Former President Donald Trump appeared in a Manhattan courtroom on Monday as the trial in his civil fraud case got underway. CBS News chief election and campaign correspondent Robert Costa reports.
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Taconic Partners repurposed a 325,000-square-foot office building it owned in Manhattan’s West 50s … [+] to create the Hudson Research Center.
Taconic Partners
On the surface, the news from the New York City office sector may look grim: vacancy rates nearing 20%, occupancy rates stubbornly stuck at around 50%, interest rates rising, values dropping, anemic investment sales activity and owners giving keys back to lenders.
Fortunately, that isn’t the full story. As I discussed in my previous Forbes article, landlords are holding onto Class A, well- tenanted buildings even as they let go of others. Additionally,four other strategies show long-term health for the office sector:
Repriced assets are attracting investors to properties with current weak fundamentals but strong potential.
Entities such as Hyundai, NYU and Enchanté are snapping up buildings for their own use.
New York City’s housing crisis has prompted developers to consider office to residential conversions, which I explored in a March 2023 Forbes article.
Also, while office finds its footing, there is another workplace and innovation asset class that continues to see strong demand citywide: life sciences. In fact, this demand is leading a number of owners to explore activity in this appreciating sector.
Life Sciences: Its Own Category
New York City-based developer Taconic Partners, through its subsidiary Elevate Research Properties, is an example of a firm that has seized the opportunity to build life sciences centers after seeing a market gap for options available both to growing innovators and major research institutions and hospital systems. This gap, along with the specialized expertise needed to bridge it, led to the formation of Elevate Research Properties in the first place.
“New York receives the highest amount of National Institute of Health research funding in the country but lags far behind other major cities when it comes to real estate space suitable for life sciences tenants,” said Chris Balestra, President and Chief Investment Officer of Taconic Partners, who was a panelist at Ariel Property Advisors’ July Coffee & Cap Rates event and a recent podcast guest.
New York City has around 2 million square feet of life sciences space compared to 60 million square feet in San Francisco and 40 million square feet in Boston.
And yet, New York City is well-positioned to be a powerhouse in life sciences. The sector already contributes $3.1 billion to the City’s gross metropolitan product and offers unique assets such as:
● Nine major academic medical centers and over 50 hospitals
● 10+ incubators to support early-stage life sciences companies
● New York City research centers that receive over $2 billion in annual funding from the National Institutes of Health (NIH)
● 5,100 life sciences companies, with industry-leading firms attracting more than $1 billion in annual venture capital investment
● 150,000 related jobs
● 7,000+ graduate students and postdocs at universities
“The research is happening here, but then the tenants have to leave to go elsewhere for lab space,” Balestra said. “The vacancy rate for completed and occupiable lab space is practically zero in New York City, so obviously we saw an opportunity to create more space. The imbalance between supply and demand is extreme here.”
The scarcity is showing up in the numbers with the average asking rent for lab exclusive space in Manhattan rising to $122.23/SF NNN in the first quarter, up 19% from 1Q 2022, according toCBRE. In contrast, the overall average asking rent for office space in Class A & B buildings in Manhattan was $74.42/SF gross in 1Q 2023, Colliers reported. There are, however, a range of factors in pricing lab space, including an extensive specialized building infrastructure.
The New York City Economic Development Corporation (NYCEDC) recognizes the potential of the life sciences sector and is committed to seeing it flourish. Through LifeSciNYC, NYCEDC is making a $1 billion investment in life sciences research and development, allocating $430 million for lab and incubator construction and $450 million to spur new research.
Repurposed Buildings vs. New Development
Taconic Partners, which has developed and repositioned over 12 million square feet of office, mixed-use, and retail space, and close to 6,500 units of multifamily housing in the last 25 years, ventured into the life sciences sector after the New York Stem Cell Foundation Research Institute approached the firm about five years ago with a request for lab space.
The Research Institute was specifically interested in a 325,000-square-foot office building Taconic owned in the West 50s that was built in the 1930s as a film-editing house for Warner Brothers Pictures. Taconic agreed to repurpose space for the Research Institute and then constructed additional turnkey lab space and upgraded the building infrastructure to support life sciences tenants, creating what is now called the Hudson Research Center.
Balestra said Taconic Partners and Elevate Research Properties have since expanded their life sciences projects into three additional developments, including the following:
● West End Labs, New York’s newest Class-A research facility, was recently completed and announced its first tenant: Graviton Bioscience. Located at 125 West End Avenue, the $600 million, 400,000-square foot development features a state-of-the-art lab infrastructure, prebuilt lab suites, a 300-person conference and event space and a 15,000-square foot landscaped roof terrace with views of the Hudson River. Originally built by Chrysler as an auto service center and showroom, the property served as part of the New York City headquarters for Walt Disney Company/ABC from 1985-2021.
West End Labs, a $600 million, 400,000-square foot development at 125 West End Avenue, features a … [+] state-of-the-art lab infrastructure, prebuilt lab suites, a 300-person conference and event space and a 15,000-square foot landscaped roof terrace with views of the Hudson River.
Taconic Partners
● A third site, Iron Horse Labs at 309 East 94th Street on the Upper East Side, will combine ground-up construction with an existing structure and stitch the two together to create a brand new 200,000-square-foot, state-of-the-art, purpose-built research laboratory. The building will be near world-class research institutions on the Upper East Side including Memorial Sloan Kettering Cancer Center, Mt. Sinai, The Rockefeller University, and Weill Cornell Medicine.
Iron Horse Labs will be a brand new 200,000-square-foot, state-of-the-art, purpose-built research … [+] laboratory.
Taconic Partners
● Finally, Elevate Research Properties is the designated developer for a 550,000-square-foot, new ground-up facility in Kips Bay near the planned Science Park and Research Campus (SPARC), a 1.5 million-square-foot, state-of-the-art jobs and education hub that is being developed by the City and State in partnership with The City University of New York (CUNY). These new developments will join the premier research institutions in the area including NYU Langone Medical Center and NYC Health + Hospitals Bellevue, as well as lab space at the Alexandria Center for Life Sciences and CURE at 345 Park Avenue South.
Candidates for Conversion
So, is every half-empty commercial building in New York City a candidate for conversion to life sciences use? Not really. There is a more specific set of requirements that make these projects viable.
According to Balestra, the list of must-haves for life sciences buildings includes:
● Proper zoning
● The ability to support the addition of a robust infrastructure that includes adequate power, backup power and a sophisticated HVAC system
● Significant floor load ratings, far greater than what is needed for a typical office floor
● Ceiling heights that are in the 13- to 15-foot range
● Ideally, a building that is vacant
● A sufficient budget to cover buildout costs that are far greater than for traditional offices, and on top of that, higher expenses for installing supplemental systems
Decentralized Network
Unlike Cambridge, MA, or San Francisco where life sciences facilities are centralized, new or repurposed buildings in New York City are scattered throughout Manhattan and the boroughs. In addition to the West Side, Upper East Side and Kips Bay locations cited above, I’ve listed a few additional sites below:
● West Harlem has a growing cluster that includes over 500,000 square feet at three private developments: the Taystee Lab, Sweets and Mink buildings.
The 350,000-square-foot Class A, new construction Taystee Lab Building in West Harlem.
Taystee Lab Building
● The New York Genome Center’s headquarters at 101 Avenue of the Americas just north of Canal Street, offers over 170,000 square feet for research and development, including 30,000 square feet of sequencing lab space.
● Innolabs, Alexandria Bindery and additional new projects will bring a total of 1.25 million square feet of lab and office space online in Long Island City, Queens, by 2024.
