Practice Area Archives - Page 9 of 10

Take the H.E.L.M Competition

December 18, 2015 / Comments Off

HR&A designed a high-profile business competition, which attracted 25 new companies to Lower Manhattan’s growing innovation district.

Lower Manhattan has long been the world’s financial capital. But, as the financial sector evolves, creative and tech companies are playing an increasingly vital role in the diversification of city’s economy, bringing new energy to a neighborhood still rebuilding from 9/11 and Hurricane Sandy. In 2012 and 2013, HR&A partnered with the New York City Economic Development Corporation (NYCEDC) to accelerate Lower Manhattan’s transformation by designing and administering Take the H.E.L.M. – Hire + Expand in Lower Manhattan, a competition that awards prizes to catalytic new office tenants in the neighborhood, including startups and companies seeking their first office in New York.

Working with NYCEDC, HR&A designed and administered Take the H.E.L.M. HR&A’s responsibilities included:

Design of competition guidelines and evaluation criteria to ensure that companies receiving prizes brought net new jobs to Lower Manhattan in innovative tech and creative industries.

Management and delivery of a website that served as a resource to prospective Lower Manhattan tenants media, and portal for competition entries.

Marketing to prospective applicants using traditional media, social media, and through direct marketing at tech meet-ups, conferences, and other events. The Take the H.E.L.M. website received over 20,000 unique visitors from companies based around the world, attracted nearly 1,400 registrants, and led to several high-profile media articles.

Design and management of a rigorous selection process that included a high-profile panel of judges – led by former Chair of the Securities and Exchange Commission Arthur Levitt – with deep experience in venture capital, economic development, and finance.

Over two competition rounds, Take the H.E.L.M. received over 600 applications and awarded $2.25 million in prizes. The competition generated significant promotion for the City and neighborhood, including coverage in the Wall Street Journal, Crain’s New York Business, and Fox Business News.

Take the H.E.L.M. is widely credited with opening the door for tenants that otherwise would not have considered locating in Lower Manhattan. As 2015, 25 H.E.L.M. applicants have signed leases in Lower Manhattan, including Paperless Post, STELLAService, Booker, the Flatiron School, Grapeshot, WeWork, and Rock Shrimp Productions. These new businesses occupy nearly 500,000 square feet of net new office space and support over 1,500 full-time-equivalent jobs.

LAX Economic Impact Study

December 18, 2015 / Comments Off

HR&A advised Los Angeles World Airports on the local and regional economic impacts of redeveloping and expanding Los Angeles International Airport.

HR&A prepared detailed regional and local economic impact analyses necessary to evaluate alternative Master Plan concepts for the future of the Los Angeles Airport (LAX) as they evolved over nearly 10 years, and through three different mayoral administrations.

Using extensive REMI and IMPLAN modeling, the firm projected future baseline economic conditions and forecasted conditions under alternative development scenarios. Our forecasts considered the City of Los Angeles, various subareas of the City, the County of Los Angeles, the other four urban counties in the region, and the five-county Southern California region as a whole.

HR&A also assisted senior management, City officials and other project team leaders to respond to questions from a wide range of elected officials and other local and regional leaders, and the general public, about the economic implications of the alternatives.

Our work with LAX led to airport economic impact work across the country.

In association with the Los Angeles Economic Development Commission and other consultants, HR&A estimated the economic value to Los Angeles of accommodating new transoceanic flights, like those associated with next-generation aircraft.
Prepared regional and local economic impact analyses for Chicago O’Hare International Airport’s O’Hare Modernization Program and alternatives, for the Chicago Department of Airports and the FAA.
Provided two rounds of regional economic impact analysis for future options to expand capacity at San Diego International Airport, first for the San Diego Association of Governments and then for the San Diego County Regional Airport Authority.
Contributed to the socioeconomic forecasts used by aviation consultants to the FAA to analyze future airspace and airport capacity in the New York City-Northern New Jersey-Connecticut-Delaware metro area.
Prepared an in-depth economic impact and fiscal impact analysis demonstrating that the Santa Monica Airport generates $275 million in direct and indirect economic activity for the City of Santa Monica, and supports almost 1,500 full- and part-time jobs.

