As seen in
September 29, 2003
"Dislocated Graphic Arts Firms Get
Outfitted with New Homes"
by RACHEL FRANK
Printing is becoming fashionable. Not
that it wasnt in vogue before, but now some area printers
are moving into the digs to prove it. With Manhattan printers
being pushed out of high-rent areas like the Meat Packing
district and Chelsea, many have found a new home in a most
unlikely placethe once-famed Garment District.
One
of the few places left, at a rent [printers] can afford, on
the island of Manhattan, is the apparel area, said Larry
Roberts, who, along with Eric Lassoff, is a senior managing
director at Plymouth Partners, a New York City real estate
firm.
With
most clothing manufacturing now being done oversees, the Garment
District remains that only in name. Most recently, these vacated
properties between 36th and 40th Streets from Eighth to Tenth
Avenues, housed dot-coms and storage
companies, whose businesses dissolved because of the weak
economy. These big industrial World War I and older vintage
buildings historically catered to garment factories, and are
known for their ability to serve as a manufacturing, warehouse,
and distribution site, all in one.
They
offer efficient layouts, concrete floors, good size freight
elevators, heavy floor loads, sufficient power, and affordability,
pointed out Paul Walker, a director at Adams & Co. Real
Estate, which has worked to secure printers new homes. And
the location is close to mass transit, making for easy deliveries,
added James Buslik, owner of Adams & Co.
Because
many of these buildings were originally intended as textile
and clothing factories, there are large floor plates that
can handle the heavy load of printing presses, Mr. Roberts
explained further.
Moreover,
rents in the printing districtsHudson Square, Tribeca,
Varick Street, and Chelseaare on the rise, and can be
as high as $32 per sq. ft., whereas space in the Garment District
goes as low as $13 per sq. ft. If a printer can even
get a deal in Chelsea, Mr. Roberts said, maybe
its the back of a building, looking into an air shaft,
with no natural light. And, its still going to be $20
a sq. ft.
The
Dot-com Debacle
The late 1990s and beginning of this century brought with
it the infamous dot-com craze. As a result, there was a mad
scramble for office space and realtors couldnt find
enough of it to house the start-up techie companies, and their
venture capitalist counterparts. Soon, landlords saw opportunity
to convert their older buildings, modernize them, create office
space, attract a new type of tenant, and, of course, garner
higher rents. Long-time faithful print shop tenants were suddenly
squeezed out, because as manufacturers, they were only willing
to pay the lowest rents, and from a landlords point
of view, they were increasingly becoming undesirable tenants.
Although
many dot-coms have since gone under, landlords are still unreceptive
to having a printer as a tenant. Its hard to place
printers in Manhattan, says Mr. Buslik. Its
like wanting warts. Everyone wants an office tenant.
Both
Mr. Roberts and Mr. Lasoff agree. No one wants the printers
in Chelsea or anywhere, Mr. Roberts admitted. Very
few buildings will still take printers. He went on to
explain that landlords are demanding more than the asking
rate because they know printers have nowhere else to go. They
want to upgrade their tenant roster, and the preconceived
notion is that printers are dirty, noisy, smelly, and are
always using the freight elevator and double parking,
Mr. Lassoff elaborated. It is, he admitted, a form of discrimination.
The
truth is though, Mr. Walker pointed out, Its a
huge investment to move into a space for a printer. They cant
just pack up their desk and leave tomorrow, which actually
makes them a good tenant to have.
Starting
Over
New York City-based Nesher Printing called 20 West 22nd Street
its home for 22 years before its landlord decided not to renew
its lease. When Neshers owner, Sheldon Wrotslavsky,
bought the business in 1981, the previous owner had already
been there for 10 years. On the bright side, the landlord
gave 55-year-old Mr. Wrotslavsky time to find a new homeit
took him almost two years before he decided on 313 West 37th
Street, in the heart of the Garment District.
Neshers
story is probably similar to many other printers that have
been ousted from their spaces. About three years ago, a dot-com
company moved in on the floor below Nesher Printing. The president
of the companys office was located directly under Neshers
cutting machine. It didnt take long before the president
complained to the landlord, who then sued Nesher Printing.
I had to spend thousands of dollars to lift up the machine
and put padding underneath to muffle the sound, Mr.
Wrotslavsky said. And, within a year, the dot-com left. The
landlord had trouble renting the space and blamed Nesher Printing,
giving the company its walking papers.