● The Montefiore-Einstein Accelerated Biotechnology Research Center (EMBARC), a bio-manufacturing operation focused on cell, gene, and antibody therapy production is planned for the Bronx; as well as the Einstein Incubator, which will offer premier lab space for early-stage life sciences and biotech startups.
● A new 50,000-square-foot biotech incubator is planned for the Brooklyn Navy Yard that will be supported by a $20 million contribution from the LifeSci NYC initiative.
Evolving Sector
No doubt, the New York City office market is undergoing major structural changes because of post-pandemic occupancy declines and interest rate hikes. However, these challenges are bringing opportunities to investors and owner-users as the basis of the assets are well below replacement costs, and they are forcing owners and developers to see office buildings through a new lens, one that could lead to future conversions to life sciences or residential use.
In the latest Coffee & Cap Rates Podcast, Shimon Shkury, President and Founder of Ariel Property … [+] Advisors, interviews Chris Balestra, President and Chief Investment Officer of Taconic Partners, about how and why the firm began offering office space to life sciences companies and its existing and planned projects.
FTX founder Sam Bankman-Fried is surviving on bread, water and sometimes peanut butter because the jail where he’s housed continues to serve him a “flesh diet” despite requests for vegan dishes, his attorneys told a magistrate judge Tuesday. His limited diet and other issues are hampering his ability to prepare for his trial, they added.
Earlier this month, Bankman-Fried, once hailed as a crypto genius, had his bail revoked and was ordered jailed by a federal judge in New York after prosecutors alleged he was trying to influence witnesses in his fraud case.
His lawyers on Tuesday argued that Bankman-Fried requires proper access to computers, medications to help him concentrate, and a better diet in order to prepare for his October 3 trial. They made their complaints at a Manhattan federal court hearing after Bankman-Fried pleaded not guilty to seven charges he’ll face at the trial, including wire fraud and multiple conspiracy counts.
“There is no way for him to effectively prepare for his defense,” one of Bankman-Fried’s defense attorneys, Christian Everdell, told Magistrate Judge Sarah Netburn.
The 31-year-old Californian hasn’t been able to gain access to the internet or a laptop, according to CNBC.
Attorney Mark Cohen told Netburn that Bankman-Fried hadn’t received Adderall, a medication for attention-deficit/hyperactivity disorder (ADHD,) since he was jailed on August 12. The medication is needed for Bankman-Fried to concentrate, he added.
Cohen also complained about the lack of accommodation for Bankman-Fried’s vegan diet while in jail.
“Your Honor, that’s outrageous and needs to be remedied,” he said of Bankman-Fried who shuffled into the courtroom, his legs shackled.
Magistrate Judge Sarah Netburn, presiding over Tuesday’s hearing, told Bankman-Fried’s attorneys that she would not overrule another judge’s rulings about access to computers, but that she would see if she could get the Metropolitan Detention Center in Brooklyn to provide medications and a diet more closely aligned to the defendant’s vegan preferences.
Bankman-Fried’s charges
Bankman-Fried was extradited from the Bahamas in December after prosecutors said he stole billions of dollars in FTX customer deposits, spending tens of millions on his businesses, speculative venture investments, charitable donations and on illegal campaign contributions aimed at influencing cryptocurrency regulation in Washington.
The one-time crypto billionaire was making his first court appearance in a drab beige prison uniform since his $250 million bail was revoked 10 days ago by Judge Lewis A. Kaplan. The judge had granted a request by prosecutors to jail him after agreeing that the fallen cryptocurrency whiz had repeatedly tried to influence witnesses against him.
Before his bail was revoked, Bankman-Fried had been permitted to live with his parents in their Palo Alto, California, home with strict rules limiting his access to electronic devices.
Kaplan ordered him jailed after concluding that there was probable cause to believe he had committed the federal crime of attempted witness tampering.
He cited an attempt by Bankman-Fried to communicate with the FTX general counsel in January and his disclosure several week ago to a journalist of some private writings by Caroline Ellison, his former girlfriend and the ex-CEO of Alameda Research, a cryptocurrency trading hedge fund that was one of his businesses.
The judge said the writings were kinds of things that a former romantic partner was unlikely to share with anyone “except to hurt, discredit, and frighten the subject of the material.”
The migrant crisis in New York City is worsening as many asylum seekers waiting to be processed are forced to sleep on sidewalks outside of Manhattan hotels. The mayors of several major U.S. cities, including New York City Mayor Eric Adams, have asked the Biden administration for federal assistance. Meg Oliver reports.
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The migrant crisis in New York City is reaching a breaking point, with some asylum seekers now being forced to sleep on the streets.
In midtown Manhattan, asylum seekers are sleeping on the sidewalks outside the Roosevelt Hotel, which is now a migrant processing center for city shelters.
Adrian Daniel Jose is among the dozens of people waiting to get services. Leaving his wife and three kids in Venezuela, the 36-year-old said the journey to the U.S. was dangerous.
He said he was robbed in Mexico, forcing him to cross the border with just the clothes on his back and a pair of taped-together glasses.
New York City Mayor Eric Adams on Monday said of the crisis, “From this moment on, it’s downhill. There is no more room.”
Since last spring, more than 95,000 migrants have arrived in New York City, according to the mayor’s office.
Migrants wait outside the Roosevelt Hotel hoping for a place to stay on August 2, 2023, in New York City. City officials are considering housing the influx of migrants in tents in Central Park in Manhattan and in Prospect Park in Brooklyn as the numbers arriving daily overwhelm available facilities.
VIEW press
To reduce the chaos, Adams and the mayors of Chicago and Denver are asking the Biden administration to expedite work permits for migrants coming to their cities.
Thousands have been bused from Texas to cities across the country as part of Texas Republican Governor Greg Abbott’s controversial Operation Lone Star.
According to the Houston Chronicle, Texas troopers have begun detaining fathers traveling with their families, while children and their mothers are turned over to Border Patrol. The move is reminiscent of the Trump administration policy that separated some families for years.
Back in New York City, Russia’s Natalia and Maksim Subbotina are seeking political asylum. They arrived in Mexico after months of waiting, crossed into the U.S. and arrived from Texas on Tuesday.
“It’s so hard. In my country, I was a famous professor. I have a home, but, uh, this is first day and I haven’t,” Natalia Subbotina said.
She told CBS News she hasn’t slept since she arrived because “I can’t sleep in this situation. I can’t sleep. It’s not safe for me. For him.”
To cut down on illegal border crossings, the Biden administration barred asylum claims from those who don’t first seek refuge in other countries. But a district judge halted that order last month, and officials must end that policy next week unless a higher court intervenes.
NEW YORK — A crane went up in flames Wednesday morning high above Manhattan, then partially collapsed onto the street below.
The fire broke out shortly before 7:30 a.m. 45 stories up in the air at a building that was under construction on 10th Avenue between West 41st and 42nd streets in Hell’s Kitchen.
Watch: Video shows moment crane came crashing down
Social media video captured the dramatic scene when the crane’s boom came down, smashing into a building across the street.
Twelve people were hurt, including three firefighters. All of the injuries were described as non-life-threatening.
The Department of Buildings said Wednesday afternoon that, following a preliminary inspection, the crane, building under construction and neighboring building that was struck are all structurally stable and not in danger of collapse.
The FDNY said the five-alarm fire started in the engine compartment as workers were lifting a load of concrete to the 36th floor. The crane operator tried to put it out with hand extinguishers, but it became too overwhelming, and he had to exit the crane.
The FDNY got the call around 7:25 a.m. and as firefighters responded, the partial collapse happened, and the building strike.
Mayor Eric Adams provided an update on the scene, along with the FDNY and Department of Buildings, saying the situation could have been a lot worse, especially considering the high-traffic area.
