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4 area firms retained same agency for site-search help

Mon, Oct 12th 2009 12:00 am
By JAMES FINK
Business First

In the space of a short period of time, four area law firms have either moved into new downtown Buffalo offices or started a search for a new address in the city's central business district.

These site searches have been applauded in some quarters, but have not been universally well-received.

At issue is the decision by each of these four firms to use an out-of-town real estate site selection agency instead of a local broker. The firms - Harter Secrest & Emery, Damon Morey, Jaeckle Fleischmann & Mugel LLP and Phillips Lytle LLP - all used the Miami office of the Studley Group. Studley is one of the country's most respected and sought-after real estate firms.

"There's more than enough well-qualified firms in town," said Alan Hastings, co-owner of Hastings Cohn Real Estate and a past president of the Western New York chapter of the New York State Association of Commercial Realtors. "We all know all the lawyers and we know all the developers and their portfolios. We're the guys doing this on a day-to-day basis in Buffalo."

Representatives of the four law firms say their decision to use Studley wasn't a knock against local commercial brokers. Rather, it's just that Studley has a deep résumé of working with law firms, negotiating for the firms and, generally, making sound real estate recommendations for their clients.

"They have a really good sense of what law firms need," said David McNamara, Phillips Lytle managing partner.

Working with Studley, Phillips Lytle has compiled a preliminary list of possible new downtown locations; the firm's lease for 85,000 square feet in HSBC Center expires in December 2013.

Studley has presented a deep pool of information that the Phillips Lytle team is only just beginning to digest, said McNamara.

"They've provided us with some benchmarks that are valuable," he said.

McNamara said Phillips Lytle selected Studley not only for its work in other cities, but also positive word-of-mouth from other firms, including Harter Secrest & Emery and Damon Morey.

Harter Secrest & Emery used Studley for its downtown relocations in both Rochester and Buffalo.

"They paid for themselves," said Craig Slater, a Harter Secrest partner.

The firm moved from HSBC Center to the Bank of America building in Fountain Plaza more than five years ago, and its space has since been expanded. The firm's Rochester office also moved from the Midtown Plaza Building in Rochester to the Bausch & Lomb Building on the advice and recommendation of Studley.

"In both instances, they provided us with a very clear picture and sense what our costs and options were," Slater said.

Slater said his firm heard no negative feedback from the local commercial real estate community about its decision to use Studley.

Ditto for Damon Morey, said Peter Marlette, managing partner.

Marlette said Damon has a history of working with Studley, and that each experience of working with the real estate firm resulted in favorable lease package. Studley recommended that Damon Morey move from Cathedral Place to the Avant Building.

"Nothing against the Buffalo brokers, but in this instance, the best perspective came from an out-of-town firm," Marlette said. "We have a lot of confidence in Studley."

Marlette noted that when it came to other aspects of the firm's new offices, the work was handled by local companies.

Joseph Kubarek, a partner in Jaeckle Fleischmann and the person overseeing his firm's site search, said Studley has been "very helpful" in helping the firm to analyze possible new locations for its office. Jaeckle Fleischmann's search is at an early stage.

James Militello, owner of J.R. Militello Realty in Buffalo, said he understands why the law firms used Studley.

"But it still hurts," Militello said. "From the standpoint of this marketplace - or any other - competitors always come in, that's part of the business."

Still, Militello, Buffalo's former economic-development point man under late Mayor Jimmy Griffin, said Studley's work should not be viewed as a slap in the face to the local commercial real estate industry.

"It does make it more difficult for local businesses to succeed," Militello said. "It would be different if we couldn't do this, but we can, and we do it quite well."