elizabeth.cryan@therealdeal.com.
A thing we’ve learned: Heisman Trophy winner Fernando Mendoza interned at real estate investment firms ACRE and Newmark in the San Francisco Bay Area after graduating from UC Berkeley’s Haas School of Business last spring. Mendoza transferred this year as a redshirt junior to Indiana University, where he threw 33 touchdowns and had six rushing touchdowns for the season.
Elsewhere…
– Fitness trainer Jerry Genesis allegedly bilked at least eight would-be renters in Manhattan and Brooklyn out of more than $100,000 by pretending to have apartments available for sublet, then charging bogus move-in fees to unsuspecting victims, the New York Post reported. None of the renters were able to move into the apartments they thought they had subleased, per the Post.
– Gov. Kathy Hochul announced that 2025 has been one of the safest years on the subway so far this century, The New York Times reported. Except for two years during the peak of the pandemic, major crime on the subway is at its lowest level since 2009, and the system is on pace to have its second-lowest crime rate since the 1990s, according to the governor’s office. Major crimes include rape, murder, robbery and felony assault.
– Republican Rep. Elise Stefanik announced she is no longer running for governor of New York. Stefanik, a staunch Trump supporter, announced her campaign to unseat Kathy Hochul last month. She is also vacating her seat in Congress.
Closing time
Residential: The top residential deal recorded Friday was $21.3 million for a 4,183-square-foot, sponsor-sale condominium at 111 West 57th Street in the Plaza District. Nikki Field, Ben Pofcher, and Jeanne H Bucknam with Sotheby’s had the listing.
Commercial: The top commercial deal recorded was $6.65 million for a 15-unit apartment building at 977 Manhattan Avenue in Greenpoint.
New to the Market: The highest price for a residential property hitting the market was $20.5 million for an 8,000-square-foot townhouse at 123 East 71st Street in Lenox Hill. The Benalloul Team with Corcoran has the listing.
Breaking Ground: The largest new building permit filed was for a proposed 86,241-square-foot, 11-story mixed-use project with 72 units at 11-35 31st Drive in Astoria. Angelo Ng + Anthony Ng Architects filed the permit on behalf of Li Qing.
— Matthew Elo