“We are extremely fortunate that we were not during the busy time of day,” Adams said. “As you know, Port Authority is here, many of the buses move through here.”
First Deputy Commissioner Joseph W. Pfeifer said the crane was lifting 16 tons of concrete when the fire started.
“There’s a beam that goes out, and that’s carrying the weight of concrete. And that weight of 16 tons is attached by a cable. As the fire heats the cable, the cable weakens to a point where it loses its strength, and that’s when the collapse occurred,” he explained.
Watch: Expert on fighting rooftop construction fire
Pfeifer credited the crane operator for spotting the fire and trying to put it out.
“That crane operator saw that the fire started and tried to extinguish it. So we give a lot of credit to the crane operator. But the fire overwhelmed that operator and had to exit the crane,” he said. “The crane operator was able to get out and is safe.”
FDNY units are currently operating at a crane collapse and fire at 550 Tenth Avenue in Manhattan. Please avoid the area of 10th Avenue and 11th Avenue from West 41 Street to West 42 Street. Please use alternate routes and expect traffic in the area. pic.twitter.com/lEc03WwnWd
— NYC Mayor’s Office (@NYCMayorsOffice) July 26, 2023
As they closed off the streets, firefighters had the difficult task of fighting the fire high above.
“The difficulty when you have a fire so high up is to be able to supply water to the building and stretch hose lines from inside the building and across the street,” Pfeifer said.
The site of the fire, 550 10th Ave., is currently under construction. It’s a mixed-use residential building around 47 stories high.
“We will look at the structural integrity of the building that was hit, the structural integrity of the building worked on,” said Department of Buildings Commissioner James Oddo.
ADVISORY: In regard to the crane collapse in Manhattan this morning, the following streets are currently closed.
10 Avenue – CLOSED between West 39 Street- West 42 Street
The DOB says an independent assessment will be conducted to figure out what happened. They have issued a stop work order at the tower project.
More than 200 fire and EMS personnel assisted.
The fire went to five alarms as they searched and evacuated nearby buildings.
Drivers are urged to avoid the area. Tenth Avenue is closed from 39th-42nd streets. West 30th Street is closed in both directions between Dyre and Galvin Avenues.
NEW YORK — A crane went up in flames Wednesday morning high above Manhattan, then partially collapsed onto the street below.
The fire broke out shortly before 7:30 a.m. on top of a 50-story building that was under construction on 10th Avenue between West 41st and 42nd streets.
Drivers are urged to avoid the area for the morning commute, as several roads are closed. Residents are also advised to shut their windows.
The FDNY says the crane’s arm caught fire and collapsed, sending debris falling onto the ground below.
Social media video shows the dramatic scene when the crane arm came down, crashing into a building across the street.
Four people were hurt, including one firefighter. All of the injuries are described as non-life-threatening.
FDNY units are currently operating at a crane collapse and fire at 550 Tenth Avenue in Manhattan. Please avoid the area of 10th Avenue and 11th Avenue from West 41 Street to West 42 Street. Please use alternate routes and expect traffic in the area. pic.twitter.com/lEc03WwnWd
— NYC Mayor’s Office (@NYCMayorsOffice) July 26, 2023
Mayor Eric Adams and FDNY officials are on the scene and expected to provide an update.
The cause of the fire is under investigation.
Watch the latest developments streaming live on CBS News New York in the player above and on our app.
Dozens of people were injured in a crash involving a double-decker tour bus and a city bus in Manhattan Thursday evening, officials said.
There was a tangled mess of metal and glass when a Metropolitan Transportation Authority bus and a TopView Sightseeing double-decker bus collided just after 7:15 p.m. Eastern time in the Kips Bay neighborhood.
New York City Fire Department officials said 27 people were hospitalized, including the tour bus driver, and about 50 others were examined at the scene. Injuries included fractures, cuts and bruises, the fire department said. None of the injuries were believed to be life-threatening.
“We’re all quite fortunate it was not much worse,” FDNY Deputy Chief Paul Hopper said.
Crews had to use “ladders and ropes” to extricate some of the passengers from the buses, FDNY Deputy Chief Kevin Murphy added.
“The impact felt like it was almost an earthquake,” Ishrak Jahan, who was on the city bus, told CBS New York. “The whole bus was rattling and shaking. I heard the lady next to me scream, so I looked up and I saw this bus barreling towards us…I just saw glass everywhere for a second. It was honestly like I was in a movie. And it took a couple of seconds to snap back into reality when everyone started screaming. I saw blood.”
FNDY officials said they were unsure on the circumstances which led up to the collision. However, New York City Transit President Richard Davey blamed the crash on the tour bus.
“This tour bus behind us seemed to have blown a red light and T-boned our bus,” Davey told reporters. “Hit it actually twice, it was going so fast, we think.”
Pillan, who was on the tour bus with his family, told CBS New York that “a lot of people” were “thrown out of their seats. Injured, a lot of injuries. A lot of old people injured.”
Some passengers, like Paulina Rychel, were hit by a wave of glass.
“I heard the boom and then I felt it,” Rychel said.
Firefighters had a challenge taking people off the second deck of the tour bus and going through windows to take people out.
Dick Brennan joined CBS2 in 2012 as an anchor and reporter. In addition, he anchors on our digital channel CBS News New York, which is also seen on the News at Nine on our sister station WLNY-TV.
He was charged with criminally negligent homicide and second-degree manslaughter.
He pleaded not guilty at State Supreme Court in Lower Manhattan.
Penny was arrested last month for second-degree manslaughter and has since been out on bond. His arrest followed protests and came 11 days after the deadly encounter.
The 24-year-old Marine veteran was seen on video holding Neely in a chokehold on the F train back on May 1 in SoHo.
Neely was a 30-year-old subway performer who had been homeless and had a history of mental illness.
Penny told investigators Neely was threatening passengers on the train and acting erratically. His lawyers say Penny was acting in self defense and never intended to kill Neely.
Sources say if found guilty of the initial manslaughter charges, Penny could face up to 15 years behind bars.
Actor Jonathan Majors‘ domestic violence case will go to trial Aug. 3, a Manhattan judge said Tuesday, casting him in a real-life courtroom drama as his idled Hollywood career hangs in the balance.
Majors’ accuser alleges he pulled her finger, twisted her arm behind her back, struck and cut her ear, and pushed her into a vehicle, causing her to fall backward, during a March confrontation in New York City. The woman was treated at a hospital for minor head and neck injuries, police said.
Majors’ attorney, Priya Chaudhry, said Tuesday that she provided prosecutors with video evidence showing the female accuser attacked her client, not the other way around. The woman has not been named in court records.
“Last week, we delivered additional compelling evidence to the District Attorney, clearly proving Grace Jabbari’s assault on Jonathan Majors and not the other way around,” Chaudhry said in a statement to CBS News. “This evidence includes videos of Ms. Jabbari’s frenzied attack on Mr. Majors and his running away from her.
“We also provided photographs illustrating the injuries she inflicted on Mr. Majors and photos of his clothing torn as a direct consequence of Ms. Jabbari’s violent actions,” Chaudhry said.
Chaudhry said that in light of the new evidence she is requesting the district attorney dismiss all charges against Majors and initiate proceedings against his accuser to hold her “accountable for her crimes.” In lieu of a decision, Chaudhry requested that Majors’ case go to trial as soon as possible.
Jonathan Majors attends the “Ant-Man And The Wasp: Quantumania” UK Gala Screening at BFI IMAX Waterloo on February 16, 2023 in London, England.
