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Economix Blog: The Return of McMansions

June 4, 2013 by Leave a Comment

CATHERINE RAMPELL

CATHERINE RAMPELL

Dollars to doughnuts.

Construction of new homes dropped off a cliff during the housing bust. But where there has been building of single-family homes in recent years, the homes have been getting bigger.

On Monday the Census Bureau released new data on the characteristics of homes built in 2012. Here’s a look at building over the last 40 years, to give you a sense of how sharp the decline in residential construction really was:

Source: Census Bureau. Source: Census Bureau.

For a few years now, though, the size of the typical home built has been growing. For single-family homes, median size rose to 2,306 square feet in 2012, the highest median square-footage for single-family homes since the government began keeping track in 1973.

Source: Census Bureau. Source: Census Bureau.

And the number of bedrooms has gone up, too. In 2012, 41 percent of the new homes built had at least four bedrooms, the highest share on record. The median newly built house still had three bedrooms, though.

Source: Census Bureau. Source: Census Bureau.

The share of new single-family homes with at least three bathrooms also reached a new high of 30 percent.

Source: Census Bureau. Source: Census Bureau.

I should note that the same trends don’t hold true for newly completed multifamily housing units. Units built for sale are getting bigger, but the median size of units being built for rent — which represent the vast majority of all multifamily construction — ticked downward from 2011 to 2012.

Source: Census Bureau. Source: Census Bureau.

Article source: http://economix.blogs.nytimes.com/2013/06/04/the-return-of-mcmansions/?partner=rss&emc=rss

Filed Under: Economy News Tagged With: , ,

Corner Office: LivePerson’s Chief, on Removing Organizational Walls

February 9, 2013 by Leave a Comment

Q. What were some early leadership lessons for you?

A. I got out of college in 1990. We were in the middle of a recession, and I got a job at a trading company. I was there for six months, and they fired me because they needed to lay people off. I remember they took me to lunch, and they asked me what I took away from the experience. And I said, “I’ll never work for anybody again.”

And then I started my first company. I put $50,000 on credit cards, and I had the idea of bringing interactive kiosks with touch screens to college campuses and selling advertising on them. It was working, but it was a struggle. And the Internet spread quickly, and I had to shut the company down. I lost everything. It was a humbling experience, and I ended up coming to New York. I rented about 400 or 500 square feet from a guy who was making T-shirts down in TriBeCa.

This was the point where everything changed. I was 27, I failed and I was pretty down, and I went to see a therapist named Frank Maurio. He didn’t charge me because he knew I didn’t have money. For two years he worked with me and changed how I perceive the world. And when I took LivePerson public on April 7, 2000, I gave him some shares in the company and thanked him.

Q. What lessons did he teach you?

A. There were a couple of things. One is that, usually, nothing is as bad as it seems. As entrepreneurs, we tend to react to a situation. So if you panic and you bring that emotion, it’ll wear you down. So it was really important to just be centered during the day. The second thing is surrounding yourself with the right people, but I think he changed my understanding of who the right people are. Entrepreneurs in particular want high control. It can be wonderful, and it can be disastrous. He taught me that you don’t want to have people you can control, but you can still control your future and have people who can help you build the company.

The other one is that you have to evolve and change at all times. We have a tendency to be lazy, especially when things are good. So the concept was, you should be in a constant state of evolution as a person, because if you stop, you will end up having to leave, or what entrepreneurs tend to do is they basically self-destruct and hurt the company. They start making bad deals. They hire bad people.

Q. What are lessons you’ve learned from running LivePerson?

A. The last two years have been a real change. We have approximately $160 million in revenue, but when we hit about $100 million in revenue and 500 employees, I could see things evolving in the company that could really hurt us in the long term. We started to become bureaucratic a little bit. You start to add middle management layers. So this dead-weight layer comes in, and their job is just to make sure everyone does their stuff. And then what happens is you become very siloed in many ways, and the managers want control. Then you get infighting, and people are more focused on getting offices and titles, because they ask, “It’s very hierarchical here, so how do I get up the chain?”

