Tag: commercial real estate

CRE Must Reads to Get Ahead and Stay Ahead

CRE Must Reads to Get Ahead and Stay There _ Kevin BrunnockThese hand-picked seven reads will help any CRE professional best maximize their time and make the most out of any growing business:

7L: The Seven Levels of Communication: Go From Relationships to Referrals by Michael Maher: By prioritizing relationship building, Maher offers tangible tips on how to cultivate communications skills to grow your network and get you ahead.

The Due Diligence Handbook For Commercial Real Estate by Brian Hennessey: This invaluable resource will be a handbook you will want to keep on hand for years to come because of its practical checklists and expert tips designed to create value-add in any property.

The Millionaire Real Estate Agent: It’s Not About the Money…It’s About Being the Best You Can Be! by Gary Keller: Although this book was originally written for brokers, the content transcends to any career in real estate by offering useful tips on how to generate leads and pump up sales.

Nine Proven Strategies To Make 2018’s Peak Rental Season Vacancy-Free (published in Forbes): With the busy summer rental season approaching, this quick read will offer a myriad of tips on how to maximize your business potential during the holy grail months for commercial real estate brokers.

Three Essential Strategies For Smart Student Housing Development (published in Forbes): The hot housing market has spilled over into the student sector. This timely and informative article will bring you up to date on how to best capitalize on this relatively new real estate sector before it’s too late.

The Conversion Code: Capture Internet Leads, Create Quality Appointments, Close More Sales by Chris Smith: In this day and age, digital is king. It is imperative that CRE professionals possess the skills to effectively market their properties in a variety of online avenues. This book will help you get the job done and stay one step ahead of your competitors.

The 4-Hour Workweek: Escape 9-5, Live Anywhere, and Join the New Rich by Tim Ferriss: It is too easy to get sucked into the trap of living to work and not working to live. Learn how to best manage your time so that you can maximize your efforts to achieve the greatest success in the shortest amount of time.

5 Essential Books for Commercial Real Estate Professionals

5 ESSENTIAL BOOKS FOR COMMERCIAL REAL ESTATE PROFESSIONALS _ KEVIN BRUNNOCKThe best real estate professionals are always looking to learn. Whether it’s making the most of new technology or being as productive as possible, there’s always room for improvement. The problem is, there are hundreds of books, podcasts, and seminars to choose from. In this post, real estate professionals will discover the 5 most important books to advance their career.

1) The Millionaire Real Estate Agent

This book, written by Gary Keller, is widely considered the best book for real estate professionals in existence.

Real estate professionals will be given clear, actionable steps they can use to improve right away.

The book is most helpful for brokers, but it doesn’t focus on just one specialization – so almost anyone involved in real estate can benefit from it.

2) Real Estate Finance and Investments

It’s rare that a book can help both the beginner and the experienced professional – but William Brueggeman and Jeffrey Fisher accomplished just that when they put together this text.

This book not only teaches readers how to invest in real estate, but it also has a lot of complex strategies and formulas. This makes it an excellent reference guide to always have handy.

3) Raving Fans!

This book is all about providing the best customer service in order to close deals as a real estate agent.

Readers will discover how to clarify their vision so that customers want to do business with them. Then, the book goes a step further and shows the reader how to make those new customers lifelong fans.

4) The 4-Hour Work Week

If someone is looking to improve their productivity as a real estate professional, this book should be at the top of their list.

They’ll learn every possible way to get the most out of their time, whether it’s outsourcing administrative tasks or attracting new customers.

5) Principles of Commercial Real Estate Underwriting

This classic text is an excellent reference material for someone who needs a refresher on certain aspects of real estate.

With this book handy, the reader can underwrite commercial real estate assets with ease.

These are the best books available for commercial real estate professionals. Whether a professional is looking to simply improve their productivity, have a go-to guide, or immerse themselves in the industry – it’s all possible with the books on this list.

