CREW survey indicates increase in international business

Real Estate Weekly, Jan 27, 1999

Commercial Real Estate Women of New York (CREW*NY) recently marked its 10th anniversary with a survey of its membership on the changes in the real estate industry during the past decade. Among the most significant trends highlighted by responding members was the increase in international business.

"Our members are among the most successful and respected within their fields, and they are on the cutting edge of real estate," asserted Wendy Rowden, president of CREW*NY. Rowden is vice president and general counsel of the Rockefeller Group. "We are now operating in a truly global economy. As a result, our membership has experienced a significant increase in the amount of oversees business, particularly in the Asian countries."

"A decade ago, a few of our members regularly conducted business in several European countries, including England, France and Italy," Rowden said. "However, now they are also active in Japan, China and Korea, as well as South America." CREW*NY respondents also mentioned Germany, Brazil, Mexico, the Far East, Poland and Russia as countries in which they and their firms were now doing business.

The quantity of business done by CREW*NY members in other countries also has increased. "Several of them have reported a significant portion of their work is now taking place outside of the U.S.," she said.

Robin Taubin, vice president/senior counsel on real estate for Viacom International, Inc. has seen an increase in her firm's international business. "Ten years ago, 10 percent of our business was international, and today it has grown to 25 percent," she said. "In today's world, a major entertainment and communications company must operate in the international environment to be competitive."

Roslyn Brandt, president of Brandt Resources, a marketing agency specializing in the real estate industry, confirmed that her company has increased its level of international business during the past decade as well from about 5 percent to 15 percent. "Many of our clients are European manufacturers wanting to enter the U.S. market," she said. "They look to us to help them establish a presence here."

According to Kate Coburn, director of retail services for Cushman & Wakefield, many developers are seeking opportunities abroad. "They are looking to open shopping centers in countries with developing economies," she said. "Conversely, we are seeing some smaller European boutiques targeting shops on Madison Avenue." Cushman & Wakefield recently announced a $112 million merger with its European-based affiliate Healey & Baker.

On the investment side, Merrie S. Frankel, senior vice president of The O'Connor Group, said that her firm has a joint venture with J.P. Morgan for real estate opportunity funds. "Through this relationship, we are investing in international real estate and operating companies," she said.

"I expect this international trend to continue as many companies are considering commencement of international operations of some kind," added Alice C. Early, managing director of Russell Reynolds Associates, Inc. Early's firm has increased its level of international business from 10 percent to 50 percent during the past decade.

In addition to international activity, the CREW*NY survey explored the impact of technology on the workplace; the New York City real estate market, including future "hot spots"; and the ability for women to succeed in business.

"Our goal was to explore issues that have impacted our members during the past decade," Rowden said.

Founded in 1988, CREW is an association of senior-level women executives from the commercial real estate industry who conduct business in the New York Metropolitan area, nationally and internationally.