Konza Technology City Development Plan

December 18, 2015 / Comments Off

HR&A developed a comprehensive business plan and implementation strategy for Konza Technology City, a transformative technology industry hub outside Nairobi, Kenya. This initiative aims to position Konza as a global center for technology, enabling Kenya to achieve middle-income status and significantly enhance the quality of life for its citizens.

Located on 5,000 acres along the A109 highway, Konza Technology City is poised to attract significant investment and development. Working in partnership with the International Finance Corporation and on behalf of the Government of Kenya, HR&A spearheaded the first phase of development. Our multidisciplinary international team of experts in architecture, planning, engineering, and strategy consulting identified key anchors and market opportunities to prioritize during the initial phase. We devised strategies for financing upfront infrastructure costs while ensuring the master plan is aligned with market realities through a well-structured program and phasing strategy.

A crucial element of our work was the establishment of the Konza Technopolis Development Authority, a special-purpose governance body responsible for overseeing project implementation and attracting developers. In collaboration with local legal advisors, HR&A created a framework for this authority, focusing on sustainable municipal service provision and long-term project success.

HR&A continues to support the Konza Technopolis Development Authority and the Government of Kenya as the city’s first phase unfolds. Our ongoing engagement includes real estate and economic development advisory services, assisting in structuring the new authority, managing the land leasing process, and leading financial planning. Additionally, we are actively involved in the marketing and branding of various developments, leveraging insights from local experts to ensure that Konza Technology City meets its ambitious goals and serves as a catalyst for national growth and innovation.

Renderiong Toronto Waterfront - Lower Yong Precint

Revitalizing the Toronto Waterfront

December 18, 2015 / Comments Off

HR&A advised Waterfront Toronto on real estate and economic development strategies to revitalize the Toronto Waterfront. Once completed, this $1.5 billion project will be the largest urban regeneration project in North America.

Waterfront Toronto was established to create a series of new development precincts along Toronto’s Waterfront defined by their high-quality urban real estate development and world class open spaces, and a signature public realm along the Toronto Waterfront. Established as the Toronto Waterfront Revitalization Corporation in 2001, Canada’s municipal, provincial, and federal governments committed public land holdings and $1.5 billion to create waterfront recreational amenities, new housing, and commercial spaces to support Toronto’s future competitiveness.

HR&A provided economic analysis underpinning some of the most significant infrastructure decisions in the Toronto waterfront lands.

HR&A assessed the feasibility and the economic benefits of naturalizing the mouth of the Don River, a $500 million capital project that will create new urban neighborhoods by flood protecting over 200 hectares of Toronto’s waterfront lands. In August 2010, Toronto City Council unanimously passed an Official Plan amendment for the Lower Don Lands and a new zoning by-law for the Lower Don Lands first precinct, the Keating Channel. HR&A has provided peer review resources for Waterfront Toronto as it pursues further business planning for this major capital investment.

HR&A studied the economic implications of altering Toronto’s Gardiner Expressway

HR&A produced the economic cost-benefit analysis for the Integrated Environmental Assessment and Urban Design Study of options to replace, improve, or remove a segment of the elevated Gardiner Expressway east of downtown Toronto. Additionally, HR&A helped to structure and organize an international design competition examining urban design implications of the alternatives.

HR&A supported master planning for a key privately-owned waterfront site.

For a critical site whose development will support the growth of the Toronto waterfront as a residential and retail destination, as well as the financing of future public infrastructure investment, HR&A collaborated with a world-class design team to create a master plan that will integrate retail and food and beverage uses with dense urban housing and a vibrant public realm. HR&A provided strategic development advice on master planning feasibility, land use regulation, financial sustainability, and the programming of open space and the public realm.

HR&A prepared a feasibility study and financing options for Canada Square, a new civic park on the York Quay site adjacent to Harbourfront Centre.

HR&A prepared a financial feasibility assessment, developed capital investment options, produced an ongoing operations model, and guided planning and design for the new park and complementary mixed-used development, including potential cultural, hotel, retail, and parking uses adjacent to the new park. The York Quay Revitalization project is currently funded and in the final design stage of development.

