Dollar Value Reasons to Install Art in Your Commercial Real Estate!

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listeners the regular listeners they
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obviously
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connect with us primarily talking about
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investing in commercial real estate and
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related financing
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so it’s a it’s a special treat to have
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you on today because
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you you talk about a little bit of a
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different
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topic which i think is very important
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which is to to make a property
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more appealing to to tenants as well as
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to to the surrounding communities so why
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don’t you give us a brief background
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about uh
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what you’re doing and what 9. is all
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about
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well i’m happy to be here on the show
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because you know in our world
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art can sometimes be seen as
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uh you know a an afterthought or
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a luxury item but i’m here to make the
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case today
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that art can enhance the value of your
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property
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and smart developers should really
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harness that as a tool
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to increase the roi for their assets and
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involve the local community
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and really maintain visibility for being
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a unique property and while art
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might for some feel like something that
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is aloof or unachievable
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it’s actually a fantastic way to
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be a more approachable company to show
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your humanity
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and to engage the local resources that
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are right there
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at your doorstep so excited to be here
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today
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to talk more about what we do at nine
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dot arts our history as a firm
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we began 11 years ago in the art
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consulting industry
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we have grown to complete projects in 35
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states
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four different countries and we’ve
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contributed 35 million to the creative
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economy since we began
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in 2009 so we work with over 10 000
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artists
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most of those are based in the united
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states and
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i’m happy to be here today to talk more
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about
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how art can impact the value of your
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real estate
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yeah great introduction uh that’s uh
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really appreciated sean if you’re just
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sorry i interrupted you
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oh no we’re just staying great
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yeah so obviously
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from a investment perspective
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everyone is looking at the numbers right
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ideally you want to spend the least
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amount of money to generate
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the highest possible return but
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all of that is a is a balancing act
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right the reality is
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that uh whether you spend money
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on uh on on on the brick or
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on another material on the outside as
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well as
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in the interior build out yes you can
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save money but at some point you
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you spend not enough money to attract
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the right tenants and as a result
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also cannot spend uh uh cannot get the
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rents
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that you would expect and uh i would say
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as
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only art is a is a similar element that
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that comes into play here so
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maybe martha if you can give us a little
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bit of uh
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an idea what what one should expect
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in terms of uh improvement from a from a
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rental perspective now obviously
