1. Case Study: The Hammacher Schlemmer Building
145 East 57th Street, Manhattan, NYC
400% increase in net operating income
We formed a view of the market
When we sensed a convergence of market factors, we repositioned the historic
landmark, The Hammacher Schlemmer Building, to take advantage of the potential for
higher rental rates. As exclusive leasing agent, we directed our efforts toward becoming
a Class-A provider of office space in the Decoration & Design District of Midtown East,
New York City. Most prominent Decoration & Design tenants are billeted in enormous
“industry” buildings with multiple tenants on huge floors with long corridors. We provided
a unique and compelling small floor, single tenant alternative to these behemoths. The
building had a fine existing assortment of service company tenants representing the
legal, public accounting and real estate investment professions but we were smack dab
in the middle of the D & D District and space therein has always rented at a premium.
We leveraged the cost differential
If we were to diversify, there was an average leasing cost differential of approximately
$15.00 - $20.00 per rentable square foot between our building and the upper end of
the D & D market so we had ample room to negotiate in order to capture the tenancies
we wanted.
We identified appropriate tenants
We canvassed the market, identified creditworthy prospects, engaged in negotiations
and began to populate The Hammacher Schlemmer Building with Furniture and Fabric
Showrooms, Architects, Designers and Galleries who leapt at the concept of having a
single floor to themselves. Our 4,400 rentable square foot floors offered high-ceiling,
column-free space with 120 lb. live floor loads and window exposures on three to four
sides, permitting maximum floor planning flexibility, an enhanced image and on-floor
security.
We achieved a huge NOI increase
Over the three years that ensued, the Net Operating Income of the asset increased
approximately 400%!
We can improve your situation, too
Perhaps we might review your holdings and make some suggestions?