Crain's New York Business

ASKED & ANSWERED Life science developments are about to boom PAGE 6

WHAT’S NEXT? Brokers adapt to make deals during the pandemic PAGE 3

CRAINSNEWYORK.COM

|

MARCH 1, 2021

2021 The pandemic hasn’t diminished the enthusiasm these companies have for the city’s future

BUCK ENNIS

PAGE 13

ECONOMY

However long the Covid horror lasts, rebuilding the city’s economy will take longer Ten years of job growth was wiped out by the pandemic in just two months last year

NEWSPAPER

VOL. 37, NO. 8

BY AARON ELSTEIN

I

n Washington Heights the aftershocks of Contagion lingered for almost a decade.

The Steven Soderbergh horror

© 2021 CRAIN COMMUNICATIONS INC.

movie, about a novel virus that killed millions worldwide, opened at the RKO Coliseum at the corner of Broadway and West 181st Street in 2011, shortly before the theater closed. But the title remained on

the marquee until the 100-year-old building was demolished late last year.

It will take at least five years to recover from the real contagion horror that has afflicted the city start-

CRAIN’S READERS are optimistic about the city’s recovery PAGE 16

ing exactly 12 months ago this month. That, at least, is the opinion of Ronnie Lowenstein, director of New York City’s Independent See REBUILD on page 27

HSBC SET TO SLASH OFFICE SPACE TO LOWER COSTS

THE LIST

PAGE 4

PAGE 11

The largest executiverecruiting firms

TECHNOLOGY

Local firm, betting big on hot market, buys up Amazon Marketplace sellers billion in global sales on Amazon’s website, of which third parties captured $300 billion, according to research firm MarketplacePulse.

There are 15,000 U.S. sellers on Amazon with annual sales of more than $1 million, MarketplacePulse estimates.

“People don’t give Amazon enough credit for the entrepreneurial machine they have created,” said Ryan Gnesin, chief executive of Elevate. “A seller can have an idea, source a product from China, stick some branding on it and have a multimillion-dollar business they can sell.”

Of course, it is not always that easy, but that is the type of company that Elevate targets. It searches for brands with at least $1 million in annual sales, with strong reviews that place them at the top of Amazon’s search results for their category.

Elevate offers them a buyout, typically three to four times their annual net revenue, plus a chance to earn more based on growth in the years following the deal.

Gnesin is a former commodities trader who has been launching brands on Amazon since 2017

I

nvestors are betting big on Amazon’s army of small sellers.

Elevate Brands, a New York company that buys and repositions Amazon Marketplace sellers, has raised $55 million in venture capital, it said last week.

The market for such businesses—known as Amazon rollup companies—has been heating up during the past 12 months, with the Covid-19 pandemic driving more buyers to Amazon for their everyday needs.

Elevate’s variety of more than 8,000 products includes tents, tool kits and beauty and skin care products typically sold exclusively on Amazon. Many of the products are acquired from the types of

“AS LONG AS WE PLAY BY THE RULES, WE DON’T SEE ANY MAJOR RISK” third-party businesses that Amazon Chief Executive Jeff Bezos said were “kicking our first-party butts” in 2019.

Last year there were about $490

through Elevate, which was formerly Recom Brands. The company initially focused on reselling products through Amazon before shifting last year to third-party acquisitions.

Some third-party sellers grow huge. For example, Anker, which manufactures phone chargers and other electronics to sell on Amazon, went public in China last year with a debut valued at $8 billion.

Banner year The market for Amazon rollup companies seeking that next big hit has taken off in the past 12 months.

Between July and December, six companies in the sector raised $1.3 billion total, according to a CB Insights analysis. That was before Massachusetts-based Thrasio, the leader of those companies by dollars raised, tacked on a $750 million investment round in February.

The companies aim to boost the products they buy through improving manufacturing capacity, branding and customer service.

The goal is to build a product people will find quickly and like

BLOOMBERG

BY RYAN DEFFENBAUGH

enough to give a positive review— even if it is from a brand they have never heard of before.

“They just say they got it on Amazon,” Gnesin said.

The challenge is that Elevate and its competitors are beholden to Amazon, which has its own motives. A tweak to the algorithms used to display search results could take a big bite out of sales, for example. During the summer, European regulators started reviewing whether Amazon uses data from

REAL ESTATE

BY NATALIE SACHMECHI

E

AP IMAGE

1345 SIXTH AVE.

dustries,” said Ken Fisher, a partner at the real estate development firm.

Marc Packman and Clark Briffel at Fisher led negotiations on behalf of the owner. Equitable Financial was represented by JLL’s Matthew Astrachan, Daniel Turkewitz and Allison Melichar.

The move comes on the heels of rumors that executives within Vor-

nado were exploring the idea of ending their partnership with the Trump Organization at 1290 Sixth Ave. as well as a property they own together in San Francisco, at 555 California St., The Wall Street Journal reported this year. Trump owns a 30% share in each building.

Vornado Chief Executive Steven Roth acknowledged during his company’s fourth quarter earnings call that the talks were news to him.

Former President Donald Trump has been a polarizing figure for the country, and Roth said he was “delighted” that his role in the two buildings was passive.

“Business is business,” Roth said.

Other notable tenants leasing at Fisher’s 2 million-square-foot building include consulting firm Accenture, financial services company AllianceBernstein and law firm McGuireWoods.

Last year hedge fund Fortress Investment Group downsized its

space at the building from 200,000 square feet to 132,000. The move could save Fortress up to $10 million in annual rent, Crain’s has reported.

Availability rates Office availability rates reached record highs last quarter, according to a Colliers International report, hitting 14.3% by the end of last year, compared with 10% during the same period in 2019. Leasing activity also dropped by two-thirds over the year, to just 4.2 million square feet, the data showed.

The numbers were worse in Midtown, where 1345 Sixth Ave. is located: Availability rose to 15.2% during the year, and activity fell by more than 66%.

The Trump Organization is set to lose Tiffany & Co. at 6 E. 57th St. by mid-2022 once the jeweler moves back to its nearby flagship, which is being renovated. ■

CRAIN’S BUSINESS FORUM MARCH 3 HOW THE BIG APPLE WILL REGAIN ITS SHINE, FEATURING DANIEL L. DOCTOROFF, CHAIRMAN AND CEO OF SIDEWALK LABS In the wake of 9/11, Daniel Doctoroff, then deputy mayor of economic development, contemplated the same issue we face today: Are cities still necessary? With the redevelopment of the World Trade Center, the High Line and Hudson Yards, among other projects, the answer was a resounding yes. Join Crain’s March 3, when we talk to Doctoroff, now CEO of innovation company Sidewalk Labs, about how New York can come back again.

VIRTUAL EVENT Time: 4 to 5 p.m.

CrainsNewYork.com/ MarchBizForum

Vol. 37, No. 8, March 1, 2021—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for bimonthly in January, July and August and the last issue in December, by Crain Communications Inc., 685 Third Ave., New York, NY 10017.

Periodicals postage paid at New York, NY, and additional mailing offices. Postmaster: Send address changes to: Crain’s New York Business, Circulation Department, PO Box 433279, Palm Coast, FL 32143-9681. For subscriber service: call 877-824-9379; fax 313-446-6777. $3.00 a copy; $129.00 per year. (GST No. 13676-0444-RT) ©Entire contents copyright 2021 by Crain Communications Inc. All rights reserved.

2 | CRAIN’S NEW YORK BUSINESS | MARCH 1, 2021

BUCK ENNIS

WEBCAST CALLOUT

Equitable Financial headquarters leaving Vornado/Trump building for Fisher Bros. tower quitable Financial Life Insurance plans to relocate its Manhattan headquarters from 1290 Sixth Ave.—owned by Vornado Realty Trust and the Trump Organization—to a newly renovated Fisher Brothers office tower at 1345 Sixth Ave. by 2023, Fisher announced last Thursday.

The financial services firm inked a long-term lease in January to take 123,000 square feet across several floors of the property, which is going through a $100 million revamp that includes a redesigned lobby and new HVAC systems and other enhanced safety features.

“Our capital investments in 1345 have completely transformed the office tower, surrounding plaza and park through modern design and substantial infrastructure upgrades to accommodate a variety of renowned tenants from notable in-

third-party sellers to launch competing products.

Gnesin acknowledged that his business is at the mercy of Amazon, but he is betting on mutual interests. Private-label Amazon brands are a fraction of the company’s business—so it still needs third-party sellers if it wants to be the everything store.

“As long we play by the rules,” Gnesin said, “we don’t see any major risk compared to the tremendous upside.” ■

REAL ESTATE

BUCK ENNIS

COVINGTON worked remotely from North Carolina last year.

What comes next for brokers

The post-brunch open house is dead, but deals still get made during the pandemic

BY EDDIE SMALL

M

organ Lydon was frustrated. The Compass agent had moved from New York to Florida in the spring after realizing that quarantining with a golden retriever in a small apartment wouldn’t be practical, but she was still trying to rent out a unit on the Upper East Side for one of her clients.

The summer was already a bleak time to try convincing people that renting a Manhattan apartment was a good idea, and speaking with prospective renters over Zoom instead of in person made it harder for Lydon to gauge how genuine their interest in the listing was.

“As an agent, your job is to build trust. When you don’t have that personal connection, it’s a lot easier for people to flake on you,” Lydon said. “It’s a lot easier to submit an embarrassing offer when you haven’t actually seen the agent.”

The rental unit went on the market in May, and Lydon was eventually able to find a tenant in July, thanks in part to the sheer volume of showings and a 3-D virtual tour shot using the Peek platform. It was a challenging process, Lydon said.

“PEOPLE AREN’T TOURING PROPERTIES. OPEN HOUSES AREN’T REALLY A THING ANYMORE” “You’re in Florida, and it’s a one-bedroom rental, and you’re trying to do the right thing for your client,” she said, “but it definitely wasn’t a good environment to be leasing in the summer.”

Lydon is far from the only broker who left the city during the pandemic, and even as the Covid-19 vaccines offer the best hope yet for a return to normalcy, leaders at some of the city’s major residential brokerages said they do not foresee a quick return to a pre-Covid work life. They maintain that some work aspects of the pandemic, including virtual tours and fewer trips to the office, are probably here to stay.

No return “I don’t think we’re going to go back to the way it was, just because of the new way of doing business now,” Douglas Elliman President Scott Durkin said.

But the old way of doing business still has its appeal, even among brokers who have spent much of the pandemic working from outside of the city.

See BROKERS on page 26 MARCH 1, 2021 | CRAIN’S NEW YORK BUSINESS | 3

IN THE MARKETS

HSBC set to slash office space in response to pandemic

‘We now have an opportunity to create a lower sustained cost base,’ executive says

H

SBC said it will use 40% nearly 150 branches—located less office space in the mainly in and around the city— future, a sign that com- which it is considering selling. mercial real estate va- HSBC incurred $280 million in occupancy costs last year for cancies could remain its U.S. branches and ofhigh for years to come. fices.

“Clearly Covid changed Officials said it would the way we all work,” take several years to Chief Operating Officer shrink the bank’s global John Hinshaw said on a office footprint. conference call last TuesThe move comes as day. “We now have an opHSBC lowers overhead portunity to create a lowand restructures business er sustained cost base in both corporate real estate AARON ELSTEIN lines. Its performance has trailed JPMorgan and othand reduced business er rivals on the global travel.”

Many companies have said they stage for many years.

“We’re going to stop trying to be expect employees to continue working from home, at least occa- everything to everyone.” Chief Exsionally, after the pandemic re- ecutive Noel Quinn said. “Many cedes. But HSBC appears to be the things are changing with respect to our strategy.”

In this country, he said, the bank will dedicate “the vast majority” of its resources to serving corporate clients first bank to detail how far its real and institutional investors. Quinn said HSBC continues to focus on estate needs have shrunk.

London-based HSBC has $3 tril- “organic and inorganic options” for lion in assets and mostly conducts its U.S. branches. In corporate linbusiness in Asia, but it also is a sig- go, organic growth is achieved nificant player in New York from its without mergers.

HSBC’s U.S. operations swung to U.S. headquarters building overlooking Bryant Park. The bank has a net loss of $940 million last year,

BUCK ENNIS

“WE’RE GOING TO STOP TRYING TO BE EVERYTHING TO EVERYONE”

from a $113 million profit in 2019, due in part to a large write-down of its retail, private banking and wealth management segments. It closed more than 30% of branches and is looking to sell the rest.

One potential bidder, M&T Bank, is likely out of the running after yesterday agreeing to acquire People’s United Bank for $7.7 billion.

New York Community Bancorp remains a candidate, and analysts

say it’s the most logical buyer for the HSBC retail franchise, which is worth an estimated $2 billion. New York Community’s new CEO said in January that he is committed to striking a significant merger. ■

TECHNOLOGY

BY RYAN DEFFENBAUGH

W

ith two new funds totaling $200 million, Primary Venture Partners has one focus: investing in New York.

The Flatiron District firm said last week that it has raised the largest-ever seed fund dedicated solely to New York startups, totaling $150 million. A separate $50 million fund will invest in city businesses further along in their growth, Primary said.

Although there are many New York venture firms that invest in startups here, Primary is unusual in placing its investments solely within the five boroughs.

That was a challenge for the firm as it raised its first fund in 2013, when New York still trailed Boston for investment into startups.

“Selling institutional investors at that time on a New York tech-driven story was challenging,” said Brad Svrluga, co-founder and general partner at Primary. “But we saw the writing on the wall.”

That writing began with the financial crisis of 2008, which Svrluga

said pushed bright young minds away from Wall Street and into technology startups. People began leaving the city’s largest industries— health care, finance, insurance—to launch companies aimed at solving specific problems in those fields.

New York is now entrenched behind California’s Bay Area as the top region for venture-capital investment. Last year technology-focused startups here raised $16.2 billion from investors, with record levels for investment in health-tech startups and firms making software for businesses.

Big hits Primary hit big on early investments in Jet, the e-commerce site Walmart purchased in 2016 for $3.3 billion, and Mirror, the Peloton competitor bought last year by Lululemon for $500 million.

The firm invests across a range of technology sectors, with a preference for ideas that connect with the city’s largest industries. That included a 2018 investment in Latch, the smart-lock company for apartment buildings. Primary bet Latch

4 | CRAIN’S NEW YORK BUSINESS | MARCH 1, 2021

could grow through partnerships with the New York’s large real estate companies. One of those partners, Tishman Speyer, is now set to take Latch public through a $1.05 billion SPAC deal.

Ryan Denehy, founder of Primary portfolio company Electric.ai, moved back to New York from San Francisco in 2015 to launch his IT automation startup—despite warnings that he’d be better off staying out West, where venture capital and the tech industry were far better established. Primary invested in the firm’s seed round and then each successive funding deal afterward, including a $40 million deal closed Feb. 24.

“The more access you have to local talent, partners, customers and other key resources is transformative,” Denehy said.

Svrluga said the firm can help guide its investment through proximity. “We are no more than a 20-minute subway or taxi ride from any of our portfolio companies,” he said.

That thought sounds dated in an era when business is conducted via

BLOOMBERG

Venture firm raises $200M with one focus: Invest in New York

videoconferences. Svrluga counters that many of the companies he works are embracing remote work but plan to retain a presence in the city. Long term, New York has an advantage over San Francisco because technology here can tap into a more diverse economy than in the

Bay Area, he said.

“The ability to get down the street, take that potential client to lunch, that still wins for a sale standpoint,” Svrluga said. “We are decades away, if we ever get there, to the point that physical presence does not matter.” ■

HEALTH CARE

More than 26,000 understaffing complaints were filed in 2019–2020, nurses group says “UNDERSTAFFING AT OUR PUBLIC HOSPITALS PUTS PATIENTS IN JEOPARDY”

BY SHUAN SIM

N

urses filed 26,219 complaints to hospital and nursing home managers about understaffing in 2019 and 2020, according to numbers released last week by the New York State Nurses Association.