Lia Toby / Getty Images
Chaudhry has also accused police and prosecutors of racial bias against Majors, who is Black. She said a white police officer got in Majors’ face and taunted him when he tried showing the officer injuries that he said the woman caused.
Majors had been a fast-rising Hollywood star with major roles in recent hits like “Creed III” and “Ant-Man and The Wasp: Quantumania.” But in the wake of his arrest, the U.S. Army pulled TV commercials starring Majors, saying it was “deeply concerned” by the allegations. Disney last month postponed Majors’ upcoming Marvel film “Avengers: Kang Dynasty” from May 2025 to May 2026. He is also slated to appear in “Avengers: Secret Wars” in 2027.
Judge Rachel Pauley wished the actor “best of luck” as she scheduled his trial. “Yes, ma’am,” Majors said, standing with his lawyers in front of Pauley’s bench in Manhattan’s domestic violence court.
Majors, 33, is charged with misdemeanors, including assault, and could be sentenced to up to a year in jail if convicted.
Tuesday’s hearing was his first time in court since just after his March 25 arrest in Manhattan’s Chelsea neighborhood. He appeared by video at a hearing last month where prosecutors said they were revising the assault charge to reflect the accuser’s perspective. A police officer’s account was used in the original version.
Before his case was called Tuesday, Majors watched from the courtroom gallery with his lawyers and his girlfriend Meagan Good, who stars in the “Shazam!” movies, as two men in unrelated cases had their domestic violence charges thrown out.
Before scheduling Majors’ trial, the judge issued a sealed decision that prompted Chaudhry to withdraw court papers she’d filed challenging the case. Pauley handed copies of her ruling to Majors’ lawyers and prosecutors but did not discuss any details in open court.
Majors, who plays villain Kang the Conqueror in the Marvel films, carried his personal Bible and a poetry journal into court. He smiled at times, but said little other than his brief exchange with the judge, which lasted all of three minutes.
Majors must continue to abide by a protection order barring him from contact with his accuser. A warrant could be issued for his arrest if he does not show up for his trial date, the judge said.
NEW YORK, NEW YORK: Office buildings make up the heart of midtown Manhattan in New York City. Some … [+] companies are asking employees to return to the office. (Photo by Spencer Platt/Getty Images)
Getty Images
There’s no doubt been a change in the way people work post-Covid, and many firms are embracing hybrid schedules. In certain sectors, this shift from remote to in-person has stirred demand for work areas. As WeWork’s Chief Revenue Officer Ben Samuels mentioned in a Yahoo!Finance interview, there’s been a real scramble for space in some of their markets.
Taking a closer look at these fluctuations, we can identify several factors that are impacting the return to office trends. The level of demand for workplaces is largely dependent on the industry, city, submarket, and building type, based on the findings in my company Avison Young’s State of the Market Q1 2023 report. Let’s review each of these as we consider how some office markets have performed better than others.
1. Some Industries Have Higher In-Person Work Rates
In Manhattan, in-person office visits at the end of 2022 were 90.9% of their 2019 levels for biotech, life sciences, pharma and healthcare sectors, per Avison Young’s report. Other industries had strong turnouts as well, with the media reaching an in-person rate of 71.6% compared to pre-pandemic levels, and banking and finance hitting 60.2%. These were all above the average for Manhattan’s overall office visitor showings, which was 55.7% at the end of 2022 relative to end of year 2019.
That figure has continued to climb in recent months. Visitation rates for all building classes and markets in Manhattan averaged 61% in Quarter 1 2023 compared to pre-pandemic 2019 baseline levels, according to the Real Estate Board of New York (REBNY). With CEOs like Jamie Dimon of JPMorgan & Chase Co calling workers back to the office, it’s possible that in-person rates for certain sectors like banking and finance will increase in the coming months.
While some industries such as healthcare and real estate lean toward in-person work, others have been slower to return to the office. In Manhattan, the segments of consulting and public relations had lower levels of in-person work during the end of 2022, perhaps due to digital channels and connections. Technology trailed the average rate, with just 47.4% of in-person visits in December of last year relative to 2019 levels, according to Avison Young data.
2. Cities Have Different Drivers
Manhattan, Fort Lauderdale, Dallas-Fort Worth, and Nashville all held higher in-person rates at the end of 2022 than the national average relative to the week of December 9, 2019, per Avison Young’s report. Places with lower return-to-office showings included Seattle and Chicago.
These percentages largely coincide with the labor pool in these areas and the type of work being carried out. In markets with low unemployment rates, companies may seek ways to attract and retain talent. For industries like technology, this could mean more relaxed stances on back-to-work policies. In segments where the unemployment rate rises, employers may be able to be stronger about their expectations on returning to the office.
3. Submarkets Matter Too
Within a city, different neighborhoods may lean more heavily into in-person work, while others remain remote. Taking a close lens to Manhattan reveals higher back-to-work percentages for Greenwich Village, Tribeca, and Chelsea, based on data presented by Avison Young. This tells us people want to live and work in these areas and are happy to come into the office. Job growth and neighborhood amenities, along with the type of office environment, will all play a role in submarket office performance.
4. Higher Quality Office Buildings Perform Well
Class A+ properties continue to outperform Class B properties, as well as A and A- buildings, according to data from REBNY. In New York City, Trophy and Class A properties have an inventory share of just 10%. However, these classes accounted for 71.8% of leasing activity in 2022. In 2023, their share increased to 73.6%, per Avison Young’s findings. Location visits were up for Class A+, A/A-, B, and C buildings during the first quarter of 2023, compared to 2019 levels, as reported by REBNY. Class A+ had the highest increase at 68%, followed by A/A- with 60%, and then B&C which had 57%.
Clearly, there’s a strong increase in demand for higher quality buildings. The data reflects a shift by companies looking to upgrade their work environments. ESG-compliant buildings that promote healthy conditions could be seen as a draw, especially in areas with tight labor pools.
If you’re an investor looking to get into the office market, you’ll have to be very specific about where you want to be and what type of product you buy. As you study a neighborhood, check the industries that operate there, along with the city and submarket drivers. Remember that return to office decisions are largely influenced by the type of building. Owners may opt for higher quality properties with better accommodations, outdoor spaces, and green environments to motivate workers to come back to the office.
Tony Awards history was made Sunday when Alex Newell and J. Harrison Ghee became the first nonbinary people to win Tonys for acting as the Broadway community seized the moment amid a Hollywood writers’ strike that left theater’s biggest night without a script.
“Thank you for the humanity. Thank you for my incredible company who raised me up every single day,” said leading actor in a musical winner Ghee, who stars in “Some Like It Hot,” the adaptation of the classic cross-dressing comedy film.
The soulful Ghee stunned audiences with their voice and dance skills, playing a Chicago musician, on the run from gangsters, who tries on a dress and is transformed.
J. Harrison Ghee accepts the award for Best Leading Actor in a Musical for “Some Like It Hot” onstage during The 76th Annual Tony Awards at United Palace Theater on June 11, 2023 in New York City.
Theo Wargo
Newell, who plays Lulu — an independent, don’t-need-no-man whiskey distiller in “Shucked” — has been blowing audiences away with their signature number, “Independently Owned.”
“Thank you for seeing me, Broadway. I should not be up here as a queer, nonbinary, fat, Black little baby from Massachusetts. And to anyone that thinks that they can’t do it, I’m going to look you dead in your face that you can do anything you put your mind to,” Newell said to an ovation upon winning best featured actor in a musical.
Alex Newell at the 76th Annual Tony Awards.
Michele Crowe/CBS via Getty Images
Tom Stoppard’s “Leopoldstadt,” which explores Jewish identity with an intergenerational story, won best play, also earning wins for director Patrick Marber, featured actor Brandon Uranowitz and Brigitte Reiffenstuel’s costumes.
