Swimming through the Web

By HIAWATHA BRAY, Boston Globe
First published in print: Thursday, December 18, 2008

One of Hollywood’s top producers said the ongoing financial crisis is hampering his efforts to release digital 3-D movies.

Jeffrey Katzenberg, chairman of DreamWorks Animation SKG Inc., said all future movies from his studios will be made in digital 3-D. But today only about 1,500 of the 36,000 theater screens in America are capable of showing such films,

“Until the financial markets come unstuck, which is probably late in the first quarter, the next round of the digital rollout is on a very slow pathway,” Katzenberg said during a visit to Boston earlier this week to show off clips from his studio’s upcoming film, “Monsters vs. Aliens.”

It costs about $70,000 to convert a single movie screen to the digital projection system for the 3-D films. But many theater owners can’t afford to make the switch. Theaters are finding it tough to borrow the money, as banks tighten their lending practices after years of ill-advised loans.

Katzenberg said about 2,500 screens should be converted to digital 3-D by March, in time for the release of “Monsters vs. Aliens.” Katzenberg thinks credit markets will have loosened up by May 2010, when DreamWorks Animation releases the fourth in its series of Shrek movies. He expects there will be 7,500 theaters capable of showing the film in digital 3-D.

Katzenberg noted the percentage of Americans going to movies has steadily declined for decades. Last year, the industry sold 1.4 billion movie tickets, 38 million fewer than in 1998, even though the US population grew about 30 million during the period. Katzenberg called digital 3-D cinema “the greatest opportunity of my time to reverse this,” and compared it to the introduction of soundtracks to movies in the 1920s and color films in the 1930s.

Read this full article - Dreamworks 3-D riding out economic crisis

As the recession devastates the banking, brokerage, retail and automobile industries, landlords and commercial real estate brokers in lower Fairfield County ponder when and if the office market will be the next victim.

The region could be vulnerable because financial service companies rent much of the office space in Greenwich and Stamford. Greenwich has been called the nation’s unofficial hedge fund capital.

“We are still in a very good market. However, a lot of our clients are financial services companies,” said Jim Fagan, senior managing director of the Westchester County, N.Y., and Connecticut operations of New York City-based Cushman & Wakefield Inc. commercial real estate. “They include everything from hedge funds to reinsurance companies to investment banks, not to mention advertising agencies and other professional services companies.”

Those former mainstays in the office market will be shrinking, he said.

“As tenants try to lower their fixed costs, they are slimming down their commercial real estate exposure, where it is practical and pragmatic,” Fagan said. “The market is going through an adjustment. While it was white hot in July of 2007. It certainly is less than that now.”

John Hannigan, principal of Choyce Peterson commercial real estate in Stamford, said, “The quantity of tenants looking to grow has decreased precipitously.”

Reported office vacancies are not really bad - yet.

In the third quarter, 17 percent of the 14.5 million square feet of office space in Stamford was available for lease or sublease, up slightly from 16.4 percent at the same time last year, according to an average taken from five real estate firms. Available space are locations that are empty or slated to become vacant soon.

The numbers do not include large, single-occupant buildings such as the main UBS AG investment bank and trading floor in downtown Stamford.

But vacancy reports might not tell the whole story, said Jeff Gage, executive managing director at the Stamford office of Chicago-based Jones Lang LaSalle commercial real estate. Some companies have space they are not using but will not admit it unless a broker approached them about subleasing, Gage said.

Sublease space, that which is leased but currently unused, is rising in Fairfield County, he said.

“We are going to see vacancy rates going up to 25 percent or higher (countywide),” Gage said. “My guess is that 40 percent of that will be sublease space.”

The big subleases include 112,000 square feet that UBS put on the market at 201 Tresser Blvd. in Stamford at Purdue Pharma’s headquarters. Others in the city are 50,000 square feet from Legg Mason at First Stamford Place and 120,000 square feet at 290 Harbor Drive.