With multiple signatories on each complaint, there were 97,715 nurse signatures total, the data showed. The union receives a copy when such “protests of assignment” are filed, and the numbers are tracked and then reported each year, a spokesman said.

“Both before and during the pandemic, understaffing at our public hospitals has been severe and puts patients in jeopardy,” said Judith Cutchin, NYSNA board member and president of the union’s NYC Health and Hospitals/Mayorals Executive Council. “This condition in our hospitals continues today, and our nurses must care for far too many patients.”

Among the city’s public hospitals and agencies, there were 8,812

ISTOCK

Safe staffing

complaints about staffing, with 32,888 nurses signing.

The nurses association shared with Crain’s some of the protests of assignment. They contained complaints of high patient-nurse ratios, inadequate time to provide basic

or advanced care, and dangerous working conditions.

The union also called for the state Legislature to pass the Safe Staffing for Quality Care Act this year. It requires acute-care facilities and nursing homes to implement cer-

tain patient-nurse ratios, set minimum staffing requirements and submit an annual plan to the state Department of Health. The act passed out of the health committee this month and is moving ahead to the codes committee.

A spokeswoman for NYC Health and Hospitals said the public health system made a commitment to improve workplace conditions before 2019, leading to a historic agreement with the nurses association that standardized nurseto-patient staffing ratios.

The spokeswoman added that Health and Hospitals has taken steps to enhance and support its workforce by sourcing thousands more nurses.

“We will continue to provide a healthy and safe environment for our nurses and patients,” she said.

The Health Department did not respond to a request for comment.

NYSNA, founded in 1902, represents more than 42,000 members in the state. ■

When the status quo actually makes us sick Raise Health When where we live determines how long we live Raise Health When thoughts and prayers aren't enough Raise Health It's time to raise our expectations Because when we Raise Health we raise everyone Be a Health Raiser at RaiseHealth.com

RAISE VOICES RAISE HOPE RAISE HEALTH MARCH 1, 2021 | CRAIN’S NEW YORK BUSINESS | 5

ASKED & ANSWERED be able to see more affordable real estate developed for the life science sector.

INTERVIEW BY SHUAN SIM

WHO HE IS Co-founder and CEO, Longfellow

A

s co-founder and CEO of Longfellow, a life science–focused development company, Adam Sichol is overseeing a $750 million headquarters project for the New York Blood Center on the Upper East Side. This is just one of a number of such building projects on the horizon in the city. After lagging behind that of California, Massachusetts and North Carolina, New York’s life science sector is due for a boom, he says, with more development coming as startups and laboratories look to set up camp locally.

Why has New York historically lagged behind other cities when it comes to life science?

Even though the city has great institutions—Columbia University, Rockefeller University—lab developers had to fight for premium real estate with luxury residential developers. There are plenty of biotech startups that spin out of these institutions, but when they realize there is no space for them, they leave for other hubs, such as Boston or the Research Triangle in North Carolina, where that space is readily available.

What’s different now?

Things have changed in the city, especially in the past five years. The mayor and the Economic Development Corp. have focused on growing the life science industry, enacting favorable rezoning and dedicating funds

GREW UP Suffern, Rockland County EDUCATION Applied baccalaureate in economics, Hamilton College; MBA, Tuck School of Business, Dartmouth MEMORABLE PROJECT Sichol is proud of working on the adaptive reuse of two warehouses into state-ofthe-art life science research and development buildings in Durham, N.C. Longfellow collaborated with Duke University to repurpose buildings that were once used to drive the southern city’s tobacco industry into facilities used to create medicines and save lives.

RESCUE MISSION Adam trekked a mile into the woods in 3-foot snow to find his lost yellow lab, which was recovering from knee surgery.

What kind of spaces will those be?

There are certain trends for biotech and life science companies in what they need to flourish at different stages of their growth. Small ones might look for lab space of up to 15,000 square feet, and those that proceed to Series A growth will then look for space of about 50,000 square feet. The next stage up requires space of about 150,000 square feet, and so on. New York City certainly has the room to provide sites for startup and “graduation” spaces. But these places aren’t going to be located anywhere, there a few essential things needed: access to transport and access to institutions. I expect to see development nodes by Columbia University, the Genome Center in Lower Manhattan and by the New York Blood Center on the Upper East Side. Long Island City provides more room for bigger, affordable developments as well. Eventually, when these companies grow to be much larger, there’s always space in nearby New Jersey.

FAVORITE STRUCTURES Sichol is a fan of big, old industrial and manufacturing buildings in urban areas. They reflect on a city’s history, he says, and with a little imagination can be repurposed into many different uses. Plus, they always look cool.

What will be the draw of New York City in comparison to the traditional hubs?

It’s really going to be the huge concentration of talent found here. There are so many great institutions that life science startups can draw on in such a small space, and the real estate development is finally able to catch up on it. It’ll be important not to lose the momentum and keep building to retain this valuable industry. ■

to accelerator programs to encourage growth. Additionally, the demand for luxury condos has cooled a little. We should

JOI

NU SO

NW

TITLE SPONSOR

Wednesday, March 3 | 4-5 p.m.

How the Big Apple will regain its shine In the wake of 9/11, Dan Doctoroff, then deputy mayor of economic development under Bloomberg, contemplated the same issues we face today. Are cities still necessary? With the redevelopment of the World Trade Center, the High Line and Hudson Yards, among others, the answer came as a resounding yes.

Join Crain’s on March 3, when we talk to Doctoroff, now CEO of urban innovation company Sidewalk Labs, about how New York City can come back again.

Daniel L. Doctoroff, Chairman & CEO, Sidewalk Labs

RESERVE YOUR SPACE TODAY: CrainsNewYork.com/MarchBizForum For event questions: Ana Jimenez | 212-210-0739 | crainsevents@crainsnewyork.com For sponsorship opportunities: Kate Van Etten | kvanetten@crain.com

6 | CRAIN’S NEW YORK BUSINESS | MARCH 1, 2021

EDN

ESD AY

LONGFELLOW REAL ESTATE PARTNERS

ADAM SICHOL Longfellow

DOSSIER

REAL ESTATE

Here’s how real estate experts plan to lead the city to recovery

BY NATALIE SACHMECHI

A

bout a year has passed since loads of Manhattanites left town due to the Covid-19 pandemic.

But the biggest players in New York real estate aren’t giving up on the city.

Although experts aren’t sure of the short-term impact, they do agree on one thing: The real estate industry will be crucial to the city as it emerges from this dark period.

Don Peebles of the Peebles Corp., the Durst Organization’s Helena Durst, MaryAnne Gilmartin of MAG Partners and Jim Whelan of the Real Estate Board of New York are joining Crain’s at its first NY Now Summit on March 18 to share how thoughtful development, investment and public policy can ensure New York retains its status.

Real estate has taken a harder beating than most industries during the pandemic. Office buildings were purged of workers, hotels were starved of guests, and restaurants and bars were shut to patrons.

But there is a light at the end of the tunnel, Peebles said, adding that the city will see it once the

2021

COMMERCIAL REAL ESTATE RECOVERY FORECAST

economy starts to recover and left-leaning local officials change their mindsets.

“As Lew Rudin used to say: What’s good for New York City is good for New York City real estate, and vice versa,” Whelan said.

Economic engine “The real estate industry is the greatest engine driving New York City’s economy, generating more than half the city’s overall tax revenue,” Whelan added. “That fundamental point goes to the heart of what [mayoral] candidates and elected officials should be thinking about as they consider ways to strengthen our economy and ensure a strong and equitable recovery from the pandemic.”

Instead of raising taxes for the sake of raising taxes, Peebles said, officials should incentivize affordable housing, which the city needs, and create jobs for New Yorkers through new construction projects.

“You can’t threaten people with a wealth tax,” he said. “They’re going to go and take their money and businesses with them.”

Public-private partnerships between developers, investors and

DURST

PEEBLES

the city will be important to driving economic growth, Whelan said.

So far, he said, REBNY members have partnered with the Cuomo administration to identify and provide commercial space for new rapidtesting centers to help more businesses safely reopen.

The real estate trade group worked with the governor’s office to establish health and safety protocols for construction sites and worked with the Building Trades Employers Association, the Building and Con-

GILMARTIN

WHELAN

struction Trades Council of Greater New York and similar groups to develop a framework to remobilize the construction industry.

Flexible market The pandemic is forcing the industry to take a long, hard look at inclusivity, adaptability and relationships between landlords and tenants. Myriad lawsuits to cancel lease agreements with landlords and demands for payment of back rent have highlighted the need for

COVID-19 HAS had a profound effect on the commercial real estate market in New York and could have a lasting impact even after the danger of the pandemic passes. During this webcast, Crain’s and local real estate experts will examine the changes in leasing activity, including the decreased demand for office space, and the creative ways landlords are redesigning infrastructure to fit the new normal.

To register for this virtual March 18 event, visit CrainsNewYork.com/ MarchNYNSummit.

flexibility in the market.

In addition, Peebles said, it has become clearer that the industry lacks racial and gender diversity.

“Our industry will reinvent itself to be more inclusive,” he said. “I challenge other businesses to do the same.” ■

ROCK SOLID. NY STRONG. Built on Fifth Avenue, we stand in solidarity with the most resilient city in the world. Together we are strategically positioned to succeed. We are New York Strong, now and always.

Herman Miller furnished tower suites available for immediate occupancy.

New high-end move-in ready pre-builts available ranging from 2,832RSF – 6,475RSF.

100% commission paid on signing.

650Fifth.com

Barry Zeller 212.841.5913

Jonathan Fales 212.841.5989

Michael Tranfalia 212.841.5981

Pierce Hance 212.841.7641

MARCH 1, 2021 | CRAIN’S NEW YORK BUSINESS | 7

chief executive officer K.C. Crain senior executive vice president Chris Crain group publisher Jim Kirk

EDITORIAL

publisher/executive editor

As March rolls in, so do optimistic signs for the city’s anticipated recovery Another hopeful sign is that Mayor Bill de Blasio last week appointed Lorraine Grillo, longtime president of the city’s School Construction Authority, as the special adviser overseeing New York’s economic recovery.

“I’m going to refer to her as our recovery czar,” de Blasio said last Monday. “What she has to do is really pull the strands together and make sure that every week, every day, the entire city government is focused on the recovery, moving together in a coordinated fashion.”

In the role Grillo will coordinate recovery initiatives across government agencies, nonprofits and businesses. She will also work with the city’s Taskforce on Racial Inclusion and Equity to make sure recovery measures are socially just.

Grillo has a big job ahead of her. As Crain’s reported last week, a recent survey by the Brooklyn Chamber of Commerce found that roughly 80% of the 166 small businesses questioned saw a year-over-year decline in revenue in 2020, and 85% of the businesses said they laid off workers last year.

“Clearly businesses are just barely hanging on,” said Randy

NEW YORK IS TAKING BABY STEPS TOWARD A GREATER REOPENING seems prepared to bring a much-needed sense of normalcy back to the city. Covid-19 is still a force to be reckoned with, sure.

But with the number of cases trending downward and vaccination sites popping up everywhere, there’s hope that an end is finally in sight.

EDITORIAL editor Robert Hordt assistant managing editors Telisha Bryan,

Janon Fisher associate editor Lizeth Beltran art director Carolyn McClain photographer Buck Ennis senior reporters Aaron Elstein, Eddie Small reporters Ryan Deffenbaugh, Brian Pascus,

Natalie Sachmechi, Shuan Sim executive assistant Devin Cavallo to contact the newsroom:

www.crainsnewyork.com/staff 212.210.0100 685 Third Ave., New York, NY 10017-4024 ADVERTISING

www.crainsnewyork.com/advertise senior account executive Kelly Maier account executives Roland Espinosa,

GRILLO

@NYCGOV

T

here are signs that things are beginning to shift in the city.

In addition to the hastening of spring, felt in the uptick in temperatures last week, New York is taking baby steps toward a greater reopening.

Indoor dining is back in the five boroughs, and last week Madison Square Garden and the Barclays Center welcomed back Knicks and Nets fans, respectively.

Movie theaters will soon reopen their doors to patrons, and even courts will start seeing litigants again.

There are strict capacity limits for all of these, but it’s a start. After a seemingly endless winter, spring

Frederick P. Gabriel Jr.

Christine Rozmanich, Laura Warren, Tori Weil people on the move manager Debora Stein,

dstein@crain.com

Peers, president and CEO of the chamber.

Some have criticized Grillo’s appointment as being too little, too late. But we’re taking it as a step in the right direction. As Crain’s uncovered in this week’s New York Now special section (which starts on page 13), signals that the city is heading toward a rebound can be seen across industries—from the manufacturers at the Brooklyn Navy Yard to a retailer snapping up space throughout Manhattan to an area

snack maker finding success at bodegas. If Grillo can meet her charge to make sure business owners and workers from all walks of life benefit from the retooled economy, New York might even bounce back from the pandemic stronger than it ever was before.

The energy is shifting, and New Yorkers can feel it in the slightly warmer air. Last March was filled with fear and uncertainty, but all signs point to this new month starting off with the city primed for a comeback. ■

CUSTOM CONTENT senior manager, custom content

Sophia Juarez, sophia.juarez@crainsnewyork.com EVENTS

www.crainsnewyork.com/events events and marketing manager

Michelle Sustar, mstustar@crain.com manager of conferences & events

Ana Jimenez, ajimenez@crainsnewyork REPRINTS director, reprints & licensing Lauren Melesio,

212.210.0707, lmelesio@crain.com

OP-ED

New York’s green-buildings law focused more on fines than conservation

PRODUCTION production and pre-press director

Simone Pryce media services manager Nicole Spell SUBSCRIPTION CUSTOMER SERVICE

www.crainsnewyork.com/subscribe customerservice@crainsnewyork.com

BY DOUGLAS DURST

O

ne Bryant Park, one of the most efficient buildings in the world and a global model for environmental construction, will start paying $2.4 million per year in fines to New York City in 2024 for violating the city’s new emissions law. Why? Because Local Law 97 prioritizes fines over energy conservation.

Large buildings such as One Bryant Park have densely populated tenant spaces that are responsible for the overwhelming bulk of energy used in the building. Contrary to established environmental practice, the city’s law penalizes the most energy-efficient and densely occupied buildings and encourages urban energy sprawl.

More buildings with fewer people in them is inefficient.

And do the penalties that owners pay go toward producing more renewable energy or greater efficiency in buildings? No. They go

into the city’s general fund and cannot, by law, be earmarked for energy efficiency.

Thankfully, New York state recently proposed a smart fix to the counterproductive law that will both reduce carbon emissions and allow for badly needed investment in renewable energy.

Renewables Right now just 27% of the downstate region’s electricity comes from hydro, wind, solar and other renewable sources. And the city is going to become more reliant on fossil fuel-generated energy in the short term, as the Indian Point nuclear facility goes offline and we wait for new wind farms to come online. Once Indian Point goes offline, more than 90% of electricity in the city will be from fossil fuels.

We need to help existing renewable-power plants receive the investments they need to produce more energy. The main way New York does that now is through a

policy that obligates utility companies to buy renewable-energy credits from the power producers.

Recent state policy changes have provided the means for building owners to buy RECs. Private building owners, however, are not allowed to buy the credits under Local Law 97, starving the investment market and a key source of funding for renewable-energy providers.

The result might be that our renewable-energy producers will seek investment elsewhere, potentially selling their energy to New England buyers. That would be a disaster for New York’s clean-energy and climate goals.

A smarter solution is to allow real estate companies such as The Durst Organization to turn their fines into clean-energy investments, as New York state just proposed. The alternative is paying fines or reducing energy by limiting the amount of filtration and the amount of outside air that building occupants breathe.