Q. Was there a moment when you really felt that culture taking hold?

A. I remember one moment. We had the cubicles in the middle and offices on the outside, and I walked past a small office and noticed two people shoved inside. And I asked them: “Why are you guys shoving yourselves in an office? You were just in cubes out here.” And they said, “Well, we’re directors now, and directors get offices.”

I’d never believed in culture and core values up to that point. But I really became very reflective because I wasn’t so happy with what was happening with the company. I’d seen things that had made me realize we were becoming very traditional. I started to spend more time with a couple other companies, and it made me realize, as a founder, that if I left the company, it could be a totally different place because of the next set of leaders. And that’s what kills companies. So I thought that values were the way to have a long-term sustainable company. I finally said, “It’s time to start making the change in the company.” I came in one day and asked all the leaders to move out of their offices, and that was the start of a painful process of change.

Article source: http://www.nytimes.com/2013/02/10/business/livepersons-chief-on-removing-organizational-walls.html?partner=rss&emc=rss

Filed Under: Global Business Tagged With: , ,

Square Feet | The 30-Minute Interview: Stephen M. Ross

June 18, 2011 by Leave a Comment

Mr. Ross, 71, is the chairman, chief executive and founder of the Related Companies in New York, which is best known for the Time Warner Center. Among the company’s latest projects is the development of the 26-acre Hudson Yards.

Mr. Ross is also the chairman of the fitness-club operator Equinox Holdings and the majority owner of the Miami Dolphins National Football League franchise.

Q Are we embarking on another building boom in the city?

A There isn’t going to be a huge boom, because real estate is really a function of jobs. Now I think we’re gaining back a lot of the jobs we might have lost. And I think people are optimistic, especially developers, but I don’t think you’re going to find as much financing available.

Going forward, you’re going to see a lot of consolidation of corporate offices and demand for new space. I think there’s going to be a fair amount of construction in the city, particularly downtown and in Hudson Yards. And more specifically — Hudson Yards!

Q O.K., so let’s talk about the Hudson Yards development. Any tenants locked in yet?

A We’re speaking to nine tenants — for office space — each of whom is looking at over a million square feet. I’d really rather not say who they are. In our first phase, which is roughly four and a half million square feet of office space, I think we’ll be able to announce signed deals for three million square feet by the end of the year, and start construction next year. There will also be 750,000 to a million square feet of retail, and the balance will be residential and a small hotel.

Q Have you secured financing?

A We haven’t set up who are going to be the construction lenders yet. You can’t really talk to them until you have something to propose to them. In today’s market you have to really prelease. You’re not going to be able to finance a lot of “spec” space.

Q You do have a partner, the Ontario employees pension plan. How much is it investing?

A They’ve made a commitment for $475 million. They have a lot of experience through the subsidiary Oxford Properties. But we’re taking the lead and we have the majority of the project; we’re over 60 percent.

Q Any concerns about Brookfield Office Properties’ proposed office tower a few blocks from Hudson Yards ?

A I don’t think it’ll have a major impact. They’re on Ninth Avenue, where there’s virtually no development around it. We’re creating our own environment. We have a large mixed-use project and we’re looking to create a critical mass. We’re also offering a better value, from the standpoint that we have a 20-year real estate tax abatement.

The tenants could own or lease. We’re prepared to sell very close to cost, because we have all this residential square footage that we’ll look to make most of our money from.

Q You’re basically creating a neighborhood.

A Yes. I think every good developer, in the back of their minds, wants to transform and leave a legacy. Time Warner Centers certainly transformed the whole West Side. As a developer, it’s a great feeling knowing you have made an impact. There’s also a lot of responsibility that goes with that: you have to really put the city’s needs first. It’s not all about making money. And that’s why the city — knowing what creating a neighborhood means for its growth — has offered a tax abatement to tenants taking the first five million square feet. 

Q Let’s talk about MiMA, your new mixed-use building.

A We’ve rented close to 200 of the 500 market-rate units at over $75 a square foot. The rentals were built under the 80/20 program, so there are also affordable units. We’ll start selling the condos next month. We haven’t priced them yet. The project has been well received because of the amenity package that includes a private Equinox club, an outdoor movie theater and a dog run.