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it’s always very difficult when it comes
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to these type of items similar to
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a color choice or a material choice it’s
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not a black and white where one can say
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yes that is
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increasing the uh the roi but by
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x percentage but maybe you still can
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give us a little bit of a sense of
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what the value creation can be for uh in
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dollar terms
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for for for for a pro
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for a landlord well i’ll talk first
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about value creation from a more
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holistic perspective and then would like
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to give some
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more specific information on recent
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reports that have come out about dollar
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values
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tied to commercial real estate that’s
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great
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so from a holistic perspective how
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i want to share the results from a
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survey
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done by the americans for the arts
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council in 2018
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they surveyed a large swath of the
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population in north america
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and found that the vast majority of
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americans
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91 of americans
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believe that arts and culture and arts
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and culture facilities
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improve the quality of life
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additionally 86 percent
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believe that the arts is important to
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local businesses
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and to the economy
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so when you invest in the arts you are
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investing
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in an american idea of creativity and
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entrepreneurialism
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and supporting an entire economy of
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creative work
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and creative business
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the urban land institute published a
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study on creative place making
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strategies
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just in 2020 creative place making
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has been cited as one of
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the top ways to improve your property
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to build uh rapport with the community
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and to
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raise awareness and help
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bring together hope for our communities
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coming out of this pandemic and so
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it’s not just it’s not
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not just an impact on your own property
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but it’s almost it’s a public benefit in
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a way
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right this is a big calling that we have
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and so you know i’ll read you a quote
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from the urban land institute mary lee
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utter put this together
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from civ adventure associates she said
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as cities struggle to rebuild and come
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back from pandemic devastation
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economic social physical
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creative place making and this means
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working in the arts
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is perhaps our most powerful tool
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for renewal using culture as a
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foundation reinforces
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inclusivity it reinforces equity
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authenticity
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to the local community and the result is
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a highly
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marketable approach that naturally
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attracts both public and private
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partners
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and they also speak in this publication
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from uli’s report
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on how private and community developers
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alike
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like to focus on the details of creating
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places that thrive and endure
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so this is an endurance tactic yeah it’s
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a
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very good point right and i think a lot
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of our listeners can appreciate that
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particularly