The opening of One Bryant Park in 2010 was a proud moment for The Durst Organization. As Al Gore cut the ribbon on the first LEED Platinum-certified skyscraper, we had proven that sustainability and efficiency were not limited by size, location or use.

One Bryant Park includes a 4.6-megawatt combined heat and power plant that provides about two-thirds of the building’s energy at twice the efficiency of conventional power plants and lowers daytime peak demand by 40%.

Ten years ago, when we finished One Bryant Park, I thought its legacy would be showing the world how to build efficient skyscrapers.

Now it is much more: the source of a critical investment in our future for my grandchildren and beyond.

I hope that Albany adopts the proposal to make that green future a reality as quickly as possible. ■

877.824.9379 (in the U.S. and Canada). $3.00 a copy for the print edition; or $129.00 one year, for print subscriptions with digital access.

Entire contents ©copyright 2021 Crain Communications Inc. All rights reserved. ©CityBusiness is a registered trademark of MCP Inc., used under license agreement.

CRAIN COMMUNICATIONS INC. chairman Keith E. Crain vice chairman Mary Kay Crain chief executive officer K.C. Crain senior executive vice president Chris Crain secretary Lexie Crain Armstrong editor-in-chief emeritus Rance Crain chief financial officer Robert Recchia founder G.D. Crain Jr. [1885-1973] chairman Mrs. G.D. Crain Jr. [1911-1996]

Douglas Durst is chairman of The Durst Organization.

8 | CRAIN’S NEW YORK BUSINESS | MARCH 1, 2021

P008_CN_20210301.indd 8

2/26/21 6:11 PM

OP-ED

BY ANN KLEE

P

resident Joe Biden has signaled combating climate change will be the touchstone of his new administration—a sea change that will impact an array of policy initiatives, from energy to infrastructure.

Gov. Andrew Cuomo has doubled down on transitioning from fossil fuels to renewables to combat the climate crisis, outlining a $26 billion public-private partnership to build 100 renewable projects that pave the way to a net-zero carbon economy by 2050.

Achieving those ambitious goals requires an all-hands-on-deck approach. The construction industry can be part of the solution by working with developers and owners to reimagine the entire building life cycle and ensure sustainability is incorporated at every stage of the process, from planning, design and material selection to building operation and energy efficiency after construction completion.

According to the U.N. Environment Program, buildings and their construction account for 36% of global energy use and 39% of all

carbon emissions. Many U.S. cities and states have enacted legislation to curb greenhouse gases, but our nation is late to the game. European Union policies have focused on reducing building energy consumption and achieving nearly zero-energy buildings for years.

The Biden administration is running to catch up, pledging to invest $2 trillion toward building a new American infrastructure and clean energy economy.

on offshore suppliers contributes to this problem and causes bottlenecks in times of crisis, as clients have experienced during the pandemic.

Where feasible, the construction industry should source materials in the U.S.—which can minimize delay risks, reduce greenhouse gas emissions and create jobs.

Another key emissions-reduction tactic is just-in-time delivery of materials to project sites. Studies show idling trucks waste approximately 6 billion gallons of fuel annually. My company is optimizing design and planning at the front end—down to the smallest delivery timing detail—to lower both operation costs and carbon emissions.

Minimizing construction waste also can save clients costs and reduce environmental impact. A new commercial building generates an average of 3.9 pounds of waste per square foot of building area. Contractors should be recycling and reusing materials—which can result in less waste, fewer landfill trips and fuel savings.

Adopting a green approach to construction can deliver results for clients’ bottom lines as well as the planet. Contractors with this

Expertise The construction industry can reduce buildings’ environmental footprint by bringing expertise in design for energy efficiency and enhanced ventilation, materials selection, logistics and retrofit opportunities, and more. Some argue sustainable construction increases short-term expenses, but a true life-cycle analysis can demonstrate long-term savings for building owners.

There are even broader opportunities to make an impact, starting with the consumer supply chain, which accounts for more than 80% of greenhouse gas emissions. According to McKinsey & Co., relying

BLOOMBERG

A smart approach to construction can help achieve clean energy goals

21st-century mindset will differentiate themselves. Companies that don’t adapt will be left behind.

A green approach also can boost employee satisfaction and workforce development, particularly with environmentally conscious millennials.

This is the time for the construction industry to lead in sustainable development. It will require smart

planning, flawless execution and education across the spectrum of stakeholders to ensure the best practices pay significant dividends, both socially and financially, in the long term. ■ Ann Klee is executive vice president of business development for Suffolk, a real estate and construction enterprise.

OP-ED

Know the key facts about business-interruption policies

BY ANTHONY NATOLE

BLOOMBERG

A

key business survival tool— business-interruption insurance—remains underappreciated and shrouded in confusion despite the ravages of Covid-19.

Early in the pandemic we learned two basic facts about the insurance: Most small-business owners don’t have it, and the policies of those who do generally exclude pandemics anyway.

The result was a barrage of lawsuits against insurance carriers filed by frustrated business owners—followed by a return to relative obscurity for business-interruption insurance.

Pandemics aside, in the vast and growing realm of existential business threats—including cyberattacks, looting and power outages—business-interruption insurance is a vital risk-management tool for even the smallest business.

It sometimes is the difference between staying afloat and drowning.

Carriers, their agents and their brokers should do more to encourage widespread adoption.

Unfortunately, there is a generally poor understanding of what the insurance does. Serving as an extension to a conventional commercial property policy, it insures against the loss of revenue when a covered peril forces a business to cease operating. It enables the busi-

ness to pay its continuing—usually fixed—expenses, including payroll and mortgage. It also helps recover the profit that reasonably could have been expected. Furthermore, it covers related extra expenses, such as for temporary relocation, and it can indemnify for abnormal items, like the need for a generator.

Contingencies What if your enterprise is dependent on another business for a product or service that cannot be easily obtained from another source, and that business encounters operational difficulties? That kind of coverage is available under what’s known as contingent business-interruption insurance.

A business with such a dependency must evaluate the potential perils facing the company on which it depends. Global supply chains are a key element in any such evaluation. And if a business is inter-

connected to another enterprise online, it likely has a contingent cyber risk if there is a hack to the other firm’s system.

An important caveat about business-interruption insurance and contingent business insurance is that to make effective use of them, a small business must be able to produce financial records that prove its claims. Data management and retrieval capabilities are critical. Every aspect of the claim must be documented in order to realize the full benefits of coverage. Therefore, it’s imperative for the policyholder to ensure that it has timely access to all relevant data.

Covid-19, we must hope, is a once-in-a-century type of event.

But Hurricane Katrina and Superstorm Sandy also were thought to be in that category, and the current century is still young. Keep in mind that disasters can take all sorts of shapes and forms.

In today’s complex and volatile world, business-interruption insurance gives small businesses a chance to prepare for, and transfer, risks that threaten their long-term sustainability. It’s a tool that deserves far more consideration than it currently receives. ■

Redefining what you should expect from your accountant. grassicpas.com

Anthony Natole is the managing principal of Risk Accountants, a forensic accounting firm in Pleasantville, N.Y. MARCH 1, 2021 | CRAIN’S NEW YORK BUSINESS | 9

PEOPLE ON THE MOVE CONSTRUCTION

HEALTH CARE

Schimenti

The New Jewish Home

James Harrison joins Schimenti as Vice President, Development, responsible for delivering Schimenti’s strategic plan, focusing on frontend pre-construction services, marketing and communications, customer relationship management, and new business development. With 16 years of international experience in construction management advisory, James has reshaped and driven strategic planning and service delivery for worldclass brands such as Apple, Tiffany & Co., and Tishman & Speyer.

The New Jewish Home, a comprehensive, nonprofit health care system for older New Yorkers founded in 1848, is pleased to announce the appointment of Tanya E. Isaacs as Senior Vice President and Chief Human Resource Officer. A proven HR executive and labor relations specialist, Ms. Isaacs was most recently Executive Director of Human Resources at CUNY’s Medgar Evers College and previously served as a regional HR manager at the Mount Sinai School of Medicine.

FINANCIAL SERVICES

NONPROFIT

City National Bank

Safe Horizon

Lindsay Dunn has been promoted to executive vice president and head of Real Estate Banking at City National Bank.

Dunn, who’s been with the bank for more than 15 years, will report directly to President Richard A. Raffetto. Mark Forbes, former head of the division who has been with the bank for nearly 30 years, becomes the vice chairman of Real Estate Banking. City National has more than $75 billion of assets and opened five new offices on the East Coast in 2020.

Safe Horizon, the nation’s largest victim services agency, announced Liz Roberts as its CEO. Roberts most recently served as Safe Horizon’s interim CEO following the departure of long-time CEO, Ariel Zwang. Roberts is the agency’s fourth CEO, joining Safe Horizon in 2010 as its Chief Program Officer, then Deputy CEO. Roberts has over 30 years of experience addressing the needs of survivors of violence and abuse, having served as Deputy Commissioner at the Administration for Children’s Services.

Advertising Section To place your listing, visit www.crainsnewyork.com/people-on-the-move or, for more information, contact Debora Stein at 917.226.5470 / dstein@crain.com

INDUSTRY ACHIEVERS ADVANCING THEIR CAREERS

Recognize them in Crain’s

For listing opportunities, contact Debora Stein at dstein@crain.com or submit directly to

CRAINSNEWYORK.COM/PEOPLEMOVES

HEALTH CARE

MetroPlusHealth MetroPlusHealth announced the appointment of Lesleigh IrishUnderwood as its first Chief Brand and External Relations Officer (CBERO), reporting to President & CEO, Talya Schwartz, MD. In this new role, Ms. IrishUnderwood will be responsible for the stewardship and execution of MetroPlusHealth’s brand strategy, including product marketing, strategic communications, media relations, community and government relations, member experience, special events, and data-driven marketing innovation.

S H A R E

Y O U R

C O M P A N Y ’ S

J O U R N E Y

Feature your latest milestones, launches, partnerships, awards and more in Crain’s

For more information, contact Debora Stein at dstein@crain.com or submit directly to

CRAINSNEWYORK.COM/COTM

10 | CRAIN’S NEW YORK BUSINESS | MARCH 1, 2021

P010_CN_20210301.indd 10

2/25/21 4:20 PM

THE LIST LARGEST EXECUTIVE-RECRUITING FIRMS Ranked by number of New York–area recruiters

COVID HELPED FIRM MOVE UP A contract from the city to hire more than 1,500 contact tracers vaulted The Bachrach Group to the top of the list

TOP SPECIALTIES Most companies on the list say financial services is one of their specialties, as one might expect in New York. But technology and health care are close behind.

# of firms

FINANCIAL SERVICES 24

I

n 2014, The Bachrach Group wouldn’t have been big enough to make the top 10 on our Executive-Recruiting Firms list.

This year, however, the company took the No. 1 spot by a solid margin.

The Midtown company employed 172 New York-area recruiters as of Jan. 1, up 17% from a year ago, continuing a years-long growth streak at the company.

Granted, the No. 1 spot on the list was up for grabs as 2020 was a tough year for some companies on the list, including Green Key Resources, which was in the top spot last year. It’s local recruiting team shrunk by 34% in 2020. Thus, it’s now at No. 6 on the list.

Though 10 companies in the top 25 added local recruiters in 2020, 11 others posted declines—and the declines tended to be bigger than the increases. Thus, the number of New York-area recruiters employed by the companies in the top 25 dropped 3.5% during 2020, much of it due to the drop at Green Key. A few companies Crain’s talked to blamed the pandemic for the decline in jobs.

Though the pandemic did hurt some parts of The Bachrach Group’s business—for instance, its hospitality work dried up almost entirely—it also created an opportunity, said President Anthony Fanzo.

Shortly after the pandemic began, the company ended up winning a contract to help NYC Health + Hospitals recruit contact tracers. It ended up hiring more than 1,500 of them, Fanzo said.

That contract “led to a lot of other business for us,” through referrals and by putting the company in a better position to win jobs that require hiring lots of people. The pandemic also made it easier to recruit recruiters, given that many were looking for work last year, Fanzo said.

“We were able to get great talent that way,” he said.

— Chuck Soder

RANK

1 2 3 4 4 6 7 8 9 9 11

TECHNOLOGY/IT 23 HEALTH CARE 22 ACCOUNTING 13 05

10

-3.9%

DROP IN U.S. recruiters for firms on the list* *Among firms that submitted data for 2020 and 2021

15

20

NEW NO. 1 The Bachrach Group easily took the No. 1 spot on this year's list, but it wasn't always near the top. In 2014 it wouldn't have been big enough to make the top 10.

200

25

-3.5%

DROP IN local recruiters for firms on the list

New York-area recruiters at the firm

150

172 100 50 ’14

’15

’16

’17

’18

’19

’20

’21

SOURCE: Crain’s research

NY-AREA RECRUITERS 2021/ 2020

U.S. RECRUITERS 2021/ 2020

YEAR FOUNDED 1

% OF BILLINGS FROM RETAINED SEARCHES

COMPANY/ ADDRESS

PHONE/ WEBSITE

TOP LOCAL EXECUTIVE(S)

The Bachrach Group 1430 Broadway New York, NY 10018

212-279-7777 bachrachgroup.com

Anthony Fanzo President

172 147

232 211

1974

52% Technology, construction, engineering, financial services, accounting, real estate, human resources, hospitality, office support, manufacturing, medical, corporate services, sports, energy

Solomon Page 260 Madison Ave. New York, NY 10016

212-403-6100 solomonpage.com

Scott Page Lloyd Solomon Managing directors

139 145

195 207

1991

60% C-suite, financial services, health care, life sciences, fashion, consumer products, technology, human resources

Forum Group 260 Madison Ave. New York, NY 10016

212-687-4050 forumgrp.com

Frank Fusaro President

110 110

114 113

1974

45% Accounting, regulatory reporting, compliance, advertising and market research, human resources, information technology, health care

Atlantic Group 19 W. 34th St. New York, NY 10001

212-271-1181 atlanticrecruiters.com

John Ricco Founding partner

105 107

131 135

2006

50% Accounting, finance, tax, investor relations, quantitative analysis, information technology, health care, construction, administrative/ corporate services, payroll services

Options Group 121 E. 18th St. New York, NY 10003

212-982-0900 optionsgroup.com

Michael Karp Chief executive

105 100

112 107

1992

75% Financial services, investment banking, risk management, quantitative analysis, information technology, hedge funds, private wealth management, data science, predictive analytics, artificial intelligence, machine learning

Green Key Resources 136 Madison Ave. New York, NY 10016

212-683-1988 greenkeyllc.com

Andrew Chayut Managing partner

98 148

171 232

2004

52% Accounting, financial services, health care, pharmaceuticals, life sciences, information technology, office support, human resources, hospitality, creative, legal support

Atlas Search 1540 Broadway New York, NY 10036

212-655-5477 atlassearchllc.com

Robert Parks Peter Riccio Scott Stenzler Founding partners

86 85

87 87

2015

53% Accounting, finance, tech, creative, health care, clinical research, human resources, office and accounting support

Howard-Sloan Search 555 Fifth Ave. New York, NY 10017

212-704-0444 howardsloan.com

Mitchell Berger CEO

83 82

92 89

1957

60% Legal, financial, risk, audit, HR, publishing, IT, compliance, sales, marketing, life sciences, cannabis, real estate, data science, supply chain

Heidrick & Struggles International Inc. 1114 Sixth Ave., 24th floor New York, NY 10036

212-867-9876 heidrick.com

Elizabeth Simpson Partner-in-charge

71 2 72 2

n/d

1953

JW Michaels & Co. 441 Lexington Ave. New York, NY 10017

212-922-2844 jwmichaels.com

Jason Wachtel Managing partner

71 79

133 147

2010

Continuedtrading, on page 12 45% Legal, compliance, risk, quantitative information technology, accounting and finance, MARCH 1,front 2021 | CRAIN’S YORK BUSINESS | 11 office, human NEW resources