The British-Czech playwright, who now has five best play Tony Awards, joked he won his first in 1968 and noted that playwrights were “getting progressively devalued in the food chain” despite being “the sharp ends of the inverted pyramid.”
Tony Awards host Ariana DeBose opened a blank script backstage before dancing and leaping her way to open the main show with a hectic opening number that gave a jolt of electricity to what is usually an upbeat, safe and chummy night. The writers strike left the storied awards show honoring the best of musical theater and plays to rely on spontaneity in a new venue far from the theater district.
Before the pre-show began, DeBose revealed to the audience the only words that will be seen on the teleprompter: “Please wrap up.” Later in the evening, virtually out of breath after her wordless performance, she thanked the labor organizers for allowing a compromise.
“I’m live and unscripted. You’re welcome,” she said. “So to anyone who may have thought that last year was a bit unhinged, to them, I say, ‘Darlings, buckle up.’”
Host Ariana DeBose speaks onstage during The 76th Annual Tony Awards at United Palace Theater on June 11, 2023 in New York City.
Kevin Mazur
Winners demonstrated their support for the striking writers either at the podium or on the red carpet with pins. Miriam Silverman, who won the Tony for best featured actress in a play for “The Sign in Sidney Brustein’s Window,” ended her speech with: “My parents raised me to believe in the power of labor and workers being compensated and treated fairly. We stand with the WGA in solidarity!”
There had initially been concerns the WGA may picket the award show, but an agreement between the writers union and Tony Awards Productions, which hosts the award show, was reached in mid-May.
“Tony Awards Productions (a joint venture of the Broadway League and the American Theatre Wing) has communicated with us that they are altering this year’s show to conform with specific requests from the WGA, and therefore the WGA will not be picketing the show,” the union told CBS News in a statement last month.
Jodie Comer, the three-time Emmy-nominated star of “Killing Eve” won the leading actress in a play trophy for her Broadway debut, the one-woman play “Prima Facie,” which illustrates how current laws fail terribly when it comes to sexual assault cases.
Suzan-Lori Parks’ “Topdog/Underdog,” a Pulitzer Prize winning play about sibling rivalry, inequality and society’s false promises, won the Tony for best play revival. She thanked director Kenny Leon and stars Corey Hawkins and Yahya Abdul-Mateen II: “They showed up to be large in a world that often does not much want the likes of us living at all.”
Bonnie Milligan, who won for best featured actress in a musical for “Kimberly Akimbo,” had a message to the audience: “I want to tell everybody that doesn’t maybe look like what the world is telling you what you should look like — whether you’re not pretty enough, you’re not fit enough, your identity is not right, who you love isn’t right — that doesn’t matter.”
“‘Cause just guess what?” she continued, brandishing her award. “It’s right, and you belong.”
Many of the technical awards — for things like costumes, sound, lighting and scenic design — were handed out at a breakneck pace on a Pluto TV pre-show hosted by Skylar Astin and Julianne Hough, allowing winners plenty of airtime for acceptance speeches but little humor.
The pre-show featured some awkwardly composed shots and some presenters slipped up on certain words. The tempo was so rapid, the Pluto telecast ended more than 10 minutes before the CBS broadcast was slated to start.
John Kander, the 96-year-old composer behind such landmark shows as “Chicago,” “Cabaret” and “The Scottsboro Boys,” was honored with a special lifetime award during it.
“This is a very big deal,” he said. “When your own community honors you, it’s very humbling and a little bit scary.”
He thanked his parents; his husband, Albert Stephenson; and music, which “has stayed my friend through my entire life and has promised to stick with me until the end.”
“Being recognized by the theater community is such a gift because it’s always been, next to my children, my greatest, most enduring love,” the actor said.
Joel Grey accepts the Special Tony Award for Lifetime Achievement in the Theatre from Jennifer Grey.
Kevin Mazur
Grey said earlier on “CBS Sunday Morning” that it was “fitting” he and Kander were both being honored together 56 years after the Tony Awards were first aired.
“John has been one of the great collaborators of my life, and collaboration is what the theater is all about”, he said. “Teamwork. Building something together that none of us could have created alone.”
Director Jerry Mitchell won the Isabelle Stevenson Award in recognition of his dedication and contributions to Broadway Cares/Equity Fights AIDS.
“Parade” — a doomed musical love story set against the real backdrop of a murder and lynching in Georgia in pre-World War I that won Tonys as a new musical in 1999 — won for best musical revival on Sunday, with Michael Arden winning for best director of a musical.
“‘Parade’ tells the story of a life that was cut short at the hands of the belief that one group of people is more valuable than another and that they might be more deserving of justice,” Arden said. “This is a belief that is the core of antisemitism, white supremacy, homophobia and transphobia and intolerance of any kind. We must come together. We must battle this.”
Performances from all the nominated musicals were on tap and Will Swenson — starring on Broadway in a Neil Diamond musical — led the audience in a vigorous rendition of “Sweet Caroline.”
It all took place at the United Palace Theatre, in the Washington Heights neighborhood of Manhattan — a new venue for the ceremony, many miles from Times Square and the theater district.
“Thank you all for coming uptown. Never in my wildest dreams, truly,” Lin-Manuel Miranda joked onstage. He, of course, wrote the musical “In the Heights,” set in Washington Heights.
President Joe Biden’s administration is set to allow New York City to move forward with a landmark program that will toll vehicles entering Lower Manhattan, after a public review period ends Monday.
In practice it works like any other toll, but because it specifically charges people to drive in the traffic-choked area below 60th street in Manhattan, it would be the first program of its kind in the United States.
Proposals range from charging vehicles $9 to $23 during peak hours, and it’s set to go into effect next spring.
The plan had been delayed for years, but it cleared a milestone last month when the Federal Highway Administration signed off on the release of an environmental assessment. The public has until Monday to review the report, and the federal government is widely expected to approve it shortly after.
From there, the New York Metropolitan Transportation Authority (MTA) can finalize toll rates, as well as discounts and exemptions for certain drivers.
New York City is still clawing out of from the devastating impact of the Covid-19 pandemic. Congestion pricing advocates say it’s a crucial piece of the city’s recovery and a way to re-imagine the city for the future.
“This program is critical to New York City’s long-term success,” New York Gov. Kathy Hochul said last month.
The plan would also mark the culmination of more than a half-century of efforts to implement congestion pricing in New York City. Despite support from several New York City mayors and state governors, car and truck owners in outer boroughs and the suburbs helped defeat proposals.
In 2007 Mayor Michael Bloomberg called congestion “the elephant in the room” when proposing a toll program, which state lawmakers killed. A decade later, Gov. Andrew Cuomo — who had long resisted congestion pricing — said it was “an idea whose time has come” and declared a subway state of emergency after increased delays and a derailment that injured dozens. Two years later, the state gave the MTA approval to design a congestion pricing program.
Ultimately, it was the need to improve New York City’s public transit that became the rallying cry for congestion pricing.
Each day 700,000 cars, taxis and trucks pour into Lower Manhattan, one of the busiest areas in the world with some of the worst gridlock in the United States.
Car travel at just 7.1 mph on average in the congestion price zone, and it’s a downward trend. Public bus speeds have also declined 28% since 2010. New Yorkers lose 117 hours on average each year sitting in traffic, costing them nearly $2,000 in lost productivity and other costs, according to one estimate.
The toll is designed to reduce the number of vehicles entering the congestion zone by at least 10% every day and slash the number of miles cars travel within the zone by 5%.