Greenwich has smaller office vacancies, but its 4.8 million square feet of office space depends largely on financial services, hedge funds and private equity firms. About 9.3 percent of the town’s office space was available in the third quarter, which was unchanged from the same time last year.

“Greenwich and Stamford are not immune from the downsizing and reorganization from a new model of doing business,” said John Goodkind, managing principal at the Greenwich office of New York City-based Newmark Knight Frank commercial real estate. “The days of abundance are gone.”

“Large users are unlikely to make decisions on space unless they have to,” he said, referring to lease expirations.

On the positive side, Goodkind said many people who had worked for hedge funds, financial institutions and banks will be looking for office space in which to start their own companies.

“We have already seen significant numbers of new companies looking for smaller spaces,” he said. “That will be the mode for the next 12 to 18 months.”

But Gerald Celente, a trends forecaster known for gloomy predictions, said the downturn in the retail sector will affect office space because fewer customers will exist for service firms such as ad agencies.

“In 2009, the focus will broaden to include a range of calamities that will leave no sector unscathed,” Celente said in a report issued by his Rhinebeck, N.Y.-based Trends Research Institute. “Next in line is retail, which accounts for some 70 percent of consumer spending, 26 percent of which is holiday sales.”

“Add to the (retail) empties the commercial space vacated by defunct financial firms and an array of troubled businesses from restaurants to architectural firms, to high-tech operations, to offset printers, etc.,” the report said. “The inescapable result (that we predicted over a year ago and is only now being discussed in the business media) is a commercial real estate bust that will be costlier, wreak greater havoc and prove more intractable than the residential market decline.”

Local landords, by contrast, are more optimistic.

“We have been here before (in a recession), and we will get through it,” said Jo Ann McGrath, director of leasing for the Merritt 7 Corporate Park in Norwalk. “We just have to stay positive.”

She said the 1.4 million square feet of office space in Merritt 7’s six buildings is 95 percent occupied.

A 51,000 square feet sublease might occur in the complex’s 301 Merritt 7 building. Applied Biosystems is moving out of 301 Merritt 7 in July because it merged with Invitrogen Corp.

Applied Biosystems’s lease expires in 2011, and it has an option to sublet the space, McGrath said.

Margaret Carlson, director of leasing for New York City-based RFR Realty’s seven office buildings in downtown Stamford, said the market is slowing, but not to a crisis stage.

“We are still continuing to sign deals, and we are starting to see concessions for tenants creep in,” Carlson said. “Velocity is slowing down, but we remain optimistic. There are a lot of deals out in the marketplace, and we do not have a lot of sublease space in our portfolio.”

RFR’s Stamford buildings are 90 percent leased, she said.

Another landlord representative, Jeff Newman of W&M Properties, said the recession offers a chance to recruit new tenants. W&M manages First Stamford Place and Metro Center office complexes in Stamford and the MerrittView office building in Norwalk.

“We are well-positioned to ride out a down market,” Newman said. “We always have more than enough cash flow to cover debt service and operating needs.”

Gage of Jones Lang LaSalle predicted rents will drop 20 percent to 30 percent during the recession, which offers local companies a chance to move into better buildings.

In March, Stamford-based Choyce Peterson began telling its clients to pursue renovation subsidies and lower rent from landlords.

The average asking rent for Class A office space in downtown Stamford is $48 per square foot per year, according to Cushman & Wakefield.

“We have been out there ahead of this (recession) news and have been meeting with many area companies to help them navigate these tough economic times, with regard to their office space,” said Hannigan of Choyce Peterson.

“The smart landlord are the ones who will lead the market in (lower) pricing,” Gage said. “If you follow the market, you are already too late.”

- Staff Writer Peter Healy can be reached at peter.healy@scni.com or at 964-227
Read article source - http://web-best.info/2008/12/for-rent-is-office-space-the-final-frontier-in-financial-crisis/

Source: For rent: Is office space the final frontier in financial crisis?

Ducati North America is pleased to announce a customization contest as part of the forthcoming Ducati Monster 1100 S showroom premiere.

