Jones Lang LaSalle
BUILDING HOPE FOR AILING TIMES
By JANET WHITMAN
June 21, 2006 -- As the New York Times continues to struggle amid weak advertising demand, business is looking up in a surprising corner: real estate.
The Gray Lady's much-maligned splurge on a new Midtown headquarters is proving a winning bet, the Times' two top execs boasted yesterday at a conference sponsored by the Newspaper Association of America.
"I'm happy to report - I know this may come as a shock to most of you - the headquarters is actually turning out to be an attractive financial investment," said Len Forman, chief finanical officer of the Times.
The building, located on Eighth Avenue between 40th and 41st streets, is slated to open on time and under budget, he said. Also, with the real estate market heating up, the company now has an investment worth considerably more than the $600 million it plunked down for the first 28 floors of the 52-storey tower. "We'll be looking at ways to realize the gains once the building is completed," Forman said.
Executives added that a series of layoffs over the past 18 months has freed up at least four floors that the company plans to rent out. That would amount to more than 125,000 square feet for lease in a "very, very hot Midtown real-estate market," Forman said.
Times Chief Executive Janet Robinson said the property is so hot that About.com staffers will be staying in their less expensive downtown location, rather than moving into the new building.
The Times, which will get its name on the building, will own and operate the bottom floors, while developer Bruce Ratner will own the top floors.
Workers at the Gray Lady are slated to move into the new building in the spring of 2007. The old location on 43rd Street - home to the flagship paper since 1913 - was sold to Tishman Speyer Properties in 2004.
In New York Stock Exchange trading yesterday, shares fell 19 cents to $23.41.
BUILDING HOPE FOR AILING TIMES
By JANET WHITMAN
June 21, 2006 -- As the New York Times continues to struggle amid weak advertising demand, business is looking up in a surprising corner: real estate.
The Gray Lady's much-maligned splurge on a new Midtown headquarters is proving a winning bet, the Times' two top execs boasted yesterday at a conference sponsored by the Newspaper Association of America.
"I'm happy to report - I know this may come as a shock to most of you - the headquarters is actually turning out to be an attractive financial investment," said Len Forman, chief finanical officer of the Times.
The building, located on Eighth Avenue between 40th and 41st streets, is slated to open on time and under budget, he said. Also, with the real estate market heating up, the company now has an investment worth considerably more than the $600 million it plunked down for the first 28 floors of the 52-storey tower. "We'll be looking at ways to realize the gains once the building is completed," Forman said.
Executives added that a series of layoffs over the past 18 months has freed up at least four floors that the company plans to rent out. That would amount to more than 125,000 square feet for lease in a "very, very hot Midtown real-estate market," Forman said.
Times Chief Executive Janet Robinson said the property is so hot that About.com staffers will be staying in their less expensive downtown location, rather than moving into the new building.
The Times, which will get its name on the building, will own and operate the bottom floors, while developer Bruce Ratner will own the top floors.
Workers at the Gray Lady are slated to move into the new building in the spring of 2007. The old location on 43rd Street - home to the flagship paper since 1913 - was sold to Tishman Speyer Properties in 2004.
In New York Stock Exchange trading yesterday, shares fell 19 cents to $23.41.
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