Congestion comes with physical and societal costs, too: more accidents, carbon emissions and pollution happen as belching, honking cars take up space that could be optimized for pedestrians and outdoor dining.
Proponents also note it will improve public transit, an essential part of New York life. About 75% of trips downtown are via public transit.
But public-transit ridership is 35% to 45% lower compared to pre-pandemic levels. The MTA says congestion fees will generate a critical source of revenue to fund $15 billion in future investments to modernize the city’s 100-year-old public transit system.
The improvements, like new subway cars and electric signals, are crucial to draw new riders and improve speed and accessibility — especially for low-income and minority residents, who are least likely to own cars, say plan advocates.
New York City is “dependent on public transit,” said Kate Slevin, the executive vice president of the Regional Plan Association, an urban planning and policy group. “We’re relying on that revenue to pay for needed upgrades and investments that ensure reliable, good transit service.”
Improving public transportation is also key to New York City’s post-pandemic economic recovery:If commutes to work are too unreliable, people are less likely to visit the office and shop at stores around their workplaces. Congestion charge advocates hope the program will create more space for amenities like wider sidewalks, bike lanes, plazas, benches, trees and public bathrooms.
“100 years ago we decided the automobile was the way to go, so we narrowed sidewalks and built highways,” said Sam Schwartz, former New York City traffic commissioner and founder of an eponymous consulting firm. “But the future of New York City is that the pedestrian should be king and queen. Everything should be subservient to the pedestrian.”
While no other US city has yet implemented congestion pricing, Stockholm, London and Singapore have had it for years.
These cities have reported benefits like decreased carbon dioxide pollution, higher average speeds, and congestion reduction.
Just one year after London added its charge in 2003, traffic congestion dropped by 30% and average speeds increased by the same percentage. In Stockholm, one study found the rate of children’s acute asthma visits to the doctor fell by about 50% compared to rates before the program launched in 2007.
Some groups are fiercely opposed to congestion charges in New York City, however. Taxi and ride-share drivers, largely a low-income and immigrant workforce, fear it will hurt drivers already struggling to make ends meet. The MTA said congestion pricing could reduce demand for taxis by up to 17% in the zone.
Commuters and legislators from New York City’s outer boroughs and New Jersey say the program hurts drivers who have no viable way to reach downtown Manhattan other than by car, and that this would disproportionately impact low-income drivers. (But out of a region of 28 million people, just an estimated 16,100 low-income people commute to work via car in Lower Manhattan, according to the MTA.)
Other critics say it could divert more traffic and pollution from diesel trucks in Manhattan into lower-income areas like the Bronx, which has the highest rates of asthma hospitalization in the city.
The MTA and other agencies have plans to mitigate many of these adverse effects, however.
Taxis and for-hire vehicles will be tolled only once a day. Drivers who make less than $50,000 a year or are enrolled in certain government aid programs will get 25% discounts after their first 10 trips every month. Trucks and other vehicles will get 50% discounts during overnight hours.
Additionally, the MTA pledged $10 million to install air filtration units in schools near highways, $20 million for a program to fight asthma, and other investments to improve air quality and the enviornment in areas where more traffic could be diverted.
The stakes of New York City’s program are high, and leaders in other cities are watching the results closely.
If successful, congestion pricing could be a model for other US cities, which are trying to recover from the pandemic and face similar challenges of climate change and aging public infrastructure.
“It’s good to see New York City’s program is moving forward,” said the Los Angeles Times Editorial Board last month. “Los Angeles should watch, learn and go next.”
Landmark views take center stage at this reimagined penthouse in the heart of Manhattan, New York.
ElegranForbes Global Properties
A stylishly renovated three-bedroom penthouse in Manhattan’s Chelsea neighborhood takes in two iconic views of the city from a pair of terraces.
The more than 2,200-square-foot unit has two outdoor spaces, one that has a view of the Empire State Building, and another catty-corner space that takes in lower Manhattan to One World Trade.
The 2,200-square-foot unit features walls of windows that take in the urban scenery.
Elegran
With windows in all directions, the apartment is bathed in natural light.
The current owners undertook a gradual renovation costing nearly $1 million. It includes a kitchen with modern wood cabinets, a Sub-Zero refrigerator and a Wolf range. A leather breakfast nook next to the kitchen seats up to six people. A wall of slatted dark wood is retractable so the kitchen can be open or closed to the dining area.
The home’s two terraces take in views of lower Manhattan on one side and the Empire State Building … [+] on the other.
Elegran
“This has a lot of personalized touches and thought put into it,” says listing agent Mick DiStasio of Elegran. “It was very thoughtfully designed.”
The edge of the L-shaped living room is currently used as an office.
The chef’s kitchen is equipped with top-of-the-line appliances and teak wood cabinetry.
Elegran
The primary en-suite bedroom has warm, modern wood built-ins and can fit a king-sized bed.
There are two other large bedrooms, along with a second full bathroom and half bathroom.
The unit features a spacious loft-style living area that opens up to the two terraces.
Elegran
The unit sits at the top of the 13-story Chelsea House, a boutique-style condominium built in 2005. It has a full-time doorman and concierge, fitness center, residents’ lounge, bicycle storage and pet spa. The building is at the center of Manhattan’s Chelsea neighborhood, a few blocks to Union Square and the Greenmarket to the east and the High Line, Chelsea Market and the Whitney Museum to the west.
Along with the terraces, penthouse residents can also enjoy a landscaped roof deck.
There are three bedrooms, including a primary suite with additional storage.
Elegran
The penthouse is on the market for $4.3 million. DiStasio disclosed that there have already been several offers.
There are nearly 1,350 active listings in the Chelsea neighborhood, up 2.9% from the prior month and down 0.3% compared with the same period a year ago, according to UrbanDigs.
The Chelsea neighborhood, where the penthouse is located, is coveted for its central Manhattan … [+] location and an incredible art scene.
Elegran
Although supply remains near recent averages, pending sales (226) are currently up 17.1% from the previous month and 8.1% from the previous year. The median price-per-square-foot in May was $1,797, while the median sale price for the month was $1.75 million, up 34.3% from the previous year.
NEW YORK (AP) — Airbnb sued New York City on Thursday over an ordinance that the company says imposes arbitrary restrictions that would greatly reduce the local supply of short-term rentals.
The 2022 ordinance, which the city plans to begin enforcing next month, would require owners to register with the mayor’s office, disclose who else lives in the property, and promise to comply with zoning, construction and maintenance ordinances.
Airbnb said called the restrictions “extreme and oppressive” and a de facto ban against short-term rentals that left the company no choice but to sue.
“Taken together, these features of the registration scheme appear intended to drive the short-term rental trade out of New York City once and for all,” Airbnb said. The company said the mayor’s Office of Special Enforcement “failed to consider reasonable alternatives.”
A spokesman for Mayor Eric Adams said city hall will review the lawsuit.
“This administration is committed to protecting safety and community livability for residents, preserving permanent housing stock, and ensuring our hospitality sector can continue to recover and thrive,” said the spokesman, Jonah Allon. “The rules governing short-term rentals … have been clear for years,” and the 2022 registration law was properly adopted by the city council, he added.
San Francisco-based Airbnb filed the lawsuit in state court in Manhattan. Three Airbnb hosts filed a companion lawsuit against the city.
Airbnb sued New York state in 2016 over a ban on advertising short-term rentals. It dropped that lawsuit when the city promised not to enforce it. In 2020, Airbnb settled a lawsuit against the city over monthly reporting requirements for its listings. Airbnb said the 2022 ordinance violates both settlements.
The New York restrictions are among many efforts by local communities to regulate short-term rentals without banning them. New Orleans is among cities taking on the rental giant, after a court struck down a previous law.
