Business
Will office buildings ever be the same? Empire State offers clues
NEW YORK (Reuters) – The Empire State Building has been a symbol of America’s economic might for almost 90 years. Of late, it’s also become a symbol of its struggle with the coronavirus.
The once jam-packed 102 stories of the 1,454 ft (443m) Art Deco skyscraper sit mostly empty in a city in shock from the country’s worst outbreak of COVID-19. Its spire has been lit up with red-and-white flashes to honor emergency workers, a siren in Midtown Manhattan.
A week into New York’s second phase of post-lockdown re-opening, dozens of the companies with office space in one of the world’s most famous buildings are trying to figure out when, how – even whether – to come back.
The same quandary is being played out across the United States, and the world. Something so normal as working in a big office block has abruptly become almost unimaginable for many.
The June 22 reopening allowed office buildings to invite tenants back, as long as maximum occupancy stayed below 50%. But most companies based in the Empire State Building, which range from tech firms like LinkedIn Corp and luxury watch brand Bulova to nonprofits like the World Monuments Fund, have opted to extend work-from-home arrangements.
Based on a tenant poll, management expected just 15% to 20% of the building’s usual 15,000 worker population to return at the second phase of reopening.
Yet even among those who plan to maintain a presence when the time comes, few expect to ever return to a workplace like the one they knew before coronavirus, according to Reuters interviews with several people who work or run companies there.
Global Brands Group (0787.HK), which licenses the likes of Calvin Klein, signed a 15-year lease for six floors of office space in 2011 but has already told employees based in New York that they will never be required to come back to the office.
The allure of working in “unbelievable corporate headquarters” has been dulled by the pandemic, Rick Darling, chief executive of the apparel and marketing firm, told Reuters.
“I think they become less important,” he said. “If your people are dispersed, really the performance of your company becomes the prestige point.”
The company has not yet made any decisions on office space and will need showrooms for fashion launches, Darling said.
‘Go back to way it was’
Such shifting attitudes could spell trouble for Empire State Realty Trust Inc (ESRT.N), which owns and manages the building, as well as for other major commercial real-estate companies across the city and beyond.
New York City office property values have likely fallen 10% during the pandemic, said Daniel Ismail, lead analyst at real-estate research firm Green Street Advisors.
Empire State Realty shares are down nearly 53% since the end of 2019, versus a 25% fall this year in the FTSE Nareit Equity Office .FTFN47U index which tracks office real estate investment trusts (REITs).
Ismail pointed to pressuring factors for the company, including the COVID-19 shutdown of the Empire State Building’s observatory – a tourism magnet that last year generated more than a fifth of revenue for the group, which also has other office and retail spaces across the city.
Even so, CEO Anthony Malkin remains optimistic.
His family has been involved with the Empire State Building since the 1960s, and he is convinced its status as a famed piece of the New York skyline will outlast the temporary, if painful, impact of the coronavirus.
“Since COVID, we’ve only had people sign leases, we haven’t had anyone move out,” Malkin said in an interview, noting that Starbucks Corp (SBUX.O) signed a lease for a three-level store on March 15. “In a post-COVID treatment, vaccine, herd-immunity world, everything’s going to go back to the way it was.”
Empire State Realty drew down $550 million from a revolving credit facility in the first quarter to make sure it would have cash on hand if tenants fell behind on payments, but so far it has received the bulk of dues.
April rent collection dropped to 73% initially but rebounded to 83% by June 1, according to an investor presentation. The company offered deferral to a small portion of tenants which helped keep overall occupancy stable at around 96%.
‘You’re real, happening’
Some tenants say they have no intention of leaving.
For instance, Shutterstock Inc (SSTK.N), which signed an 11-year lease in 2013, is following orders from authorities about when and how to return, said Heidi Garfield, the company’s general counsel and interim chief human resources officer.
