Category: Commercial Real Estate

Apple’s New California Facility: Is this the Model for Amazon HQ2?
avatar


Authored by , re: Commercial Real Estate, on .
Apple’s New California Facility: Is this the Model for Amazon HQ2? | Ruth Wharton

Despite the dizzying pace of change, everything old is new again.

Recently, all the talk is about which city Amazon will choose for its new headquarters. As we think of major tech office centers in the US, it is interesting to look at another company’s new building plans.

Apple’s new center in Cupertino, California is a $5 billion project accommodating 12,000+ employees. Apparently, from an architectural standpoint, it is not revolutionary at all.

The more things change, the more they stay the same. I saw this article when using the Financial Times app and thought you might be interested:

Silicon Valley’s less-than-revolutionary office concepts 

Click here to read Ruth Colp-Haber's full article...

NYC Office Trends: Smaller Spaces for Big Savings
avatar


Authored by , re: Commercial Real Estate, on .
NYC Office Trends: Smaller Spaces for Big Savings | Ruth Colp-Haber

New trends in office space: smaller spaces, more common area, and modern design.

We have been seeing that top management of all NYC businesses—from law firms to finance firms—are reducing the amount of their office space in order to cut costs. Any reduction in office space costs goes right to the bottom line.

A few specific trends happening now:

1) Big executive offices are passé. If executives do have private offices, they are smaller than in the past. If a space is already built with big offices, these “ego offices” are repurposed to accommodate several employees, creating a type of bullpen.

Click here to read Ruth Colp-Haber's full article...

Heads-up! Built-Out Spaces from Closed Hedge Funds May Yield Dividends for Growing Financial Firms
avatar


Authored by , re: Commercial Real Estate, on .
Heads-up! Built-Out Spaces from Closed Hedge Funds May Yield Dividends for Growing Financial Firms | Ruth Colp-Haber

The VIX, which measures volatility in the stock market, is currently at historical lows. However, the turmoil in the hedge fund industry is increasingly high. As a result, some financial firms are downsizing or closing their doors. When the firms downsize, they assess their office operations and often seek to sublease some or all of their space. This presents other hedge funds, broker dealers, and money managers with an opportunity to save money by leasing new space when the sublets hit the market.

Financial firms with many traders and computers have extensive infrastructure needs such as: supplemental air conditioning, ample voice and data wiring, built-in trading desks, and high-end furniture and phones. Given these IT and HVAC requirements, their spaces often need costly build-outs to ensure smooth trading operations.

Click here to read Ruth Colp-Haber's full article...

What Does a 21st Century Law Firm Look Like?
avatar


Authored by , re: Commercial Real Estate, on .
What Does a 21st Century Law Firm Look Like? | Ruth Colp-Haber

Given the economic pressures facing the legal industry, many law firms are either downsizing, folding outright or moving to new—more efficient—office spaces.

Accordingly, there is a lot of activity in the law firm office space sector.

Along with the above commercial forces at work,  law firm layouts are changing. There is less need for secretarial space, and law libraries (with hard copy books) have been significantly reduced—if not eliminated. However, the old law firm spaces can easily be re-configured by a landlord to meet the needs of the 21st century law firm.

Click here to read Ruth Colp-Haber's full article...

The Dirt Dictionary: ‘T’ is for Tenant Improvement Allowance
avatar


Authored by , re: Commercial Real Estate, Real Estate, on .

Yes, you know this, but this column is a dictionary (of sorts), so let’s define a TIA—tenant improvement allowance—as the amount of money a landlord will give toward preparing a space for occupancy and delve into it.

Typically, a TIA is stated either as a per-square-foot amount or a fixed sum. Any overage is borne by the tenant. The rationale for giving the TIA is to attract quality tenants (especially useful in a soft market). This is also used to finance the overhaul of outdated spaces. The amount is totally negotiable, so tenants are well advised to rely on their savvy local brokers to guide them.

Click here to read Jeff Margolis's full article...

