Loyalty isn’t dead—at least not for these road warriors with top-tier, hush-hush status
4 min
Bonnie Crawford was in danger of missing a connecting flight to Toronto for a board meeting last week when a United Airlines customer-service representative saved the day. She got rebooked on a pricey nonstop flight on Air Canada in business class. For free.
You’re probably thinking, “No airline ever does that for me.” Crawford isn’t just any frequent flier. The chief customer officer for a software company and Portland, Ore., resident has United’s invitation-only Global Services status.
It’s a semi-secret, status-on-steroids level that big spenders strive for every year. American and Delta have souped-up statuses, too, with similarly haughty names: ConciergeKey and Delta 360°. The airlines don’t like to talk about what it takes to snag an invite, how many people have such status or even the perks. Even the high rollers themselves don’t know for sure.
Get into these exclusive clubs and you get customer service on speed dial, flight rebooking before you even know there’s trouble, lounge access and priority for upgrades. Not to mention bragging rights and swag. People even post unboxing videos of their invites on YouTube.
Anyone with this super status needn’t fret about the value of airline loyalty or the devaluation of frequent-flier points.
Crawford was invited to Global Services for 2017 and was hooked. “It was the first taste of this magic, elusive, absolutely incredible status,’’ she says. She wasn’t invited again until this year and fears she won’t be invited back next year due to fewer costly international flights in her new job.
Airlines don’t publish qualifications for Global Services, Delta 360° or ConciergeKey. That doesn’t stop road warriors from speculating in online forums about the required spending levels ($50,000-plus a year is mentioned a lot) and travel patterns (lots of high-cost international flights in premium cabins on the airline, not partner carriers).
Complicating matters: Some airlines bestow the status as part of a corporate contract, with companies allowed to pick their nominees.
Scott Chandler , senior vice president of revenue management and loyalty at American Airlines , won’t divulge any metrics. He says American devotes a significant amount of time and resources to its coveted ConciergeKey program because the travelers are the airline’s most valuable. Delta and United declined interview requests and didn’t share any info beyond statements about the programs’ exclusivity.
Chandler says fliers can reach ConciergeKey status through a combination of spending on American flights, shopping portals and credit cards. How much? He wouldn’t spill or confirm the $50,000 guesstimates. He says the makeup of the membership is broader than most people think.
“They’re basically interacting with American on a daily basis, not just when they’re flying,’’ he says.
Steve Giordano of Cherry Hill, N.J., is a managing director of a flight test and aircraft delivery company that shuttles pilots to or from assignments around the globe. The company spends up to $2.5 million on airfare every year, and he has been ConciergeKey for several years. He remembers once when the dedicated customer-service desk alerted him to a cancellation in Dublin before the flight’s pilots even knew. (He was friends with the pilot.)
In April, the airline told him he didn’t qualify for this year. He says he wasn’t too disappointed because he flies United more and has Global Services status. Giordano says he noticed ConciergeKey service slipping. On a vacation to Colombia earlier this year, he says the dedicated customer-service line and a gate agent were no help getting him home after a series of flight issues. He complained and received a form letter back. A spokeswoman says the airline sees higher satisfaction scores from ConciergeKey members than any other customer group.
In May, the airline sent him an email renewing his status after all. American is suffering through a self-induced business travel slump and working to woo back travellers .
Giordano has also taken advantage of chauffeured drives in luxury cars to the gate during a tight connection. In Houston, United escorted him and his business partner down the stairs to the tarmac and drove them in a Jaguar to their next plane. Delta uses a Porsche , American an SUV.
“CBS Mornings” co-host Gayle King has ConciergeKey and hitched a ride like that in April and thanked the American Airlines employees who helped her in an Instagram post .
Those transfers are far from routine. Travellers with the status say the most prized perk is quick help when flight troubles of any kind arise.
A senior partner with a major consulting firm who has earned status in all three programs says a United Global Services representative called him on his way to the airport a few weeks ago after noticing that he hadn’t arrived for his flight. The cutoff time for losing his seat was approaching. They saved his seat after he confirmed he was en route.
In Charlotte, N.C., last week, as the executive was sprinting to his connecting flight, a ConciergeKey representative called the airport to make sure the gate agent knew he was coming. Boarding had ended. He got on the plane.
“That’s the stuff that makes the difference,’’ he says. “That’s the s—t that gets you home.’’
There is a limit, of course.
“They don’t hold the plane,’’ he says. “If they know you’re coming, they might not shut the door as quickly.’’
Much to his parents’ chagrin, he can’t play the super-status card to help others. And all the status in the world can’t overcome weather, air-traffic delays or missing crews.
Kim Anderson , chief executive of an online lending company, is a longtime Delta loyalist who lives in Fort Lauderdale, Fla.
Before his Delta 360° invite, Anderson had seen other travellers with the 360 bag tag on their backpacks and asked a few employees about the status over the years, but didn’t know much more. He travels a few times a month, buys extra-legroom seats or better, regularly buys a Sky Club membership and has an American Express card he uses to transfer miles to Delta. He estimates he racked up 200,000 Delta miles a year for the past few years.
Anderson was still surprised to find an invitation in his inbox a couple of years ago and says he hasn’t cracked the code.
“If I knew that, I’d put it in a bottle and sell it on Amazon ,’’ he says. He got a repeat invite this year.
Anderson says the customer service is over the top. He fired off an email complaint about rushed in-flight service in first class on a recent flight and had an answer—and bonus frequent-flier miles—before he landed.
