June 21, 2007 by jack petrie.

The Great Idea

FACT: In the mind of most CEOs there’s a lofty idea brewing. However, research studies show that, if introduced, the CEO believes his or her idea will create chaos in the organization because staff and management aren’t prepared to execute lofty ideas. As a result, many CEOs spend time putting out fires and resolving problems, instead of executing their greatest ideas.

As a leader, is chaos something you want to get rid of as soon as possible? Have you become an expert at putting out fires or do you spend most of your time doing what you do best? The greatest leaders have a mindset and tools to navigate their organizations through change or chaos. More importantly, they can identify opportunities in chaos and make certain their people remain focused on fulfilling their vision — that great idea.

CEO “Chaos” Workshop

On July 25^th, Turnaround Investment Partners (TIP) invites you to join a workshop specifically designed for CEOs. In this interactive workshop, you will learn what distinguishes great CEOs from the average. You will develop practices and understand why leaders who intentionally create problems for their people to solve are more effective at driving innovation and accelerating revenue growth when compared to CEOs who solve problems.

In this workshop, leaders develop the mindset, skills and competencies for effectively navigating their enterprise through change and chaos. They also learn tools to create a clear vision, as well as the strategies to empower their people to fulfill the vision.

About Turnaround Investment Partners

TIP, a professional management firm, is leading this workshop. Our experience as CEOs and executives of Fortune 500 corporations has allowed us to design a leadership model based on the mindset, tools, skills, and competencies of extraordinary leaders.

Our clients develop abilities that are equivalent to “Ace” airplane pilots who successfully fly planes through hurricanes. Their ability to handle problems, disruptions and chaos differentiates them from other pilots. As the CEO and pilot of your organization, come acquire tools which will empower you to differentiate yourself and your company.

Cosponsored by CresaPartners

This event is cosponsored by CresaPartners, an international corporate real estate advisory firm that exclusively represents tenants/space users and specializes in the delivery of fully integrated real estate services. With 47 North American offices, CresaPartners is one of the largest pure tenant representation firms in the U.S. and Candada. www.cresapartners.com

This 4-hour workshop is limited to 20 CEOs. To register, call: (888) 471-3660 or register online at: www.turnaroundip.com

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June 14, 2007 by jack petrie.

I attended the 6/13/07 Members’ Breakfast sponsored by the Real Estate Board of New York (REBNY), an association that serves as the NYC landlord’s “lobbying” group, among other activities. The topic of discussion was new development in Midtown Manhattan and the panel featured representatives from two of the larger real estate investment trusts (REITs), Vornado and Boston Properties; as well as from two large, private landlords (TishmanSpeyer and SJP Properties).

The topic of discussion was primarily the requirements for new development in Midtown, but the overall message did not bode well for commercial tenants in NYC. Here are some of the short strokes:

• Triple-digit rents are here to stay - as development (and purchase) costs exceed $1,000 per rentable square feet (RSF), $100+/rsf rental rates are necessary to sustain the development that will alleviate NYC’s low vacancy rates;
• Increased “loss factors” or space remeasurements across entire property portfolios are common practice and accepted tactics for attaining low-profile rental increases;
• Eighth Avenue is no longer a fringe boundary of Midtown and hence, an acceptable and commercially marketable submarket (i.e., no more low rents). When landlords rename an avenue or submarket with something catchy like “Avenue of Architecture”, rental increases will follow;
• The Penn Plaza submarket will no longer remain a value neighborhood as new development occurs at Pennsylvania Hotel, Farley Post Office, Hudson Yards and potentially, the Madison Square Garden site.

There was, however, some good news in the overriding theme and messages being shared by the developers:

1. The recognition that tenants require great environments to attract and retain top talent;
2. The willingness to partner with corporations to help create their 20-30 year growth plans and solutions;
3. The understanding that environmentally sustainable or “green” construction is an imperative for any new construction;
4. The acceptance of that NYC requires a new business district;
5. The recognition of the trend towards “urban hubs”, where people can live in the city and walk to their offices.
6. The realization that from a tenant’s standpoint, building design and infrastructure “trump” location in their decision matrices and that location criteria have and will continue to be much more elastic;
7. The understanding that we are in the midst of a “golden age” of the Bloomberg era, when people want to be in NYC and that a broader perspective is a critical requirement in order to make neighborhoods better (Harlem being the poster child example).

