Skip to main content
MENU
Subscribe
  • Subscribe
  • Account
  • LOGIN
  • Topics
    • Alternatives
    • Consultants
    • Coronavirus
    • Courts
    • Defined Contribution
    • ESG
    • ETFs
    • Hedge Funds
    • Industry Voices
    • Investing
    • Money Management
    • Opinion
    • Partner Content
    • Pension Funds
    • Private Equity
    • Real Estate
    • Russia-Ukraine War
    • SECURE Act 2.0
    • Special Reports
    • White Papers
  • Rankings & Awards
    • 1,000 Largest Retirement Plans
    • Top-Performing Managers
    • Largest Money Managers
    • DC Money Managers
    • DC Record Keepers
    • Largest Hedge Fund Managers
    • World's Largest Retirement Funds
    • Best Places to Work in Money Management
    • Excellence & Innovation Awards
    • WPS Innovation Awards
    • Eddy Awards
  • ETFs
    • Latest ETF News
    • Fund Screener
    • Education Center
    • Equities
    • Fixed Income
    • Commodities
    • Actively Managed
    • Alternatives
    • ESG Rated
  • ESG
    • Latest ESG News
    • The Institutional Investor’s Guide to ESG Investing
    • ESG Sustainability - Gaining Momentum
    • Climate Change: The Inescapable Opportunity
    • Impact Investing
    • 2022 ESG Investing Conference
    • ESG Rated ETFs
  • Defined Contribution
    • Latest DC News
    • DC Money Manager Rankings
    • DC Record Keeper Rankings
    • Innovations in DC
    • Trends in DC: Focus on Retirement Income
    • 2022 Defined Contribution East Conference
    • 2022 DC Investment Lineup Conference
  • Searches & Hires
    • Latest Searches & Hires News
    • Searches & Hires Database
    • RFPs
  • Performance Data
    • P&I Research Center
    • Earnings Tracker
    • Endowment Returns Tracker
    • Corporate Pension Contribution Tracker
    • Pension Fund Returns Tracker
    • Pension Risk Transfer Database
    • Future of Investments Research Series
    • Charts & Infographics
    • Polls
  • Careers
  • Events
    • View All Conferences
    • View All Webinars
    • 2022 Retirement Income Conference
    • 2022 Managing Pension Risk & Liabilities
    • 2022 WorldPensionSummit
Breadcrumb
  1. Home
  2. Print
October 29, 2001 12:00 AM

LETTERS TO THE EDITOR

  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print

    Trophy buildings still prized

    I am writing to comment on the page 2 article in your Sept. 17 issue "World Trade Center destruction bad news for trophy buildings." The article contains conflicting quotes that result in a confusing presentation. Your writers must have scrambled within a couple of days of the tragedy to try to patch together comments made by certain real estate professionals, some of whom apparently were willing to speak before they thought.

    Comments made regarding the declining value of "trophy" office buildings appear out of context, especially since (one) interviewee states his company "does not own any trophy properties." The comments made by Mr. Gifford, Mr. Steppe and Mr. Winters fortunately reflect the conclusions of real estate professionals unwilling to be pushed into reactive comments. The fact is that downtown trophy office buildings are only one component (and a relatively small one) of most institutional real estate portfolios. Most such buildings are help in large commingled funds, which are fully diversified across various property types, and economic and geographical regions. Even investors in trophy properties that are individually owned will not be impacted by your alleged "bad news."

    Your article's reasons why the World Trade Center disaster will negatively impact trophy buildings are simply not true. First, although property values may be hit by increased insurance costs, added cost most likely will not be felt until a period of time at which both the economy and real estate markets are improving.

    Second, in general, tenants will not refuse to pay a rental premium for upper floors. (Even if your writers' allegations in this regard were true, tenants would then be willing to pay a premium for lower floors.) The likely scenario is that tenants will continue to pay a premium for upper floors with the belief that the value of such locations far outweighs the possibility of another disaster of this nature.

    Third, although tenants will try to negotiate lower lease rates (they always do), they will not generally be successful. While layoffs and other results of an economy in recession may temporarily impact office building occupancy and revenue, new development is minimal and urban office space (especially trophy building space) will remain scarce relative to tenant demand.

    While I can appreciate your publication's attempt to address real estate issues of the disaster, your readers would have been far better served by the delay of any such article until rational, professional opinions could be formulated into a fair, intelligent article based on the strength of U.S. urban office markets and the strength of real estate as an asset class.

    Paul H. Saylor

    managing partner

    C S Capital Management Inc.

    Atlanta

    Efficient portfolio transition

    The Oct. 1, page 3 article on transition management illuminates a fast-growing and complex sector of the investment services industry. We fully agree with the criteria spelled out in the article for selecting a transition manager. In particular, we endorse the notions that the best way to measure the effectiveness of transition management is its impact on the overall performance of a plan and how closely a service provider's estimated and actual costs align. Setting appropriate and accurate benchmarks for performance - including meeting specific investment goals and cost targets and providing clear post-trade analysis - have long been a part of our standard operating procedure. In fact, we believe this should be the industry norm.