A Theme of Renewal & Motion in New York City’s Commercial Real Estate Market
avatar


Authored by , re: Commercial Real Estate, on .
A Theme of Renewal & Motion in New York City’s Commercial Real Estate Market | George Grace

New York City’s commercial real estate market is a very intense environment—it exemplifies capitalism at its best. As one area attempts to solve its problems, another area is concurrently built and becomes the solution to those problems. In this city, something goes up, and something else comes down—resulting in opportunities for everybody. Depending on what your needs are as both a tenant and a business, the going up and the going down can potentially be beneficial.

Click here to read George Grace's full article....

Commercial Real Estate Concessions: Are You Getting the Best Possible Deal?
avatar


Authored by , re: Commercial Real Estate, on .
Commercial Real Estate Concessions: Are You Getting the Best Possible Deal? | Ruth Wharton

S&P Global Market Intelligence reported recently that, “it’s a good time to be in the market for prime New York City office space.” Commercial Real Estate Concessions: Are You Getting the Best Deal? “I think we’re starting to see a cycle that’s beneficial for tenants. It’s going to accelerate more.” Colp-Haber said in the report. However, many tenants that are in the market are disappointed that base rental rates are still high. While base rental rates remain unchanged, what has changed are the concession packages being offered by landlords.

Click here to read Ruth Colp-Haber's full article...

Three Reasons You Need to Hire Your Own Commercial Real Estate Agent
avatar


Authored by , re: Commercial Real Estate, on .
Three Reasons You Need to Hire Your Own Commercial Real Estate Agent | Ruth Colp-Haber

Obtaining new office space is one of the major decisions that your company will make. Despite that fact, some business people mistakenly think that they have the ability to negotiate a lease on their own—or alternatively, they naïvely use multiple brokers in an attempt to obtain a good deal on space. One hard working broker is the best route for the following reasons:

  1. All major brokerage firms have access to the same Costar office space listings (multiple brokers do not lead to access to additional spaces).

Click here to read Ruth Colp-Haber's full article...

Retail Vacancies
avatar


Authored by , re: Commercial Real Estate, on .
Retail Vacancies | George Grace

Because there’s a fairly high retail property vacancy rate (just walking down the streets of Manhattan, you see many “for rent” signs on stores), I don’t think rental rates for retail property will rise. I believe the fairly low level of demand for retail space can be explained by three factors:

  • People do not have as much disposable income, so they’re not spending as much money.
  • Online alternatives such as Amazon are taking business away from brick and mortar stores.

Click here to read George Grace's full article....

In the Retail Market? Time to Rent or Buy?
avatar


Authored by , re: Commercial Real Estate, REAL ESTATE ARTICLES, on .
In the Retail Market? Time to Rent or Buy? | George Grace

We are currently representing a buyer who’s in the market for a commercial building, condominium or cooperative. As I’ve been scouring the market, I’ve noticed that sale prices have increased dramatically over the past year. However, rental rates for retail property have gone down over the same period. Interest rates have been so low for so long that there seems to be a disconnect between rental rates and sales prices (i.e., a bubble). This is reflected in the fact that sellers are asking for capitalization rates under 5%.

Click here to read George Grace's full article....

New NYC Neighborhoods: World Trade Center—Media & Tech Hub
avatar


Authored by , re: Commercial Real Estate, on .
New NYC Neighborhoods: World Trade Center—Media & Tech Hub | Ruth Colp-Haber

The new World Trade Center is a sprawling 16 acre mixed-used environment composed of 5 iconic office towers, an 8-acre Memorial Plaza, and over half a million square feet of shopping and dining. The transportation hub makes it one of the most convenient destinations to access in the city. There is unmatched mass transit—11 subways & PATH trains which are accessible directly from the buildings. The World Trade Center offers direct, weather-protected access to most of the City’s subway, bus, and ferry lines.

Click here to read Ruth Colp-Haber's full article...

Why an Exclusive Broker Is the Right Choice
avatar


Authored by , re: Commercial Real Estate, on .
Why an Exclusive Broker Is the Right Choice | George Grace

During the course of a conversation with a tenant, they asked why anyone would want to use an exclusive broker to represent them in finding and negotiating a lease. Of course, any tenant in the market for a space has full control of the leasing or acquisition process. If a tenant goes out and talks to five different brokers, and goes to look at five different spaces with them, what they’ve essentially done is create five salesmen. Each broker will tout the space they showed and say how great it is. Their incentive is to close on the particular space they showed or lose the commission for that deal.