HR&A developed a maintenance and operations funding strategy for 1,100 acres of new parkland on the Lake Ontario waterfront.

Leading a team of experts, HR&A examined budgets and best practices from municipal park systems and signature parks throughout North America. Our strategy rested on development of significant new revenue sources, a capital preservation fund and a governance structure that identifies entities responsible for funding and/or maintaining the new world-class parks. Toronto City Council adopted HR&A’s strategy in November 2008.

Images Courtesy of: City of Toronto

Union Depot Redevelopment and Activation

December 18, 2015 / Comments Off

For Union Depot, a multi-modal transportation center in St. Paul, Minnesota, HR&A designed and implemented a redevelopment and activation strategy that maximized the economic and fiscal benefits generated from its redevelopment.

HR&A served as strategic real estate advisor to the Ramsey County Regional Railroad Authority for the redevelopment of the historic Union Depot from 2010 through 2012. This $238 million dollar project, funded in part by the American Recovery & Redevelopment Act of 2009, connected Amtrak and regional and local bus services, and will serve as a terminus of the Central Corridor Light Rail between St. Paul and Minneapolis, among other longer-term transitways for the region.

Since opening its doors, Union Depot has become the living room for the Lowertown neighborhood and a destination for residents from across the region.

HR&A first led a multidisciplinary team to prepare an economic analysis and development strategy for the Union Depot in 2010. The firm managed the team to produce a market analysis for real estate development; recommended a preferred development program for the station that includes a robust program of public and private events, as well as a distinctive retail destination and marketplace; established a transit-oriented development strategy for adjacent land; analyzed the economic benefits of project implementation; and generated an implementation and stewardship structure for ongoing project success. RCRRA’s Board endorsed HR&A’s recommendations for the development strategy in late 2010, and engaged HR&A to lead the procurement necessary for implementation.

HR&A drafted the developer solicitation document that was released by RCRRA in December 2011 alongside a Request for Proposals for property management and bicycle center operations. HR&A helped RCRRA market the opportunity and, following a strong response from the private sector, supported RCRRA in selecting an asset manager who is responsible for activating and developing community and commercial components of the project, as well as providing property management services. The contract was structured to incentivize revenue generation within the facility, as well as the activation of public spaces in and around the Union Depot building.

Union Depot now hosts regular public programs, is home to signature works of art by local artists, and is building demand for major retail and restaurant investments.

Wilshire Grand Redevelopment

December 18, 2015 / Comments Off

HR&A assessed the economic and fiscal impacts of the Wilshire Grand Tower to justify public investment in the tallest building in Los Angeles.

For Hanjin International and Thomas Properties Group, HR&A prepared the detailed economic and tax revenue analyses components of a proposal to replace Los Angeles’ obsolete Wilshire Grand hotel with a 2.4 million square foot, mixed-use development. The development, located in Los Angeles’ central business district, will house a five-star luxury hotel, Class-A office space, 100 condominiums, and retail to draw international businesses to downtown Los Angeles. Once completed in 2017, the 73-story Wilshire Grand will be the first high-rise office building constructed in Downtown Los Angeles in over 20 years.

Our analysis demonstrated that the new development would generate sufficient net new revenues to justify a subvention agreement, with the City committing 50 percent of the project’s transient occupancy tax revenue for a fixed period of time to aide development feasibility. HR&A participated in working group sessions with senior City staff and the City’s outside real estate advisor to confirm analysis assumptions and results.

The Los Angeles City Council unanimously approved the financial structure of the subvention in 2011. The Wilshire Grand Tower was completed in June 2017.

Griffiss Air Force Base Realignment

November 12, 2015 / Comments Off

HR&A led the Base Realignment and Closure process for the Griffiss Air Force Base, which was successfully redeveloped into a Business and Technology Park.