 

7 Attractive Commercial Real Estate Investment Tips

Kevin Brunnock | Real EstateOrchestrating a commercial real estate exchange is simply a matter of evaluating the best property deals, scouting the right help, and using informed insider knowledge to help you tap into success. 

Performing efficiently as commercial real estate professionals requires that you learn commercial real estate vocabulary, that you do the homework, find experts, figure out your financing, make an offer, and practice due diligence, but there are a few other rules you should live by:

  1. Don’t accumulate commercial properties, be an investor. Producing income or profit is the primary reason people become interested in purchasing new property. If you acquire property without turning a profit, you aren’t making an investment. Being an investor means being able to instigate accrual.
  2. Every property has a shelf life, a lifetime. Many investors make the mistake of forgetting that money must be spent on the property for upkeep. A building may require an updated electrical system, or a new furnace or roof. Every building must be maintained, and there have to be long-term plans in place to handle repairs.
  3. When starting out, you have to focus one particular type of investment. There are different types of investment, ranging from offices to retail to land to apartments. Every deal requires undivided attention. Otherwise, this could result in some average-performing.
  4. Environmental concerns can over be an issue for commercial property owners. Property owners are individually responsible for fixing problems, even if they aren’t the one who caused those problems. Ownership means shelling out the cost of cleanups, disposals, and environmental assessments.
  5. Mentors can offer guidance in the face of mistakes. They can pointedly connect you with valuable resources, correct errors regarding due diligence, and grant access to opportunities.
  6. Be sure to protect yourself and your assets. In the case there’s a lawsuit, be sure that you find a lawyer and ask yourself some questions. Figure out what’s at stake if you lose a lawsuit, how is your personal property protected, and how real estate investments may impact your other investments.
  7. Attempt to finance your real estate deal with a non-recourse loan. This means that you shouldn’t personally guarantee a loan, which offers two advantages. Them being that you’ll be taken off a loan if a partnership collapses, and if the property fails, then you won’t be personally tied to that failure.

Learn what insiders know, map out a plan of action, get familiar with the major commercial real estate metrics, look for motivated sellers, and discover the fine art of identifying vacancies.

Commercial Real Estate Value Waning in NYC, Survey

“Gotham Commercial Real Estate Monitor,” a survey commissioned by Marks Paneth’s Gotham Commercial Real Estate Group, indicated that commercial real estate value may be waning in New York City.

The survey, which was published in late May, revealed that in just three months time, the number of executives expecting values to increase has fallen from 43 percent to 31 percent, with nearly 20 percent predicting a downturn in prices. New laws, the economy, and digital shopping collaboratively play a rousing role when it comes to New York City commercial real estate decline.

The survey indicated that NYC-based commercial real estate professionals expect that they’ll begin to see values recede or at least hit a ceiling. When slumping asset prices are combined with the perceived deterioration of paper wealth, rent tends to follow suit and decreases. The effect? Lower rent will help business tenants’ bottom line, but wealth backsliding may encourage customers to spend less money. Decreased rent paired with a smaller revenue stream could ignite a stagnation period.

While businesses that have already reached the luxury status are able to attract the one percent, the ‘aspirationally wealthy’ customers may be less inclined to purchase luxury items, effectively leading to many luxury shops to shutter.

The survey gathered data from nearly 150 bankers/lenders, developers, legal counsel, bankers/lenders, commercial real estate professionals, owners, and property managers. The common belief was that values have peaked, but will hold. Overwhelmingly respondents believe the market is overvalued when compared to other cities. Nonetheless, 64 percent remain optimistic, expecting a runaround next year.

To properly address the peaking value of commercial real estates, it’s necessary to discuss interest rates, which The Federal Reserve increases at the economy improves. Nearly half of survey respondents (46 percent) believe the impact would be negligible, even if they increased between 1 and 2 percent from today’s 0.5 percent. Just 11 percent predicted that there would be a significant negative effect, particularly when addressing the residential side. Foreign buyers continue to purchase properties in the name of asset management, viewing it as a lower-risk alternative to the stock market, which carries security concerns rather than maximum yields.