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investors that have invested in in some
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of the tougher locations
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right the reality is when you
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buy a property that is tends to be run
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down
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and you you make improvements to that
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property
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very often you are at the forefront of
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not just improving that property and
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improving the tenant base there but also
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once you have another landlord joining
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in with the neighboring properties where
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they
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really make an impact on the
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neighborhood and improve the
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neighborhood as a whole
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and that’s just improving the properties
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right so now naturally once you add also
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art to it in the neighborhood whether
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it’s a building or in the
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common places it creates a more
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attractive environment
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and i would say our
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certainly some of our listeners
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appreciate that your your words there
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because that’s really something
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that they have experienced just with
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with improvements to their own property
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so that’s a
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it’s a very good point and i’d add also
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you know i think when we talk to
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investors
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you know it’s not uncommon for them to
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articulate you know different strategies
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as to how they
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try to um you know generate a stickiness
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to their property
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a connection if you will and i think
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that we’ll probably find when we look
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back through this period
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some of the more invest successful
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investors were folks that figured out a
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way to
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have their property connect on a
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personal level
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with their tenants and have some type of
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you know a greater sense of community
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um i’ve talked to investors here in the
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last six
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you know six months or so where you know
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i think that
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folks that seem to have the capacity
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through their management system to have
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a personal connection
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um you know i think at times had better
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collections during a very
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you know stressful period and this is
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just another
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way to possibly be able to do that and
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i’d be curious to kind of
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hear what martha has to say as to how
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different investors can approach this
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that type of problem and create some
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solutions
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i i think that’s a great point john
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about being sticky
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and then providing something that is
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attractive that people want to come back
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to
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and on a personal level i can share a
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story
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with nine dot arts we grew through
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we grew rapidly through five different
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commercial office leases
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in the early stage of our company and so
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we were
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i felt like as a ceo my job was just
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commercial real estate lease negotiation
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because it was like every time we got
09:44
settled we’d have to figure out and
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you know find a new place to go and do a
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lease renewal
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so eventually we wisened up and started
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taking notice of what all
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our clients in development were doing
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and we invested when we had the
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capital to do so in a small office condo
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the office condo was in a district that
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you know took off we