The creative content platform has 85,000 square feet, with an open-plan layout that includes a large café, a library, a terrace, an exercise studio and lounge areas. Before coronavirus, employees’ main gripes were when taps for cold-brew coffee or kombucha went down, Garfield said.
Officials from smaller non-profit tenants like the Human Rights Foundation and Human Rights Watch said the iconic building lends credibility with donors and potential partners, regardless of where staff work.
“Being in the Empire State Building was a solid component of our reputation,” said Human Rights Foundation President Thor Halvorssen. “People immediately assume that you’re solvent and you’re real and you’re happening.”
But other tenants are less confident. Unsure what the future of work might look like, they questioned whether it makes sense to spend big dollars for office space when remote operations have been working just fine.
It cost an average of $65.19 per square foot to lease space in one of Empire State Realty’s Manhattan buildings pre-COVID-19, according to the company, compared with an average of $81.64 across Manhattan as of late May, according to U.S. real estate firm CBRE Group Inc (CBRE.N).
Pricing has not changed much during the pandemic because of few new listings, said CBRE Director Nicole LaRusso, adding the reopening process might see “more revisiting on pricing.”
No mask? You can’t come in
Visitors to the Empire State Building are immediately confronted with the new reality.
Anyone entering the building must wear a mask and carry their own hand sanitizer, Malkin said.
Management closed non-essential entrances and retrofitted retail space downstairs as temperature-check and sanitization stations, tenants said. The elevator lobby has stickers on the floor that people waiting must stand on to ensure social distancing.
Similar stickers line the sidewalks outside the main entrance, in preparation for the re-opening of its observatory next month. The attraction, which allows visitors to take pictures on top of the building, raked in over $125 million in revenue for the company last year.
Some companies are reevaluating leases.
This month, for example, beauty-products company Coty Inc (COTY.N) signed over 50,000 square feet of its Empire State Building space to LinkedIn, owned by Microsoft Corp (MSFT.O).
Travel site Expedia Group Inc (EXPE.O), which occupies 9,000 square feet on the 72nd floor, said it had deferred “several real estate capital projects” to preserve liquidity.
Representatives for Coty, Expedia and LinkedIn did not respond to multiple requests for comment.
Even once the pandemic is past, the office market is likely to remain irrevocably changed, according to analyst Ismail at Green Street Advisors.
“Major companies have found an increased level of comfort with people working from home, which I think will likely accelerate in the future.”
Reporting and photo: Reuters
Business
Atmosphere Core appoints Maurice Van Den Bosch as GM of RAAYA by Atmosphere, Milan Mookerjee as VP of Human Resources
International hospitality company Atmosphere Core has announced the appointment of Milan Mookerjee as Vice President of Human Resources.
This appointment reflects Atmosphere Core’s ongoing commitment to enhancing guest experiences and fostering a people-centric culture across its portfolio of three brands and nine resorts.
Veteran Human Resources leader, Milan Mookerjee will oversee talent management and employee growth initiatives across the Atmosphere Core’s resorts in the Maldives. With over 15 years of industry experience, Milan is a seasoned professional known for aligning HR initiatives with business goals and fostering a human-centric culture.
Reflecting on his approach to human resources, Milan said, “Leadership is a privilege that we owe to our team. Intentionality with direction and purpose drives results, and I am committed to fostering a culture that empowers our people to grow and succeed. In hospitality, success begins with a motivated, engaged workforce, and I believe in creating an environment where employees feel valued, supported, and inspired to deliver exceptional guest experiences. This includes investing in continuous learning, nurturing talent, and promoting a strong sense of belonging within the team.”
Before joining Atmosphere Core, Milan served as Head of Human Resources and Training at Encalm Hospitality Pvt. Ltd., where he led HR and training functions to drive business growth. He has also held several HR leadership roles at prominent companies in India, with a proven ability to develop talent and design learning programmes tailored to business needs.
Meanwhile, Maurice Lucien Van Den Bosch recently returned to the Atmosphere Core family as General Manager of RAAYA by Atmosphere.
