Mr. Rufrano, who was previously the chief executive of the Centro Properties Group of Australia, took the helm of Cushman and Wakefield on March 22, 2010, replacing Bruce E. Mosler, who is now the chairman of global brokerage.
Q How was your first year as C.E.O.?
A It certainly has been intellectually challenging. I’ve had to understand the breadth of Cushman and Wakefield — which is 13,000 people in 60 countries and 230 offices. So getting into and understanding each of the regional businesses and then the major offices and how they perform services has taken some time this year. I think I’m there.
The first day here, I put out a memo outlining what I’d be doing for the next 90 days. The first 30 I would spend in New York understanding all the financials and the global clientele. Then I outlined my trips for the next 30 days. In the last 30 days I would correlate what I found in the field and prepare a strategic plan. But actually I only spent two weeks here and six in the field.
Q Did Bruce help you?
A He helped me initially understand the structure of the company, personalities of the people, and how business opportunities shaped themselves.
Bruce has such good history at the company, and quite often we’ll talk about the business and what I think I know and what is really happening. As you know, I don’t come from the brokerage business. I had no problem as a C.E.O. coming in with the ex-C.E.O. being in a different position, which is highly unusual; in most companies they’re gone. So I think of this as we’re partners.
Q There’s been talk within the industry that you were brought in to burnish the company so it could eventually be sold off.
A The reason I was brought in — and what my tour is — is to maximize the value of Cushman and Wakefield. It is really as simple as that. Exor has no plans to sell Cushman and Wakefield.
Q Have there been many merger or acquisition overtures?
A There has been over the years. It did eventually sell in ’07 to Exor. Their M.O. is to buy businesses and hold them long term. At some point Exor may want to reduce their position in Cushman. They own 73 percent; the employees own the rest.
Q A number of your key employees, though, have left.
A In New York there have been two groups that have left for Jones Lang LaSalle: our capital markets group, and then our leasing group, more recently. They were fine people, but at times you agree to disagree. On a global basis we’ve added people.
Q Last week, Exor released its financial results for 2010, which showed that Cushman and Wakefield earned $25.7 million on $1.8 billion in revenue, versus a $115.8 million loss in ’09.
A Cushman reduced expenses nicely — kept them down in ’08, ’09 and going into 2010. Then the wind shifted; 2010 was a very good year for revenue. We had a good last half of the year, driven by capital markets and leasing, though every one of our five business lines had increases for the year. In 2008 and 2009 we let go about 17 or 18 percent of our work force. We are building back up.
Q Let’s talk about business in the New York market.
A Leasing activity over all is up 61.9 percent over this time last year. One reason New York City has done so well is because it did not lose as many jobs as people expected. We’ve recovered 43 percent of the jobs that we lost since the end of ’09. Nationally, we recovered 14.5 percent. Our capital markets group had a very fair year. We had a number of transactions in the $40 million-to-$100 million range.
The asking rental rates for a Class A building in Midtown averaged $66.25 a square foot in the first quarter, up 21 percent from a year ago but 47 percent below the ’08 first quarter.
Q Is there more foreign interest?
A There’s clearly more capital from off shore that would like to invest in New York. A group called Afire — the Association of Foreign Investors in Real Estate — identified the five locations around the globe that they wanted to invest in. New York was No. 1, followed by Washington, London, Paris and Tokyo. What do they want to own? These office buildings, and they will pay high prices for them.
Q Speaking of big office buildings, Cushman is part of the leasing team for One World Trade Center. What’s the status?
A The building is well positioned for large-space users. There’s a commitment for 200,000 square feet from Beijing Vantone, and the other major tenant that’s announced but hasn’t signed yet is Condé Nast.
This article has been revised to reflect the following correction:
Correction: April 10, 2011
The 30-Minute Interview last Sunday about Glenn J. Rufrano, the chief executive of Cushman and Wakefield, misstated the amount of space leased by Beijing Vantone at One World Trade Center. It is 200,000 square feet, not 1.25 million square feet, which represents the total amount committed to by Beijing Vantone and another prospective tenant, Condé Nast.
No comments:
Post a Comment