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we invested in in what became an arts
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district
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and i have let me tell you the kind of
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money you can make in doing
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well in real estate this is not what you
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can do in the arts so
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um you guys haven’t figured out you’re
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definitely in the right industry i love
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the industry i’m in but
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uh real estate you know if you do it
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right has some great return potential
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when we um sold our office condo so we
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uh we were in the rhino
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river north arts district in denver we
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sold our office condo there at
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top of market and then we moved
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to an area called lojai which is where
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we are now the lower highlands
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neighborhood
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of denver and here we have
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we’ve purchased a lot it’s a 19 000
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square foot lot
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with a 6400 square foot
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commercial commercial office space
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but let me tell you about this
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commercial office space we’re in a 1956
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food distribution warehouse so we’re in
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an
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old warehouse building and we renovated
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the inside to really be attractive for
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our staff you know we’ve got different
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zones where people can interact we have
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open an open office plan we have a
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lounge we have a room where you can nap
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we’ve got some small breakout rooms a
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nice kitchen
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these beautiful large-scale meeting
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rooms where you can look at artwork in
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person
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and in the pandemic guess how many
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in-person meetings we’ve had
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to see artwork
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zero since march and we are still
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thriving
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and growing and our clients have adapted
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with
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us so we’re now living in this digital
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world
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but we’re a creative company and
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creative companies thrive when people
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come together
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and have these somewhat spontaneous
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interactions
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that bring new ideas to life so
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as a business owner in charge of the you
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know
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leasing real estate decisions of our
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company
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we have decided to invest
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in creating a mural project so we’re in
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this
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industrial warehouse and on the outside
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you know we’re not
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our the outside of our building it’s not
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much to look at it’s a warehouse right
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so we are investing in doing a mural
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project a community mural project in
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2021 for nine dot arts
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as a way to engage our staff and
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encourage people to come back to the
12:44
office
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so this is our tactic for not only
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raising awareness for our our company
12:50
through our building and what we do
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but it’s also a tactic to attract people
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to our space again
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attract our own staff back and our own
12:57
team back to our
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to our office we’ve been serving our
13:02
staff through the pandemic
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and one of the things that our staff
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told us when we asked what do you miss
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about being in the office and they said
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we miss seeing real
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art so we’re we’re going to invest more
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in real art because people want to be
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around it
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again i mean we might have a bias
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audience of course because everyone is
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in our industry right they love what