Click here to read George Grace's full article....

The Mercy Center’s 13th Annual Gala Dinner and Auction
avatar


Authored by , re: Commercial Real Estate, REAL ESTATE ARTICLES, on .
The Mercy Center’s 13th Annual Gala Dinner and Auction | George Grace

On March 16th, I had the great pleasure of being honored by the Mercy Center of the South Bronx. Mercy Center was founded in 1990 to address urgent problems of the women and children of the area by providing an oasis from a violent home, a place for children to learn to read, and for parents to study English as a second language. Enclosed is a video of my acceptance speech. I hope it will inspire you to support the important mission of Mercy Center.

Click here to read George Grace's full article....

What is NYC’s Next Hip Neighborhood—Hudson Yards?
avatar


Authored by , re: Commercial Real Estate, on .
What is NYC’s Next Hip Neighborhood—Hudson Yards? | Ruth Wharton

Hudson Yards is the largest private real estate development in the history of the United States, and the biggest development in New York City since Rockefeller Center. When completed in 2025, Hudson Yards will have several NYC firsts, including: New York’s first Neiman Marcus, a collection of restaurants curated by Chef Thomas Keller, and The Shed, a new center for artistic invention. In addition, there will be 14 acres of public open space, a 750-seat public school, and an Equinox® branded luxury hotel with more than 200 rooms. The development of Hudson Yards will create more than 23,000 construction jobs.

Click here to read Ruth Colp-Haber's full article...

Avoid Management by Lease
avatar


Authored by , re: Commercial Real Estate, REAL ESTATE ARTICLES, on .
Avoid Management by Lease | George Grace

In an ideal world, commercial tenants would work with both internal and external stakeholders to determine how much space they need before looking at properties. Management would go through a strategic planning process to figure out where the company is going, how it’s going to get there, and who’s going to take it there. The company would consult with an architect to determine its exact space needs, and necessary board or upper management approvals would be obtained beforehand.

Click here to read George Grace's full article....

Global Office Space Bargains: How Does NYC Compare?
avatar


Authored by , re: Commercial Real Estate, on .
Global Office Space Bargains: How Does NYC Compare? | Ruth Colp-Haber

Most of we New Yorkers assume that our city is probably the most expensive place in the world. However, with respect to office space, this is not the case. New York is actually the fourth most expensive city in the world. On a worldwide basis, ahead of New York, are Hong Kong, London, and Beijing. Not surprisingly, New York retains the title of “Most Expensive City in the United States.” There are many factors that affect the comparative rate for office rents worldwide. For example, each city has costs on top of the base rent.

Click here to read Ruth Colp-Haber's full article...

Landlords Increasingly Looking to Shift Insurance Obligations to Tenants
avatar


Authored by , re: Commercial Real Estate, on .
Landlords Increasingly Looking to Shift Insurance Obligations to Tenants | George Grace

Landlords have recently become more aggressive in trying to shift some of the costs of insurance that they traditionally carried onto their tenants. In a large commercial building, the cost of all of these policies can be significant. Essentially, the insurance requirements increase the cost of leasing space. Tenants should be wary of the extra costs these insurance requirements can impose. A lease renewal I’m currently involved with showcases this new approach. Under its existing lease, the tenant was required to carry standard liability insurance covering the leased premises, as well as property losses for the tenant’s furniture and equipment.

Click here to read George Grace's full article....

Which NYC Neighborhood Offers the Best Deals on Office Space?
avatar


Authored by , re: Commercial Real Estate, on .
Which NYC Neighborhood Offers the Best Deals on Office Space? | Ruth Colp-Haber

When I first started in the commercial real estate business, there was a very simple maxim: ask the CEO where he or she lived, and find a property that offered a convenient commute. However, my experience in the business has shown it’s rarely that simple. When companies look for space, they have a lot of conflicting criteria that they use in order to evaluate different NYC locations. For example:

  • How is the subway access?
  • Are there good restaurants and stores nearby?
  • Is the vicinity very crowded?
  • Can you get a taxi conveniently?
  • Is there parking available?