“Those are not their trainees, I can tell you that,’’ he says.
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What a quarter-million dollars gets you in the western capital.
Alexandre de Betak and his wife are focusing on their most personal project yet.
Office-to-residential conversions are gaining traction, helping revitalize depressed business districts
4 min
Developer efforts to convert emptying office towers into residential buildings have largely gone nowhere. That may be finally changing.
The prospect of transforming unused office space into much-needed housing seemed a logical way to resolve both issues. But few conversions moved forward because the cost of acquiring even an aging office building remained too high for the economics to pencil out.
Now that office vacancy has reached record levels, sellers are willing to take what they can. That has caused values to plunge for nothing-special buildings in second-rate locations, making the numbers on many of those properties now viable for conversions.
Seventy-three U.S. conversion projects have been completed this year, slightly up from 63 in 2023, according to real-estate services firm CBRE Group. But another 309 projects are planned or under way with about three-quarters of them office to residential. In all, about 38,000 units are in the works, CBRE said.
“The pipeline keeps replenishing itself,” said Julie Whelan , CBRE’s senior vice president of research.
In the first six months of this year, half of the $1.12 billion in Manhattan office-building purchases were by developers planning conversion projects, according to Ariel Property Advisors.
While New York, Chicago and Washington, D.C., are leading the way, conversions also are popping up in Cincinnati, Phoenix, Houston and Dallas. A venture of General Motors and Bedrock announced Monday a sweeping redevelopment of Detroit’s famed Renaissance Center that includes converting one of its office buildings into apartments and a hotel.
In Cleveland, 12% of its total office inventory is either undergoing conversions or is planned for conversion. Many projects there are clustered around the city’s 10-acre Public Square. The former transit hub went through a $50 million upgrade about 10 years ago, adding fountains, an amphitheater and green paths.
“You end up with so much space that you paid so little for, that you can create amenities that you would never build if you were doing new construction,” said Daniel Neidich, chief executive of Dune Real Estate Partners, a private-equity firm that has teamed up with developer TF Cornerstone to invest $1 billion on about 20 conversion projects throughout the U.S. in the next three years.
Conversions won’t solve the office crisis, or make much of a dent in the U.S. housing shortage . And many obsolete office buildings don’t work as conversion projects because their floors are too big or due to other design issues. The 71 million square feet of conversions that are planned or under way only account for 1.7% of U.S. office inventory, CBRE said.
But city planners believe that conversions will play an important part in revitalising depressed business districts, which have been hollowed out by weak return-to-office rates in many places.
And developers are starting to find ways around longstanding obstacles in larger buildings. A venture led by GFP Real Estate is installing two light wells in a Manhattan office-conversion project at 25 Water St. to ensure that all the apartments will get sufficient light and air.
Cities such as Chicago, Washington, D.C., and Calgary, Alberta, have started to roll out new subsidies, tax breaks and other incentives to boost conversions.
The projects are breathing new life into iconic properties that no longer work as office buildings. The Flatiron Building in New York will be redeveloped into condominiums. In Cincinnati, the owner of the Union Central Life Insurance Building is converting it into more than 280 units of housing with a rooftop pool, health club and commercial space.
In the first couple of years of the pandemic, office building owners were able to hold on to their properties because of government assistance and because tenants continued to pay rent under long-term leases.
As leases matured and demand remained anaemic, landlords began to capitulate and dump buildings at enormous discounts to peak values. In Washington, D.C., for example, Post Brothers last year paid about $66 million for 2100 M Street, which had sold for as much as $150 million in 2007.
Washington, D.C., has been particularly hard hit by the office downturn because the federal government has been especially permissive in allowing employees to work from home .
“We’re able to make it work as a conversion because it was no longer priced as though it could be repositioned as office,” said Matt Pestronk , Post’s president and co-founder.
Increasingly, more deals are taking place behind the scenes as converters reach deals with creditors to buy debt on troubled office buildings and then push out the owners. GFP Real Estate reduced costs of its $240 million conversion of 25 Water Street by buying the debt at a discount and cutting deals with tenants to exit the building before their leases matured.
One of the first projects planned by the venture of Dune and TF Cornerstone likely will be the Wanamaker Building in Philadelphia. TF Cornerstone just purchased the debt on the office space in the building and is in the process of taking title.
“The banks are foreclosing and doing short sales,” said Neidich, Dune’s CEO. “There’s a ton of it going on.”
In Washington, D.C., a conversion of the old Peace Corps headquarters building near Dupont Circle is 70% leased just four months after opening, said developer Gary Cohen . Rents are higher than expected.
“If that’s the way to get people downtown, that’s what we have to do,” Cohen said.
Not all developers agree that the economics of conversions work, even at today’s low prices. Miki Naftali , who has converted more than five New York properties over the years, said he has been very actively looking at conversion candidates but hasn’t yet found a deal that works financially.
One of the issues facing converters is that even if an office building is dying, it often has a few existing tenants who would need to be relocated. Some buildings would need atriums to ensure that all the apartments have sufficient light and air.
“When you start to add everything up, if your costs get close to new construction, that’s when you get to the point that it doesn’t make financial sense,” Naftali said.
Some landlords are including clauses in leases that give them the right to evict tenants to make room for a major conversion. Others are keeping a small ownership stake when they sell buildings so that they can learn the conversion process for future buildings.
“The world is looking at these assets in a different way,” said developer William Rudin , whose company decided to learn the conversion process by keeping a stake in 55 Broad Street, a downtown New York office building it sold last year to a converter.