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they do
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um but you know that’s i think that’s a
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good story personally that shows
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what we’ve decided to to contribute
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ourselves
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um to enhance the value of our property
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by by making it a social space
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for our creative team yeah that’s a
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great point
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uh obviously for uh for
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some of some buildings uh hard
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installations
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inside the building or is a is a crucial
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piece
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right but for some others it might not
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be that much
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like apartment buildings particularly
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older ones that are maybe that were
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built in the 60s 70s and 80s
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a lot of investors we know what they
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have done is
14:12
using pop collars right to kind of
14:15
create that that appeal for the property
14:18
that it stands out for
14:19
from other properties in the
14:21
neighborhood and i think
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a lot of them had had a large success
14:25
obviously signage is also very important
14:28
to
14:28
to uh to attract potential tenants
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some of them also we know have have done
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more murals
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uh some of them look pretty nice soros
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uh i would say
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probably not that attractive but they
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still did them
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in order to to stand out and i think it
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might be worthwhile for for some
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property owners really to
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think of hiring a professional company
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uh like like mardus uh just to to get a
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better
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uh uh to to to get a professional advice
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on how
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uh how that mural should should look
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like right
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uh so uh martha uh
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how when we talk obviously you talk
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about uh holistic
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uh part uh could you uh talk to us a
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little bit
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more about the the the
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dollar side right in terms of what is
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what is required really
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to make an impact that at the property
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to get the
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proper art uh artwork in place
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uh that is suitable for from a cost
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perspective obviously for the property
15:40
owner or developer
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but also makes it attractive for for the
15:44
tenants and the visitors
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sure yeah because i think you have to
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think about both
15:50
right i mean there’s there’s um the
15:53
holistic
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aspects of it and then of course you
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know
15:57
you want to make sure that there is true
15:59
roi on any of your investments
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so i’d like to reference a few
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statistics that i pulled for our
16:07
conversation that were recently
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published by the city of seattle’s
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department called for
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culture so the city of seattle has
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an arts administration program within
16:17
their municipality
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and the city of seattle’s public art
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program is one of the oldest in the
16:24
country they began in 1976
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and by public art program i mean that
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they have a percent for art so all
16:31
municipal buildings have a percent for
16:32
art requirement
16:33
where our work is required to be a part
16:36
of those municipal developments
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and so the city of seattle has invested
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time because
16:42
each year you know there’s a
16:45
conversation about
16:46
making sure that there is return on
16:48
investment for the city’s
16:51
economic contributions so i think their
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research is really forward thinking
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because they’re one of the
16:56
oldest programs in the united states
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and they’ve had the longest to figure
17:01
out a lot of the the kinks of the system
17:04
and their most recent report in 2020 was
17:08
called the market forces argument
17:11
for arts or cultural space and the
17:13
naturally occurring benefits
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so they have a few interesting
17:19
statistics for example
17:22
they’ve shown that there are multiple
17:24
benefits that correlate with the
17:25
presence of the arts
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and they talk about
17:30
blocks that include at least one a
17:33
cultural
17:33
