Goldman Likes Things Posh
By Jane Han
Staff Reporter
The view isn't typical on the top floors of the Hungkuk Life Insurance building.
A panoramic view of Mount Bukhan opens to the north and a peaceful Deoksu Palace rolls out to the south for employees of the world's top investment banks at the 24-story office tower tucked away from central Seoul's busiest block.
Aside from Goldman Sachs, which added an additional floor last month, Morgan Stanley, ING and Citi call the building their home. But the list isn't expected to get longer anytime soon.
``The state-of-the-art tower is one of the most sought after in the area,'' said one property broker who works closely with multinational firms, ``but no vacancies will exist for some time.''
This makes work tougher for real estate agents who try to secure top-notch office space for their hard-to-please clients.
Foreign firms, particularly investment banks, are considered to have some of the highest standards when picking sites for their elite analysts, who work around the clock in chairs that cost more than $1,000.
One of the biggest factors they count on is a building's reputation, says Jeff Oatman, a senior manager of Colliers International, a global real estate brokerage.
``It's important to have that high-profile name on their name card,'' he said, exemplifying Seoul Finance Center and Gangnam Finance Center, both luxurious high-rises, as those preferred by many foreign firms.
Darren Krakowiak, head of research at Jones Lang LaSalle, another global commercial property broker, agreed. He said tenants check the status of other occupants and see if the establishment's overall reputation is in line with their corporate profile.
This is hardly a surprising component for investment banks that manage some of the world's top funds. For most, a good building isn't enough.
``If they're not on the highest floors, consider the deal not done,'' said an executive of a real estate agency who asked not to be named. ``These proud firms don't want to cramp their style by being placed below competitors.''
On the top floor of the Hungkuk building are Morgan Stanley on the 22-23 floors, Goldman Sachs at 19-21 and Citi 17-18.
Aside from the image factor, Krakowiak said a building's ability to provide back-up power is also a requirement for investment banks.
``Some require back up beyond the basic emergency power provision that good quality buildings in Seoul provide for all tenants,'' he said. ``In these cases, astute building owners offer space to cater for back-up generators.''
Having enough security exits is also important. Oatman says many foreign companies and banks have internal regulations that require a certain number of emergency exits.
``There are certainly more things these tenants consider before moving in,'' he said.