HR&A worked with Oneida County and a variety of local stakeholders in Upstate New York on the re-use of Griffiss Air Force Base, a 3,500-acre military facility slated for realignment by the Base Closure and Realignment Commission (BRAC). The Base served as a major regional economic driver, and its redevelopment was vital to maintaining economic stability in the County. Through 2010, the re-use of the base as a Griffiss Business and Technology Park has attracted approximately 75 businesses and 5,500 jobs in technology, manufacturing, aviation, office, education and recreation.

Griffiss Business and Technology Business Park has since exceeded all development targets established in the HR&A-developed plan.

HR&A led a project team to:

Analyze real estate, aviation, and land use issues;

Prepare a financial feasibility analysis for a range of proposed industrial, commercial, and recreational uses;

Create a capital investment program and implementation plan;

Prepare the Economic Development Conveyance application for this facility (including a projection of the new jobs and economic activity that redevelopment would create); and

Assist in the land transfer.

HR&A also led the successful effort to save the co-located Rome Air Lab from closure.

In 1993, the Rome Air Laboratory, one of the eight research and development labs run by the US Air Force and located on the Griffiss Base, was facing closure. HR&A served as the community’s consultant in the successful effort to save the Lab, a military “super laboratory”. We guided a team of lobbyists, science and technology experts, econometric modelers and marketing professionals to justify preserving Rome Lab to the Air Force and the Department of Defense, as well as to Congressional and White House officials. Due to HR&A’s work, the Lab was spared closure. HR&A also coordinated a similarly successful effort for the 2005 BRAC review round, which resulted in continued civilian and military employment at Rome Lab.

Green Lease Forum

November 12, 2015 / Comments Off

HR&A brought together a diverse array of New York City industry leaders to develop strategies that resulted in creation of the nation’s first true green commercial lease.

The cost and benefits of energy efficiency investments in commercial office buildings are distributed unequally between owners and tenants. Landlords responsible for making capital investments in base building systems are unable to pass costs along to tenants, and tenants disproportionately enjoy the benefits of such investments. A similar split incentive may occur in tenanted spaces where landlords select equipment but tenants are responsible for operating costs, and/or where metering arrangements do not permit tenants to monitor their own usage. This misalignment of incentives hampers efforts to encourage green policies in commercial buildings.

HR&A addressed the split incentives between commercial building owners and tenants by guiding the creation of a forum to examine the opportunity for green leases.

With principal funding from the New York State Energy Research and Development Authority (NYSERDA) and program design and implementation led by HR&A, in 2008 the Natural Resources Defense Council (NRDC) convened a group of 50 individuals representing New York City’s leading real estate owners, major tenants, environmental advocacy groups, and commercial leasing and building systems professionals. NRDC asked HR&A to staff the group and lead its deliberations.

This diverse group of industry experts had never engaged in structured dialogue about an issue of mutual concern before; indeed, many had never met each other before. Over the course of three sessions, HR&A facilitated conversations which led the participants to agree to broadly acceptable basic principles and guidance for lease negotiations that are designed to reward efficiency investments – a landmark achievement. The participating real estate professionals established consensus on three common-sense leasing principles to advance energy efficiency in commercial buildings:

Landlords should operate buildings and tenants should operate their premises as efficiently as is feasible;
For any given installation, responsibility for capital costs and the benefits of savings should reside with the same entity; and
To the extent feasible, both consumption and demand for resources throughout buildings should be measurable and transparent to both landlords and tenants.

HR&A’s work ultimately led to the creation of the nation’s first true “green lease,” which more appropriately shares the costs as well as the benefits of energy efficiency improvements among owners and tenants.

The findings and principles agreed upon during the Green Lease Forum led to the creation of the foundation document used by the New York City Mayor’s Office of Long Term Planning and Sustainability Green Lease Task Force, which was convened in 2010. Utilizing the principles developed by HR&A, the Mayor’s Office drafted and promulgated model green lease language which resulted in the first true green lease being signed in early 2011 between Silverstein Properties and the law firm Wilmer Hale at 7 World Trade Center. This pioneering green lease language is now a requirement for all new commercial office lease negotiations for City-occupied space in New York City.

Energy Efficiency in Commercial Real Estate

November 12, 2015 / Comments Off

For over a decade, HR&A worked closely with the New York State Energy Research and Development Authority to design and manage some of the State’s most effective energy efficiency programs.