Overall, the vision for the future of the city’s development is positive and positively exciting. It will, however, be expensive and continue to get more expensive, both to live and work in Manhattan. And as this happens, savvy NYC landlords will continue to profit and to protect their interests.

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June 13, 2007 by jack petrie.

MadeForChina Investment

Datran Media, a leading provider of performance-based email marketing solutions based in the U.S. (and a CresaPartners’ client), today announced its expansion into the Asia Pacific market following an investment in MadeForChina, a premier Chinese email and online marketing company. Though neither Datran Media nor MadeForChina are revealing financial terms of the investment, both parties anticipate a long-term strategic relationship and believe that their co-marketing and technology partnership will allow them to better serve large multinational advertisers and publishers. The move is part of Datran Media’s continued international expansion, which will provide the company with local alliances in burgeoning markets including Asia and Europe.

China Factoids

According to Internet World Stats, 56.5 percent of the world population or 3,712,527,624 people and 35.8 percent of global Internet users currently reside in Asia today. That equates to 398,709,065 individual users; 10.7 percent of the Asian population. 2000-2007 was an especially high growth period, with a 248.8 percent increase in online use. The online publisher also reveals that China leads Asia in the individual number of users by a large margin, boasting 137,000,000 online and an impressive 2000-2007 growth rate of 508.9 percent. To reach the growing market, advertisers are spending. In its “China Online Advertising Market,” Analysis International reported that China’s online advertising market reached 2.095 billion RMB (Renminbi [”people’s money”], or Yuan; roughly, $1=8 Yuan) in the first half of 2006. In 2007, research firm Market Avenue estimates that the pay email market in China alone will reach 153.2 million dollars. Across Asia, the market is similarly growing.

CEOs Describe the Partnership

“In response to the continued market growth in Asia, and the increasing demand for performance-based marketing solutions, we can leverage MadeForChina’s regional leadership along with our business intelligence,” stated Matt Keiser, Datran Media’s president. “Beijing, China was the logical choice for an investment and MadeForChina, a top caliber organization, is our ideal partner choice. Global growth is important to Datran Media and this deal reflects our commitment.”

MadeForChina co-founder and CEO Micah Truman echoes Keiser sentiments. “The combined value of Datran Media and MadeForChina will provide much greater opportunities for our collective customers across the world,” said Truman.

Historically, Datran Media and MadeForChina have both been recognized for their corporate and client leadership. Most recently, Datran Media was selected as one of the Top 100 Private Companies by Always On Media. MadeForChina has similarly garnered awards the Chinese Internet Advertising Contest, including Silver, Bronze and Excellence Awards for its work promoting L’Oreal, Nokia, DHL, Besta, Audi and Lenovo.

About MadeForChina

Founded in 1997, MadeForChina provides targeted advertising online to a multinational client base that includes companies such as L’Oreal, Ford, United Airlines and China Mobile. Combining unique technology, a far reaching affiliate network, expert project management and unrivaled content creation, MadeForChina empowers clients to achieve their marketing goals online, enabling them to build brand awareness, generate new customers and increase the return on investment for their advertising spend.

Headquartered in Beijing and with subsidiary offices in Shanghai, MadeForChina is China’s leading provider of permission email marketing and performance-based advertising.

About Datran Media

Founded in 2001, Datran Media is a leading performance-based marketing company with enabling technology that connects marketers directly to consumers through a comprehensive set of email marketing and digital media services. Datran Media powers EO, the first exchange online for cost-per-acquisition media, and the first media exchange to accommodate email marketers. EO provides the first mechanism for email publishers to monetize their unsold inventory. Datran Media also operates NetMargin, one of the premier online affiliate marketing companies; finally, Datran Media completes its suite of services with StormPost, a top-ranked email marketing and delivery platform and the first in its category to provide email ad inventory management. For more information, please visit www.datranmedia.com.

