NEW YORK CITY—By Manhattan standards, it might not be the largest deal ever signed. But it is very definitely the wave of the future as the New York City office market converts from its traditional office drivers to a focus on tech, advertising, media and information.

Oakland, CA-based Visual Supply Co., a provider of photo-app technology (or as it defines itself on its website, an art and technology company), is undeniably hot. With the help of Lee & Associates principals Craig Hagglund and Dave McCarty, VSCO exploded from a 3,500-foot space into 40,000 square feet at 1500 Broadway there. Fueled by accelerating sales and a $40-million capital raise, VSCO leadership recognized the need for multiple offices—and the next logical step in this expansion was Manhattan. They turned to Hagglund and McCarty.

“What makes our network work is that we know each other,” says Hagglund. “It's not just that we have an office in New York. Rather, we know the person we're referring business to.” This familiarity is the result of such national team-building events as quarterly presidents meetings, two-and-a-half-day get-togethers of Lee's regional leaders to review best practices, current business and networking. A yearly summit of all Lee team members furthers that bond.

The connectivity that results from that bond was a key factor in successfully executing the VSCO New York City deal, reports James Wacht, president of the New York office. And it helped in more ways than one. Based on the call from Oakland, Wacht created a brokerage team that married the best of both worlds—a senior partner with decades of experience (Lee NYC principal Dennis Someck), with a young up-and-comer who speaks the language of 20-something entrepreneurs (Lee NYC associate Justin Myers). Myers was a recruit from Lee's L.A. office and got to New York based on the bond of the network and the recommendations that came with it.

What's more, Meyers, described by Wacht as a rising star in the organization, was formerly a pro soccer player who “is competitive and wants to win.” Someck, for his part, was a teacher in a former life so, not surprisingly, the perfect mentor.

With the hand-off from Oakland, the New York team launched into work. But trying to nail down space requirements for a fast-track growth firm like VSCO was no easy task. In fact, according to Someck, the firm expanded its needs three times in the course of the six months it took to close the deal, initially looking for a space for 10 to 12 employees that quickly grew to between 16 and 20. By the time of closing, VSCO had decided on a space to accommodate even further growth.

But shifts in requirements weren't the biggest challenge the Lee team faced. Prime among those was the need to educate the client's Oakland-based decision makers to the subtleties of the New York market. “Originally and almost until the end, they wanted to be in Soho,” Someck explains. But NoMad, the once-less-than stellar-submarket north of Madison Square Park (hence the name) has emerged as the go-to destination for tech start-ups. In addition to the cultural fit NoMad offered, “We were able to find larger floor plates than were available in SoHo, so the company could operate on one floor.”

So committed had VSCO been to the SoHo concept that a deal was ready to be signed before the Lee team came up with an undeniable scenario, one that unfolded at 31 W. 27^th Street, in the heart of the TAMI surge. “We negotiated a deal that included a significant tenant-improvement allowance and rent concessions," explains Someck. The deal included 11,500 square feet on a long-term basis.

According to the Lee team on both coasts, the work performed for VSCO had a two-fold impact. Most immediately, it housed the client in space perfect for both their current needs and their growth plans. After buildout of the space, VSCO should be in this June.

But, in a way more important, the attention the firm received in Oakland and New York solidified the client/broker relationship. As a result, Lee “is looking in certain other key markets on behalf of VSCO.”

It's what we call a win/win.

Instant Insights /

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