As commercial rents/values make an impact, residential markets will also feel the pressure of that, which could be a good thing. Even as rates lower and many struggle through higher vacancy rates, property owners will proceed to earn through rent collection. Those who managed to refrain from over-leveraging equity during the good times are better positioned to survive the economic downturn. Also, tenants experiencing lower rent cost are left with additional cash to spend on household needs and other items.

The spending cycle, whereby income shifts hinder some and help others, isn’t a new phenomenon, and it’s expected that a rainbow will appear after each of these storms. However, it must be stated that consumers’ shift in buying behavior was mentioned in the report.

More than half of respondents (55 percent) indicated they expected an increase in foreign investment. With that said, the foreign investors are far more likely to have an attachment to residential assets, rather than commercial real estate. Nonetheless, at least 30 percent of respondents expect that foreign investors will have a ‘big influence’ on hotel, office, and retail real estate markets.

The report also showed that respondents had opinions on the stock market. Approximately 55 percent believe that volatility will negatively impact New York commercial real estate. Conversely, 29 percent indicated the effect would be positive, due to investments offered by buyers hailing from oil producing countries, benefitting residential and office/retail markets.

Brick-and-mortar sales have begun to stagnant as consumers make the move toward online and mobile purchasing and away from prime physical locations, which is likely the reason that 31 percent of respondents indicated that real estate is ‘highly overvalued,’ while 53 percent indicated that it is moderately overvalued. Shopping remotely speaks to convenience and immediate gratification, and the changes have spurred retail focused tech startups. However, tech startups may opt to purchase a brick and mortar component if rent for commercial real declines, because the need for a physical location is understood by even those who deal chiefly in digital e-commerce.

A Cushman & Wakefield study published in late 2015 confirmed that New York has the most expensive real estate in the world. Luxury brands outlets line the streets, occupying physical locations, at the cost of $3,500 per square foot per year. It 50 percent more costly to be stationed in New York City than Hong Kong’s Causeway Bay, which comes in as the second most expensive. Nonetheless, rates have increased amid economic uncertainty.

Additionally, the report indicated that the North American real estate market continues to see the highest concentration of private investment through 2015, which approximately a third of commercial real estate investments coming from the private sector. The market like likely see an enormous capital flow increase from Asia due to policy changes that will ease investments from China and Japan.

 

Large-Scale Real Estate Projects Underway in New York City

city-road-street-buildingsNew York City has a number of large-scale real estate projects in the works, headed by numerous Manhattan developers, including Joseph Chetrit’s Chetrit Group, L+M Development, Sumaida + Khurana, and Kenneth Horn’s Alchemy Properties.

Half of permits filed during the month of April were for projects greater than 100,000 square feet, according to PropertyShark. The other half consisted of filings for residential projects, as well as a Brooklyn office, school expansions, and hotels. These projects,whether launched by larger or smaller firms, are important constructional developments, offering New Yorkers housing and schooling options, as well as a closer proximity to retail outlets.

One of New York City’s more prolific affordable developers L+M Development Partners filed a permit application for a 59-story, 266,000-square-foot residential tower, which will be located in the Financial District (23 Park Row). Joe and Rachelle Friedman, the founders of J&R Music and Computer World, partnered with L+M Development Partners to construct the apartment complex, which will hold 108 apartments. Also, COOKFOX Architects have been slated to design the property.

A 19-story,174,000-square-foot Downtown Brooklyn office building may be erected at 540 Fulton Street if the Dushey family’s Jenel Management has anything to say about it. The future office building will have three levels of retail space, and it will be replacing the  two-story, 26,000-square-foot retail establishment that stood there one year ago prior to demolition.

The Tel Aviv, Israel-based property management firm Sumaida + Khurana and the Chelsea-based firm LENY are planning an 80-unit, 34-story, 123,000-square-foot condo tower in Hell’s Kitchen (609 West 56th Street). Also, on the base floor, there will be retail outlets available. In addition to the Hell’s Kitchen property, they 823 11th Avenue.

