 In the highly competitive New York City real estate brokerage community, the firm of Schlesinger & Company, LLC has consistently maintained its position as one of the city's leading office leasing brokerage and consulting firms specializing exclusively in tenant representation. Since its founding in 1970, the firm has negotiated aggregate lease commitments exceeding $4 billion. We met with Richard Schlesinger to discuss how the firm is defining its role. RS: Because we only represent tenants, we never have a conflict of loyalties. We cannot be compromised by a landlord in any real estate negotiation. Other firms may make the same claim, but for the most part, it simply is not true. The lease negotiation process is by nature confrontational. Since we have no conflicting business agenda with any landlord and are committed exclusively to negotiating our client's deal in the most advantageous way, we act aggressively and decisively. Why is a broker who exclusively represents tenants preferable to one who represents both tenants and landlords? RS: We are strictly demand-side representatives. Because we only represent tenants, we have the ability to look at issues from a tenant's perspective, including critical matters such as the tax treatment of a landlord's contribution, escalation and self-help provisions; electricity charges; initial construction and alteration clauses; and many other provisions in which the landlord has the potential for significant undisclosed profits. In order to fully protect the tenant's interests, we are experienced in coordinating, when required, the full team of lawyers, design and construction consultants, and contractors. RS: In many ways, we are like a personal banker or investment advisor; we and our clients need to exchange confidential information. Our plan of action, based on the input we receive and the options we recommend, will determine an important component of our client's financial well-being for years. We work hard, listen to our clients and feel the pulse of the real estate marketplace in which we trade. It is our job to hear our clients define their vision ten to fifteen years out, and then help them secure the best real estate alternative with the most flexible terms at the lowest possible cost. RS: Yes and no. It is true that recently five of the largest leases transacted in New York City were successfully concluded by our firm: Neuberger & Berman, Quick & Reilly, Moses & Singer, Depository Trust Company and the New York State Department of Motor Vehicles. However, we are also proud that we are brokers on leases as small as a few thousand feet. Our commitment is to our clients, not to the size of the transaction. It allows us to do what we enjoy doing negotiating leases. Small companies and their professional advisors remember the quality of the service they received. RS: Yes. We have intentionally remained lean and thus quite profitable. As an investment banker I know, likes to say: "Small is beautiful; and it is most effective." This is a trend that so many businessmen I meet now recognize and prefer. We are successful in our niche and that allows us to proceed with strength in every transaction. We also avoid bells and whistles. It is not our style. We are, quite simply, multi-disciplined professionals with a no-nonsense approach. What we do is working for both our clients and ourselves. We are never under pressure to conclude a deal prematurely in order to earn fees. Our consistent performance and financial reserves provide us with an environment that fosters effectiveness as well as the time and energy to train our younger members. RS: We keep our clients and enjoy repeat business. Our client list is a Who's Who of New York businesses. Most of our new accounts can be traced to a client recommendation or to a referral from professionals who work within the industry; they appreciate
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