- A deadly shooting in a Midtown skyscraper hit the real estate sector especially hard.
- The industry is mourning two lives and assessing whether more could be done to protect tenants.
- Features being considered include "security centers" where staff can lock elevators or entrances.
The deadly shooting in a Midtown skyscraper on Monday evening dealt an especially painful blow to New York City's commercial real estate community.
Two of the four victims worked in real estate: Wesley Lepatner, the 43-year-old CEO of a large Blackstone real estate fund, and Julia Hyman, a young associate at Rudin Management, a commercial landlord that owns the tower where the shooting took place.
The setting — a notable skyscraper along Park Avenue — also hit close to home. As a premier office building in one of the top office districts in the nation, the site of the violence has raised unsettling questions among real estate professionals about how to better protect tenants. While no one can fully defend against someone bent on violence (Monday's gunman appeared prepared to die), conversations are already underway in an industry now mourning two of its own.
"As you can imagine, it's been a busy 48 hours with clients assessing their security," said Paul Schmick, the chief security and technology officer at Alliance Building Services, a New York City-based firm. Schmick said that about two dozen landlords have reached out and that he had just had a conversation "with one of the largest Class-A office owners in the city" to talk about the security implications of the shooting.
Schmick said some large landlords are now planning to accelerate the installation of security centers in their office buildings. These are secure rooms manned by security staff who can monitor a building's public spaces using surveillance cameras and who have the power to control elevator systems and turnstiles and alert police if there is an attack.
"Some buildings have these rooms, but more landlords are considering them now," Schmick said.
Schmick suggested the attack could also accelerate the use of artificial intelligence in building operations. AI can be coupled with closed-circuit surveillance systems to recognize weapons instantly or even threatening behavior.
"I would agree that this is an isolated act of violence, but there still is the sense now that this is something we have to prepare for," Schmick said. "Everyone is saying we have to look at the details here, and what else can we do to help mitigate this from happening again."
An industry in mourning
While mass shootings have become familiar to the public in recent decades, Monday's attack brought the terrifying scene to some of the nation's top companies, notably Blackstone, a $1.2 trillion asset manager, and the National Football League, which NYC mayor Eric Adams said was the target of the gunman.
On Monday at around 6:30 p.m., the lone gunman walked into the lobby of 345 Park Avenue with a semiautomatic rifle and opened fire, according to the New York Police Department. In addition to the real estate executives, the shooter also killed an NYPD officer hired to protect the property and a security guard. The gunman died of a self-inflicted gunshot wound.
Real estate executives who spoke to Business Insider described Monday's tragedy as the industry's biggest blow in decades — perhaps since the September 11 attacks that brought down the Twin Towers.
Mary Ann Tighe, the New York CEO of the real estate services firm, said it was "hard to get through the day with our hearts so heavy."
"Crazy bad things shouldn't happen to anyone, but it stuns when you know people involved and you also know how special they are," she said.
"At the moment, I think I'm just kind of dealing with the tragedy and not thinking about how does this relate to that, or this or that," said Jon Mechanic, the chairman of the law firm Fried Frank's real estate department.
"I'm sure that there are conversations that are going on, and we'll see what people decide to do," Mechanic said of security questions swirling through the industry.
The Real Estate Board of New York, the industry's main lobbying group and professional association, whose office is just across the street from 345 Park Avenue, issued a statement on the event: "We extend our full support to the real estate community — building owners, managers, staff, and tenants — who were directly affected and continue to navigate the aftermath with strength and resilience."
"As a community committed to the well-being of all New Yorkers, we stand in solidarity during this difficult time and remain dedicated to supporting a city where everyone can live and work without fear," the statement said.
