I
n the shadow of a corruption probe, a high-stakes meeting unfolded at 1 Centre Street, the headquarters of the Department of Citywide Administrative Services (DCAS). Jesse Hamilton, DCAS's deputy commissioner for real estate services, and Diana Boutross, a Cushman & Wakefield broker, were among the attendees. The gathering was to discuss a potential acquisition - a massive warehouse in the Bronx worth $670 million.

    Hamilton's agency oversees the city's office leases, managing over 22 million square feet of rented space and 15 million square feet of owned properties. His department has significant discretion before the leasing process becomes public. Hamilton's background is not in office leasing; he spent two decades overseeing property tax disputes at the Department of Finance.

    Hamilton's rise to power within DCAS was swift, earning him a $24,000 pay bump and a total salary of $213,783. His hiring was seen as one of several friends and political supporters of Mayor Eric Adams joining the administration. Hamilton's job proved beneficial for Boutross, who took over Cushman's contract representing the city on office leases despite lacking experience in the niche.

    A lawsuit filed by JRT Realty against Cushman & Wakefield alleges that Hamilton intervened in the hiring process, telling Cushman to make Boutross account manager or risk losing the DCAS account. The agency currently works with both Cushman and CBRE, assigning specific portfolios to avoid competition for the same space.

    The leasing deals take time and require significant resources, including engineering and architectural work to assess potential spaces. Property owners pay a commission of roughly 6 percent for leasing and between 4 and 6 percent on purchases. Negotiations happen behind the scenes until the best deal emerges for review.

    DCAS has faced scrutiny in the past, including an investigation into the Rivington House nursing home deal, which resulted in a reorganization of leadership and a law requiring extensive reviews of deed restriction removals. The current investigations into office leasing may lead to changes within the agency or even structural reforms.

    As the city continues to ink new leases, Restler emphasizes the need for more transparency and accountability around these deals. However, he notes that improving rules and processes will only help so much if the right people are not in place.