In some places, opponents have raised concerns about noise and safety. Critics also say the growth of short-term rentals pioneered by Airbnb has contributed to a shortage of affordable housing for residents, particularly in vacation towns. Those complaints extend far beyond U.S. borders.
On Thursday in Italy, the popular tourist destination of Florence announced an immediate ban on new vacation rentals in the city’s historic center.
The two-bedroom condo, priced at $13.5 million, is located within the celebrity-popular, Robert A.M. … [+] Stern-designed building at 15 Central Park West.
Elegran
A two-bedroom condo in famed architect Robert A.M. Stern’s celebrity-filled 15 Central Park West takes in panoramic views of the park.
The apartment sits on the 27th floor of “the Tower” of the two-building complex, overlooking the iconic green space and the Manhattan skyline that borders it.
The building was constructed in the mid-2000s and has been home to numerous celebrities and public … [+] figures, including actor Denzel Washington, musician Sting and retired baseball player Alex Rodriguez.
Elegran
The building was constructed in the mid-2000s and has been home to numerous celebrities and public figures, including actors Denzel Washington and Robert De Niro, musician Sting, baseball player Alex Rodriguez and former Goldman Sachs CEO Lloyd Blankfein.
While the building is relatively new, its limestone facade was sourced from the same quarry as the Empire State Building and the New Classical style complements its neighbors on the iconic street. It also has a long list of amenities, including a 75-foot pool, 14,000-square-foot fitness center, basement wine cellar with tasting bar and 20-seat screening room.
The unit features 11-foot ceilings and tall windows that frame the protected view. The more than 2,300 square feet of space includes two large en-suite bedrooms and a half bathroom. The master bedroom has a large walk-in closet outfitted with shelving and inset lighting, along with a modern light fixture.
Walls of windows in the living and dining rooms take in sweeping views of the New York City skyline.
Duger noted that the position toward the middle of the 43-story tower provides a great vantage point.
The sophisticated layout offers nearly 2,400 square feet of living space.
Elegran
“Sometimes, when you’re too high up, you lose perspective of the park,” Duger shares.
The current owners have renovated the apartment, and finishes include light-colored herringbone wood floors, detailed moldings and a half bathroom with a full slab of onyx marble.
Light-colored herringbone wood floors are a fixture throughout the home.
Elegran
“To have a new-ish condo in a building of this nature, there’s nothing like it,” Duger says.
The apartment was recently listed for $13.5 million.
The primary bedroom suite has open western views that stretch beyond the Hudson River.
Elegran
The building is in the center of cultural life in Manhattan, close to Broadway theaters and Lincoln Center, and blocks from the Museum of Modern Art and the American Museum of Natural History.
The park view.
Elegran
The property is minutes away from Lincoln Center, world-class restaurants, and museums.
Elegran
The building features white-glove service that includes a full-time doorman, elevator attendants, … [+] and concierges.
Elegran
Among building amenities is a 14,000 square foot fitness center with a sky-lit lap pool sauna, and … [+] steam rooms.
NEW YORK (AP) — Donald Trump threw up his hands in frustration Tuesday as a judge scheduled his criminal trial for March 25, putting the former president and current candidate in a Manhattan courtroom in the heat of next year’s presidential primary season.
Trump, appearing by video conference at a pretrial hearing in the hush-money case, glowered at the camera as Judge Juan Manuel Merchan advised him to cancel all other obligations for the duration of the trial, which could last several weeks.
Trump, wearing a blue suit against a backdrop of American flags at his Florida estate, then turned to a lawyer by his side — their brief discussion inaudible on the video feed — before sitting with his arms folded for the remainder of the hearing.
Trump said little during the hearing, but lashed out afterward on social media, writing: “Just had New York County Supreme Court hearing where I believe my First Amendment Rights, ‘Freedom of Speech,’ have been violated, and they forced upon us a trial date of March 25th, right in the middle of Primary season.”
“Very unfair, but this is exactly what the Radical Left Democrats wanted,” Trump wrote on his Truth Social platform. “It’s called ELECTION INTERFERENCE, and nothing like this has ever happened in our Country before!!!”
Trump pleaded not guilty last month to 34 felony counts of falsifying business records related to hush-money payments made during the 2016 campaign to bury allegations that he had extramarital sexual encounters. He has denied wrongdoing.
Merchan said he arrived at the March 25 trial date after discussions with Trump’s lawyers and prosecutors. Trump’s lawyer, Susan Necheles, said Trump knew about the date prior to Tuesday’s hearing and said she didn’t see his exasperated reaction.
Trump’s case is proceeding in state court even as his lawyers seek to have it moved to federal court because some of the alleged conduct occurred while he was president. The Manhattan district attorney’s office has until next week to file paperwork stating why it should remain in state court, where the historic indictment was brought.
Trump has made the New York case and the long list of other investigations into his personal, professional and presidential conduct central to his campaign to reclaim the White House in 2024. The Republican has portrayed himself as the victim of a coordinated, politically motivated effort to sully his chances.
Trump often discusses the cases at his rallies, in speeches, TV appearances and on social media. He has repeatedly attacked prosecutors, accusers and judges by name, including Merchan, and has shown no willingness to back down — even after a recent $5 million verdict in a writer’s sexual abuse and defamation lawsuit against him.
The plaintiff in that case, writer E. Jean Carroll, filed a new claim Monday seeking an additional $10 million or more to hold Trump liable for remarks he made bashing her on CNN the day after the May 9 verdict.
Trump responded Tuesday by doubling down on his contention that Carroll’s allegations were a “Fake, Made Up Story” and a “TOTAL SCAM” and that her case is “part of the Democrats playbook to tarnish my name and person.”
Merchan spent the bulk of Tuesday’s 15-minute hearing reviewing an order he issued May 8 that sets ground rules for Trump’s behavior in the lead-up to the trial.
It’s not a gag order and Trump is free to speak about the case and defend himself, Merchan said, but he can’t use evidence turned over by prosecutors to attack witnesses or post sensitive documents to social media. If he violates the order, he risks being held in contempt.
Among concerns raised by prosecutors were that Trump could weaponize “highly personal information” found on witnesses’ cellphones, such as personal photos and text messages with family and friends, as well as secret grand jury testimony and other material, to rile up anger amongst his supporters.
Nothing in the order prevents Trump from being able to speak “powerfully and persuasively” in his defense without the need to “start attacking individuals, disclosing names, addresses, cellphones’ numbers, identity, dates of birth, or anything along those lines,” Merchan said. Certain sensitive material shared by prosecutors must be kept only by Trump’s lawyers, not Trump himself.
Prosecutors sought the order soon after Trump’s arrest, citing what they say is his history of making “harassing, embarrassing, and threatening statements” about people he’s tangled with in legal disputes.
Trump was spared a personal appearance at the courthouse Tuesday, avoiding the mammoth security and logistical challenges that accompanied his arraignment last month. Instead, the Republican was connected by video conference, with his face beamed onto TV monitors positioned around the courtroom.
Trump isn’t required to appear in court in person again until Jan. 4, just weeks before the first primary votes are expected to be cast.
__
Associated Press reporter Jill Colvin contributed to this report. __
A terrorist convicted of striking and killing eight people with a rented truck on a New York City bike path in an attack for ISIS is scheduled to be sentenced to serve life in prison Wednesday.
The capital counts each carry a mandatory life imprisonment sentence by law after the jury didn’t unanimously vote for the death penalty.
Saipov’s case was the first death penalty case under the Biden administration.
About 25 surviving victims and family members of those killed in the attack are expected to give victim impact statements at the sentencing hearing Wednesday morning, according to court filings.