asset have shown a nine point walk score
17:38
so the presence of having a cultural
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asset or a cultural
17:42
space can indicate that your block will
17:44
have a higher density of other walkable
17:46
amenities so a single point of walk
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score has been shown to increase
17:50
up to 34 000 dollars per unit
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commercial grid squares in seattle that
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contain cultural spaces have an average
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walk score of just
18:01
below 90. and the city-wide average for
18:04
commercial grid squares is 81
18:06
very walkable so the nine-point bump
18:10
that correlates with a cultural space
18:12
presence represents
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a potential of three hundred thousand
18:17
dollars
18:18
of impact price per unit
18:22
and then if you look at the asset
18:23
overall so asset valuation
18:25
both nationally and locally the presence
18:28
of arts and cultural spaces and
18:30
neighborhoods correlates directly with a
18:31
rise in property value
18:34
we know this and in many cases
18:36
researchers from the national trust
18:38
write the presence of arts or cultural
18:41
spaces just
18:42
strongly associated with steep increases
18:44
in property value
18:47
and then they also talk about spaces
18:49
being more
18:50
photographed so a block with arts
18:53
or culture cultural spaces involved
18:57
and we’ll see about three times more
18:59
photographs uploaded
19:02
to social media sites like instagram or
19:04
flickr as an equivalent block without
19:06
the arts or without cultural assets
19:11
there are some additional uh notes that
19:14
came through and benefits from
19:15
new york city but i think i’ll just
19:16
pause right there and
19:18
see if any of that resonates with you
19:21
i’m curious what you think about those
19:22
statistics yeah
19:25
i think that’s that’s extremely valuable
19:28
right then
19:31
particularly as a property owner right
19:33
you always want
19:35
your property be standing out compared
19:37
to
19:38
everyone else right and because you you
19:41
are in competition with with neighboring
19:44
properties
19:45
and in other sub-markets within the city
19:48
so unless you stand out you are
19:52
you just blend in and once you blend in
19:54
how how do you attract
19:56
tenants and visitors right uh
19:59
so i think that’s that’s exactly what is
20:02
happening here
20:03
right with these statistics what they
20:05
show is that
20:06
uh through through it’s more attractive
20:09
for people to visit but also
20:11
thanks to social media even if you are
20:14
an apartment building if you have
20:16
some attractive art it’s more likely
20:18
that tenants
20:19
take a picture in front of that art or
20:22
just
20:23
take a picture of the art and post it
20:25
which then
20:26
draws the interest from all the
20:28
prospective tenants right it
20:30
it absolutely makes sense
20:35
have you ever incorporated artwork on
20:37
any of the properties that you’ve
20:38
invested in
20:39
uh yes we personally have i personally
20:43
have i’ve always had an interest in
20:45
in art and we
20:48
we have we have done that probably not
20:51
as
20:52
not at uh at in a very consistent
20:55
uh level uh right it’s it’s more through
20:59
through our interest in a in a
21:01
particular
21:02
art artist where we maybe have
21:06
bought some artwork or or have
21:09
uh curated as someone who does who
21:12
does some work some of it i would say
21:14
has worked well
21:16
orders probably were more kind of a
21:18
haphazard
21:20
uh approach to it and i think that’s
21:23
really the
21:24
i would say uh was the challenge for us
21:27
because we are not specialists in it
21:29
right so similar to
21:30
we are specialists in financing but as
21:33
soon as we try to
21:35
to touch other order areas we think we
21:38
know what we are doing but we do not
21:40
really
21:41
fully understand the impact so it’s only
21:43
has worked but
21:45
i would say we probably would have been
21:47
well advised to
21:49
to seek out uh professional advice
21:52
before we just
21:52
went out and and did whatever we felt
21:55
was the right thing to do
21:58
so in the ones that you feel like worked
22:00
well can you tell us more about that
22:02
experience
22:03
or uh how you feel like that kind of
22:05
brought maybe brought the property to
22:07
life
22:07
yeah i would say it’s it’s it’s mostly
22:10
that the curb appeal that
22:12
that’s only improved the visibility
22:15
so where very verve uh
22:19
the property was just more visible right
22:21
it was no longer just
22:22
one of many but was really standing out
22:25
uh
22:26
in that particular on in that particular
22:28
block
22:30
and i would say that was the was the
22:32
main benefit
22:33
right that people actually remembered
22:35
that property
22:38
without having to say the name right so
22:40
that was the
22:41
was the main benefit now that’s for
22:44
where i personally was involved on
22:46
investing site but also for a lot of our
22:49
clients very
22:50
help with the financing there are a
22:53
number of examples where
22:55
the impact of of of art installations
22:59
and particularly murals uh have had
23:02
have had a great impact where suddenly a
23:05
property was mentioned in the local
23:07
newspaper right because they had a mural
23:09
there
23:11
but before that property had a had a
23:14
kind of a
23:14
negative vibe to it and it was mentioned
23:18
on multiple locations
23:19
as a more of a problematic property in
23:22
in
23:23
in that market and suddenly with the
23:25
improvements of of the property overall
23:28
as well as this installation of a mural
23:31
now it’s only everyone talk positive
23:34
about it right
23:35
so for them also the impact was was
23:38
extremely
23:39
uh positive and i would say
23:42
there is it’s not really any reason for
23:45
someone not not to consider it
23:47
right i would say it’s uh
23:50
everyone probably will agree right that
23:52
it’s that it
23:54
helps the question is how much can
23:58
has someone to spend in order to achieve
24:01
it right i
24:01
think that is something that you may
24:04
also want to touch
24:06
what what is something what is a cost
24:09
that
24:10
one should expect in order to get kind
24:12
of a basic
24:13
odd installation and how much should one
24:17
expect once you
24:18
add a little bit maybe more uh
24:21
higher quality art right obviously there
24:24
are different ranges of art as always
24:26
but if you could tell us a little bit
24:28
about what the ranges are and one
24:31
what the investors should expect
24:34
sure so i’ll talk about price per square
24:36
foot
24:37
and also in thinking about you know the
24:40
cost
24:41
for art and and what you should invest
24:44
it’s also important to think
24:45
what is the cost of not doing it right
24:47
so if you have a property that has
24:50
a reputation right and it’s it’s not uh
24:53
well received
24:54
and you need to do something to kind of
24:57
reverse
24:59
you know save tearing it down and
25:01
rebuilding or
25:02