Click here to read Ruth Colp-Haber's full article...

A Bronx Tale: Millions of Untapped Consumers
avatar


Authored by , re: Commercial Real Estate, Real Estate, on .
A Bronx Tale: Millions of Untapped Consumers | George Grace

Recently, I’ve started working with a national company based in the midwest. Their New York office is located in Westchester County, but they have become eager to relocate closer to the city. One of the places they are considering is in the Bronx. I thought this was an interesting choice, as I have written previously about how relatively low and stable the rents are in nearby Westchester. My client elaborated that it wants to be in a more densely populated area because of its sales organization; the more people near it, the better off it is.

Click here to read George Grace's full article....

THE CERTIFICATE OF OCCUPANCY*
avatar


Authored by , re: Commercial Real Estate, REAL ESTATE ARTICLES, Residential Real Estate, on .
THE CERTIFICATE OF OCCUPANCY* | Eric P. Gonchar

© Eric P. Gonchar. All rights reserved. No portion of this article may be reproduced without the expressed written permission of Eric P. Gonchar.

We have all heard the term “Certificate of Occupancy” when involved with a real estate transaction but many of us do not the full ramifications of what it is and what the New York City Building Department (DOB) requires. Don’t underestimate the importance of the Certificate of Occupancy. Whether you’re buying, renovating, or in a legal tussle with a landlord, you’ll occasionally hear talk of the “CO,” “C of O,” or Certificate of Occupancy. And while this legal document isn’t exactly the sexiest part of any real estate transaction, there’s a whole lot of power in this little piece of paper, so much so that it has the clout to win legal cases, end negotiations, put the kibosh on your mortgage, and more.

Click here to read Eric P. Gonchar's full article...

LEGAL REPRESENTATION FOR REAL ESTATE PURCHASES AND SALES*
avatar


Authored by , re: Commercial Real Estate, REAL ESTATE ARTICLES, Residential Real Estate, on .
LEGAL REPRESENTATION FOR REAL ESTATE PURCHASES AND SALES* | Eric P. Gonchar

© Eric P. Gonchar. All rights reserved. No portion of this article may be reproduced without the expressed written permission of Eric P. Gonchar.

The selection of a seasoned, competent and communicative attorney may be the single most important relationship in a real estate transaction. Now more than ever choosing an attorney who is sufficiently competent and whose fee is reasonable and customary is not the only two criteria to select a lawyer. A seller or purchaser should retain an attorney who is competent and experienced, who can protect your interests, who understands the market and who can help and not hinder the transaction.  Remember, if your attorney fails to include important provisions or negotiate a provision properly, the only person that will suffer is the client.

Click here to read Eric P. Gonchar's full article...

REAL ESTATE DUE DILIGENCE (Part 2 of 2)*
avatar


Authored by , re: Commercial Real Estate, REAL ESTATE ARTICLES, Residential Real Estate, on .
REAL ESTATE DUE DILIGENCE (Part 2 of 2)* | Eric P. Gonchar

©2013 Eric P. Gonchar. All rights reserved. No portion of this article may be reproduced without the expressed written permission of Eric P. Gonchar.

This is part 2 of a 2 section article about conducting due diligence on real estate transactions and should be read in conjunction with the sister article.

Financing The Purchase – While Condominiums generally do not set limitations on how much a purchaser may borrow, co-ops generally do. The purchaser must first determine if the co-op will allow the buyer to purchase the apartment with a loan which is secured by a pledge of the shares of the co-op. Many older co-ops do not allow financing at all. For those co-op’s that do allow financing, it is important to determine what the financing limitations are before the contract is signed. If the purchaser wants to finance 80% of the sales price but the co-op only allows 70%, then the transaction should not proceed.

Click here to read Eric P. Gonchar's full article...