Q What’s the status of the Hunters Point South middle-income housing project in Queens?

A The city now is really doing the work, putting it in a position where we could start it next year. It’s really the first project that’s going to be addressing the work-force-housing needs of the city. I started out in affordable housing.

Q And you started out professionally as a tax lawyer.

A I did some restructuring of deals for real estate clients. I enjoyed what they were doing more than what I was doing.

Q Do you still live at the Time Warner Center?

A I’m the president of the condo board.

Q What do you hope to be known for years from now?

A How we made cities better, transformed neighborhoods, and built a great company that’s known for doing quality work.

Article source: http://feeds.nytimes.com/click.phdo?i=7c9e765b4ead9ae1a18b17fb5df84130

Filed Under: Business News Tagged With: , ,

Square Feet | The 30-Minute Interview: Peter M. Lehrer

June 12, 2011 by Leave a Comment

Q How large is your company?

A Actually, the firm consists of myself and some associations, when necessary, on certain projects. I went from managing a firm of 2,000 people to a very small hands-on firm.

What was difficult was finding out that I had to do a lot of things by myself that I used to ask other people to do. But managing a large firm means that you’re spending most of your time managing people, so in this phase of my career I’m able to devote all my time to managing projects.

Q What services do you provide?

A What Leher LLC does is high-level strategic consulting. It is specifically geared to providing advice to clients on very complicated projects. I try to challenge myself and the rest of the team to be more innovative to find ways to do something faster, for less money. Because it is a hands-on service, I limit the number of assignments that I take.

Q Do you work with many of the large developers?

A I have, yes. I’m working with Dan Brodsky, and that’s a 30-year-plus relationship.

I have been the consultant to the Zeckendorfs on 15 Central Park West.

And I have enormous respect for Steve Roth at Vornado.

Q Do you know what’s happening with Vornado’s proposed 20 Times Square building, which you were hired to work on?

A I think on that one you have to talk to Vornado. I believe that they have a phenomenal site and an amazing design, and I’m very confident they will find a tenant for that building.

Q How many projects are you involved with?

A Usually I’m involved with four or five projects at one time. Right now it’s the new Whitney Museum; the Columbia University expansion at the new Manhattanville campus; two projects in Harlem, the Hunter School of Social Work and the CUNY Graduate Center Foundation Housing Building; and the new Avenue School on 11th Avenue.

Q What was your role with the Columbia expansion project?

A I’m part of the team for the master plan. It is a long-term phase project, and the first building is the Jerome L. Greene Science Center, designed by Renzo Piano. It was a complicated approval process.

Q You’ve also had a role in Hudson Yards.

A I was a consultant to Hudson Yards on the construction of the No. 7 line and some of the early planning on the platforms and the request for proposal that selected the developer.

Q What is the average on-time record for the projects that you work on?

A There’s no such thing as not being on time. It just can’t exist — you have to be on time.

Q Are you ever overbudget?

A Both of them go hand in hand. You have a responsibility to meet budgets and schedules, and that’s why I’m there.

I would have to say there must have been some times that we were over budget, but offhand I can’t think of any of those times. It’s not typical, but it is construction and stuff happens.

Q Let’s move on to the World Trade Center, and specifically, the memorial.

A That will open on 9/11/11 — the 10th anniversary. At least the plaza and the fountains will open; the museum will open a year later. There are a lot of people right now working a lot of hours to get that finished. If you were standing down there, you’d see people finishing up the plaza, planting the balance of the trees, finishing the nameplates of the 2,982 victims going around the plaza. There will be almost five acres of beautifully landscaped space.

Q What has been your most challenging project to date?

A I get asked that question a lot. I think that the most challenging project was the reconstruction of the Statue of Liberty, because it had so many complexities. It was an honor to be given that responsibility. I’m now on the board of the Statue of Liberty-Ellis Island Foundation, which has sort of taken me full circle.

Q What do you do for fun?