completely gutting you know art is
25:05
actually
25:05
in that instance an incredibly
25:08
affordable option
25:09
based on all of the potential things you
25:11
can do
25:13
your example of a mural on the exterior
25:15
is
25:16
such a great tool to completely revamp
25:20
the image of a property and to do it
25:24
in frankly a cost-effective way because
25:27
what other
25:27
material are you going to find that will
25:30
bring as much value to a property
25:33
than paint right i mean
25:36
you’re you’re paying for the labor and
25:38
the creative concept
25:39
and for paint so this is much a much
25:43
more effective medium
25:45
and much more effective material and of
25:48
course there are going to be times where
25:50
you need to re-skin
25:51
an entire project but there are also
25:53
times when a mural works really well
25:57
so that’s an exterior application and
25:59
you know we’ve done
26:01
single wall mural applications that have
26:03
ranged
26:04
from you know 30 000
26:08
total budget including our fees to
26:11
research and find the artist and oversee
26:13
the process the artist fees the lift
26:16
uh all the way up to 180
26:19
000 for really large scale works you
26:22
know going on the outside of
26:25
multi-story parking garages on both
26:28
sides that you can
26:30
you know we’re talking about mural
26:32
installations that you can see
26:34
from half a mile away on the interstate
26:37
so the people know where this building
26:39
is
26:40
it’s incredibly effective tool and i’d
26:42
love to
26:43
share some images with you all
26:45
afterwards maybe you can share with your
26:46
audience
26:47
of some of the projects that we
26:48
completed just in the past year
26:50
that one i was first referencing is
26:52
called the rev 360 project
26:54
it’s also interestingly enough in the
26:57
river north arts district
26:59
in denver and you can see that building
27:01
from i-70
27:03
and it’s six or seven blocks in but you
27:05
see the mural because it stands out
27:07
it’s iconic and that’s what draws you to
27:10
that building
27:11
there are gosh probably 25 apartment
27:13
complexes in that neighborhood
27:15
that one you know everyone knows exactly
27:17
which one that one is
27:20
so that’s an important thing to think
27:22
about you know you could
27:24
if it’s large scale you need to plan for
27:27
six figures
27:28
if it’s smaller scale you need to plan
27:30
for mid-range five figures
27:33
and when you’re talking about the
27:35
interior
27:36
you can do the same kind of technique on
27:39
the interior of bringing
27:40
high impact moments now
27:43
when we are advising clients i always
27:47
say you want to think about impact and
27:50
quality over quantity
27:52
so you want to have high impact moments
27:54
that are going to shape people’s memory
27:56
and experience of the space
27:59
rather than feeling like you have to
28:00
plaster posters up and down the
28:03
corridors
28:04
so i’ll give you a price per square
28:08
footage range
28:09
and please know that this is based on
28:12
the floor plate
28:13
right not the square footage of the art
28:15
but the floor plate of the building
28:17
if you’re in apartments you can think of
28:18
this as your amenity space or your
28:20
public areas
28:21
and what you’ll what you’ll want to do
28:24
is make sure that there is
28:26
a strategic approach to allocating this
28:29
budget
28:30
rather than just saying oh okay one
28:33
equals one right
28:34
one location should be significant
28:38
should have significantly more hierarchy
28:40
if it’s in the
28:41
main entrance or the main lobby uh
28:45
should be you know rated as a top
28:47
priority
28:48
with a greater budget than you know a
28:50
smaller work that goes
28:52
in the public restroom or in the
28:54
corridor right
28:56
so uh we always start at 350
28:59
a square foot three dollars and fifty
29:01
cents per square foot that’s going to
29:03
give you the world of options
29:05
in original artworks you’ll be able to
29:08
have source from people who are local
29:10
and national and really have a good pick
29:14
of artists if you need to scale
29:17
back you can do a mixture of original
29:21
artworks with posters
29:23
posters are limited in scale they’re in
29:26
like physically how big you can create
29:28
them
29:29
and they’re also going to be limiting
29:33
in terms of how much you can work with
29:35
the local community because usually
29:37
posters are coming from
29:38
mass-produced warehouses but you could
29:40
do a blend of some
29:42
posters or limited edition of prints and
29:44
some originals
29:45
on a budget of 250 per square foot
29:49
and then if you’re going to 1.50 per
29:53
square foot
29:54
you’re really going to be looking at
29:56
options that are just in that poster or
29:58
limited edition reproduction stage
30:02
but you can still find artwork for for
30:05
your property at that level
30:07
so i hope that that’s useful in giving a
30:09
span of of approach
30:11
yes absolutely right so now obviously
30:14
one
30:15
always wonders well that’s potentially a
30:18
lot of money that is being spent
30:20
right but sean why do you only can agree
30:22
with me
30:23
we are visiting properties for property
30:27
inspections for the financing sites
30:31
year round we have seen hundreds of
30:34
properties
30:34
right and i think from an investor
30:37
perspective you also need to think
30:39
not just for for you as an investor and
30:41
for your tenants but also from a
30:43
financing perspective
30:45
it makes a big difference whether the
30:47
lenders appraiser and property condition
30:49
assessor
30:50
whether they have a positive view of of
30:53
that building that they are looking at
30:56
and we have seen some buildings that
30:59
have
31:00
just did a terrible job when it came to
31:03
to the interiors not just the outside
31:05
but also the interiors it just felt
31:07
outdated
31:08
and then some others that even though
31:10
there were 60s and 70s office buildings
31:13
and apartment buildings
31:15
because they focused on really creating
31:17
that wow effect in the lobby and all
31:20
that
31:21
the impact on the appraiser and the
31:23
property condition assessor
31:25
were immediately positive right so i
31:28
think that’s another element there that
31:30
is
31:30
it’s kind of important also to consider
31:34
uh that all the the partners that are
31:38
working with you including one of the
31:40
largest partner which is the
31:42
debt partner with the financing that
31:44
they have a positive
31:46
impact of uh of of your property
31:49
and uh raichon that’s uh
31:52
it has a big impact whether orlando
31:55
likes a deal
31:57
or doesn’t like a deal and the
32:00
appearance
32:02
is is a very important element to it
32:05
yes i mean we’re all human we’re all
32:08
human
32:09
the the appraisers the lenders the
32:12
engineers your team
32:14
we all experience things that
32:17
you know that can move us in positive or
32:20
negative ways
32:21
and it’s i don’t i really am so glad
32:24
that you brought up
32:26
the importance of that experience
32:30
of being in a space because
32:33
while so many parts of our life
32:36
have moved to the digital sphere in the
32:39
past year
32:40
things we may not have expected
32:43
