Sunday, January 17, 2010
According to the Bureau of Labor Statistics, the national unemployment rate in December 2009 clocked in at 10% (15.3 million persons unemployed) compared to the start of the recession in December 2007 when it was 5% (7.7 million persons unemployed).
Translated into commercial real estate terms, we are seeing office vacancy running north of 12% in the Philadelphia metropolitan area. Although absorption in the 4rth quarter of 2009 improved, the forecast is for vacancy to remain at this level for the coming year.
Whether you are a landlord carrying vacancy or a tenant needing to relocate, the current economic climate offers a renewed opportunity for a broker to add value to a landlord and to a tenant alike.
Tenants now rule the landscape because of the scarcity of tenants running in the marketplace.
One of the responses to this condition is the paying of commission bonuses for executed leases. A landlord may ask, “Is this truly necessary?” The answer is most probably no, but it sure does make compelling sense.
As with all numbers games, the probability of finding a qualified tenant is increased by the amount of exposure a space receives. And real estate is no different than any other commodity, a scarcity of resources drives up prices. In this case, the scarce resource is tenants and the cost of getting them to sign on the dotted line is more time consuming, requires more finesse, and takes more effort to locate.
Keeping a property clean, maintained and equipped for today’s companies needs will also go a long way towards getting a property leased.
For additional information, please contact Julie Kronfeld at julie.kronfeld@naimertz.com or 856-802-6516.
Translated into commercial real estate terms, we are seeing office vacancy running north of 12% in the Philadelphia metropolitan area. Although absorption in the 4rth quarter of 2009 improved, the forecast is for vacancy to remain at this level for the coming year.
Whether you are a landlord carrying vacancy or a tenant needing to relocate, the current economic climate offers a renewed opportunity for a broker to add value to a landlord and to a tenant alike.
Tenants now rule the landscape because of the scarcity of tenants running in the marketplace.
One of the responses to this condition is the paying of commission bonuses for executed leases. A landlord may ask, “Is this truly necessary?” The answer is most probably no, but it sure does make compelling sense.
As with all numbers games, the probability of finding a qualified tenant is increased by the amount of exposure a space receives. And real estate is no different than any other commodity, a scarcity of resources drives up prices. In this case, the scarce resource is tenants and the cost of getting them to sign on the dotted line is more time consuming, requires more finesse, and takes more effort to locate.
Keeping a property clean, maintained and equipped for today’s companies needs will also go a long way towards getting a property leased.
For additional information, please contact Julie Kronfeld at julie.kronfeld@naimertz.com or 856-802-6516.
Wednesday, December 30, 2009
While the title would lead you to believe that I am going to write about the last 12 months, I simply wish to share a few thoughts.
I think it is safe to say that the real estate professionals, especially newer ones like myself, found themselves in a whirlwind of change this past year and became educated in what may have been the way deals where supposed to be transacted before "easy money" existed.
But through the year, day by day, as we typically forget about what counts most to the great percentage of us is that we are healthy, safe and are able to spend time with our loved ones and provide a roof over our heads and food on the table, I am thankful for what I do have and not concerned about what I do not have.
In closing, my fourth grade teacher wrote on the blackboard these three words and asked each of us to put them in the order of importance....
Health - Love - Money.......ask yourself this question
Best wishes for 2010 and beyond~
Rick Gordon
I think it is safe to say that the real estate professionals, especially newer ones like myself, found themselves in a whirlwind of change this past year and became educated in what may have been the way deals where supposed to be transacted before "easy money" existed.
But through the year, day by day, as we typically forget about what counts most to the great percentage of us is that we are healthy, safe and are able to spend time with our loved ones and provide a roof over our heads and food on the table, I am thankful for what I do have and not concerned about what I do not have.
In closing, my fourth grade teacher wrote on the blackboard these three words and asked each of us to put them in the order of importance....
Health - Love - Money.......ask yourself this question
Best wishes for 2010 and beyond~
Rick Gordon
Thursday, December 17, 2009
The NJ Tax Court recently ruled that transfers of unencumbered real estate for nominal consideration are not subject to the NJ realty transfer fee. This has great potential benefit to those entities and individuals who transfer property to related parties for a variety of reasons such as tax and estate planning, change of partners in the deal, divorce, death, liability issues, change in family status, etc. The case involved is MACK-CALI, LP V TAXATION DIV. DIRECTOR. Please consult your legal and/or accounting advisers for how this might affect your situation.