A I think, unfortunately, I love working, and if I’m not physically working I’m mentally thinking about the work.

Q It’s safe to say then that you have no plans to retire.

A Not voluntarily. I just think retiring is bad for your health.

Article source: http://feeds.nytimes.com/click.phdo?i=63eb65baaa416bc8311b06a393dc1ed1

Filed Under: Business News Tagged With: , ,

Square Feet | The 30-Minute Interview: T. J. Gottesdiener

June 4, 2011 by Leave a Comment

During his three decades at SOM, Mr. Gottesdiener has been involved in several major projects, including One World Trade Center, 7 World Trade Center, the Time Warner Center and the Lever House renovation.

Q You’ve been called the most famous architect few have heard of. Any comment?

A My comment is thank you — that’s a compliment. That’s a real testament to the way Skidmore works, which is about all of us working together and not one person being the most important part of the project. It’s all about the buildings.

Look, throughout the course of history at this firm there have been famous names — you might go to Gordon Bunshaft or Bruce Graham, and people know the name David Childs. Frankly, a lot of the name recognition you see has been created, whether by clients or by marketing.

Q Having said that, do you have a favorite architect?

A I would probably say Le Corbusier. There was something about his innovation and his plasticity about design. Although a lot of his urban projects that many people know about — Towers in the Park — are probably real disasters, there were other projects that were quite fascinating.

Q Let’s move on to one of SOM’s biggest projects, One World Trade Center. What’s your role there?

A SOM is the architect for Tower One, and we’re leading all of that design and effort. My role is managing that process.

Q So where do we stand in the process?

A We’re about 65 floors. They’re setting steel at the rate of a floor per week. We’re about the height of 7 World Trade Center, which is over 700 feet, and things are really falling into place.

Q Were you concerned by the numerous delays?

A People have commented that it’s taken a long time, and my comment is, I don’t think so. Look where we are now. We’ve had so many obstacles because of the conditions of the site: A lot of it was below the grade; it’s over active PATH tracks; we’re holding back the Hudson River, basically on reclaimed land. This is probably the most complicated building I’ve ever done.

Q And there have been more complications. Last month, the Port Authority vetoed the idea of having 2,000 glass panels installed at the base, in part because of technical problems.

A As it was manufactured, the glass at the base of One World Trade Center simply did not perform as we were promised, so we are in the process of redesigning it. Things like this happen occasionally, and that is why we have developed such a thorough process.

Q How did all the safety issues affect the building’s design?

A Well, I hope for you and everybody else who’s at the building, there’s no effect. But for us as designers there was a big impact.

When the towers came down after 9/11, we had to rethink the building codes, and 7 World Trade Center was the first one that implemented a lot of the ideas before the code had even been enacted. A lot of nuances and major things have changed in designing high-rise buildings.

Q Some of the new codes came at the suggestion of SOM, right?

A Many of our people were involved with the city in rewriting the codes. We have, for example, all kinds of redundancies in building systems. Fire protection has cross-connections, so if there’s one sprinkler that is out of service, the other one will cover it. We’ve increased stair widths to allow firefighters to climb upstairs while people exit. There are little things, like phosphorescent tape in the egress stairs.

It was done at 7 World Trade Center. They were almost experiments, because the code had not yet been enacted.

Q Is the rebuilding at ground zero a career-definer?

A I definitely would think that this is one of the greatest achievements that I’ve been able to work on. But I said that about the Time Warner Center and I said that about Tokyo Midtown.

Q Let’s talk about some other projects in New York.

A The John Jay College of Criminal Justice expansion project is close to being finished. We are doing a rather low building that will essentially become their campus. And we’re starting the first phase of the Moynihan Station redevelopment.

Q Is the firm doing anything to celebrate its 75th year this year?

A No. We thought about it, and talked about it. But the one thing we thought most about was what are we going to do for the next 75 years, to move forward.

Article source: http://www.nytimes.com/2011/06/05/realestate/t-j-gottesdiener.html?partner=rss&emc=rss

Filed Under: Global Business Tagged With: , ,