    While the article is largely instructive, we do take issue with the reported finding that, because of crossing networks, "... the plan sponsor gets an unwanted exposure to cash for a period of time during the transition ..." Crossing networks are simply a cost-effective source of liquidity used to execute buy and sell transactions. If crossing networks are properly utilized, plan sponsors do not have to sacrifice returns for low cost.

    As State Street, our sophisticated global crossing network capabilities are integral to providing clients with the highest level of support - including low-cost, efficient transactions. These trading capabilities, combined with our strengths in pre- and post-trade analysis, provide the platform for our industry-leading transition management services.

    Nicholas A. Bonn

    executive vice president

    State Street Global Advisors

    Boston

    Recommended for You
    Read the print edition of P&I
    Read the print edition of P&I
    How low is low? Projections say it's not low enough
    How low is low? Projections say it's not low enough
    FINRA honors Wharton's Olivia Mitchell with Ketchum Prize
    FINRA honors Wharton's Olivia Mitchell with Ketchum Prize
    Private Markets
    Sponsored Content: Private Markets

    Reader Poll

    August 10, 2022
    SEE MORE POLLS >
    Sponsored
    White Papers
    Gaining Momentum: Where Next for Trend-Following?
    The market opportunity in U.S. residential mortgage-backed securities
    Credit Indices Evolve with Enhanced Data Inputs
    Hedge Funds 2.0: Back to the future
    How Has 2022's Carnage Reshaped Global Stock and Bond Markets?
    Crossroads: Politics, Inflation, & Bonds
    View More
    Sponsored Content
    Partner Content
    The Industrialization of ESG Investment
    For institutional investors, ETFs can make meeting liquidity needs easier
    Gold: the most effective commodity investment
    2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios
    Ten ways retirement plan professionals add value to plan sponsors
    Gold: an efficient hedge
    View More
    E-MAIL NEWSLETTERS

    Sign up and get the best of News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today
    August 1, 2022 page one

    Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors.

    Subscribe
    Connect With Us
    • RSS
    • Twitter
    • Facebook
    • LinkedIn

    Our Mission

    To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market.

    About Us

    Main Office
    685 Third Avenue
    Tenth Floor
    New York, NY 10017-4036

    Chicago Office
    130 E. Randolph St.
    Suite 3200
    Chicago, IL 60601

    Contact Us

    Careers at Crain

    About Pensions & Investments

     

    Advertising
    • Media Kit
    • P&I Content Solutions
    • P&I Careers | Post a Job
    • Reprints & Permissions
    Resources
    • Subscribe
    • Newsletters
    • FAQ
    • P&I Research Center
    • Site map
    • Staff Directory
    Legal
    • Privacy Policy
    • Terms and Conditions
    • Privacy Request
    Pensions & Investments
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • Topics
      • Alternatives
      • Consultants
      • Coronavirus
      • Courts
      • Defined Contribution
      • ESG
      • ETFs
      • Hedge Funds
      • Industry Voices
      • Investing
      • Money Management
      • Opinion
      • Partner Content
      • Pension Funds
      • Private Equity
      • Real Estate
      • Russia-Ukraine War
      • SECURE Act 2.0
      • Special Reports
      • White Papers
    • Rankings & Awards
      • 1,000 Largest Retirement Plans
      • Top-Performing Managers
      • Largest Money Managers
      • DC Money Managers
      • DC Record Keepers
      • Largest Hedge Fund Managers
      • World's Largest Retirement Funds
      • Best Places to Work in Money Management
      • Excellence & Innovation Awards
      • WPS Innovation Awards
      • Eddy Awards
    • ETFs
      • Latest ETF News
      • Fund Screener
      • Education Center
      • Equities
      • Fixed Income
      • Commodities
      • Actively Managed
      • Alternatives
      • ESG Rated
    • ESG
      • Latest ESG News
      • The Institutional Investor’s Guide to ESG Investing
      • ESG Sustainability - Gaining Momentum
      • Climate Change: The Inescapable Opportunity
      • Impact Investing
      • 2022 ESG Investing Conference
      • ESG Rated ETFs
    • Defined Contribution
      • Latest DC News
      • DC Money Manager Rankings
      • DC Record Keeper Rankings
      • Innovations in DC
      • Trends in DC: Focus on Retirement Income
      • 2022 Defined Contribution East Conference
      • 2022 DC Investment Lineup Conference
    • Searches & Hires
      • Latest Searches & Hires News
      • Searches & Hires Database
      • RFPs
    • Performance Data
      • P&I Research Center
      • Earnings Tracker
      • Endowment Returns Tracker
      • Corporate Pension Contribution Tracker
      • Pension Fund Returns Tracker
      • Pension Risk Transfer Database
      • Future of Investments Research Series
      • Charts & Infographics
      • Polls
    • Careers
    • Events
      • View All Conferences
      • View All Webinars
      • 2022 Retirement Income Conference
      • 2022 Managing Pension Risk & Liabilities
      • 2022 WorldPensionSummit