In partnership with Shifra Hager’s Cornell Realty Management, Joseph Chetrit’s Chetrit Group acquired a number of retail properties near Penn Station in a deal with investor Charles D. Cohen. After parting ways, the Chetrit Group filed a permit for a 122,000-square-foot hotel, which will have approximately 33 floors and 300 rooms. The proposed hotel is expected to be located at 249-263 West 34th Street.

Another hotel is planned for Long Island City, where investment firm Brooklyn North Capital filed a permit for a 198-key Red Lion Hotel. Expected to open in 2019, the building will stand 14 floors and will have 61,000 square feet of space. The investment firm purchased the site, located at 38-15 9th Street, for $4.7 million in March.

iStar, which is a real estate finance firm and developer, is planning to construct a 135-unit, 107,000-square-foot supportive housing project just minutes from Coney Island’s boardwalk. They leased the promising space from the city’s Economic Development Corporation last year. In months and years to come, iStar plans to build 1 million square feet of housing in the area.

The New York City School Construction Authority is planning a five-story, 96,000-square-foot expansion of P.S. 19 in North Corona, Queens (40-10 99th Street) and they’re planning to add a  five-story, 67,000-square-foot building at P.S. 46 Edgar Allen Poe branch in Fordham, Bronx (2760 Briggs Avenue). These changes will bring forth more space for cafeterias, classrooms, auditoriums, offices, and an outdoor playground.

 

The Manhattan Luxury Real Estate Market Outperforms Other Markets Even as it Fluctuates

17178926219_ccbab87595_oAccording to reports, the NYC real estate market, particularly the luxury condo developments in Manhattan, are stalling. In fact, properties are apparently sitting on the market longer, while banks reevaluate their approach to construction lending and industry experts question the health of the high-end market, as well as its impact on the greater real estate market of New York City. However, no matter how many challenges there are, the Manhattan real estate market outperforms other markets.

Ari Harkov, a writer for NY Daily News, recently sat down with David Amirian, CEO of the Amirian Group and a prolific young developer, to inquire about the state of New York City real estate. Amirian communicated that there are more people looking to sell development sites today than any other point in recent history. Nonetheless, developers and sponsors are experiencing difficulty when it comes to raising debt and equity financing. This ultimately impacts the market.

I believe there will be a slow growth in new ground-up development and conversions because of the financing market and the velocity in which new development apartments are being sold,” said Amirian. “Lending for new, luxury condominium projects has either slowed tremendously or stopped completely in some areas of the city. It does not exist. Period. End of story.”

Development costs have increased by nearly 20 percent annually, which has put a strain on the market. This has impacted contracts and operations, which means that lenders and investors are more able to dismiss a developer if budgets and deadlines aren’t met. Brisk real estate growth has begun to taper off and is the lowest that it’s been in three years, according to a StreetEasy Market Report. With that said, New York’s investment prospects, particularly long-term investments, continue to outshine other markets.

“The Manhattan market is highly influenced by what happens in global markets,” said Alan Lightfeldt, a data scientist at StreetEasy. “Manhattan is seen as a safe real estate investment, so when there is heightened volatility in other markets, we typically see demand for New York luxury properties increase. Recent turmoil in China’s stock market, for example, caused an increase in Chinese demand for US-properties.”

Manhattan has seen 3.8 percent growth over the past 12 months, which is the lowest on record since September 2012. Because of a slowing market, offers tended to be closer to asking prices, and price cuts were smaller and far less common than in the past. In Q1 2015, 31.2 percent of Manhattan listings had a price cut, compared to just 27.6 percent of Manhattan in 2016.