Since
most of my clients are in Midtown, I didnt want to move
downtown, Mr. Wrotslavsky said. The reason I chose
this building was the price and that the lease [information]
was not so long. It was only the usual 12 pages, not 50 or
75 filled with many more restrictions. It seems odd
that an industrial-like building would have many caveats,
but some landlords, for instance, do not allow air conditioning
units to be placed in a window facing the street.
Floor
weights were another concern. Some spaces Mr. Wrotslavsky
looked at had hardwood floors, which are not conducive to
bearing heavy loads. His new home boasts the ability to hold
200 lbs. per sq. ft., which offers more stability than usual
in buildings of this nature. Another plus was that this building
pays utility costs directly to Con Edison, while many other
buildings are sub-metered, which means an extra 15-20 percent.
Mr.
Wrotslavskys eight-employee company specializes in offset
short-run work, but when he moved he went to computer-to-plate,
adding five new pieces of equipment to his collectiona
big expenditure in itself. The move alone cost him $150,000,
of which the city is subsidizing any costs that have to do
with the move of machinery.
Mr.
Wrotslavsky said he is beginning to get more business due
to his new location, and this neighborhood has many more print
brokers. He estimates getting four or five new clients since
July.
If
there is one drawback to his new location, he feels it is
the lack of parking in the area. Yet, he is able to turn even
that into a positive: Paper suppliers have to come early
in the morning to compensate, he noted, So, I
get my deliveries early and am able to turnaround faster.
Mr.
Wrotslavsky conceded it was difficult to move after being
in a place for over 20 years, and to keep customers happy
while in the process of moving, but he said, Thank God,
it worked out.
Alcides
Roverano shared the same address as Mr. Wrotslavsky on 22nd
Street. His company, Greenleaf Litho, called the site home
since 1978, and was the last print shop left in the building.
They threw me out, he said. I had no choice,
I had to leave. Through Mr. Wrotslavsky, he heard of
available space at 313 West 37th Street, just three floors
up. He completed his move just four weeks ago.
Like
Mr. Wrotslavsky, he doesnt believe he will lose businessif
anything, he hopes to gain a few new faces. Up until now though,
he admitted, business has been slow, and with just four employees,
he is two short. Mr. Roverano has kept an optimisitc outlook
however. I dont scare easy, he said with
a smile.
From
Suburbs to City
Steve Hartfords story is a bit different. His company,
A.E.C. Reprographics, wasnt forced out of its space
in New Hyde Park on Long Islandhe chose to relocate
to the Garment District. The four-year young blueprint reprographics
firm specializes in reproduction, distribution, and document
management, and is run by three brothersSteve, Gary,
and Scott. For them, doing business from Long Island was difficult
since much of their customer base was in the city.
Steve
Hartford explained that he looked at a lot of buildings before
coming back to the first one he was shown at 345 West 37th
Street. Initially, he was looking into basement space at 115
Broadway, but the deal fell through. The landlord didnt
want printing in the building. He thought it would bring too
much traffic, Mr. Hartford revealed. Now, he said, its
actually a blessing they didnt move into that space.
This is central for many of our customers, he
added. Its easy for them to come and pick up documents.
Being in Midtown just made sense. We cater to builders and
most of them are in this area.
Many
of the buildings he looked at were dingy, he said, and truly
looked like sweatshops, with old cords dangling from the ceiling.
It was also important that A.E.C. Reprographics be in a building
with big freight elevators that have 24-hour access. We
do a lot of Fedexing, orders come in at night and go out the
next morning, explained Mr. Hartford. People work
through the night, so it was important to have a building
with access where we wouldnt disturb the normal workflow
of the building. And, he admitted, the rent is unbeatable.
The
trend, Mr. Lassoff commented, is moving away from industrial
office space in general. Manufacturing seems to be moving
as a whole to Queens, Brooklyn, and New Jersey. A printer
cant pay what a record company or an advertising agency
can over the haul of 10 years, he explained. It all
comes down to economics. If the market continues to
remain stagnant, some landlords will reconsider. Yet we know
some landlords who would rather have their space remain empty
for a significant period of time in hopes of getting office
clientele.
As
for Nesher Printing and Greenleaf Lithos old home on
22nd Street between Fifth and Sixth Avenues, it is reportedly
being converted into a 130,000-sq.-ft. Home
DepotManhattans first.

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