Korn Ferry 200 Park Ave. New York, NY 10166

212-687-1834 kornferry.com

Anthony LoPinto Managing partner, New York region and global sector leader, real estate

57 63

327 333

1970

n/d Financial services, CEO/board, consumer, life sciences, health care, technology, nonprofits

AREAS OF SPECIALIZATION

n/d Financial services, technology and services, health care and life sciences, industrial, consumer markets, energy, private equity, social enterprise

4

management, data science, predictive analytics, artificial intelligence, machine learning Green Key Resources 136 Madison Ave. New York, NY 10016

212-683-1988 greenkeyllc.com

Andrew Chayut Managing partner

98 148

171 232

2004

52% Accounting, financial services, health care, pharmaceuticals, life sciences, information technology, office support, human resources, hospitality, creative, legal support

Atlas Search 1540 Broadway New York, NY 10036

212-655-5477 atlassearchllc.com

Robert Parks Peter Riccio Scott Stenzler Founding partners

86 85

87 87

2015

53% Accounting, finance, tech, creative, health care, clinical research, human resources, office and accounting support

Howard-Sloan Search 555 Fifth Ave. New York, NY 10017

212-704-0444 howardsloan.com

Mitchell Berger CEO

83 82

92 89

1957

60% Legal, financial, risk, audit, HR, publishing, IT, compliance, sales, marketing, life sciences, cannabis, real estate, data science, supply chain

Heidrick & Struggles International Inc. 1114 Sixth Ave., 24th floor COMPANY/ ADDRESS New York, NY 10036

212-867-9876 heidrick.com

Elizabeth Simpson Partner-in-charge

1953

PHONE/ WEBSITE

TOP LOCAL EXECUTIVE(S)

n/d U.S. RECRUITERS 2021/ 2020

JW Michaels Co. The Bachrach&Group 441 Lexington 1430 BroadwayAve. New York, NY 10017 10018

212-922-2844 212-279-7777 jwmichaels.com bachrachgroup.com

Jason Wachtel Anthony Fanzo Managing partner President

71 172 79 147

133 232 147 211

2010 1974

Korn Ferry 200 Park Page Ave. Solomon New Madison York, NY 10166 260 Ave. New York, NY 10016

212-687-1834 kornferry.com 212-403-6100 solomonpage.com

Anthony LoPinto Managing Scott Pagepartner, New York regionSolomon and global sector leader, Lloyd real estatedirectors Managing

57 63 139 145

327 333 195 207

1970 1991

Russell Reynolds Associates 277 Park Ave. Forum Group New Madison York, NY 10172 260 Ave. New York, NY 10016

212-351-2000 russellreynolds.com 212-687-4050 forumgrp.com

Justin Cerilli Managing director, area Frank Fusaro manager President

53 58 110 110

202 211 114 113

1969 1974

87% Board, CEO, succession planning, leadership assessment,regulatory executive search, sustainability, 45% Accounting, reporting, compliance, digital, private advisory, diversity, advertising andequity, marketculture research, human equity and information inclusion technology, health care resources,

The Viscusi Group Atlantic Group 1185 Sixth Ave. 19 34thNYSt.10036 NewW.York, New York, NY 10001

212-979-5700 212-271-1181 viscusigroup.com atlanticrecruiters.com

Stephen Viscusi John Chief Ricco executive Founding partner

53 105 50 107

53 131 50 135

1985 2006

Career Group Cos. 1156 Sixth Ave., eighth floor Options Group New E. York, NYSt. 10036 121 18th New York, NY 10003

212-750-8188 careergroupcompanies.com 212-982-0900 optionsgroup.com

Susan Levine Chief executive Michael Karp Michael Levine Chief executive President

46 40 105 100

95 88 112 107

1999 1992

Global Research 201 E. 77th St. New 10075 GreenYork, KeyNY Resources 136 Madison Ave. New York, NY 10016

212-980-3800 globalresearchnet.com 212-683-1988 greenkeyllc.com

Richard Wolf President, chief executive Andrew Chayut Managing partner

45 45 98 148

49 50 171 232

1990

The Execu|Search Group 675 Third Ave., fifth floor Atlas Search New NY 10017 1540York, Broadway New York, NY 10036

212-922-1001 execu-search.com 212-655-5477 atlassearchllc.com

41 73 86 85

50 79 87 87

1985 2015

Coda Search/Staffing 590 Fifth Ave. Search Howard-Sloan New Fifth York, Ave. NY 10036 555 New York, NY 10017

646-407-3900 codasearch.com 212-704-0444 howardsloan.com

Lawrence Dolinko Chief executive Robert Parks Peter Riccio Scott Stenzler Founding partners David Cooperman Managing partner Mitchell Berger Chris DeGasperis CEO President, staffing

100% Furniture, architectural products, textiles, floor 50% coverings, Accounting,tile, finance, tax,lighting, investorkitchen relations, fixtures, and quantitative analysis, information technology, bath, luxury goods health care, construction, administrative/ corporate services, payroll services 60% Corporate services, real estate, accounting and marketing,banking, fashion, tech, 75% finance, Financialhospitality, services, investment risk creative, C-levelquantitative executives analysis, information management, technology, hedge funds, private wealth management, data science, predictive analytics, 100% Pharmaceuticals, insurance, artificial intelligence, machinefinancial learningservices, consumer products, consulting, waste automotive, medical devices, 52% management, Accounting, financial services, health care, hospitals, retail, global market research, pharmaceuticals, life sciences, information industrial products technology, office support, human resources, hospitality, creative, legal support n/d Hedge funds, private equity, investment accounting, healthcreative, care, legal, 53% banking, Accounting, finance, tech, health care, pharmaceuticals, technology, digital,office human clinical research, human resources, and resources, engineering accounting support

40 36 83 82

48 44 92 89

2011 1957

Glocap Search 20 W. 33rd St. Heidrick & Struggles International New Inc. York, NY 10001 1114 Sixth Ave., 24th floor New York, NY 10036 Koren Rogers Executive Search 4 W.Michaels Red Oak &Lane JW Co. WhiteLexington Plains, NYAve. 10604 441 New York, NY 10017

212-333-6400 glocap.com 212-867-9876 heidrick.com

Adam Zoia Chairman,Simpson founder Elizabeth Annette Krassner Partner-in-charge Chief executive

40 44 71 2 72 2

40 58 n/d

1997 1953

914-686-5800 korenrogers.com 212-922-2844 jwmichaels.com

Michael Koren Chief executive Jason Wachtel Managing partner

33 29 71 79

52 47 133 147

1988 2010

Spencer Stuart 277 Park Korn FerryAve. New Park York, Ave. NY 10172 200 New York, NY 10166

212-336-0200 spencerstuart.com 212-687-1834 kornferry.com

33 36 57 63

183 193 327 333

1961 1970

n/d Consumer goods and services, financial services, industrial, health care,consumer, technologylife n/d Financial services, CEO/board, sciences, health care, technology, nonprofits

Egon Zehnder 520 Madison Ave.,Associates 23rd floor Russell Reynolds New York, Ave. NY 10022 277 Park New York, NY 10172

212-519-6000 egonzehnder.com 212-351-2000 russellreynolds.com

Kristin Wait Office manager Anthony LoPinto Managing partner, New York region and global sector leader, real estate Claude Shaw Office leader Justin Cerilli Managing director, area manager

32 33 53 58

138 140 202 211

1977 1969

Wall Street Options 420 Lexington Ave. The Viscusi Group New 10170 1185York, SixthNYAve.

212-937-1045 wsollc.com 212-979-5700

Steve Fleming Founder, managing partner Stephen Viscusi

28 28 53

28 28 53

2001

viscusigroup.com

Chief executive

50

50

n/d Consumer, financial services, health, industrial, private CEO, equity,succession public andplanning, social, services, 87% Board, leadership technology communications, board, CEO assessment,and executive search, sustainability, digital, private equity, culture advisory, diversity, equity and inclusion 80% C-suite, portfolio management, sales, distribution, investor relations, accounting, 100% Furniture, architectural products, textiles, floor compliance, finance, information coverings, tile, fixtures,operations, lighting, kitchen and technology bath, luxury goods

Tal Healthcare 43 Kensico Drive Career Group Cos. Mount Kisco,Ave., NY 10549 1156 Sixth eighth floor New York, NY 10036

914-244-7100 talhealthcare.com 212-750-8188 careergroupcompanies.com

26 20 46 40

29 22 95 88

2006 1999

13% Physicians, clinicians, administrative, finance, technology 60% revenue, Corporateinformation services, real estate, accounting and finance, hospitality, marketing, fashion, tech, creative, C-level executives

Arrow Search Partners 530 Fifth Ave., ninth floor Global Research New York, NYSt. 10036 201 E. 77th

646-992-8362 arrowsearchpartners.com 212-980-3800

Lea Tal Chief executive Susan Levine Chief executive Michael Levine President Billy Merva Managing partner Richard Wolf

23 18 45

23 18 49

2018

50% Accounting, financial services, corporate office support 100% services, Pharmaceuticals, insurance, financial services,

globalresearchnet.com

President, chief executive

45

50

212-883-6800 dhrinternational.com

Jeanne Branthover Managing partner, global financial services and fintech; Lawrence Dolinko co-managing partner, New York Chief executive Frank Spencer Vice chairman and co-managing partner, New York

21 21

165

1997

41 73

50 79

1985

6 THE 7 LIST LARGEST EXECUTIVE-RECRUITING FIRMS 8 9 91 11 2 12 3 12 4 14 4 RANK

15 6 16 7 17 8 17 9 19 9 19 11 21 12 22 12 23 14 24 15 25 16

71 2 NY-AREA 72 2 RECRUITERS 2021/ 2020

YEAR FOUNDED 1

2004

1985

New York, NY 10036

1990

New York, NY 10075 DHR International Inc. 280 Park Ave. New York, NY 10017 The Execu|Search Group 675 Third Ave., fifth floor New York, NY 10017

212-922-1001 execu-search.com

n/d Financial services, technology and services, health care and life sciences, industrial, consumer markets, energy, private equity, social AREAS OF SPECIALIZATION enterprise

% OF BILLINGS FROM RETAINED SEARCHES

45% Legal, compliance, risk, quantitative 52% Technology, construction, engineering,trading, financial information technology, accounting and finance, services, accounting, real estate, human front office,hospitality, human resources resources, office support, manufacturing, medical, corporate services, sports, energy n/d Financial services, CEO/board, consumer, life health care, technology, nonprofits 60% sciences, C-suite, financial services, health care, life sciences, fashion, consumer products, technology, human resources

50% Financial services, accounting, technology, digital, risk, marketing, human resources, 60% creative, Legal, financial, audit, HR, publishing, IT, office support, life sciences, care compliance, sales, marketing,health life sciences, cannabis, real estate, data science, supply chain 65% Private equity, venture capital, hedge funds, management, investmentand banking, n/d asset Financial services, technology services, technology health care and life sciences, industrial, consumer markets, energy, private equity, social enterprise 80% Finance, accounting, legal, financial advisory technology,risk, engineering 45% services, Legal, compliance, quantitative trading, information technology, accounting and finance, front office, human resources

consumer products, consulting, waste management, automotive, medical devices, global market research, 100% hospitals, Board andretail, CEO, technology, retail, consumer, industrial productsindustrial, nonprofit, health financial services, care, infrastructure and energy funds, media n/d Hedge funds, private equity, investment and entertainment banking, accounting, health care, legal, pharmaceuticals, technology, digital, human resources, engineering

Coda Search/Staffing 646-407-3900 David Cooperman 40 48 2011 50% Financial services, accounting, technology, 590 Fifth Ave. codasearch.com Managing partner 36 44 creative, digital, marketing, human resources, New York areaNew includes York City and Nassau, Suffolk and Westchester counties in NewChris York,DeGasperis and Bergen, Essex, Hudson and Union counties in New Jersey. Crain's New York Business uses staff office research, extensive surveys and the care most current York, New NY 10036 support, life sciences, health references available to produce its lists, but there is no guarantee that the listings are complete.

Information was provided by the companies unless otherwise noted. Recruiter figures are as of Jan 1. In the case of a tie, firms are ordered alphabetically President, staffing

17 17 19

by company name. n/d-Not disclosed. 1--New York–area office. 2--Crain's estimate based on research from the company's website. Research by Chuck Soder (researcher@crainsnewyork.com).

Glocap Search 20 W. 33rd St. New York, NY 10001

212-333-6400

Adam Zoia

40

40

1997

65% Private equity, venture capital, hedge funds, asset management, investment banking, technology 80% Finance, accounting, legal, financial advisory services, technology, engineering

glocap.comMORE OF CRAIN’S Chairman, founder 44 58 WANT EXCLUSIVE DATA? VISIT CRAINSNEWYORK.COM/LISTS.

12 | CRAIN’S NEW YORK BUSINESS | MARCH 1, 2021

Annette Krassner Chief executive

Koren Rogers Executive Search 4 W. Red Oak Lane White Plains, NY 10604

914-686-5800 korenrogers.com

Michael Koren Chief executive

33 29

52 47

1988

Spencer Stuart

212-336-0200

Kristin Wait

33

183

1961

n/d Consumer goods and services, financial

2021

W

PHOTOS, BUCK ENNIS

ELCOME TO THE first of four special New York Now sections that Crain’s will produce this year to celebrate the growth and vitality of New York City as it recovers from Covid-19.

No doubt about it, New York has been a challenging place to do business in the past year. But there are businesspeople who, like us, are convinced that the city will not only survive economically but actually thrive as we move beyond the pandemic.

Some of those people are featured in our article about the Brooklyn Navy Yard. Long a hot spot for entrepreneurs and new technology, the Navy Yard has hardly missed a beat during the pandemic. Read on to find out why it is a special place for many of its tenants and why it has continued to attract companies while other commercial landlords have suffered.

You can find other examples of companies, such as Arc’teryx and Union Square Events, that have pressed ahead on expansion plans despite common wisdom to the contrary. They all say the city’s potential benefits far outweigh its risks.

We’ve also invited members of the business community to contribute ideas on how we can help one another succeed in the coming months and years.

If you are interested in reading more New York Now stories and finding out about upcoming events, visit CrainsNewYork.com/New-York-Now. — Robert Hordt, Editor

MARCH 1, 2021 | CRAIN’S NEW YORK BUSINESS | 13

PHOTOS: BUCK ENNIS

KINGS COUNTY Distillery switched from making bourbon to manufacturing hand sanitizer during the pandemic.

BROOKLYN’S BRIGHT SPOT The Navy Yard has been a cornerstone of economic development, maintaining a steady flow of new leases during the pandemic

BY EDDIE SMALL

I

n the upheaval during the initial pandemic shutdown, Kings County Distillery switched from distilling bourbon to manufacturing hand sanitizer. But one thing that didn’t change was its location: the Brooklyn Navy Yard.

“It’s industrial,” distillery founder Colin Spoelman said of the Navy Yard, where his company has been since 2012. “It’s trucks. It’s deliveries. It’s an aspect of New York City that didn’t feel that different.”

The unique spaces and layout at the Navy Yard helped the distillery shift to making hand sanitizer without having to worry about finding a new facility. That helped enable the company to hire workers from the city’s beleaguered restaurant industry. Even as the city deals with one of its most challenging real estate markets in recent memory amid the pandemic, the Navy Yard has been a rock of economic development, managing to maintain a steady flow of new leases.

“Our business got started in the Great Recession, and I do think cataclysmic cultural, economic events shake the ground a little bit, and people find opportunities to do the thing that they’ve always wanted to do,” Spoelman said. “And the Navy Yard is a great place to do business.”

Businesses that have signed leases at the Brooklyn waterfront campus recently include design consulting company Smart Design, which took 21,100 square feet of space; scenery manufacturing company 14 | CRAIN’S NEW YORK BUSINESS | MARCH 1, 2021

Daedalus Design & Production, which took 35,000 square feet; and luxury interior remodeling company Gallery Kitchen & Bath, which took about 3,100 square feet.