yeah very very important point now
32:47
also for right a lot of our clients are
32:50
in the multi-family space
32:52
and unlike in uh
32:56
office space where you you have a tenant
32:59
that then signs a lease for
33:01
for five years or whatever it might be
33:03
three years or five years
33:05
uh in a you know with a typical lease
33:08
with multi-family properties you
33:10
essentially have prospective tenants
33:12
that come into your
33:14
leasing office every single day right
33:17
and
33:19
multi-family owners can tell you that
33:22
the
33:22
conversion uh is a is a key element
33:25
to keep the property full right so the
33:28
better you can convert
33:30
a prospective tenant right when they
33:32
walk into into your property
33:35
uh that’s that’s a big big gain
33:38
and obviously the appearance again of of
33:41
that space
33:42
is a is a is crucial and i would say
33:45
obviously in the a-class building
33:47
that’s already a given right everyone
33:49
expects that everything looks great
33:52
but it’s particularly important in my
33:54
view in b-class buildings and c-class
33:56
buildings
33:58
yes the c-class renter may not
34:02
necessarily appreciate the art as much
34:05
however they still get a
34:07
positive vibe right and if they feel
34:10
that the space looks nice and it’s
34:14
appealing
34:15
it’s much more likely that they also
34:16
trust you as a landlord
34:19
uh to run the property including their
34:22
own apartment that they’re renting
34:24
without without any issues so that if
34:26
there are maintenance issues that you’re
34:28
responding right
34:30
so you’re giving value signals about
34:33
about the thoroughness
34:34
of who you are as as a developer and a
34:37
property manager and a landlord
34:39
right so what is it that you value if
34:42
you take care
34:43
of the first impression well then surely
34:46
you’ll take care of all my other needs
34:47
as a tenant
34:49
yes yeah uh absolutely
34:52
right took the words out of my mouth
34:54
that i was
34:55
waiting to jump in there but i i think
34:57
that that is the perceived value that a
34:59
tenant has when they walk
35:01
a property you know if like you said if
35:04
you have that capacity for
35:05
you know some some level a while even if
35:07
they weren’t expecting it
35:09
so to anton’s point about the b and c
35:11
level property sometimes
35:13
um you know there may not be that
35:14
expectation that they’re going to have
35:16
you know the capacity for what they’re
35:18
paying in rent
35:19
to have a differentiated experience you
35:21
know if it works out in the ri for an
35:23
investor to figure that out
35:25
you know that has to put them in a
35:26
different tier versus another
35:28
run-of-the-mill property
35:30
you know you know blocks around of
35:33
you know 80s build 90s build properties
35:35
that
35:36
may not have that differentiator so
35:37
where do i want to spend my money and
35:39
put my family because these tenants at
35:42
times can
35:42
you know they’re not there for a couple
35:44
of years like you have an a class where
35:46
it’s
35:46
a younger profile tenant that might be
35:49
moving with jobs and eventually
35:51
permanent housing later down the road
35:54
these are folks that might come into a
35:55
property
35:56
and think about do i want to live here
35:58
for the next two three or four years
36:00
possibly
36:01
um you know we have a lot of investors
36:03
that have tenant profiles that just
36:05
don’t turn over
36:06
if they have the right elements in place
36:08
and this is possibly another way to
36:09
think about that
36:11
one and how do you
36:14
build in an a-class building right an
36:17
a-class building it’s expected
36:19
you have to really show a commitment to
36:22
culture and the arts and the finer
36:24
things right that is an expectation
36:27
of the audience you’re appealing to now
36:30
bn and c-class properties
36:33
who in a bnc class property wouldn’t
36:35
love to live in an a-class property
36:38
right and so you want them to feel like
36:40
there are touches of that
36:42
and and i’m not sure if you all remember
36:46
the statistics that came out
36:48
about the new york subway in the 1990s
36:52
the new york subway in the 1990s had
36:54
broken windows
36:56
and graffiti and it was dirty and like
36:59
all the bad
37:00
things happened so no one wanted to ride
37:02
the subway
37:04
they cleaned up that subway that c-class
37:06
subway
37:07
made it look like an a-class subway and
37:09
crime went down
37:10
people behaved better you know i just
37:13
wonder what’s the extent of the impact
37:15
you can make
37:16
when you start treating b and c class
37:19
tenants
37:19
like their a-class tenants right it
37:22
could even be a behavioral shift
37:25
yeah very good point yeah
37:28
so martha you you added a
37:32
great value here right so it was a very
37:34
unique discussion why compared to all
37:37
the
37:37
the order of uh investment this and
37:40
financing the discussions we are usually
37:42
having
37:43
and uh i’m sure of our audience
37:46
love to to hear your take on uh
37:50
on art installations uh in in commercial
37:53
real estate
37:55
uh so how can uh uh
37:58
people reach you marta oh yes so um
38:01
please check out our website
38:02
we’re at nine dot arts dot com it’s all
38:05
spelled out
38:06
n i n e d o t a
38:09
r t s dot com also if you wanna find me
38:13
personally i’m on
38:14
linkedin and instagram but on my
38:16
linkedin account you’ll find me
38:18
martha weidman and my last name is
38:20
spelled w-e-i-d-m-a-n-n
38:23
martha weidman on linkedin and nine dot
38:25
arts dot com
38:27
and i hope to meet some of you and see
38:29
you all there
38:30
okay that’s that’s great so uh
38:33
on on your website uh do you also have
38:36
some of
38:37
the installations that you mentioned is
38:39
there a portfolio there
38:41
yes there is in fact on our website you
38:43
can actually go at the top banner
38:45
there’s a page that shows
38:47
projects by industry so there’s an
38:48
industries page and you can go see
38:50
examples
38:51
of projects that were created in the
38:54
multi-family
38:55
hospitality space you can see project
38:58
examples
38:59
from the healthcare corporate
39:03
mixed use public art projects
39:07
master plan work that we’ve done but
39:09
definitely check out the multifamily
39:11
residential
39:12
for this audience it’ll give you a good
39:14
sense of what’s happening in other
39:15
properties
39:16
around the country and hopefully give
39:18
you some inspiration of what you might
39:20
be able to do with your work
39:21
yeah very good thanks again martha and
39:25
to our audience please
39:28
reach out to martha when you have a
39:31
project
39:31
right from my own experience
39:35
i would say you’re well advised to talk
39:37
to someone who does it
39:39
on a daily basis right so you may think
39:41
that you know what you’re doing
39:43
but uh it’s it’s only worthwhile to have
39:46
a concise
39:47
uh uh a picture of
39:50
uh of of that uh of what you’re planning
39:53
to do and uh
39:54
individual like marta and her firm or
39:57
are our perfect partners for that thanks
40:00
again martha for
40:01
for joining us thank you anton thank you
40:04
john
40:05
thank you thank you