Born in Australia, Maurice Lucien Van Den Bosch draws from the country’s renowned laid-back yet dynamic culture in his leadership style, fostering a spirit of inclusivity, adventure, and warm hospitality. He brings over 24 years of expertise in resort management, with a demonstrated ability to exceed profit targets, cost-effectively develop new projects, and lead culturally diverse teams with motivation and efficiency.
Maurice’s extensive experience includes leadership roles at some of the world’s top hospitality brands in the Maldives, Sri Lanka and the Caribbean. A familiar face within the Atmosphere Core family, Maurice has served as General Manager at both OZEN LIFE MAADHOO and Atmosphere Kanifushi.
As the General Manager of RAAYA by Atmosphere, Maurice will leverage his deep understanding of the brand to lead the resort with a focus on anticipating, crafting, and elevating guest experiences. “The culture and hospitality inspired by the Joy of Giving resonate deeply with me, and this shared value brings me back to the Atmosphere family”, Maurice said. “At RAAYA by Atmosphere, we are creating a castaway island experience of choice, a guest experience like no other, with a fine balance of escapism and energy. And I look forward to foster a collaborative working environment so that we create unforgettable moments for our guests.”
Ashwin Handa, Senior Vice President of Operations at Atmosphere Core, emphasised the importance of a strong leadership team. “At Atmosphere Core, we foster a people-first culture built on trust, collaboration, and mutual respect, ensuring that every employee takes pride in their work. This dedication extends to curating experiences that guests cherish and return for. Maurice’s deep industry expertise and understanding of our brand, combined with Milan’s people-centric approach, will significantly enhance our operations and guest satisfaction across our resorts”.
Atmosphere Core is a dynamic international hospitality company with three distinctive lifestyle brands, THE OZEN COLLECTION, COLOURS OF OBLU, and Atmosphere Hotels & Resorts. The company operates nine resorts in the Maldives and has a strong pipeline of one resort in the Maldives, one resort in Sri Lanka, and fourteen hotels and resorts across India – all set to open within the next three years. Distinctive design, an authentic sense of place, inspiring service styles, and the freshest and finest cuisine lend a unique flavour to every Atmosphere Core property.
Business
Maldives makes export of baled PET waste for recycling with support from The Coca-Cola Foundation
The Coca-Cola Foundation and partners have announced that a container of baled post-consumer Polyethylene Terephthalate (PET) plastic was exported from Male as a part of Sustainable Island Waste Management and Plastic Recycling Initiative.
Completed on World Cleanup Day 2024, the event also marked the handover of The Coca-Cola Foundation (TCCF)-funded infrastructure, which includes pickups and balers, to the government-owned Waste Management Corporation (WAMCO).
The TCCF-funded initiative is a collaboration between the Maldives Ocean Plastics Alliance (MOPA), and WAMCO, and represents an important development to strengthen the PET collection process and address the issue of plastic waste in the Maldives.
This initiative will export baled PET to Malaysia and China for recycling. While PET bottles have been exported in the past, baling the waste significantly improves the efficiency of storage and transport, marking an advancement in the process.
The overall objective of the TCCF-funded Island PET Collection Project is to help provide a countrywide solution for plastic waste recycling in Maldives by establishing both the infrastructure and systems required.
Currently, much of the waste in Maldives is disposed of or incinerated in K. Thilafushi industrial island, and this project represents a shift toward better waste management practices.
The project focuses on expanding PET collection systems beyond Greater Male’, improving collection efficiency across the nation until local recycling capacity is developed.
“This project is a turning point for the Maldives in our fight against plastic waste,” said MOPA President Ahmed Maumoon. “By educating communities and aligning with national partners like WAMCO, we are not only improving how waste is managed today but also setting the stage for long-term sustainability and environmental health.”
