Firm Designs for Burgeoning Real Estate Brokerage Community
The Spector Group uses build-out approach for financial design

by Russell Boniface
Associate Editor

Spector Group’s design for Mason Capital Management. Photo courtesy of Spector Group.

How do you . . . design a space for a commercial real estate brokerage firm that suits the needs of both a client—a prospective tenant—and a building landlord?

Summary: The Spector Group, based in New York City and Long Island, N.Y., recently designed the new Manhattan office for ThinkEquity Partners LLC, a brokerage firm. Construction is under way, and the firm will move into its new space October 1. Spector Group specializes in office build-out relationships to meet the specialized needs of the growing commercial real estate brokerage community.

Spector Group works with real estate brokerage clients that enter into a build-out relationship with building landlords. Landlords take on the coordination efforts of a design space, such as contracting, permitting, and overseeing the designing, building, electrical, HVAC, and other construction needs of the tenant for one price, eliminating from the tenant the need to shop for an architect and engineer. Spector Group assists both with design of the office space.

Spector Group’s design for Mason Capital Management. Photo courtesy of Spector Group.

Turnkey architect
Scott Spector, AIA, principal, Spector Group, notes that this type of business relationship is becoming more common in the New York commercial real estate market. “When done properly, an architect can assist the tenant and brokerage community equally, incorporating both a design and business perspective into the process and serving as a complement, rather than a barrier, to the tenants, project managers, and construction firm.”

Spector says a build-out arrangement is now more prevalent because of the economy. “A tenant perceives they are getting a better deal by going to a one-stop shop,” Spector says. Spector calls his firm both a tenant’s architect and a landlord’s architect. “We play both sides,” he says. Spector refers to his firm’s role as a turn-key architect for these projects. “In many cases we are this tenant’s architect before they find these buildings, and we are blended into the overall deal, either being the tenant’s architect for these spaces, or our contract is being turned over to the landlord for the comfort that they know we will cover both ends. We are almost a soft buffer between landlord and tenant, taking care of both. Architecturally, we still want a beautiful space that is on time and on budget.” Turn-key projects currently make up 20 percent of Spector’s business.

Spector Group’s design for HIT Entertainment. Photo courtesy of Spector Group.

ThinkEquity’s 15,700-square-foot rentable office space is located on the third floor of a Madison Avenue building. The building owner is Westbrook Partners. ThinkEquity financial services include investment banking for institutional investors, corporate clients, and financial sponsors. The new office space will be occupied primarily by trading positions. To meet the needs of traders and analysts, Spector’s design incorporates a large use of open space throughout, including at workstations, within private offices, for large conferences, and in IT support spaces. There is also a large terrace that is outside and connects to open space inside to accommodate the work climate. Special wiring was installed to accommodate the workstations and technology uses by traders and analysts.

Up to 70 percent of Spector’s work is with brokers. “We are doing this a lot now,” Spector says. “We are being asked by landlord and brokers. The real estate community wants us on board early to help program their needs, help find spaces, and do studies.” In addition, Spector works with building-ownership and real estate brokerage communities.