“We really wanted to make sure that we were making the right long-term decision for us,” Gallery CEO Aaron Popowsky said. “And what that long-term decision ended up meaning was they allowed us to take a slightly smaller space than we had originally signed the lease for.”

Although Covid-19 has drastically altered

New York’s office market, the Navy Yard’s basic pitch to prospective tenants has not changed, President and CEO David Ehrenberg said. It is still focused on the extraordinary resurgence of—and the talent base in—the borough, he said.

“We see more and more companies moving to the yard because they understand that,” Ehrenberg said. “They understand that the future of New York is concentrated here— the young talent and next generation of leadership is concentrated in Brooklyn and Queens—and they want to be a part of it.”

Record-high vacancy New York’s office market has seen a smattering of good news during the pandemic, even as companies rethink how much and what type of office space they need amid widespread working from home.

Some major leases have still gone through— most notably Facebook completing its deal for 730,000 square feet at Vornado’s Farley Building—and many in the industry are hopeful that Mayor Bill de Blasio’s an-

nou star help B roug reco amo drop mill

AMERICAN PAPR General Manager Daniel Weisman said the Navy Yard feels more like a partner than a landlord.

“WE REALLY WANTED TO MAKE SURE THAT WE WERE MAKING THE RIGHT LONG-TERM DECISION”

T

ndi-

nd hat re—

d

me. h— al y

TARFORM Motorcycles is moving to a larger space at the Navy Yard.

nouncement that remote city workers will start returning to their offices in May will help spur a comeback for the sector.

But for now the overall picture is still rough. Manhattan’s office vacancy rate hit a record high of 14.9% in January, and the amount of square feet leased that month dropped from about 3.6 million to 1.9 million year over year, a Colliers report

found.

Part of the reason behind the Navy Yard’s continued strength in this environment is the type of companies it works with, Ehrenberg said. Their business models tend to require a significant amount of physical space, so it is not easy or practical for them to switch to a model where all of their employees work from home.

“There is certainly more hesitancy in companies waiting and seeing,” Ehrenberg said, “but we have not lost any deals that we were working on where, all of a sudden, they decided, ‘We can work entirely remotely.’ ” Steiner Studios Chairman Doug Steiner, whose company is expanding its presence at the Navy Yard, added that the type of space firms can get there is extremely different from what they would find at many other places in the city.

“It’s not conventional Class A corporate office space,” he said. “It’s much more of what modern companies want, which is funky and hip and with character.”

The Navy Yard is in the middle of its biggest expansion since World War II, and multiple companies that have recently signed leases there cited the physical space as an appealing factor.

“They really wanted a place that would inspire the staff and the clients to come to the studio,” Jared Bruder, marketing director at Smart Design, said of his colleagues who scouted the location. “When they walked in, they were just inspired by the breathtaking proportions of it.”

American PAPR, a protective equipment manufacturer, recently leased about 4,500 square feet on the campus, and the company similarly praised the space, particularly the expansion opportunities it offered.

See NAVY YARD on page 23 MARCH 1, 2021 | CRAIN’S NEW YORK BUSINESS | 15

BUCK ENNIS

NY business execs optimistic about city’s recovery

SURVEY SAYS

Nearly 75% believe New York will bounce back, but majority believe it may not happen until ’22 or ’23

85

%

BY BRIAN PASCUS

PERCENTAGE OF those with office jobs working from home full- or part-time right now

57

%

PERCENTAGE OF respondents opposed to a ‘millionaires tax’ to help pay for city budget deficits

N

early 75% of business executives in the New York metropolitan area expect the city to fully recover from the Covid-19 pandemic.

The optimism showed up in a Crain’s online survey of more than 300 owners and executives across all industries of New York’s commercial landscape, with organizations ranging from small businesses to major corporations.

“I am optimistic, yes, because New York is the center of the universe,” said Barry Litt, managing partner at Tower Insulating Glass LLC. “They’ve got to get the city back open.”

Only 9% of those surveyed are pessimistic enough to believe New York will not recover to where it stood before the pandemic hit.

“The city has always come back,” said Edmund Taylor, chief operating officer of a real estate private equity company in Midtown. “I don’t see why it won’t be attractive to tourists and businesses, but it will be a bumpy twoto-three years.”

Taylor is not alone in his estimate. Few believe it will happen overnight. Of those who say New York is set to recover its prior position, the vast majority—65%—are split between believing the recovery will occur in 2022 and 2023. Only 1.6% expect to see a full recovery this year, while one-third of those surveyed think the full recovery will take place sometime after 2023.

“We’ve never been compounded by several emergencies at one time,” explained Jeffrey Wiesenfeld, a wealth manager who is a former aide to Gov. George Pataki. “We never had a situation where hundreds of thousands left simultaneously, a pandemic, and completely inept political leadership.”

Return to the office One of the most important indicators in determining New York’s recovery is the return of workers to their offices.

Nearly 78% of those surveyed believe that most workers will be able to return to their of-

LOOKING FORWARD TO A RECOVERY If you believe New York’s economy is going to recover, when will the recovery be complete?

7.86% Later than June 2022

If given your preferences, would you like to: 27.99% Work in the office all the time

4.09% June 2021

11.01% June 2022 34.28% Sometime after 2023

16 | CRAIN’S NEW YORK BUSINESS | MARCH 1, 2021

‘Vicious circle’ Stein argued that Covid-19 costs may force the state to raise taxes, but that will in turn drive out the high earners who are already responsible for the highest percentage of the tax base.

“I don’t know how they will cover that gap, but it will be a vicious circle here of taxes getting higher and those who can afford to pay leaving,” he said.

But there is firm agreement on the importance the Metropolitan Transportation Authority and its subway system have in maintaining New York’s recovery, as 69% of those surveyed said it is important that the system bring back all of the riders it had prior to the pandemic.

Overall, a tone of optimism was struck among those asked about the future of New York. A full 60% of respondents said they have not moved out of the city because of the pandemic; only 14% said they had and 26% didn’t live in the city before the pandemic hit. Of those living in the city, the vast majority— 66%—said they hadn’t even considered moving out the city.

“No, we didn’t consider leaving,” said Mark London, executive vice president for systems at LDG Lighting and Design Group. “I’ve been working pretty much throughout the pandemic, going to job sites and dealing with construction issues. My adult son even moved back from Minneapolis because he could work remotely.” ■

What do you most look forward to seeing fully reopen in NYC? 1.57% Tourist landmarks like Empire State Building, Statue of Liberty, etc.

3.77% Museums

30.82% Sometime in 2022

33.33% Sometime in 2023

“It just feeds on itself,” he said. “It’s confidence. It’s all those little things.”

Almost 32% of those surveyed most look forward to Broadway and other entertainment venues re-opening.

“I miss the in-person of the theater,” said Wiesenfeld. “I think most people do.”

In order to sustain New York’s recovery from the pandemic, a majority believes a “millionaires tax” shouldn’t be imposed to help pay for the city’s various budgeting and fiscal shortfalls: 57% are against such a tax and 43% are in favor.

A VAST MAJORITY of the 318 readers in a Crain’s survey last month believe the city will fully recover from the pandemic. Here are some other survey results:

When do you think most workers will be able to return to their offices?

1.57% Sometime in 2021

fices between June 2021 and January 2022.

Eleven percent believe workers will return by June of 2022, and only 8% of respondents assume the return to work will begin after June of next year.

Of those surveyed who have office jobs, 85% are currently working from home all or part of the time, a statistic that underscores just how prevalent the new telecommuting standard has become for the business community.

“People have learned they don’t have to work in an office,” explained real estate attorney Joshua Stein, principal at an eponymous law firm. “We’ve been hearing for 20 years about the decline of the office, but I think everybody working from home for the year— and very effectively—has driven home the message that people can do this.”

The working-from-home dynamic that has allowed many businesses to continue operating during the crisis may be here to stay. If given a choice, 59% said they’d like to split their time between home and the office, 28% said they’d prefer working in the office full time and 13% said they’d like to work from home all the time.

“Some businesses are finding if they can reduce their footprint in the city, then it’s a lot less expensive,” explained Litt. “It will change the commercial real estate industry, but change is inevitable— look at retail. Covid-19 only sped up that change.”

But when New York does fully reopen, business leaders are excited to engage in two main cultural staples: eating out at restaurants and going out on the town, mainly Broadway, movie theaters and concert venues.

Nearly 46% of those surveyed stated that the single thing they most look forward to is seeing restaurants reopen fully in the city.

As a Midtown resident, Taylor described the restaurant and theater scene of New York as critical to establishing a “virtuous circle” of recovery, where opened restaurants will bring people back into the office, who will in turn go out to lunch and visit local merchants and stimulate small business activity.

38.68% January 2022

38.36% September 2021

58.81% Split my time between the office and home

4.09% Sports venues such as Madison Square Garden, baseball stadiums, etc.

31.76% Broadway, movies, concert venues

46.23% Restaurants 13.21% Work from home all the time

8.49% Offices 3.46% Stores

0.63% Hotels

CN020129.indd 1

2/24/21 11:34 AM

Union Square Events focuses on growth despite the pandemic Continues building out a commissary kitchen in Sunset Park’s Industry City

BY CARA EISENPRESS

O

n West 28th Street, where Union Square Events had prepared food for various functions since 2005, the employees—400 of them preCovid-19—would squeeze between boxes of supplies to eat lunch.

When clients arrived for tastings, production in the main kitchen would have to pause to make room. There was a sense of isolation incumbent to being on the Far West Side of Manhattan, a lack of creative energy despite being part of a 20-location restaurant group and working with sports arenas, event venues, museums and private clients around the city.

In 2019 the events branch of Danny Meyer’s Union Square Hospitality Group sought a bigger site, and in early 2020 it completed a

“GOING THROUGH A ...

PROJECT LIKE THIS DURING THE PANDEMIC ... IS HARD” 15-year lease for a 70,000-square-foot space on 41st Street in Sunset Park’s Industry City.

Union Square Events, led by company President Tony Mastellone, planned to build out the blank box into a commissary kitchen that would support the company’s growth and illustrate its corporate ideal of putting people, both customers and employees, at the center of its work.

RIGHT RECIPE

It also made social distancing and When pandemic restrictions on-site safety easier to implement. eradicated huge segments of its Meanwhile, Mastellone was unbusiness, reducing the workforce covering new business. The food to 55, the company nonetheless company devoted kitchen space to kept the project alive, eventually helping the nonprofit ReThink Food adapting it to accommodate new NUMBER OF prepare meals to donate to people lines of business discovered employees in need. during the health crisis. MastelUnion Square During the holiday season, emlone expects the headquarters to Events has kept ployees fulfilled orders for at-home open during the summer. on during the dinners, sold through ReThink’s “We saw this as the key to our pandemic website and in partnerships that infuture,” Mastellone said. “We had cluded Social Studies, a startup that all the plans, the funding, the rents festive table settings. space.” Still, he conceded: “Going Manhattan-based Goldbelly, an through a construction project like e-commerce retailer that ships this during the pandemic, with no SQUARE FEET, dishes from restaurants all over the end date in sight, is hard. And anyspace the events country, has become an important one who says they didn’t have a caterer is leasing partner. second thought would be lying.” in Industry City Not only does Union Square Union Square Events left Events now prepare and ship favorits old home early and rented a temporary space on 35th Street, also ite dishes from its own restaurants, such as in Industry City, which made it easier to the mushroom lasagna from Gramercy Tavvisit the in-progress headquarters. In- ern and barbecue fare from Blue Smoke, it dustry City offered the company a produces and co-packs meals created by cemonth-to-month lease for about one- lebrities and celebrity chefs for Goldbelly.

To keep the prepared food safe, the compathird the cost of its Manhattan location, which gave the construction timeline ny decided to add more cold-room space at its new headquarters. The cold room will more flexibility.

“We didn’t have to have this build-out in 90 double as a food-safe storage area for inflight or 120 days,” Mastellone explained. “So we meal production, which will restart when had the ability to have an orderly process in travel picks up.

Consulting work, already part of the busieach phase of the operation where the contractors didn’t have to double up on one an- ness, also stayed constant.

“That’s been very busy,” Mastellone said, other, and you didn’t have those crunches where one trade had to come in on top of an- “but I’m not totally surprised, because the true entrepreneurs are looking to make other trade.” moves now to set up for when the curtain goes up” and the world reopens.

Mastellone said the group recently had designed the food hall and amenity spaces at a soon-to-open building. It also helps companies create on-site dining programs and hires staff or management companies for them. For its clients, a tasting kitchen is being built outside the main production area.

55

70K

BUCK ENNIS

Part of the community

MASTELLONE said getting more space for operations was key to the company’s future.

18 | CRAIN’S NEW YORK BUSINESS | MARCH 1, 2021

It overlooks the waterfront and is a space, Mastellone said, where cooks and clients can “dream up food together.”

The president of the commissary kitchen, who is originally from Brooklyn, said he already feels like part of the culinary and creative community in the borough, and specifically at Industry City.

To contribute, Union Square Events is planning to offer space and coaching to local entrepreneurs who want to start food businesses, and to recruit employees from Sunset Park.

As the headquarters progresses toward opening, Mastellone hopes to see enough government support to make sure that the small businesses that are Union Square Events’ partners and vendors, from florists to fishmongers, survive.

“They are all supporting our virtuous cycle of hospitality,” he said.

When sports are up and running, when events come back, when the city feels opened, Mastellone plans to bring back all of his employees too. ■

Where some retailers close, others see opportunity

Canadian outerwear company grabs three new locations as leasing prices drop

BY CARA EISENPRESS

ARC’TERYX'S new store at 139 Fifth Ave. is one of three new locations in the city.

of 2019 and the fall of 2020, according to figures from the Real Estate Board of New York. On Bleecker Street, another location, the drop was 9% for the same period; on Columbus Avenue on the Upper West Side, its third location, it was 3%.

More stores possible Although there were challenges, especially in the training of store managers, which usually takes place in North Vancouver, the results “have been awesome,” Cheesbrough said, adding that more New York stores are a

BUCK ENNIS

C

ovid-19 has not deterred Canadian-based Arc’teryx, a design-focused retailer of outerwear, from opening three locations in the city.

In fact, it may have helped, as falling demand brought down leasing prices.

“New York is so important for us in the U.S. and on a global stage,” said Megan Cheesbrough, Arc’teryx’s vice president for retail excellence. “We’ve known that we wanted to expand our retail growth here for a while, and we really leaned into that strategy in 2020 because of Covid.”

To make it work, Cheesbrough tweaked its usual strategy. Typical Arc’teryx stores take nine months to a year to build. But Cheesbrough began tracking down smaller spots— about 1,200 square feet or half the size of an existing flagship store on Spring Street in Soho. The company looked for prime locations that were “as clean as possible,” where construction of purposely rustic plywood dividers and displays would take just three or four months, she said.

Because of businesses closing, such spaces suddenly seemed abundant.

Cheesbrough declined to comment on the lease terms, but the average asking price per square foot near the retailer’s new Fifth Avenue location dropped by 22% between the fall

possibility.

The company judges the new locations by their ability to bolster the city’s market as a whole, including e-commerce sales, sellthrough at wholesale partners and engagement on local social media channels, rather than by individual store sales or foot traffic.

Growth in all channels has been aided by New Yorkers’ desire now for warm outerwear for outdoor socializing.

“People are finding ways to get outside and connect to nature,” Cheesbrough said. “It doesn’t have to be scaling Everest, it can be walking through Central Park.” ■

Snack maker trying to get into New York market—one bodega at a time The city looms large in CEO's plans to grow her company

BY CARA EISENPRESS

door to bodegas and small independent supermarkets to pitch Whisps to owners.