By collaborating with WAMCO, MOPA has supported the roll-out of community education programs and has worked to ensure the infrastructure deployed with funding from TCCF, such as compactors and pickups are used effectively across Greater Male’ and across other islands.
“This initiative represents a crucial step toward improving plastic waste management and enhancing recycling efforts in the Maldives,” said WAMCO Managing Director Mujthaba Jaleel. “By equipping islands with the tools and infrastructure needed to collect and process PET waste, we are not only helping address the immediate challenge of plastic pollution but also building a foundation for a more sustainable future.”
WAMCO’s role is pivotal in overseeing the operational aspects of PET waste collection, ensuring that baling and export processes run efficiently.
“Our commitment to this project extends beyond waste collection,” said Carlos Pagoaga, President, The Coca-Cola Foundation. “By funding work of MOPA and WAMCO, we aim to foster a culture of sustainability in the Maldives and help support a circular economy.”
Events
Italian and Spanish media experience Maldivian paradise on exclusive journey with Atmosphere Core
From September 28th to October 4th, 2024, Atmosphere Core hosted an exclusive media trip to the Maldives for ten prominent journalists and PR professionals from Spain and Italy. The group experienced the serene and captivating lifestyle of two stunning private islands—OBLU XPERIENCE Ailafushi and RAAYA by Atmosphere—both renowned for their distinctive hospitality, thoughtfully curated holiday plans, and the unique “Joy of Giving” philosophy.
“At Atmosphere Core, we believe in a more creative approach to media trips,” said Euan Blake, Assistant Vice President of Communications. “The Italian and Spanish markets have been expanding for the Maldives, with a notable increase in room nights and revenue compared to last year. Over the past two years, we’ve been building strong relationships in these regions, and this journey through our islands aims to leave journalists with not only cherished memories but also lifelong friendships.”
The trip began at OBLU XPERIENCE Ailafushi, a lively four-star resort just 15 minutes by speedboat from Velana International Airport. Journalists were welcomed with breathtaking lagoon views and vibrant social gatherings at the X360 Bar. A standout experience was the customised Martín Códax Wine Masterclass at the Element X restaurant, led by Ms. Celina, a representative of Bodegas Martín Códax, and Nicolas Laguette, Director of Wines at Atmosphere Core. Representing 600 winemaking families from northern Spain, Ms. Celina guided the group through an exquisite multi-course wine tasting, featuring a selection of wines perfectly suited for the tropical climate and fresh seafood.
This was followed by an unforgettable underwater dining experience at the Only BLU restaurant and a visit to the neighbouring “island of love,” OBLU SELECT Lobigili, where they enjoyed a chic lunch at Ylang Ylang. The island’s lively, party atmosphere provided the journalists with a full immersion into the vibrant and relaxing resort lifestyle.
Next, a scenic seaplane journey transported the group to RAAYA by Atmosphere—a picturesque escape offering a blend of fairytale island charm and authentic Maldivian experiences. The 45-minute flight over the stunning atolls’ turquoise waters set the stage for their arrival in paradise, presenting the perfect introduction to the Maldives’ breathtaking beauty.
At RAAYA, the journalists experienced an ideal mix of energy and tranquility. A private dinner atop a secluded watchtower, inspired by the legendary sailor Seb, captured the essence of the resort’s castaway theme. The group explored the island’s natural wonders, took part in customised activities, and dined at RAAYA’s signature restaurants, including Seb’s Shack, Ampers&nd, and the Italian-inspired The Village.
Throughout their stay at both islands, the media guests were treated to rejuvenating spa therapies and wellness sessions at ELE|NA Ayur, Atmosphere Core’s signature spa and wellness brand. This immersive journey offered the journalists a true taste of tropical luxury, intertwining indulgence and adventure into every experience. Their stories are sure to inspire countless Spanish and Italian travellers to discover the hidden treasures of OBLU XPERIENCE Ailafushi and RAAYA by Atmosphere firsthand.
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