Of the eight people killed in the attack, five were from Argentina, two were Americans, and one was from Belgium. The majority of those participating in the Manhattan federal court hearing are traveling from Argentina and Belgium, the prosecutors said in a memo.
The convicted terrorist will have an opportunity to address the court before he is sentenced, but it is unclear if he will do so.
On Halloween in 2017, Saipov drove a rented U-Haul truck into cyclists and pedestrians on Manhattan’s West Side bike path, then crashed the vehicle into a school bus, authorities said.
After leaving the truck while brandishing a pellet gun and paintball gun, he was shot by a New York City Police Department officer and taken into custody, officials said.
The jury convicted Saipov in January of all 28 counts against him for the fatal attack.
Those counts included murder in aid of racketeering activity, assault with a dangerous weapon and attempted murder in aid of racketeering activity, attempted murder in aid of racketeering activity, provision of material support to ISIS, and violence and destruction of a motor vehicle.
Saipov is expected to serve his life sentence at the Federal Bureau of Prisons ADX facility in Florence, Colorado, in solitary confinement at least 22 hours a day, his attorneys said during trial.
Federal prosecutors who say Saipov deserves no leniency want District Judge Vernon Broderick to sentence Saipov to the fullest extent of the sentencing guidelines for his 28-count conviction; eight consecutive life sentences, a consecutive term of 260 years’ imprisonment and two concurrent life sentences.
“Because Saipov deliberately committed the most abhorrent crime imaginable for which he has expressed no remorse, he deserves no leniency. Only the maximum punishment on each count of conviction will reflect the unimaginable harm inflicted and send the appropriate message that terrorist attacks on innocent civilians will be punished as harshly as the law allows,” prosecutors said in a pre-sentencing court filing.
The harshest sentence, prosecutors wrote, would be “an exercise of such discretion to hold the defendant fully accountable for his crimes, and to send the appropriate message to the defendant, the public, and any others who might contemplate an attack on U.S. soil.”
NEW YORK (AP) — Elon Musk cannot back out of a settlement with securities regulators that was reached after his 2018 tweets claiming he had secured funding to take Tesla private caused the electric vehicle maker’s share price to jump and led to a temporary halt in trading, an appeals court ruled Monday.
The summary order by the 2nd U.S. Circuit Court of Appeals in Manhattan was released just days after a three-judge panel heard lawyers’ arguments in the case.
Musk had challenged a lower court judge’s ruling last year requiring him to abide by the deal on the grounds that circumstances have changed and because the decree contains a “prior restraint” that Musk contends violates the First Amendment.
The settlement with the Securities and Exchange Commission required that his tweets be approved first by a Tesla attorney. It also called for Musk and Tesla to pay civil fines over the tweets in which Musk said he had “funding secured” to take Tesla private at $420 per share.
The funding wasn’t secured, and Tesla remains public.
In its ruling, the 2nd Circuit said it saw “no evidence to support Musk’s contention that the SEC has used the consent decree to conduct bad-faith, harassing investigations of his protected speech.”
Instead, it said, the SEC had opened “just three inquiries into Musk’s tweets since 2018” and each challenged tweet “plausibly violated the terms of the consent decree.”
The appeals court also rejected Musk’s prior restraint argument, saying parties entering consent decrees may voluntarily waive their First Amendment and other rights.
Alex Spiro, an attorney for Musk, said in a statement: “We will seek further review and continue to bring attention to the important issue of the government constraint on speech.”
Musk can appeal to the full 2nd Circuit or to the U.S. Supreme Court.
Lawyers for the government did not immediately respond to messages seeking comment.
The SEC was investigating whether the Tesla CEO’s November 2021 tweets asking Twitter followers if he should sell 10% of his Tesla stock violated an October 2018 settlement that Musk signed after the SEC brought an enforcement action against him alleging that his tweets about going private violated antifraud provisions of securities laws.
In a written ruling in April 2022, Judge Lewis Liman said Musk sent the tweets without getting pre-approval.
Musk’s deal with the SEC called for Musk and Tesla to each pay $20 million in fines over Musk’s tweets about having secured funding to take Tesla private. The funding was not secured, but Tesla’s stock price jumped in response to the tweets. Trading in the shares was subsequently halted.
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Associated Press Auto Writer Tom Krisher in Ann Arbor, Michigan, contributed to this report.
WASHINGTON (AP) — An ex-prosecutor who once oversaw Manhattan’s investigation of former President Donald Trump declined to substantively answer questions at a closed-door deposition Friday of the House Judiciary Committee, according to a Republican lawmaker in the meeting. The prosecutor and his boss said he was merely abiding by grand jury rules.
Rep. Darrell Issa, a California Republican, exited the meeting after roughly one hour and said Mark Pomerantz, the former prosecutor, repeatedly invoked the Fifth Amendment that protects people from providing self-incriminating testimony.
Trump faces 34 felony counts of falsifying business records in a scheme to bury allegations of extramarital affairs that arose during his 2016 White House campaign. GOP lawmakers have decried the investigation as a “political persecution” and launched an oversight probe.
Pomerantz in a written opening statement called the committee’s inquiry itself “an act of political theater.” He also explained he was invoking the Fifth Amendment because the Manhattan District Attorney’s office had previously warned him before he published a book on the investigation that he could face criminal liability if he revealed grand jury material or violated a provision of the New York City Charter dealing with misuse of confidential information.
Pomerantz, who left Manhattan District Attorney Alvin Bragg’s office after disagreements over the direction of the Trump investigation, was subpoenaed by the Republican-controlled House committee. The panel, chaired by GOP Rep. Jim Jordan, is probing how Bragg handled Trump’s historic indictment.
“This deposition is for show,” Pomerantz also said in prepared remarks. “I do not believe for a moment that I am here to assist a genuine effort to enact legislation or conduct legislative ‘oversight.’”
Bragg had sued to halt Jordan’s subpoena of Pomerantz, but last month agreed to Pomerantz’s testimony after a delay and a condition that lawyers from the prosecutor’s office be present. The committee has said it would have allowed the district attorney’s lawyers even without the agreement.
Pomerantz had argued in court papers that the subpoena left him in an “impossible position” and would potentially require him to violate his ethical obligations.
Issa, the GOP lawmaker, told reporters, “This is an obstructing witness who has no intention of answering any questions.”
Republican Rep. Matt Gaetz, another member of the committee, also said lawmakers were “not getting many answers.”
Jordan exited the meeting room after a deposition that lasted well over five hours and told reporters he was “surprised at some of the answers,” but declined to provide further details, citing committee rules.
Pomerantz’s attorney, Ted Wells, told reporters that his opening statement explaining why he would not be answering questions made it “very clear as to what happened.”
Pomerantz is allowed to refuse to answer certain questions that touch on legal privilege and ethical obligations, but Jordan could also rule on those assertions on a case-by-case basis. The Republican lawmaker said he would be conferring with the committee’s attorneys and members about taking legal action against Pomerantz, including holding him in contempt of Congress.
A contempt of Congress charge would require a full committee vote before going to the floor of the Republican-majority House.
Pomerantz recently wrote a book about his work pursuing Trump and discussed the investigation in interviews on “60 Minutes” and other shows. But Issa said he was not answering questions even on previous statements he had made.
Issa suggested the fight over testimony will return to the legal system, saying it would be “for the court to decide when we object to his failure to answer any questions.”
Bragg’s office said in a statement, “Consistent with the agreement we reached with the committee last month, the District Attorney’s Office is participating in today’s deposition and asserting our rights to oppose disclosure of confidential information protected by law.”