If you are looking for a broker opinion of value and/or any real estate advice please call or email me at roy.kardon@naimertz.com.
If you are looking for a broker opinion of value and/or any real estate advice please call or email me at roy.kardon@naimertz.com.
Wednesday, December 16, 2009
12/2009 by Rick Gordon – NAI Mertz
There are times in the deal making process that I am reminded of an NFL Sunday.
I receive the ball, a client, and try to move them efficiently down the field for a score or in the case of the world of real estate; a successful transaction.
On first down we pick up a few yards by visiting the site and finding that it will meet the
clients needs. Then we huddle up for our second down play, making an offer to
purchase the property - a play in which we feel comfortable calling. We run the ball in an attempt to pick up a few more yards in the negotiating process - all the while giving us a reasonable chance of keeping the ball to continue down the negotiation field. But as the play is executed, we incur a loss of yards, or in this case, our first challenge of the deal making process. The other team (owner/landlord) has called an audible and changed their defense. They have kept us from cleanly continuing to move down the negotiation field, with their remarks or comments. We are now faced with a crucial third down situation. So we huddle up and approach the line of scrimmage with the intent of keeping the negotiations drive alive.
As quarterback of our team, I have designed a play that will keep our entire team on the same page and keep the defense off our backs. Unfortunately, we are unsuccessful on our third down play. We are forced to punt the ball away as the first quarter winds down.
As time has passed and both teams have fought for field position throughout the second
and third quarters, our team finally gets our offense on the move again, as we approach the two minute warning.
With under a minute left in the game,, while the property is under agreement, the red challenge flag has been thrown and the play has gone under review………the lender has apparently changed their minds on the terms of their verbal commitment they have made to the purchaser and we have been forced to punt the ball away. We are now faced with the situation or circumstance that the deal will not make it into the end zone for a successful transaction.
The transaction process can be written on numerous pages. The difficulties and challenges in finalizing a deal often times parallel the nuances and ups and downs of a football game played by two well suited teams; the professionals. At times as a real estate agent, it often feels as if we are just spectators in the stands watching the game without control of the ultimate outcome-a frustrating situation.
There are times in the deal making process that I am reminded of an NFL Sunday.
I receive the ball, a client, and try to move them efficiently down the field for a score or in the case of the world of real estate; a successful transaction.
On first down we pick up a few yards by visiting the site and finding that it will meet the
clients needs. Then we huddle up for our second down play, making an offer to
purchase the property - a play in which we feel comfortable calling. We run the ball in an attempt to pick up a few more yards in the negotiating process - all the while giving us a reasonable chance of keeping the ball to continue down the negotiation field. But as the play is executed, we incur a loss of yards, or in this case, our first challenge of the deal making process. The other team (owner/landlord) has called an audible and changed their defense. They have kept us from cleanly continuing to move down the negotiation field, with their remarks or comments. We are now faced with a crucial third down situation. So we huddle up and approach the line of scrimmage with the intent of keeping the negotiations drive alive.
As quarterback of our team, I have designed a play that will keep our entire team on the same page and keep the defense off our backs. Unfortunately, we are unsuccessful on our third down play. We are forced to punt the ball away as the first quarter winds down.
As time has passed and both teams have fought for field position throughout the second
and third quarters, our team finally gets our offense on the move again, as we approach the two minute warning.
With under a minute left in the game,, while the property is under agreement, the red challenge flag has been thrown and the play has gone under review………the lender has apparently changed their minds on the terms of their verbal commitment they have made to the purchaser and we have been forced to punt the ball away. We are now faced with the situation or circumstance that the deal will not make it into the end zone for a successful transaction.
The transaction process can be written on numerous pages. The difficulties and challenges in finalizing a deal often times parallel the nuances and ups and downs of a football game played by two well suited teams; the professionals. At times as a real estate agent, it often feels as if we are just spectators in the stands watching the game without control of the ultimate outcome-a frustrating situation.
