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NYC Office Building Sells for 97.5% Less Than Original Price
Despite many companies issuing return-to-office mandates, the commercial real estate market in big cities like New York remains volatile.
Iconic office towers once valued in the hundreds of millions are taking a major hit. For example, a Midtown Manhattan office building just sold at a 97.5% discount after only receiving one offer, the New York Times reported.
Related: Amazon Is Reportedly Tracking ‘Coffee Badging’ Workers and Their Real In-Office Hours
A 23-story, 925,000-square-foot building, redesigned by the famed Gensler Architects team, sold for $8.5 million last week. The building last sold in 2006 for a whopping $332 million.
The office building, located at 135 West 50th Street, was built in 1963, and auctioned off by UBS on an auction website called Ten-X. It received just one bid.
“UBS’s perspective was, ‘We need to sell this quick, we’ve kind of made peace with this is gonna be a big loss. We need to sell it and we need to move on,” Ten-X president Steven Jacobs told The Real Deal in an interview.
Related: Barbara Corcoran Issues Warning on Commercial Real Estate Market
The building has seen a slew of companies call it home over the years, including Zales and Sports Illustrated, though it’s now 65% vacant due to the pandemic and companies downsizing on office space.
The building’s website boasts floors that range from 12,000 to 63,000 square feet with full-floor blocks that “could serve as a building within a building for the right tenant.”
However, the sale of the building does not include the land beneath it, as UBS sold that to Safehold in 2019 for $285 million.
The new owner of the building has not been revealed.
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Best US Cities to Start a Business, Entrepreneurship: Report
What city is best for starting your business? While several factors should play into a decision, a new report from fintech company SumUp has identified the top 10 for entrepreneurship based on tax data, the number of millionaires in the city, and even Google searches.
New York topped the list because of the opportunities it offers across industries, from tech to fashion, and its 4% sales tax, which was the lowest of the group. New Yorkers also frequently Google “how to get rich” and “how to make it in business,” the study found. The city also offers access to over 30 WeWork coworking locations, the most of all the cities in the report, which theoretically could help startup employees collaborate.
Related: Worried About AI Stealing Your Job? A New Report Calls These 10 Careers ‘AI-Proof’
Chicago came in at No. 2, with SumUp researchers highlighting its 120,500 millionaires and high interest in entrepreneurship through tracked Google searches. They also found that Chicago stood out for finance startups.
Rounding out the top three was Miami, “where the weather is warm and taxes are low,” according to the study. Travel, tourism, and commerce startups thrive in this city, which has 0% personal income and capital gains tax.
Related: These Are the Top 15 Jobs With the Highest Entry-Level Pay
Here’s a complete list of the top ten cities for entrepreneurship, according to the report.
1. New York
Number of millionaires: 349,500
Personal income tax – highest income: 10.90%
Sales tax: 4.00%
2. Chicago
Number of millionaires: 120,500
Personal income tax – highest income: 4.95%
Sales tax: 6.25%
3. Miami
Number of millionaires: 35,300
Personal income tax – highest income: 0.00%
Sales tax: 6.00%
4. Los Angeles
Number of millionaires: 212,100
Personal income tax – highest income: 13.30%
Sales tax: 9.50%
5. Dallas
Number of millionaires: 68,600
Personal income tax – highest income: 0.00%
Sales tax: 6.25%
6. Austin
Number of millionaires: 32,700
Personal income tax – highest income: 0.00%
Sales tax: 6.25%
7. Houston
Number of millionaires: 90,900
Personal income tax – highest income: 0.00%
Sales tax: 6.25%
8. Seattle
Number of millionaires: 54,200
Personal income tax – highest income: 0.00%
Sales tax: 6.50%
9. Washington
Number of millionaires: 28,300
Personal income tax – highest income: 10.75%
Sales tax: 6.00%
10. Boston
Number of millionaires: 42,900
Personal income tax – highest income: 9.00%
Sales tax: 6.25%
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What Is Founder Mode and Why Is It Better Than Manager Mode?
Paul Graham, the founder of famed startup accelerator Y Combinator, coined a new term this week that has taken over social media: founder mode.
In an article released on September 1 and publicized on X over Labor Day weekend, Graham separates “founder mode” from the traditional “manager mode” route by noting key differences in management styles and organizational structure. Graham’s X post has over 21 million views at press time.
Related: How to Start a Multi-Million Dollar Company, According to an IBM Engineer Turned Founder
Founder mode means that the CEO interacts with employees across the organization, not just their direct reports. The startup, even as it grows into a large company, is less hierarchical; the CEO could do “skip-level” meetings with employees, for example. Graham gave the real-world example of Steve Jobs running an annual retreat for who he thought were the 100 most important people at Apple — regardless of where they were on the corporate ladder.
Manager mode, meanwhile, is less hands-on and involves more delegation to other people. Founders can grow companies and run them effectively without switching to manager mode, Graham stated.
“Hire good people and give them room to do their jobs,” Graham wrote. “Sounds great when it’s described that way, doesn’t it? Except in practice, judging from the report of founder after founder, what this often turns out to mean is: hire professional fakers and let them drive the company into the ground.”
Related: How to Start Your Dream Business This Weekend, According to a Tech CEO Worth $36 Million
Graham gave the example of Airbnb CEO Brian Chesky, who tried to follow conventional “manager mode” wisdom to hire good people and let them do their jobs.
“The results were disastrous,” Graham wrote.
Chesky had to pivot to a different “founder mode” style of management and explained in an interview last year that founders have multiple advantages over managers: They have owned every part of the process of building a company, from start to finish; They have built the company up, so they can rebuild it; and they have permission to rebrand the company or make major changes.
This is it: @bchesky on founder mode.
Three reasons why founders differ from managers:
1. Being the biological parent
2. Full permission to make change
3. Knowing how to rebuild the company pic.twitter.com/VhuQ70B8FK— Yana Welinder (@yanatweets) September 2, 2024
In the past few days since Graham released his essay, the social media world has begun exploring what it means in humorous and insightful ways. One post drew a comparison between micromanaging and founder mode.
founder mode pic.twitter.com/LWOlaFq4UJ
— ST (@seyitaylor) September 2, 2024
Other posts from women founders addressed the question: Can women be in founder mode too?
Chesky wrote on X earlier this week that women founders had been reaching out to him since Graham released the essay about how they can’t run their companies in founder mode the same way men can.
“This needs to change,” he wrote.
Remember when the female founders did founder mode and all got cancelled for it?
— Sara Mauskopf (@sm) September 3, 2024
It happened to me first — headlines portraying me as a “toxic leader” when I had to make the same, often unpopular, decisions that my male peers did without critique.
For them, it’s called Founder Mode, and it’s celebrated (a proper noun! With its own merch! And trademarks… https://t.co/rF0IM1huy3
— Sophia Amoruso 3.0 (@sophiaamoruso) September 5, 2024
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