Reducing energy consumption in commercial buildings is vital to achieving New York State’s energy efficiency goals. In 1999, the nearly 600-million square feet of commercial office space in the State was responsible for 25 percent of its energy use and emissions. The Governor and former Mayor Bloomberg set goals of 15% electric efficiency savings by 2015, and 30% reduction in carbon emissions by 2030, respectively. Therefore, reducing energy consumption in commercial buildings is vital to achieving these goals.

From 2007-2012, HR&A worked closely with the New York State Energy Research and Development Authority (NYSERDA) to design and manage a marketing, outreach and technical assistance program, Commercial Real Estate Outreach (CREO), that led owners and managers through the diagnostic and financial planning work needed to identify a scope of improvements that would maximize both energy savings and return on investment. As part of the program, HR&A developed a New York State-specific building benchmarking tool; a one-day walk-through energy audit; a lease analysis tool that evaluates how the costs and savings of potential measures will accrue to owners and tenants; and an action plan that summarizes the analyses, prioritizes recommended improvements, estimates costs and returns, and identifies applicable NYSERDA incentives. HR&A also assisted owners and managers with green leasing and marketing strategies and outreach to tenants. CREO proved to be one of the most effective energy efficiency programs advanced by the State.

In order to effectively identify outreach targets, HR&A produced and, following the Great Recession, updated a Market Analysis and Outreach Strategy for the state’s commercial office sector. The report evaluated the sector’s leading landlords, management companies, and their portfolios. The report explored four fundamental motivations for investing in energy efficiency: increased rents and/or decreased vacancy, decreased operating costs, enhanced green image, and compliance with impending governmental mandates. The report proposed a set of target landlords and tenants and suggested a marketing message for each.

We attribute our success to the fact that we provided dedicated Account Management for the 24 portfolios with whom we worked most intensively to facilitate uptake into NYSERDA’s core incentive programs. CREO was responsible for 227 NYSERDA program applications. In total, over 103 million square feet has been impacted by HR&A’s work, with $10 million in incentives disbursed and 13 million kWh saved.

Economic Impacts of Airbnb

November 12, 2015 / Comments Off

On behalf of Airbnb, an online service for short-term vacation rentals, HR&A conducted an economic impact assessment of Airbnb rental activities in San Francisco and New York City.

Airbnb is a leader in the “sharing economy,” a new trend in the sharing of resources facilitated by network technologies and social tools, and HR&A’s reports are among the most in-depth studies to date of the impacts of this economic trend.

The studies reveal multiple ways in which the new economic activities associated with Airbnb — which has grown exponentially since 2008 to serve 9 million guests in cities around the world — have significant impacts on a city and its neighborhoods, businesses, and residents:

Airbnb benefits its many hosts, who use Airbnb to supplement their income;
Airbnb impacts neighborhoods that are off the main hotel beat, distributing visitor spending across many neighborhoods and businesses throughout the city;
Airbnb benefits the city as a whole. In San Francisco, it generated $56 million in direct and indirect spending in one year and supported 380 full-time equivalent jobs. In New York, it generated $632 million in economic activity in New York and supported 4,580 jobs throughout all five boroughs.;
Much of this economic activity is new. Even as hotel occupancy has climbed, the number of Airbnb reservations has grown dramatically, indicating that many Airbnb users are a different visitor segment than hotel guests. Airbnb brings new economic spending to cities from visitors who are price-sensitive and seek a “live like a local” experience they may not otherwise find in conventional accommodation; and
Airbnb also enables cities to become more competitive by attracting skilled workers and incentivizing relocation with innovative short-term stay opportunities.

HR&A’s studies have been covered by WNYC, The Wall Street Journal, Business Insider, Real Estate Weekly, Media Post, New York Business Journal, Digital Journal, Tech Hive, Curbed,Morningstar, Forbes, TechCrunch, Marketwire, and The Huffington Post, among other news sources. It also attracted substantial attention from policy experts, and elected officials. The official press release for the New York Study is available online.

Image Courtesy of: Airbnb