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June 8, 2007 by jack petrie.

CresaPartners recently hosted the June 6^th, 2007 New York Software Industry Association’s Sales & Marketing Special Interest Group’s Panel Discussion on Creating Your Sales & Marketing Plan.

Diverse & Experienced Panel

The panel consisted of Kevin A. Drakeford, Esq. of Drakeford & Kane LLC, Anna Lieber, President of Lieber Brewster and Morris Bocian, President of Creative Business Planning Inc.

Drakeford & Kane LLC

Kevin A. Drakeford, Esq. began his professional career with the New York County District Attorney’s Office before working as a tax consultant in the Kenneth Leventhal Real Estate Group of Ernst & Young, LLP. Prior to becoming one of the founding principals of Drakeford & Kane LLC, Kevin worked in the Legal & Regulatory Affairs Division of AT&T Corp.

Kevin currently assists start-ups, professional practices, small businesses, joint ventures, and exempt organizations in matters involving corporate, real estate, and tax law and helps clients make more effective and efficient business decisions by quantifying the financial impact of concepts, practices, and strategies. He opened the evening’s discussion by emphasizing these decisions and using specific examples such as 1) employing creative payment plans, such as third-party financing, 2) negotiating tight agreements, particularly with larger companies and 3) developing binding purchase orders for use in sales calls and trade shows.

Lieber Brewster

Anna Lieber is President of Lieber Brewster and helps fast growth businesses create breakthrough success throughmarketing strategies, systems and solutions. Lieber Brewster empowers entrepreneurial businesses,corporate leaders and their teams through training and strategic brand-building initiatives.

Lieber Brewster works with clients in a comprehensive 360-degree, “focused marketing” approach: copy, branding, online strategy, marketing plans, product launches and promotional materials. Additionally, Anna teaches Competitive Intelligence, Internet Copywriting and Writing Marketing Communications at New York University’s School of Continuing and Professional Studies.

The Eight “C’s”

Anna discussed the five “C’s” of today’s changing environment: chaos, competition, community, convergence and commoditization. She suggested that in this environment, service and quality are no longer “givens” and hence, no longer differentiate. Anna encouraged small businesses to brand themselves through a dramatic difference which will enable companies to attract, rather than chase clients. Finally, Anna identified the three “C’s” of branding: consistency, clarity and communications which will allow a business to grow in multiple ways (client development, repeat business and growth of existing clients).

Creative Business Planning Inc.

Morris Bocian is President of Creative Business Planning Incorporated, and its’ financing division, NowCapital.com. He provides advisory services to position and package small to mid-sized business clients in their respective markets, and counsels and guides his clients with practical advice on small business funding and the Due Diligence process. He has a wealth of experience in business and strategic planning, financing, business negotiations and deal making, business analysis, debt restructuring and workouts, accounting and taxation. Mr. Bocian also teaches at New York University’s (NYU) School of Continuing and Professional Studies offering a course on Business Planning.

He brought a financial perspective to the discussion of a sales and marketing plan and described systems and processes that can be put in place to ensure that any marketing plan has a sound financial basis. He suggests an approach that integrates the sales & marketing plan with both operations and cash-flow concerns. His best piece of advice was that small businesses should not “finance their customers” through poor contractual or pricing decisions. Additionally, he encourages business owners to be thorough in the due diligence of prospective clients as this activity can be much more cost-effective than the alternative, namely litigation of slow- or non-paying accounts.

The presentations were followed by a spirited question and answer session moderated by Ted Santos, CEO of Turnaround Investment Partners and co-chairman of the NYSIA Sales & Marketing SIG.

Future Event

The next NYSIA Sales & Marketing SIG meeting will be held on a date to be determined in September at CresaPartners, 100 Park Avenue (40^th-41^st Streets), 24^th Floor. Watch this space for further details.

Hope to see you then!

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June 7, 2007 by jack petrie.