“When you go into a New York City store, you make your sale, and you are in that one store versus a retailer with 500 stores,” Fischer said. “It’s a much less efficient sales process but still super important.”

I

Adding staff FISCHER

BUCK ENNIS

lana Fischer believes in New York, and that’s why she’s determined to operate her snack company in the Big Apple.

Fischer is the CEO of Whisps, which makes the packaged snack of the same name.

The snack is made from one ingredient— cheese. Whisps was originally made by Schuman Cheese, a Fairfield, New Jersey-based cheese maker and importer, where Fischer led the innovation team that figured out how to develop and market this single-ingredient product. It tasted like junk food but felt more like how people wanted to eat—a “better for you Cheez-It,” she calls it.

An investment firm teamed up with Fischer in 2019 and bought Whisps. She moved the office to New York and began hiring for positions in social media, finance, digital and marketing until she had a 33-member team.

“There’s an amazing amount of talent in the city,” Fischer said.

Door-to-door sales Fischer moved the company's headquarters through a series of increasingly large WeWork spaces before landing at one in the South Street Seaport, which she has held onto, although at the moment almost everyone works remotely.

She plans to bring her small but growing

team back to her WeWork office when all the members are vaccinated. In addition, she’s using this year to get the cheese snacks into the majority of New York’s thousands of small independent markets, which requires slow-going, door-to-door sales tactics.

A lack of presence in New York, Fischer ex-

plained, is a big hole in her market.

“You can walk a few blocks in New York City without finding Whisps for sale,” she said, “and that’s what we want to change this year.”

That will be the job of a dedicated sales representative. That person will go door to

Up until now, Whisps’ distribution strategy has been to go after major national accounts such as Walmart to grab shelf space at more than 65,000 retailers across the country.

E-commerce is a growing channel, especially robust among New Yorkers who are comfortable buying food online.

As the door-to-door New York sales plan proceeds, Fischer expects to add five to 10 people to the team and bring everyone back into the office, perhaps with a little more flexibility to work at home than before.

But she wants to be in New York precisely because she wants to be around the kind of innovation and energy she believes you can only find in the city.

“When you’re in New York around all these companies, even if they’re not in your industry, seeing how they don’t accept the status quo as a given, it’s very inspiring,” she said. “It allows you to say, ‘I know that’s how it’s always been done, but what if we did it differently?’” ■ MARCH 1, 2021 | CRAIN’S NEW YORK BUSINESS | 19

OTHER VOICES

“THE REGION MUST NOW MOVE TO POSITION ITSELF TO RECLAIM ITS PLACE IN THE POST-COVID GLOBAL ECONOMY”

NEW YORK CITY WAS one of the early epicenters of both the Covid-19 pandemic and its public health and economic fallout.

As the nation’s commercial center and an international business and tourism hub, New York has been particularly vulnerable to the pandemic’s economic disruptions.

With the widespread distribution of vaccines likely only months away, New York’s business leaders ED COX must step forward to guide the city’s swift recovery.

They must recommit to being part of its civic fabric for the long haul.

Having already experienced nearly 29,000 deaths and witnessed the potential for sudden spikes in cases over the past two months, New York cannot take lightly the risks of this disease and the enormous and continuing economic toll on the region’s workers and employers.

An employment recovery that started during the spring and accelerated in the summer appeared to PHIL FRIEDMAN stall during the fall. In mid-December, roughly nine months from the start of the crisis, the unemployment rate in the metropolitan statistical area—at 8.4%—ranked it 353 out of 389 MSAs nationwide. That rate was 5 percentage points higher than a year earlier and a little more than 1 percentage point lower than the highest level experienced at any point in prior recessions in the past 30 years. Within the five boroughs, the December unemployment rate remained even higher, at 11.4%.

While there is little doubting its resilience and continuing vitality as a unique gathering place for top talent and as a magnet for opportunity, the region must now move to lessen suffering and hardship and position itself to reclaim its place in the post-Covid global economy. The business community needs to play a leading role in this effort and can do so by taking four steps.

First, it can join with other civic actors in rallying New Yorkers to adhere to public health practices and undertake necessary sacrifices that will constrain the virus before widespread vaccine deployment.

New Yorkers are facing the pandemic together, so cooperation for the common good is essential.

Employers can strongly encourage their employees and their customers to maintain compliance with health and safety recommendations or requirements, such as wearing masks and avoiding large gatherings, and can provide information and leadership to address reluctance to get vaccinated.

Second, business leaders can create safe work environments that

BLOOMBERG

NEW YORK’S RECOVERY NEEDS BOLD LEADERSHIP FROM OUR BUSINESS COMMUNITY

draw employees back to in-person work, providing an economic boost to surrounding businesses. Although some individuals will be unable to return in person until the pandemic is over—because of their own health vulnerabilities or those of household members— others will want to return earlier if it can be done safely. Taking safety measures and clearly communicating with employees as risks change will help workers make sound decisions and provide an acceptable alternative to working from home among those who have the option.

Third, business leaders should be vocal about the regulatory changes or flexibility they need to take advantage of innovations or changes in business practices that would allow them to operate successfully and safely amid Covid-19, including those that could be durable improvements post-pandemic. Even allowing for business leaders’ self-interest, policymakers and regulators should be eager to tap the creativity of the region’s entrepreneurs in setting and updating rules to safeguard public health while helping spur economic recovery.

Finally, business leaders can advocate for prioritizing public investment in economic opportunity—including reliable school and child care services, universal broadband access and safe public transportation options—that will aid the New Yorkers most economically at-risk in the pandemic.

The New York region’s business leaders have long been one of its sources of strength—particularly in the face of adversity. New York must fully leverage that strength if it hopes to make a rapid and broad-based recovery. ■ Ed Cox is a retired partner at Patterson Belknap Webb & Tyler LLP. Phil Friedman is the president and CEO of Computer Generated Solutions, a software company. Both are trustees of the Committee for Economic Development of the Conference Board and co-chairs of the Reopening NYC Task Force.

OTHER VOICES

BUCK ENNIS

THE PANDEMIC HAS been an equal opportunity scourge, ravaging the financial health of cities around the U.S., but none has suffered more than New York.

The Big Apple’s precarious financial condition shows up in a recent report from the think tank Truth in Accounting, which places New York at the bottom of a list of 62 cities in trouble. That makes it hard to buy into overly optimistic predictions about a rapid economic comeback for the city.

Before 2020 New York City was the envy of cities around the world its seemingly endless ability to attract visitors because of its plenVIJAY DANDAPANI for tiful and richly diverse culture. With nearly 67 million annual tourist arrivals a little more than a year ago, New York City was a magnetic destination like no other. That gusher of tourism spawned more than $7 billion in taxes for the city in 2019; that figure was projected to reach nearly $10 billion in five years.

But beginning in March the city saw those dollars evaporate overnight, tipping New York and its tens of thousands of businesses, including more than 700 hotels, into an abyss.

The currently comatose hotel industry cannot do much to alleviate the city’s macro-economic problems in the near or medium term. But it is uniquely positioned to restore much of the economic and cultural luster that the Big Apple is famous for in the long term.

That would require some pressing short-term policy decisions, however, to preempt a death spiral that is underway for some of the city’s hostelries while embracing a more enlightened and far-reaching approach to the industry for the longer term.

The city’s hotels saw a dizzying revenue loss of nearly $9 billion in 2020. The resultant loss of real estate, occupancy and sales taxes lopped off more than $1.5 billion from the city’s coffers. Restoring that essential flow of taxes that do not come from city residents is going to require avant-garde thinking from policymakers.

A good place to begin is to acknowledge that the best disaster-recovery policies are those that take the long view, with measures that are spread over a five- to 15-year horizon. It wouldn’t be helpful to formulate policy based on current conditions. The long view

20 | CRAIN’S NEW YORK BUSINESS | MARCH 1, 2021

would require recognizing certain enduring truths about humans, such as their fundamental resiliency with a capacity to make short-term adjustments (Zoom, dining in the cold and the like) while in the long run reverting to essential sociological behavioral norms. These include in-person meetings for business and pleasure once the acute risk has passed.

The long view would include a pathway to ensure New York returns to its worldwide perception as a place with myriad attractions that are safe and clean. If there is one wish that policymakers can grant to the besieged hotel industry, it would be to provide a safe and clean environment. The 1990s and the 2000s saw tremendous tourism growth because the perception of New York as a safe place was indelibly implanted in the minds of prospective visitors around the world.

Safety and cleanliness cannot be overstated and are nonnegotiable for a restoration of the city’s thriving tourism economy.

At a more granular level, it will require a critical, fresh look at the regulations and tax incentives that preceded the pandemic and those that were instituted as a reaction to it.

Government policy should recognize the extensive workplace adjustment already afoot in terms of more digitization, which need not necessarily translate into jobs lost, a reflexive and understandable reaction. A good example is the widespread use of Quick Response codes by restaurants when they were allowed to reopen. Not only did the codes serve to maximize safety, but they also provided data that restaurants and hotels could use for marketing options.

The hotel industry historically has been nimble because of its inherently short and ephemeral business horizon. The pandemic has spurred hotel professionals to seek solutions via technology and changed service protocols to minimize costs while they await the gradual resumption of business. ■

Vijay Dandapani is the president and CEO of the Hotel Association of New York City.

BUCK ENNIS

PROVIDING A SAFE AND CLEAN CITY WOULD BE A GOOD START TO BRINGING TOURISTS BACK

SPONSORED CONTENT

Let’s Join Forces to Improve the Whole Health of New Yorkers and Our Beloved City

By Alan J. Murray, President and CEO, Empire BlueCross BlueShield

As business leaders in New York City, we have the remarkable opportunity to lead New York’s revitalization as we start to reopen and rebuild. Each of us has a distinct role to play. As a healthcare leader, I feel tremendous responsibility.

Today, I’m excited to ask you – my peers: how can we come together to improve the health of New Yorkers and of our City?

The question is two-fold – but for me, it starts with our people. At Empire BlueCross BlueShield, we are on a mission to materially and measurably improve the health of all New Yorkers. We set out on this mission in 2018, before the pandemic, but as New York City quickly became the epicenter, we realized the profound significance of our mission.

to include: up to 80 hours of COVID-19 Paid Emergency Leave, installation and monthly internet service fee reimbursement for hourly employees and virtual wellbeing resources. More broadly, during the height of the pandemic we built our COVID Post-Acute Care (CPAC) program to reach New Yorkers in need. Through CPAC, we identified nearly 2,000 members hospitalized with COVID-like symptoms and called them to offer a helping hand. This program gave us an opportunity to go beyond the medical side of recovery, and also focus on the emotional and behavioral side of recovery. We have more than 80 years of history working with New Yorkers, and as the City’s largest health insurer, we support more than four million members and more than 38,000

We see this mission come to life every day – in the way we do business, the way we support our employees, the way we celebrate others and the way we put New York first. I’d like to share some examples of our work, and I hope they will inspire ideas as you think about the role your business plays.

Doing Business: Simply put, New Yorkers come first. As part of our mission, we look at all the ways we can simplify healthcare for New Yorkers. That’s why, for example, we simplified our network strategy to offer fewer commercial networks, each with distinct benefits, making it easy for businesses and their employees to pick coverage based on their unique needs. It’s also why we added community outreach initiatives to our renewed agreement with Montefiore Health System. In addition to our usual ways of doing business with Montefiore, we will now collaborate to deliver health events, a partnership to support nutrition services for at-risk populations and a mobile health unit to deliver essential testing and screening focused on improving the health of the community.

Supporting Employees: We support our employees, and more importantly, employees across New York City – possibly even yours – with their healthcare needs. Internally, we expanded benefits over the last 12 months

CN020130.indd 1

We have one mission.

Empire is here to materially and measurably improve the whole health and well-being of all New Yorkers.

Every. Single. One.

© 2021 Empire. Services provided by Empire HealthChoice HMO, Inc. and/or Empire HealthChoice Assurance, Inc., independent licensees of the Blue Cross and Blue Shield Association. Serving residents and businesses in the 28 eastern and southeastern counties of New York State.

business, union and small employers in New York. We’ve been through ups and downs together, and what we can tell you is that New Yorkers are resilient, and this City will come back stronger than ever.

Celebrating Others: In times of crisis, New Yorkers step up. The truly heroic acts of people across this City inspired us to recognize those who went above and beyond. It was an honor and privilege to work with Crain’s and recognize 50 Empire Whole Health Heroes, and I hope we’ll continue to find ways to celebrate and recognize the ongoing work New Yorkers are putting in to address the evolving needs of our communities.

Within these stories I found not only inspiration, but also firm examples of how we as New Yorkers can step up with innovative thinking to support one another.

Putting NY First: New York is a destination for world-class innovation, and it’s imperative that we work together to keep it that way. Recently, Anthem, Inc., parent company to Empire, launched the Anthem Digital Incubator and has plans to open an Incubator location in New York City in the future. The incubator matches our knowledge and resources with invited, highpotential digital healthcare companies to help bring their products to the market and improve the health and wellbeing of consumers. We’re proud to see New York at the forefront of this program.

Crain’s New York Business announced the New York Now program to promote the growth and vitality of New York City’s economy. This program calls on us – New York City’s businesses – to partner with Crain’s to give New York the champion our City needs to come out even stronger on the other side.

At Empire, we proudly say that we are New Yorkers taking care of New Yorkers, and I know many of you share this sentiment with me.

We have partnered with Crain’s New York Business on New York Now because we recognize the importance of stepping forward to help revitalize New York City in this time of need. Now, please join us in our mission to improve the health of New Yorkers and let’s get to work.

—AJM

2/25/21 6:05 PM

OTHER VOICES

COVID-19 HAS ONCE AGAIN LAID BARE THE UNDERLYING RACIAL INJUSTICES AND DISPARITIES WITHIN OUR CITY

NEW YORK’S OBITUARY has been written many times before, and every time we’ve proved the haters, the doubters and the people who just couldn’t hack it here wrong.

Or so we like to think.

The reality is more complex.

Yes, we overcame the 1970s fiscal crisis, thanks to strong civic leadership and investment from the private sector. Yes, we weathered the of Superstorm Sandy and are now MELVA M. MILLER devastation more resilient. And, yes, we rebuilt stronger in the face of terrorists on 9/11.

But this narrative is only true for some. For millions of our fellow New Yorkers, largely in Black and brown communities, the comeback never fully occurred because true equity and inclusion were never there to begin with.

Covid-19 has once again laid bare the underlying racial injustices and disparities within our city. Disproportionate rates of infections and death; lack of access to health care, housing and economic opportunity; and economic devastation—an estimated two-thirds of job losses have been suffered by people of color—are today’s reality in New York City.

As we think about economic recovery and a pathway forward in responding to health disparities and racial injustice, one thing is clear: We will not be successful if we simply get “back to normal.” Normal has not been working for too many New Yorkers for too long.

We need to ensure a recovery that benefits all New Yorkers, and that includes the people who need to benefit the most from an equitable recovery in its planning, implementation and oversight.

For starters, there are a few priorities. We must beat back the pandemic, the key to which is vaccine adoption. We need a distribution system that makes it easier for all communities to access the vaccine. We need to build trust and overcome vaccine hesitancy, which our research shows is highest in minority communities.

Beyond health care, we need the economic recovery to be equitable. Targeted support for small businesses and workforce development is key. In New York, 98% of businesses are small, and many of the people they employ live in the communities most affected by the coronavirus. Historically, entrepreneurship has meant opportunities for equality and equity and a vehicle out of poverty for many communities of color—and we must support small businesses in these communities.

Some ideas to begin considering: 1. an increase in targeted grant programs and no-interest loan funds; 2. legal assistance and lease support; 3. skills-building and job-placement programs with real career trajectory positions that ensure middle-class salaries; and 4.

BLOOMBERG

ENSURING A RECOVERY FOR ALL NEW YORKERS

pandemic-related reopening and operational support for businesses in local neighborhoods. All of these will help provide equitable access to resources that support a robust, diverse business community in New York.