In order to launch the Monster 1100 S to the public in real monster style, Ducati has launched a dealer contest to see who can build the best custom Monster. As the original custom-ready naked bike, the new Monster 1100 S is ready for modifications, and the gloves are coming off in a contest to build the best.

Fifty-eight dealers in the US and Canada have taken delivery of a body panel set in order to begin paintwork on the dealership’s dream Monster; and all have accessories in house waiting to be fitted on the dealership’s first bike. The results promise to be nothing less than spectacular and will launch the Monster with a bang.

Read story source in full: Ducati Wants Coolest Monster 1100S

LONDON, Dec 10, 2008 /PRNewswire via COMTEX/ — The current economic meltdown has affected sales in the global market for physical security solutions in banking and financial institutions. This is the case especially in North America and Western Europe, due to branch closures and headquarters consolidation.
Banks review their security spending every semester and it is expected that they will put on hold large and medium sized projects in the strenuous effort of consolidating their balance sheets. However, solution providers will remain buoyant due to banks’ need to protect their valuable assets from both physical and IT attacks.
According to Frost & Sullivan’s latest report, global market for Electronic Physical Security in Banking and Finance earned revenues of $936 million in 2007. “The critical need for security in banks will help in some way to sustain the spending for physical electronic security, however the growth rates in 2008 and 2009 are expected to be at least two per cent less than the peak in 2007,” observes Matia Grossi, Industry Analyst for Frost & Sullivan Electronics & Security group.
Since the electronic physical security market in the banking and financial institutions sector is very mature, it is sensitive to the shrinking of the installed base of bank retail branches and financial institutions. The huge installed support of analogue security equipment also makes banks reluctant to make the transition to Internet Protocol (IP) technology. At the same time Greenfield deployments, where latest technologies and systems are usually installed, are expected to be put on hold as new branches are unlikely to be opened.
“Focusing on the applications of security systems beyond traditional security applications, for example in customer relationship management, is one of the keys to succeeding in these challenging situations,” notes Grossi.
Greater customer awareness about the advantages and new functionalities of IP-based systems drives banks to maintain their current level of spending in electronic physical security, even in the present difficult times. Furthermore, regulatory and insurance requirements compel banks to sustain a required level of physical electronic security.
News source - Financial Crisis Affecting Banks’ Security Budget

If you can judge a prophet by his followers, maybe you can judge a composer by the quality of musicians who are inspired to champion his music. And if that’s so, then Elliott Carter - the subject of a weekendlong celebration at the Yerba Buena Center for the Arts in advance of his 100th birthday Thursday - is doing something right.

The two-day bash, sponsored by San Francisco Performances, included a showing of Frank Scheffer’s documentary film “Elliott Carter: A Labyrinth of Time” and lectures by musicologist Robert Greenberg. But the chief focus, naturally, was the music, which got bold, impassioned and strikingly eloquent performances from artists devoted to Carter’s work.

Saturday’s concert by the Pacifica Quartet - violinists Simin Ganatra and Sibbi Bernhardsson, violist Masumi Per Rostad and cellist Brandon Vamos - was a complete tour through Carter’s string quartets, from the expansive breakthrough of the String Quartet No. 1, written in 1951, to the Fifth Quartet, which joined the catalog in 1995.

And on Sunday afternoon, pianist Ursula Oppens gave a similarly comprehensive overview of the composer’s keyboard works. The recital was anchored by his two major piano compositions - the Piano Sonata (1945-46) and “Night Fantasies” (1980) - and bedecked by a handful of shorter pieces dating from the past 15 years.

What came through most stirringly in both events was the devoted sense of advocacy that Carter seems to engender in performing musicians. As difficult as much of his music is for the listener, the difficulties it entails for instrumentalists - from both a technical and interpretive standpoint - can only be more profound.

Yet here were artists clearly delighted and eager to dedicate themselves to making the best possible case for this music - and succeeding in doing so.

Here is full article: Music review: Elliott Carter celebration