REAL ESTATE DUE DILIGENCE (Part 1 of 2)*
avatar


Authored by , re: Commercial Real Estate, REAL ESTATE ARTICLES, Residential Real Estate, on .
REAL ESTATE DUE DILIGENCE (Part 1 of 2)* | Eric P. Gonchar

©2013 Eric P. Gonchar. All rights reserved. No portion of this article may be reproduced without the expressed written permission of Eric P. Gonchar.

This is part 1 of a 2 section article about conducting due diligence on real estate transactions and should be read in conjunction with the sister article.

One of the most important, if not the most important, parts of any real estate transaction is conducting a thorough due diligence review of the property to be purchased. The prospective purchaser should investigate the property thoroughly before signing a contract of sale.

Click here to read Eric P. Gonchar's full article...

CUSTOMARY PROVISIONS IN A LETTER OF INTENT FOR A COMMERCIAL LEASE*
avatar


Authored by , re: Commercial Real Estate, REAL ESTATE ARTICLES, on .
CUSTOMARY PROVISIONS IN A LETTER OF INTENT FOR A COMMERCIAL LEASE* | Eric P. Gonchar

© Eric P. Gonchar. All rights reserved. No portion of this article may be reproduced without the expressed written permission of Eric P. Gonchar.

In a prior article, we examined the preliminary considerations for a Tenant in leasing retail or commercial space. Once the Tenant has a space picked out, it is time to understand the lease terms and negotiate the lease. The terms of the Lease will be summarized in a document called a “Letter of Intent.” This can be a complicated process, especially considering all the legal terminology and lease-speak that is often more confusing than it is helpful.  Keep in mind, a larger more well established Tenant may have more of an ability to negotiate better terms than a new start-up company without any experience.

Click here to read Eric P. Gonchar's full article...

PRELIMINARY CONSIDERATIONS FOR A TENANT IN LEASING RETAIL OR COMMERCIAL SPACE*
avatar


Authored by , re: Commercial Real Estate, REAL ESTATE ARTICLES, on .
PRELIMINARY CONSIDERATIONS FOR A TENANT IN LEASING RETAIL OR COMMERCIAL SPACE* | Eric P. Gonchar

© Eric P. Gonchar. All rights reserved. No portion of this article may be reproduced without the expressed written permission of Eric P. Gonchar.

There are many considerations a Tenant must take into account before deciding to lease commercial space. But even before finding the right space, in the right neighborhood at the right rent, the Tenant must be prepared to provide certain financial and personal information to the Landlord.

Click here to read Eric P. Gonchar's full article...

Why You Should Consider Having an Exclusive Broker
avatar


Authored by , re: Commercial Real Estate, REAL ESTATE ARTICLES, on .
Why You Should Consider Having an Exclusive Broker | George Grace

Prospective tenants are often resistant to hiring an “exclusive” broker. They feel that if they hire just one company, they’re not going to get to see the breadth of the market and that by dealing with multiple brokers, they will get to see more properties and wind up with a better selection. The reality is quite different — there are valuable benefits to going with just one broker. Some of the main reasons you should consider an exclusive broker:

Click here to read George Grace's full article....

Rentable Space or Usable Space?
avatar


Authored by , re: Commercial Real Estate, on .
Rentable Space or Usable Space? | George Grace

As many tenants know, rents have been rising. The stock market peaked in May (and is threatening a new high again), and according to regular cyclical patterns, it is set to continue rising for another year or two. Continued increases in rental rates can take a HUGE bite out of a business’s bottom line. Consider the following scenario: Back in 2008, when you rented your 10,000-square-foot office space, rent was $40 per rentable square foot.

Click here to read George Grace's full article....

How Does the Stock Market Affect Rent Prices in New York?
avatar


Authored by , re: Commercial Real Estate, Real Estate, on .
How Does the Stock Market Affect Rent Prices in New York? | George Grace

The stock market is a leading economic indicator. It affects the psychology of companies. When the market is up, there is a tendency toward growth and expansive thinking, but when it’s down, people are less likely to spend money on real estate and investments. In New York City, approximately 25% of the economy is tied directly or indirectly to the stock market. Looking at the last 20 years, we can compare the Dow Jones index levels with those of asking rents in New York and see a pattern.

Click here to read George Grace's full article....