Finally, we must advance policies that address long-term inequities. We must understand why the pandemic has ravaged certain communities more than others and advance policies that tackle those entrenched inequities so we can avoid the same fate in the future.

We are confident New York will recover. And it will be stronger than before. Now let’s just make sure that this is true for all residents. ■ Melva M. Miller is the chief executive officer of the Association for a Better New York.

OTHER VOICES

WINSTON CHURCHILL SAID, “Don’t let a good crisis go to waste.” And, indeed, the crisis of our lifetime is here. The question is, what are we going to do about it?

Before the coronavirus, New York City was home to more than 25,000 restaurants, bars and nightclubs that employed 325,000 people. The Big Apple was world renowned as the ANDREW RIGIE “Restaurant Capital of the World” and the “City That Never Sleeps.”

In the past year the pandemic has ravaged our city, and accompanying government restrictions closed our restaurants and nightlife venues. Thousands of eating and drinking spots shuttered permanently as a result, and countless more are teetering on the edge of survival. The industry shed more than 140,000 jobs, leaving New Yorkers from all walks of life unemployed.

Some triage has been taken to help save the industry.

After indoor dining was shut down, City Council Speaker Corey Johnson and I co-authored an op-ed on these pages, explaining how to reimagine our streets to support the restaurant industry. Shortly thereafter Mayor Bill de Blasio announced the Open Restaurants program, which allowed the 11,000 restaurants that participated in it to transform sidewalk and curb space by setting up tables and chairs to serve customers outdoors. It temporarily returned 100,000 jobs to the industry, and New Yorkers, who had been in lockdown for months, emerged to eat,

22 | CRAIN’S NEW YORK BUSINESS | MARCH 1, 2021

drink and socialize in a socially distant and safe manner.

The revitalized streets that had been filled with only the lights and sirens of ambulances welcomed back the voices of our neighbors and the flavors of our favorite cuisines. The lights in our storefronts returned.

While not all levels of government have provided adequate support to restaurants during the pandemic, the city has enacted policies, Open Restaurants among them, that are praiseworthy. They include suspending enforcement of personal liability guarantees in small-business leases, capping sky-high third-party delivery fees, and focusing on compliance inspections first and levying fines as a last resort. These policies show that our city’s prepandemic reputation of treating restaurants like a personal piggy bank and leaving them caught in a bureaucratic web need not be our destiny.

Eating, drinking and socializing are woven deeply into our city’s DNA, so I have no doubt our restaurant and nightlife industry will be central to our city’s renaissance and usher in a Roaring ’20s in the 21st century.

For now, the most urgent fight continues to be ensuring these vital businesses receive adequate support from all levels of government until we reach the light at the end of the tunnel. Once we do, we must rebuild an even more robust and vibrant small-business community that creates

BUCK ENNIS

GETTY

RESTAURANTS NEED CONTINUING SUPPORT FROM ALL LEVELS OF GOVERNMENT

opportunities as diverse as the hospitality industry’s workforce.

We can, we will, and we must succeed.

Today’s crisis has given us momentum to correct prepandemic problems and rebuild a more supportive, fair and equitable business climate for the city’s restaurants and nightlife. The mayor, members of the City Council, their successors in 2022 and all policymakers must seize the moment and not let this crisis go to waste.

Cheers. ■ Andrew Rigie is the executive director of the NYC Hospitality Alliance.

NAVY YARD

303 BROOKLYN NAVY YARD

“The Brooklyn Navy Yard checked off the key boxes,” said Daniel Weisman, American PAPR’s general manager. “We would be able to build out a space that would allow us to meet demand. We looked at it as more of a partnership versus a traditional tenant type of standpoint.”

Ehrenberg hopes to establish the Navy Yard as the prime destination for hardware-centric firms and, to that end, cited the leases from Smart Design and Daedalus as particularly exciting. Smart Design has devised products for major companies including Gatorade and Ford, and Daedalus specializes in manufacturing scenery for Broadway shows that have included Hamilton and Dear Evan Hansen.

Although Ehrenberg acknowledges that the Navy Yard has some inherent advantages in the current office leasing environment that aren’t always available at more standard Midtown buildings, he still expects the city’s office market in general to rebound and does not see universal remote work outlasting the pandemic itself.

“Companies will create some more flexibility,” he said, “but the importance of a central office and those connections to build corporate culture I don’t think have gone away by any stretch of the imagination.”

BUCK ENNIS

FROM PAGE 14

very far, he said.

“I’ve grown up and lived through times like 9/11 and the financial crisis—all times where people left the city for completely different reasons,” Popowsky said. “What I’ve learned

“THE BROOKLYN NAVY YARD CHECKED OFF THE KEY BOXES”

New York or nowhere After the pandemic threw a wrench into Gallery’s expansion plans, the company did consider looking at space outside of the five boroughs for its new office, said Popowsky, the company’s CEO. Those conversations, however, did not get

through those times is that this stuff doesn’t last forever.”

Smart Design never even considered looking at space outside of New York, said Bruder, the company’s marketing director. He described the company as “a New York

City–committed organization” that was always dead set on establishing its new office in the five boroughs.

The amount of activity at the Navy Yard may be unusually high for the pandemic, but Ehrenberg maintained that leasing would resume in the rest of the city soon enough.

He views the challenges facing New York as temporary and predicts that the pending return of its nightlife and cultural institutions in particular will help bring people back in droves.

“This talk of an existential challenge to New York is almost laughable, and in a year from now, people are going to be flooding back to the city,” he said. “The talent will be attracted by these amenities, and the companies will make sure that they’re where the talent is. They always have.” ■

VIRTUAL EVENT | EARLY BIRD PRICING TILL MARCH 10

NYC’s Commercial Real Estate Recovery Forecast Covid-19 has had a profound effect on the commercial real estate market in New York City and could have lasting impact even after the danger of the pandemic passes.

During this webcast, Crain’s and local real estate experts will examine the changes in leasing activity, including the decreased demand for office space and the creative ways landlords are redesigning infrastructure to meet a new normal.

Thursday, March 18 | 4-5 p.m.

Speakers

Helena Rose Durst

Principal, The Durst Organization

MaryAnne Gilmartin Founder & CEO, MAG Partners LP

Don Peebles

Chairman and CEO, The Peebles Corporation

James Whelan President, REBNY

Moderator: Natalie Sachmechi, Reporter: Commercial Real Estate, Crain’s New York Business

Register today at www.crainsnewyork.com/MarchNYNSummit For event questions: Ana Jimenez | 212-210-0739 | crainsevents@crainsnewyork.com For sponsorship opportunities: Kate Van Etten | kvanetten@crain.com SPONSORED BY:

MARCH 1, 2021 | CRAIN’S NEW YORK BUSINESS | 23

Advertising Section

CLASSIFIEDS

To place a classified ad, Call 212-210-0189 or Email: jbarbieri@crainsnewyork.com

FORECLOSURE AUCTION

UCC ARTICLE 9 FORECLOSURE AUCTION

Glen Falls DB Developer LLC. Arts. of Org. filed with the SSNY on 11/16/20. Office: New York County.

SSNY designated as agent of the LLC upon whom process against it may be served. SSNY shall mail copy of process to the LLC, c/oDuvernay + Brooks, 2095 Broadway, Ste 404, New York, NY 10023. Purpose: Any lawful purpose.

Bid Deadline: April 5 Auction Date: April 12

Bellport & Yaphank Long Island, NY

The following 4 entities each own industrial land: SRG Horseblock IV LLC SRG Horseblock II LLC SGD Group Holdings II LLC SGD Group Holdings III LLC TOTAL

PUBLIC & LEGAL NOTICES

41.04 Acres 4.89 Acres 6.07 Acres 5.13 Acres 57.12 Acres

ATOM CARES LLC, Arts. of Org. filed with the SSNY on 01/13/2021. Office loc: NY County. SSNY has been designated as agent upon whom process against the LLC may be served.

SSNY shall mail process to: The LLC, 303 Fifth Avenue, Ste 1205, NY, NY 10016. Reg Agent: Ganga Mukkavilli, 303 Fifth Avenue, Ste 1205, NY, NY 10016. Purpose: Any Lawful Purpose.

• L-1 Zoning, which permits various light industrial uses • Located on northside of Horseblock Road • Located less than 3 miles south of the LIE • Long Island Railroad along the northern border

KEEN-SUMMIT CAPITAL PARTNERS LLC (646) 381-9222 • Keen-Summit.com

PUBLIC & LEGAL NOTICES Notice of Formation of MONIR ARTS LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 01/12/21. Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served.

SSNY shall mail process to M. Nader Ahari, 200 Park Ave. South, Ste. 1608, NY, NY 10003. Purpose: Any lawful activity.

Notice of Formation of Bluebird Capital LLC, Articles of Organization filed with Secy. of State of NY (SSYNY) on 3/19/19. Office location: NY County.

SSNY designated as agent upon whom process may be served and shall mail copy of process against LLC to 1562 First Ave, #205-2089 NY, NY 10028. /A: US Corp Agents, INC 7014 13th Ave, #202, BK, NY 11228. Purpose: any lawful act.

Notice of Formation of COMMUNITYPOLICE RELATIONS FOUNDATION OF NEW YORK, LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 0 1/13/21. Office location: NY County.

SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c /o Corporation Service Co., 80 State St., Albany, NY 12207-2543. Purpose: Charitable entity.

2496 Amsterdam LLC, Arts of Org. filed SSNY 11/05/20. Office: NY Co. SSNY design agent of LLC upon whom process may be served & mail to c/o Yeshiva University, 500 West 185th St., Belfer Hall Ste. 1001, NY, NY 10033. General Purpose.

Notice of Qualification of VEKOMA CAPITAL ADVISORS, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 02/04/21. Office location: NY County. LLC formed in Delaware (DE) on 01/15/21. Princ. office of LLC: 3 Peter Cooper Rd., 3A, NY, NY 10010. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Corporation Service Co., 80 State St., Albany, NY 122072543. DE addr. of LLC: 251 Little Falls Dr., Wilmington, DE 19807.

Cert. of Form. filed with DE Secy. of State, 401 Federal St., #4, Dover, DE 19901. Purpose: Hedge fund.

Notice of Formation of The Law Office of Samer Yahyawi, PLLC. Arts. of Org. filed with Secy. of State of NY (SSNY) on 01/13/21. Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: 888 Main St., Ste. 123, NY, NY 10044. Purpose: to practice the profession of Law. Glen Falls DB LLC. Arts. of Org. filed with the SSNY on 11/16/20. Office: New York County. SSNY designated as agent of the LLC upon whom process against it may be served. SSNY shall mail copy of process to the LLC, c/o Duvernay + Brooks, 2095 Broadway, Ste 404, New York, NY 10023.

Purpose: Any lawful purpose.

SUSHI LAB LLC, Arts. of Org. filed with the SSNY on 02/16/2021. Office loc: NY County. SSNY has been designated as agent upon whom process against the LLC may be served.

SSNY shall mail process to: The LLC, 132 W 47th St, NY, NY 10036. Purpose: Any Lawful Purpose.

Notice of Qualification of Fintech Meetup, LLC. Authority filed with Secy. of State of NY (SSNY) on 01/15/21. Office location: NY County. LLC formed in Delaware (DE) on 01/11/21. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: 605 3rd Ave., 26th Fl., NY, NY 10158. Address to be maintained in DE: Registered Agent Solutions, Inc., 9 E. Loockerman St., Ste. 311, Dover, DE 19901. Arts of Org. filed with the DE Secy. of State, 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: any lawful activities.

Notice of Qualification of STORY VENTURES MANAGEMENT, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 01/19/21. Office location: NY County. LLC formed in Delaware (DE) on 10/24/18. Princ. office of LLC: 50 W. 17th St., 2nd Fl., NY, NY 10011. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC at the princ. office of the LLC. DE addr. of LLC: Corporation Service Co., 251 Little Falls Dr., Wilmington, DE 19808-1674. Cert. of Form. filed with DE Secy. of State, Div. of Corps., 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: Any lawful activity.

Notice of Qualification of PRIVATE EQUITY V GP LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 01/11/21. Office location: NY County. LLC formed in Delaware (DE) on 01/04/21. Princ. office of LLC: 9 W. 57th St., 12th Fl., NY, NY 10019.

SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c /o Summit Rock Advisors, LP at the princ. office of the LLC. DE addr. of LLC: c/o Corporation Service Co., 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, 401 Federal St. - Ste. 4, Dover, DE 19901. Purpose: Investments.

Notice of Formation of CLOUD NINE HOLDINGS, LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 01/12/21. Office location: NY County. Princ. office of LLC: 483 Tenth Ave., NY, NY 10018. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC at the addr. of its princ. office. Purpose: Any lawful activity.

HOCNYCO LLC has filed Articles of Organization filed with Secretary of State of New York (SSNY) on 1/18/2019. Office location: New York. SSNY is designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: 355 South End Ave, #3B, New York NY, 10280. Purpose: any lawful act or activity.

Notice of formation of SEAPORT SNAK NYC, LLC. Arts of Org filed with Secy of State of NY (SSNY) on 1/8/21. Office location: NY County.

SSNY designated as agent upon whom process may be served and shall mail copy of process against LLC to: 130 Barrow St., #511, NY, NY 10014 . Purpose: any lawful act.

Notice of Qualification of PEG COINVESTMENT FUND L.P. Appl. for Auth. filed with Secy. of State of NY (SSNY) on 01/11/21. Office location: NY County. LP formed in Delaware (DE) on 10/29/20. Duration of LP is Perpetual. SSNY designated as agent of LP upon whom process against it may be served. SSNY shall mail process to Corporation Service Co. (CSC), 80 State St., Albany, NY 12207.

Name and addr. of each general partner are available from SSNY. DE addr. of LP: CSC, 251 Little Falls Dr., Wilmington, DE 19808. Cert. of LP filed with DE Secy. of State, Div. of Corps., Townsend Bldg., 401 Federal St., Dover, DE 19901. Purpose: Any lawful activity.

Notice of Qualification of CONNECT CCC, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 01/13/21. Office location: NY Cou nty. LLC formed in Delaware (DE) on 07/29/19. Princ. office of LLC: One Park Ave., Ste. 1412, NY, NY 10016.

SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c /o Corporation Service Co., 80 State St., Albany, NY 12207-2543. DE addr. of LLC: 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, 401 Federal St., #4, Dover, DE 19901. Purpose: Residential ISP Provider.

Notice of Qualification of TOWER ENTERPRISES GROUP LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 01/11/21. Office location: NY County. LLC formed in New Jersey (NJ) on 12/30/20. Princ. office of LLC: 256 W. 36th St., 8th Fl., NY, NY 10018. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC, 61 Reservoir Ave., Apt. 2, Jersey City, NJ 07307. Cert. of Form. filed with State Treasurer, 33 W. State St., Fifth Fl., Trenton, NJ 08646. Purpose: Any lawful activity.

Notice of formation of Limited Liability Company name:Walker 9, LLC Art. Of Org. Filed Sec. of State of NY 06/07/2017. Off. Loc.: Richmond Co. SSNY designated as agent upon whom process against it may be served. SSNY to mail copy of process to The LLC, 209 Granite Ave Staten Island NY. Purpose: Any lawful act or activity NOTICE OF FORMATION OF MID-TOWN EAST DISTRIBUTING LLC. Articles of Organization filed with Secretary of State of NY (SSNY) on 01/19/2021.

Office location: New York County.

SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail a copy of process to: The LLC, 216 East 45th St. Suite 1302, New York, NY 10017.

Purpose: any lawful activity.

NOTICE OF FORMATION NXTTHING RPO, LLC Articles of Organization filed with the Secretary of State of New York (SSNY) on October 21, 2020. Office location: NEW YORK County. LLC formed in Ohio on Mach 22, 2019.