A short while ago, I wrote about the excitement of negotiating leases in some of the landmark and iconic properties that comprise much of the Manhattan’s commercial real estate market. Last week, I was asked to comment on one such iconic property, The Woolworth Building, by Alison Gregor of the New York Times.

An Icon on the Cusp of Lower Manhattan

While not as well known as the Empire State Building or the Chrysler Building, perhaps because of its Downtown location (between Barclay Street & Park Place), Woolworth is still architecturally and historically significant.

I’ve never worked in the Woolworth Building, but I did have a large corporate client that routinely included it on any building tour for any of the company’s subsidiaries, of which there were many. Don’t ask me why, but here are some possible reasons:

Woolworth Building Factoids

• The Woolworth Building, while constructed in 1913, remains one of the 50 tallest buildings in the U.S. and the 20 tallest buildings in NYC;
• It’s one of less than 2,500 National Historic Landmarks (a designation by the U.S. Secretary of the Interior) and therefore, on the National Register of Historic Places;
• The building was designed by architect Cass Gilbert, who worked for legendary NYC firm, McKim Mead & White;
• The Woolworth Building was immortalized in Alfred Steiglitz’s photography, which at the time, helped elevate photography to a “fine” art;
• Bas reliefs in the building lobby depict Woolworth, Gilbert, as well as the building’s engineer and leasing agent. In Woolworth’s depiction, he is holding nickels and dimes;
• The building eclipsed 1 Madison Avenue (MetLife Tower) as tallest building in the world in 1913, only to be eclipsed by 40 Wall Street (Trump Building) in 1930;
• The property was owned by the F.W. Woolworth Company for eighty-five years when the successor entity, Venator Group (now Foot Locker) sold the building to present owner, The Witkoff Group for $155 million.

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June 6, 2007 by jack petrie.

Readers of this blog can take advantage of a special discount to the June 14th, 2007 Web 2.0 NY Summit featuring Esther Dyson and Shawn Gold. Just register at the following link and mention “CRESA” in the info box on the registration page for the special member rate of $195. (Onsite registration is $295).

http://www.etvworld.com/Web2NYeMail.html

Web 2.0 NY - June 14, 2007
Combined with Local Ad World & Madison Ave. 2.0

ESTHER DYSON KEYNOTES WEB 2.0 NY SUMMIT
Industry pioneer, visionary and backer of Flickr and Meetup speaks at the Web 2.0 NY Summit - now combined with Madison Ave 2.0 (formerly Local Ad World)

SHAWN GOLD, SVP, MYSPACE speaks on Web 2.0 communities.

Other Speakers and companies like Michael Dubin (Yahoo), Jack Myers (Myers Report), Shelly Palmer (TV Disrupted), Kara Nortman (Interactive Corp.), Shaival Shah (Oddcast), Seth Haberman (Visible World), Doug Perlson (TargetSpot), Jenny Mullen (OgilvyOne), Andrew Weinreich (MeetMoi), Connie Connors (HitTail), Wayne Reuvers (LiveTechnology), Andrew Bloom (Spot Runner), Chris O’Brien (MotionBox), Allan Grafman (AllMedia Ventures), David Teten (Circle of Experts), Gregory Galant (RadioTail), Steve Rosenbaum (Magnify), Bob Rustad (Collarity, Dylan Charles (Crimson), Dusty Wright (Culture Catch), David Marder (Eurekster) and David Rose (NY Angels).

The Web 2.0 phenomenon is more than a fad - it is a new way of doing business and it is sweeping through the media business. We call this Madison Ave. 2.0 - web companies look at advertising through the lens of AdSense and it is driving the wave of acquisitions on Madison Avenue.

Come to the Web 2.0 NY Summit to learn how this is changing content, marketing and customer interaction. Learn how to develop your company, sell your products, acquire new customers and raise capital at our afternoon pitching event.