We’re reminded by data that the overall Manhattan market may be faltering, but subsets of the market continue to boom. Upper Manhattan surged 9.7 percent, with much of that success occurring on the Upper West Side (5.7 percent). East Brooklyn, South Brooklyn and Prospect Park in Brooklyn also experience success. While Downtown Manhattan, the Upper East Side, and Midtown had rates below the average. Also, real estate throughout the nation has been experiencing fluctuations, it isn’t just Manhattan. Regardless, wealth projections show that a long-term interest in real estate is a safe one.

 

4 Up-&-Coming, Hot NYC Neighborhoods

New York City is a paradise for those in search of trendy, hot neighborhoods. It’s up to the real estate industry to predict which neighborhood will be hot before it has even begun to warm.

The next “it” neighborhood can be determined by gauging local access to public transportation and attractive architecture, and clues that developers have identified a particular neighborhood as the next hot neighborhood is when rezoning, new supermarkets, restaurants and cold-brew coffee shops begin to sprout up, which invites new arrivals who are in search of low-cost housing, often to the dismay of longtime residents. There are four neighborhoods that have been identified as the next ‘hot’ neighborhood, based on indicators, such as commercial developments.

Sunset Park West, Brooklyn: Considered to be one of Brooklyn’s “most heterogeneous neighborhoods,” Sunset Park is a rising star, attracting countless individuals to its brownstone blocks and pre-war co-ops. From Bush Terminal Park to the soon-to-be-updated Industry City (a 16-building waterfront industrial complex) to the Design Within Reach warehouse, there is definite growth in Sunset Park. Additionally, Brooklyn Flea & Smorgasburg is located here, the startup MakerBot, the new Brooklyn Nets center, and warehouses, which beckon the partygoer crowd.

The Rockaways, Queens: The Rockaways have long been a go-to for surfers and beachgoers. However, the area is becoming more attractive to families and professionals year-round. Co-ops and starter apartments are available are available at a fraction of the cost of other NYC apartments. Also, there are developments on the horizon. This includes the development of a series of 18 duplexes across nine detached houses. As well as other vast oceanfront constructions, restaurants and more.

Flatbush, Brooklyn: Flatbush, with its stunning Victorians and retail corridors, s attractive to those who enjoy Caribbean restaurants and historic churches. The restored 1929 Kings Theater stands in the heart of the area and the neighborhood offers stand-alone homes and attached house, convenient public transportation and it’s extremely diverse.

East Harlem: East Harlem is a culturally-rich district, which runs from 96th street to the mid-140s. It remains one of the only neighborhoods in Manhattan, proper, that can offer valuable housing. The neighborhood is a lovely one, also known as Spanish Harlem or El Barrio, and it has beautiful cultural centers, many local small businesses, and robust commercial developments in progress.

5 Exciting Real Estate Projects in NYC

NYC is an incredible bustling city, and it always has some amazing projects in the works. With that said, some are far more exciting than others. Below, you’ll read about five exciting real estate projects taking place in NYC.

Hudson Yards is NYC’s largest project since Rockefeller Center and it’s the biggest private real estate development in the nation. It’s an incredible 17 million square feet with multiple office towers and 5,000 apartments, and it will house NYC’s first Neiman Marcus.

New York Wheel: NYC has endeavored to create the world’s largest Ferris wheel in Staten Island. The must-see tourist attraction will likely cost $35 a ride, and construction is slated to cost more than $500 million.

Central Park Tower: The residential project previously known as Nordstrom Tower is a 1,500-foot-high luxury condo, and it’s projected to sell out at $4.4 billion.

Essex Crossing: Formerly known as Seward Park Urban Renewal Area, the lower east side-located tenement housing development will hold 1,000 apartments and 850,000 feet of commercial space. The project will also introduce a park, a movie theater, and a bowling alley to the community. They’re also expanding the Essex Street Market.

Brooklyn Navy Yard: The industrial park is located near Clinton Hill, South Williamsburg, and Downtown Brooklyn, and it will be home to a number of tech-driven manufacturing projects. Traditional and new manufacturing companies will be housed in the massive complex.