Newsletter Highlights Potential Implications of Crystal City Changes on Vornado
ARLINGTON, Va., Sept. 25 /PRNewswire-USNewswire/ — Real estate giant Vornado Realty Trust (NYSE: VNO) will disproportionately bear the impact of upcoming Crystal City job shifts, according to a new newsletter distributed to nearly 1,000 shareholders, market analysts, media outlets, and business leaders by the Service Employees International Union (SEIU) Local 32BJ.
The first VornadoWatch issue focuses on the potential effects of the Base Realignment and Closure (BRAC) Commission of 2005 on Vornado’s Crystal City holdings. This most recent BRAC round requires the closure of numerous Department of Defense agency offices in Northern Virginia by 2011. More than 3.2 million square feet of office space — nearly one-third of Crystal City’s total — stands to be affected.
Over 20% of Vornado’s office space is situated in Crystal City, and a majority of the company’s 2006 Washington area rental revenues were derived from US government and government contractors. Yet the company has not released to shareholders a comprehensive plan for dealing with BRAC through their SEC filings or press releases.
As detailed in VornadoWatch, SEIU Local 32BJ believes that Vornado’s apparent strategy to redevelop its Crystal City portfolio and attract new tenants with the aid of government incentives may ultimately be unsuccessful. A lengthy and unpredictable planning process, uncertain demand for high-end space situated in Crystal City, and potential community opposition all pose challenges to the company, the newsletter suggests.
SEIU Local 32BJ represents hundreds of members who live in Arlington, and is committed to ensuring that financial incentives are not provided to companies employing contractors who pay poverty-like wages.
To receive a copy of VornadoWatch, please send contact information via email to scasey (at) seiu32bj (dot) org.
With more than 85,000 members in six states, including 9,000 in the Washington DC-Maryland area, Local 32BJ is the largest property service workers union in the country.
SOURCE Service Employees International Union Local 32BJ
© 2007 PR Newswire. All Rights Reserved.
