Art for the Class-A Lobby

SAN FRANCISCO—Wouldn't it be convenient if someone had clear, intelligent answers to most of your CRE-related questions? Problem solved. Nina J. Gruen, a.k.a. Ms. Real Estate, a.k.a. the principal sociologist overseeing market research and analysis at Gruen Gruen + Associates, is here to answer readers' questions.

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Dear Ms. Real Estate:

I am in the process of obtaining permission to build a 22-story Class-A office building in a bustling downtown. I am currently in a behind-the-scenes negotiation with the City. I have been offered the following choices: providing $250,000 on permanent art within my building that has to be pre-approved by the City, or donating $100,000 to the City's fund that supports nonprofit art organizations. If I select the second option, I would be permitted to provide the amount and type of art within our building that our organization and my company feels is most appropriate. Any advice?

—Looking for a Class-A Art Strategy.

Dear Class-A Art,

This is a difficult decision for Ms. Real Estate to pontificate on when her knowledge is limited to the information in your letter. As to option #1, if “permanent” refers to non-removable sculpture or murals and if your architect has a recommendation as to the type of “permanent” art that will make your Class A building classier, then you might want to test the City's reaction to your recommendations. If the City appears enthusiastic and supportive, go with option #1.

If the City demurs or suggests the type of “permanent” art that you and your architects concur will not only not add, but is likely to detract from your building's allure, go with option #2. Option #2 will also leave you a minimum of an additional $150,000 to purchase the type of art or art-related finishes that make the most sense for the design of your proposed Class A office building.