Brokers, architects form new alliance post sept. 11

Real Estate Weekly, Nov 7, 2001 by Anthony Saviano

When our world changed on Sept. 11, one of the consequences was an immediate need to address the approximately 20 million SF of office space that was lost. As a result, many firms, especially companies in the financial, brokerage and insurance business rushed to accommodate their operational needs by either relocating into existing available space, doubling up their staff within their own outlying facilities, or creatively adopting different building types such as hotels in order to get back to business. Understandably, much of the emergency space was taken without consideration for building services or with the advantage of prior interior planning.

In order to accommodate the future needs of companies moving into new space, and to serve their immediate business needs, a collaboration between professionals in the design industry and the real estate industry has evolved.

In an effort to ameliorate predictably disorganized situations, design professionals and brokers must join together to address a wide range of issues that could help prospective tenants. And using information provided by architects who are also occupancy strategy experts, brokers are more able to guide their clients to the most appropriate available office space in less time then the norm. In short, working as a team will allow companies to move into appropriate spaces in a shorter amount of time, and realize cost savings for construction in the short term, and long term without sacrificing or compromising their business requirements.

As architects, this new partnership places us in situations where we are being asked to quickly evaluate space, not so much for design, but for the design potential and functionality. In addition, we are asked to determine whether a building can meet the prospective tenant's requirements for doing business. Issues such as building security, infrastructure, technology and communications requirements will need to be examined a little more closely. In order to address the high tech needs of many businesses today, it is often necessary for the architect to perform a base building survey when deciding if the overall condition of the building will accommodate the prospective tenant's business requirements, without a major investment in upgrading base building systems.

Time will also be a major factor since the amount of time to make corrections or upgrade base building systems can add unwanted delays to a prospective tenant's schedule.

Another product of Sept. 11 is that many companies are now focusing on building security. Beyond the actual standard security systems, concierge, card readers, etc., there are other general security and safety issues that have to be looked at, including issues such as the condition of stairways, location and accessibility of other means of egress, and whether a building's fire safety equipment is up to code. Moreover, tenants need to know whether a building's infrastructure can support an internal security system that is sufficient for the tenant and can supplement the building's existing system.

Other criteria include the base building's capacity to support the technical requirements of the client and the presence of redundant fiber optic capabilities for telecommunications. Electrical service is paramount, and tenants must establish what a building's contingency plans are in the event that emergency power is lost. If no plans exist, as design professionals, we need to analyze whether accommodations can be made so that the tenant has options to install its own system.

Because downtown Manhattan was one of the few areas in which large floor plates were available in Class A buildings, some businesses elected to move to other boroughs and suburban areas, even as a temporary solution. Others have chosen to split up their offices into several locations in order to remain in Manhattan. But according to some of the brokers with whom we have been working, companies preferring to remain in Manhattan may have to move into those Class B and C buildings that have larger, loft-like floor plates in order to keep staff under one roof. A lot of the spaces that have become available are some of the former dot.coms that either went out of business or downsized.

Under these circumstances, basic issues will surface, including the expense involved in upgrading bathrooms and areas of egress to make them ADA-compliant. Electrical service and security are also critical issues, as is the landlord's work letter and how it will fit in with the requirements of the tenant.

We accept that in these times brokers may have to convince their clients of the many positive reasons for staying in Manhattan, despite having to move to different business districts within the city. Time and again, location will be a major factor and obviously a compromise in many cases.

For brokers, having to deal with unconventional space, the ability to show a prospective tenant just how that space may be modified and tailored to their needs can make the critical difference in the deal. And that need for specific building and interior space information is the genesis of this new partnership.