The conference from iBreakfast.com that brings it all together: How Digital Companies, Entrepreneurs, Marketers and Investors are profiting from this new Collaborative Environment:

* Social Networking
* Blogs & Podcasts
* User Generated Content
* Wikis
* IPTV and Microbroadcasting
* Flash Groups, Instant Messaging, Twittering
* Mobile Meets Community
* How to Get Funded - Pitch Your Plan

================================================
Thursday, June 14, 8:00 - 5:00pm
Cocktail Party 5:00 - 6:30pm Sponsored by Live Technology
Fordham Auditorium - 62nd & Columbus NYC

Still time to Pre-Register & Save! $295 onsite
$245 in advance - iBreakfast members $195
www.web2ny.com (800) 273-2832/(212) 624-9110

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June 4, 2007 by jack petrie.

In Wednesday’s (5/30/07) New York Times, an article appeared by Alison Gregor on the potential of converting downtown properties (like 233 Broadway, the Woolworth Building), into high-end, “boutique” office buildings, like some of the higher priced examples in Midtown.

Candidates for Boutique Buildings

The primary candidates for high-end (and high priced) office space are certain types of financial services firms, namely private equity firms and hedge funds. I know this from experience, having recently represented sublease space in one such “boutique” building, 712 Fifth Avenue. The asking rental on this sublease was $125/rentable square foot (”rsf”), which was derived from the landlord’s asking rental ($140/rsf) for comparable locations in the building.

When prospective tenants and their brokers inquired about the space, it became immediately apparent that there are two categories of tenants looking for space in Midtown: those with a budget (usually under $100/rsf) and those with no budget.

Other People’s Money

The tenants without budgets typically needed to be in a very specific geographic area: between Rockefeller Center and Central Park, from Park Avenue to Avenue of the Americas. Cost was a secondary concern.

I can only speculate, but unlike typical industry competitors in a zero-sum game, the private equity firms and hedge funds often partner with one another on transactions and acquisitions mutually. Thus, there are synergies to being geographically close to competitors, even within the same building. As more firms locate at certain addresses, the “mystique” of the building grows and as a direct result, the rents rise into the stratosphere (or at least the triple-digits). Witness 375 Park Avenue (The Seagram Building) , 450 Park Avenue or 9 West 57th Street. The premium for entry into these properties is approximately 75% (or more) over the average Midtown Class “A” rental rate.

Need to Be “Green” in Downtown

Translated to Lower Manhattan or “Downtown”, a 75% markup over the average Class “A” rental would be approximately $85/rsf. If that is the criteria, 7 World Trade Center is just about there. The future requirements for premium rents in Lower Manhattan will need to be: a) new construction; b) potential for large, open trading floors; and c) LEED (Leadership in Energy and Environmental Design) certification representing sustainability, i.e. “green” buildings.

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June 2, 2007 by jack petrie.

I recently finished reading “Mavericks at Work” by Fast Company editors William C. Taylor and Polly LaBarre. Like Tom Peters said on the cover jacket, “I didn’t read this book. I devoured it.” Not only that, once finished, I immediately started to reread, in greater detail.

Like a handful of other recent great books (Gladwell’s “Blink” and “Tipping Point”; Pink’s “Whole New Mind”, Ferrazzi’s “Never Eat Alone” and Heath Brothers’ “Made to Stick”), “Mavericks” espouses an overriding theme, namely that our collective intelligence is greater than that of any subset of individuals and the smartest companies have figured this out and are finding ways to take advantage of this finding.

Like many other recent media, “Mavericks” cites the Southwest Airlines, Craigslist, Whole Foods, Linux, Starbucks, Pixar, Google examples, but offers greater depth into what makes these companies special by demonstrating how their embracing of maverick business methods provides quantum leaps in product and cultural differentiation.

I highly recommend this book to anyone engaged in any form of business activity. I also don’t feel I can truly do justice to this book in a few hundred words. For anyone looking for a couple quick takeaways, however:

• Consider that trade secrets aren’t so secret and that sharing information, in the long run, may lead to collaboration that yields higher productivity, greater output, a larger economy and a greater standard of living;
• A company’s brand and culture are synonymous: every managers action towards an employee and every employees action towards a customer reflect and represent the company and its brand .

If you have further interest in “Mavericks” and wish to have a chance to win a free copy, send the message “REPLY” to jpetrie@cresapartners.com.

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