SSNY has been designated as an agent upon whom process against it may be served. The Post Office address to which the SSNY shall mail a copy of any process against the LLC served upon him/her is: 28 Liberty Street, New York, NY 10005. The principal business address of the LLC is: 7298 Upper Clarenton, Drive South, New Albany, Ohio 43054. Ohio address of LLC is: 7298 Upper Clarenton, Drive South, New Albany, 0hio 43054. Certificate of LLC filed with Secretary of State of Ohio located at: 22 North Fourth Street, Columbus, Ohio 43215. Purpose: any lawful act or activity.

NOTICE OF QUALIFICAITON of HVPF MANAGER II, LLC. App. For Auth. filed with Secy of State of NY (SSNY) on 01-06-21. Office location: New York County. LLC formed in Delaware (DE) on 01-15-20. SSNY is designated as agent of the LLC upon whom process against it may be served. SSNY shall mail a copy of any process to: 28 Liberty Street, New York, New York 10005. DE address of LLC: c/o 1209 Orange Street, Wilmington, DE 19801. Articles of Org. filed with DE Secy of State, 401 Federal Street, Ste 3, Dover, DE 19901. Purpose: any lawful activity.

SUBMIT YOUR BUSINESS CLASSIFIEDS TODAY Get your message in front of New York’s influential business community with Crain’s New York Business - Classified Ads Advertising Section

To place a classified ad, Call 212-210-0189 or Email: jbarbieri@crainsnewyork.com 24 | CRAIN’S NEW YORK BUSINESS | MARCH 1, 2021

P024_P025_CN_20210301.indd 24

2/25/21 4:15 PM

AWARD CATEGORIES: n DIVERSITY CHAMPIONS n EMERGING LEADERS n TOP D&I OFFICER n BOARD HEROES n CIVIC DIVERSITY HEROES Crain’s first Excellence in Diversity and Inclusion Awards will celebrate New York City individuals and businesses that lead by example and hold themselves and others accountable for diversity-and-inclusion initiatives.

Join Crain’s in our commitment to celebrate diversity and cultivate a culture of belonging when you nominate a business professional or organization today for the awards program.

Finalists will be recognized June 21 in a special issue. Winners will be announced at an awards reception in July and recognized in an issue appearing the week after the event.

NOMINATE TODAY: CrainsNewYork.com/Nominations Deadline to nominate: March 12

CN020132.indd 1

2/26/21 9:17 AM

BROKERS FROM PAGE 3

Virtual mania

DAGAN GOSE

One of the biggest shifts for brokers during the pandemic has been a heavier reliance on Zoom, Peek and similar technologies, as safety regulations have curtailed in-person showing options. Seeing a property virtually as opposed to in person has now become a common first step for potential clients, multi-

The pandemic has prompted businesses across the board to re-

think their office needs, and residential real estate is no exception. Douglas Elliman has MEDIAN PRICE shrunk its office for home sales in footprint by althe Hamptons most 20%, and Corcoran is moving its headquarters, putting a greatREDUCTION in er emphasis on office space by flexible office Douglas Elliman space for parttime commuters.

Both companies anticipate giving their brokers the option of coming into the office, rather than requiring them to make the commute five days a week.

“Our agents will come back when they need to come back and when they need to do something,” Durkin said, “as opposed to the office being the anchor it once was.”

At Brown Harris Stevens, some employees have started to return to the office, according to CEO Bess Freedman. Although she predicted it will be another year before a sense of normalcy more fully returns to the industry, she said offices will continue to play a significant role at the company, which does not plan to close any of its branches.

“Office space will serve a very big purpose for us in residential real estate because it’s where people come together.

They share information,” Freedman said. “You’re professional when you show up in the office. You’re an amateur when you’re at home in your pajamas Zooming.”

The appeals of working remotely are likely to fade for agents who are serious about selling and renting properties in the city, Mandelbaum said. If they intend to make a career out of New York real estate, living in the city is an important part of that, he said.

“If they really want to do this on a full-time basis,” he said, “I don’t think they’re going to want to be based outside of the city.” ■

relaunch the beloved institution in 2021. While the specifics of where and when are still being finalized,

the plan has one goal in mind: to bring shopping joy to Century 21’s faithful, local customers.” ■

MANDELBAUM, leaned into remote working from Jamaica

$1.4M 20%

SUSIE MANDELBAUM

Agent Joseph Covington of Real New York left the city for North Carolina for about two months last year but returned in late July. Although virtual tours have been a big part of his work, he maintained that in-person showings still have a place despite the pandemic, as people generally won’t be content with solely virtual tours when making a decision as big as where to live.

“When they are confident to meet in person, it gives them a sense of normalcy,” Covington said, “and it also gives us a sense of normalcy.”

But viewing properties virtually as a first step will likely stick around even in a post-pandemic world, according to Corcoran CEO Pam Liebman. People will still need to see the places where they want to live in person before closing a deal, but the quality of online touring options has increased significantly, and this will help them stay appealing even after in-person tours become easier again, she said.

RISE AND FALL

ple brokers said.

“People are happy to start their search digitally, online. And then, if something piques their interest in the city, they’ll come in for a day or two,” said Cindy Scholz, a Compass broker who relocated from the city to Long Island. “It’s not like people are going out and touring properties every weekend, like it used to be in the city. Open houses aren’t really a thing anymore.”

LYDON moved to Florida when the pandemic struck.

Scholz said that these days it is actually more important for her to have a physical presence in the Hamptons than to have one in the city. Although Manhattan sales got off to a strong start this year, the city spent much of last year dealing with plummeting rents and a record number of apartment vacancies. Meanwhile, the Hamptons enjoyed an almost 16-year record high of 803 home sales during the fourth quarter, along with a record median purchase price of $1.4 million, according to a Douglas Elliman report.

Broker Ken Mandelbaum of Brown Harris Stevens spent much of the past year working from Vermont, Long Island and Jamaica.

He has seen the virtual-first dynamic play out with several of his listings. Many potential buyers start out by doing FaceTime tours of properties, he said. They don’t even try to show up in person until much later in the process, he added. In one recent example, a shopper from San Francisco was considering a Dumbo property.

“He didn’t come until the very last minute, and then liked what he saw after having done all the due diligence,” Mandelbaum said. “He did

purchase it after one visit to the city.”

That dynamic in particular is likely to last, according to Corcoran Chief Executive Pam Liebman.

People will still need to see the places where they want to live—in person—before closing a deal, she said. But the quality of online touring options has increased significantly, she noted, and that will help

“IT’S EASIER TO SUBMIT AN EMBARRASSING OFFER WITHOUT SEEING AN AGENT” them stay appealing even after in-person tours become easier.

Informal open houses might not survive the pandemic, however.

“I think it becomes more of a curated open house, with potential buyers being vetted,” Liebman said, “not this Sunday afternoon activity of just hitting up people’s apartments because you’re curious or you had nothing to do after brunch.”

Office space

RETAIL & APPAREL

BY MATTHEW EUZARRAGA

D

iscount department store Century 21, a New York institution before declaring bankruptcy in the fall, plans to reopen.

The Gindi family, which owns the 13-store chain in the city and beyond, plans not only to bring the store back but also to expand nationally and internationally, company President Marc Benitez said last Tuesday during a news conference with Mayor Bill de Blasio.

“Some New York icons are spe-

cial to us, and one of them is the legendary department store Century 21,” de Blasio said. “After bearing the brunt of the pandemic, we mourned when we heard they would no longer be around, but they are making a true New York City comeback.”

Brooklyn roots The 60-year-old store, which first opened in Brooklyn, became famous for offering designer goods at discount prices. It became loved by New Yorkers and tourists alike.

The retailer is no stranger when it

26 | CRAIN’S NEW YORK BUSINESS | MARCH 1, 2021

comes to rebuilding. The flagship store in Lower Manhattan was closed for months after 9/11 because of needed repairs.

Although there is no official timetable describing when the company will restart operations, the city remains its top priority, it said.

“Never count out a New Yorker,” the retailer posted on its website.

“In response to the outpouring of love from the Big Apple and the admiration of their loyal shoppers from around the world, Century 21 stores announced they will officially

BLOOMBERG

Century 21 is planning a comeback this year

REBUILD FROM PAGE 1

Budget Office .

“A decade of employment growth was wiped out in two months last year,” she said. “It will take a long time to get back.”

More than 900,000 people—a fifth of the city’s private- and public-sector workforce—lost jobs in the weeks after the economy locked down. Some went back to work when businesses flickered back to life in the summer and fall, but the city ended the dismal year with 569,000 fewer jobs. Even if the economy recovers nicely, Lowenstein believes, by 2025 New York City will still fall 43,000 jobs shy of its pre-pandemic peak.

Waiters, hotel clerks, DJs, jazz crooners and violin players all may have to wait until tourists return in substantial numbers before many of them see another paycheck, whereas white-collar workers can continue to toil away as needed from home.

“Lockdown was the most uneven economic event ever,” said James Parrott, director of economic and fiscal policies at the New School’s Center for New York City Affairs.

“The pandemic has changed the

way a lot of businesses operate, and that adds to labor market upheaval.”

JOB LOSSES IN 2020 The city ended the year with 569,000 fewer jobs, a 12% decline in the workforce.

Downsizing space The high and mighty are also struggling to adjust to the brave new world.

Last week global bank HSBC said it would need 40% less office space in the future. An executive explained that a world with less rent and business travel provides “opportunity to create a lower sustained cost base.”

Two years ago Valley Bank entered into a contract to sell its 269,000-square-foot headquarters in Wayne, N.J., because 150,000 square feet seemed enough for its workforce of 1,000. With bankers showing they work productively from home, now 125,000 is sufficient.

“These aren’t hypotheticals; they’re real numbers,” Chief Executive Ira Robbins said.

Still, he’s optimistic not too many will follow his example. With the government pouring trillions into the economy, Robbins thinks enough drops from the gusher will end up in the hands of firms willing to pay for a New York address.

“Nobody envisioned 10 years ago that Amazon would be a major tenant in the city,” he said.

HOTELS 151,100 40% RESTAURANTS AND BARS 131,000 41% PROFESSIONAL SERVICES 90,100 11% EDUCATION AND HEALTH SERVICES 71,800 7% RETAIL 39,000 11% PERFORMING ARTS 32,700 70% FINANCE 28,300 6% AMUSEMENT 21,700 67% REAL ESTATE RENTAL AND LEASING 10,600/8% MUSEUMS 5,000/36% 0

50K

100K

150K

200K

SOURCE: Moody’s

For now employers are still paying New York taxes even if their employees have scattered, and the city’s finances are better than anyone dared hope for when the quarantine began. Wall Street had a great year, which helps the city immensely because although securities firms account for just 5% of jobs, they account for 20% of wages paid in the city. That cash sustains the livelihoods of lawyers, accountants, real estate agents, personal drivers and many others.

City tax revenues should decline by a modest $1.2 billion this year, to $61.7 billion, according to the IBO. After that, collections are expected to rise steadily thanks to rising incomes and a recovery in tourism.

For that hopeful outcome to pan out, a lot hinges on how quickly people feel the city is a safe place to work and have fun.

If schools reopen fully in the fall, Robbins estimates, half of commuters will return to their Manhattan offices.

The fun part of the equation de-

pends on live performances and sports returning, while the safety part depends on crime levels and how long it takes memories of mobile morgues to fade.

“I’m confident there’s pent-up demand,” Lowenstein said. “But it could take a while.”

In Washington Heights, home to more foreign-born residents than any other neighborhood, Petrushka Bazin Larsen opened her second

Sugar Hill Creamery ice cream parlor Oct. 31. Her husband questioned whether it was wise to open heading into winter during a pandemic, but Bazin Larsen countered that people like ice cream all year.

She now plans to soon open the shop seven days a week instead of five.

“Not many stop by for a cone in this weather,” she said. “But they do take a pint home.”

Further uptown, developer Lloyd Goldman years ago unveiled plans to build a shopping mall where once stood the 3,500-seat RKO Coliseum. It’s not clear if the idea is viable anymore, considering how dramatically shopping habits have changed in the past year, with more people shopping online. A call to Goldman’s firm, BLDG Management, wasn’t returned.

There is reason to be hopeful, though, as the vacant space appears to be an active construction zone. This past week three excavators were seen shoveling around the rubble. ■

steps in the right direction, but more help is needed “to keep the lights on,” DiNapoli said.

More than 60% of arts and entertainment companies in the city

received loans from the federal Paycheck Protection Program. A new federal relief package provides $15 billion nationally for shuttered live venues. ■

SHARESE ANN FREDERICK

“NOBODY ENVISIONED THAT AMAZON WOULD BE A MAJOR TENANT IN THE CITY”

CONTAGION was the last movie to play at the RKO Coliseum.

The key recovery metric: how many of the 350,000 unemployed in arts, leisure and hospitality get called back. Hotel and restaurant workers often are immigrants. Their rising prosperity was the city’s most important economic success story until Covid-19 took over the plot.

A pint for the road

ENTERTAINMENT

BLOOMBERG

N

ew York City’s worldfamous museums, sports arenas and entertainment venues are slowly coming back to life. But the sector has contracted dramatically under the pressure of the Covid-19 pandemic, according to a report from the state comptroller’s office.

Jobs in arts, entertainment and recreation fell by 66% last year from 2019, the largest decline among the city’s economic sectors, erasing a decade of gains in what was one of New York’s most vibrant industries, the report said.

The city business district that includes Chelsea and Midtown was the hardest-hit area, accounting for 46% of all New York arts, entertain-

ment and recreation jobs.

“The Covid-19 outbreak has had a profound and negative impact on the industry,” Comptroller Thomas DiNapoli said last week in a statement. “It has forced facilities to close, thrust thousands into unemployment and pushed businesses to the brink of collapse.”

Still stunted Before the pandemic, the city drew 67 million tourists each year to take in Broadway shows, Yankees games and Madison Square Garden concerts, generating $70 billion worth of economic activity.

Last month Gov. Andrew Cuomo took steps to reopen movie theaters, amusement parks, sports arenas and other venues at limited capacity, but job growth and tour-

ism remain stunted.

As of Feb. 4, 59% of arts and entertainment businesses and 63% of sports and recreation venues in New York City had shut down altogether since the beginning of March 2020, according to software and business-services provider Womply.

Arts, entertainment and recreation in the city accounted for 93,500 private jobs at 6,250 establishments in 2019, the comptroller said. More than half of the workers are men, and 56% are white, compared with 50% of the city’s workforce who are men and 35% who are white.

Direct relief from the federal government, as well as state and local programs to create safe venues for artists and entertainers, are

BLOOMBERG

Two-thirds of the city’s arts and culture jobs are gone

MARCH 1, 2021 | CRAIN’S NEW YORK BUSINESS | 27

T:10.875" S:10.25"

It’s more than a bank account. It’s the tools to help get your business up and running.

The new Chase Business Complete Banking℠ account

Start taking card payments anytime, anywhere in the US with QuickAccept using the Chase Mobile® app. Plus, receive same-day deposits at no extra cost.

SM

Learn more at chase.com/business-complete-banking

QuickAccept is available in the Chase Mobile® app on select devices and not in US territories.

Enrollment required. Usage subject to approval. Message and data rates may apply. Sameday deposits available for payments before 8pm ET Sunday–Friday. No cost for same-day deposits, but rates and fees apply for checking and processing. Deposits limits, verification, fraud monitoring, and other restrictions of WePay terms of service may apply. Participants compensated. Merchant services are provided by Paymentech, LLC and WePay Inc., subsidiaries of JPMorgan Chase Bank, N.A. Member FDIC. ©2021 JPMorgan Chase & Co.

CN020095.indd 1

1/27/21 4:56 PM

T:14.5"

S:14"

Summer & Kam Johnson Owners, Zach & Zoë Chase for Business customers