The Commercial Real Estate Blog

How to Work With Motivated Sellers of NYC Commercial Real Estate

rent-office-space-nycOftentimes motivated sellers are misrepresented as desperate or willing to take any offer to get out from under a piece of commercial real estate. The reality is that they could be motivated for a number of other level-headed reasons and they aren’t really waiting for someone to come along with a lowball offer at all. The way you approach a motivated seller will determine how well your negotiations go and whether you actually come out ahead or not.

NYC Commercial Real Estate

Before you even begin putting together an offer to a motivated seller, take a moment to reach out to them and ask what their motivation is. Some external factor is motivating them to sell and it may not just be a specific dollar amount. The best way to work with a motivated seller is to make an offer that clearly and concisely addresses their need to sell and takes into account their timeline.

Be Kind and Honest

Many motivated sellers get frustrated with buyers who are clearly trying to take advantage of them. Ridiculously low offers can be equally offensive to a motivated seller, as an unmotivated seller and they will be just as likely to reject you. Instead, be fair in your offer and honest about your intentions. If you have already taken the time to understand their side of the deal, you have plenty of room to build on that connection and explain your side of things.

Think Outside The Box

As we mentioned above, sometimes sellers are looking for something other than a simple payout short term. In fact, they may be willing to work with you for more favorable terms even without a steep discount on the list price. Consider things like financing options, down payments, and interest rates. It’s up to you to think of ways that you can formulate a mutually beneficial arrangement even if it is a long play.

Make Yourself Known

Once you have completed a few successful deals with motivated sellers it is possible to begin marketing yourself as a regular buyer of commercial real estate. When a motivated seller reaches out to a broker and says they are ready to list their property, they will know to call you first. This will bring more opportunity to your door, even if you don’t move on every single deal.

There are new properties being listed each and every day. As commercial real estate lingers on the market for an extended period of time, the sellers may become more motivated to sell. This creates a big opportunity for investors to work with more flexibility and negotiating power than before. The key is to approach every situation with an open mind and really try to understand what is motivating the seller to place the property on the market.

Preeminent NYC Commercial Real Estate Brokers

The Team at Handler Real Estate Organization have decades of experience working out deals with motivated sellers. To learn more about currently available properties and today’s opportunities for savings, call 212.398.1888 – or – click the icon below for a free consultation.

Key Features of a Successful Property Lease

Affordable Office Space ManhattanDrafting a successful property lease requires significant forethought into the types of scenarios that could arise during a tenancy. While there are many standard form leases available around the Internet, it is important to look for very key features before you sign off on any documents.

Successful Property Lease

Every successful property lease will likely include a bit of negotiation over the terms. Both parties may ask to modify or add clauses for their own protection. The goal is to reach an agreement that is suitable to both parties and doesn’t start off as overbearing for the tenant while they are still trying to build goodwill with the property owner. Ultimatums and bail-out clauses may be necessary in some cases, but they tend to create a bit of tension in the lease early on.

Build Out Allowance

Whether you are the tenant or the property owner, the reality is that most office spaces will require some form of remodeling or other work to be done to satisfy the tenant’s needs. A successful property lease will make an allowance for this work to be done either by the property owner’s contractors or in conjunction with the tenant’s designers. In some cases this is worded as an allowance for $10-15 per square foot prior to move in.

Maintenance Costs

If the building in question has shared common areas or landscaped areas that will require regular upkeep, it is the responsibility of all tenants to share the expenses. Typically a successful property lease will clearly outline what these fees are and how they will be applied. Whether it is keeping lobby areas clean or keeping the grass cut, all tenants should know what to expect.

Rentable vs Useable Space

It is also extremely important to pay close attention to the wording used in your lease. Both parties need to be explicitly clear about what they are getting for their money. The difference between rentable and useable space can have a large impact on the actual price per square foot that the tenant is paying. If the tenant is comparing several different lease options, they need to be sure that they are comparing apples to apples here.

Rent Escalation

A successful property lease agreement today may become a burden down the road. Due to inflation and changes in market conditions, it may be necessary to adjust your rent upward as time goes by. Many property owners use an annual adjustment based on the Consumer Price Index to determine how much rent will increase each year. Other leases simply outline an incremental increase year over year.

Successful Property Lease

The Team at Handler Real Estate Organization will be pleased to help you draft a successful property lease. Their background and expertise in property management gives them the knowledge necessary to cover all the most important features. Call 212.398.1888 – or – click the icon below to schedule your consultation today.

Want to Avoid Commercial Real Estate Investment Mistakes?

commercial-real-estate-nycThe chances of making mistakes as a new commercial real estate investor are fairly large. Unfortunately if you are not already well invested in the market, even a single mistake can have a large impact on your ability to recover and remain profitable. Commercial investment mistakes range from small miscalculations of value –  to purchasing the wrong property altogether and never being able to turn a profit.

Avoid Commercial Real Estate Investment Mistakes

Many new investors get caught up in the idea that they can purchase a property slightly outside of their budget and refinance in the near future. Equally likely, some investors hope to refinance a property and pull cash out to make other investments.

Refinancing

Both of these scenarios have become very risky as fewer lenders are willing to refinance unless the property is already significantly paid down. If you are depending on that equity to fund your next venture you may be left with nothing to work with. You may also end up with a payment you can’t consistently make because you’re unable to refinance to a lower rate.

Not Performing Due Diligence

In the residential world, it is common to hire and appraiser and an inspector to walk through and look for signs of damage to the property. The same can be done with commercial properties, but you must look even deeper. You will need to consult with a commercial real estate expert to gather data about the surrounding area, and how the property itself has performed in the past. If the previous owners had a problem keeping tenants in place you should also be concerned about your potential to make money.

Working Alone

There are tons and tons of get rich quick schemes online. Every weekend somebody is teaching a seminar about how you, too, could make a million dollars buying commercial real estate. The reality is that if you don’t have the background knowledge to create a solid financial plan, you will wind up spending a ton of money and never making any progress. The key to making good investments is always knowing your own limits and being willing to seek advice when something is outside your area of expertise. Even after you have made a handful of successful investments with your team, running out and trying to take on too much by yourself can be disastrous. If you are looking for long term success, you need to plan to have a long term team.

No matter what you previous experience is with real estate, it is always advisable to move slowly and pay attention to details before you make any investment. Avoiding commercial investment mistakes is much easier when you plan ahead and know how to handle unexpected changes. A team of qualified experts can help you overcome those challenges as cost effectively as possible.

Commercial Real Estate Investment Experts

The Team Handler Real Estate Organization are happy to help you make your first commercial real estate investment. They have the expertise and knowledge needed to point you in the right direction and answer all of your questions along the way. Call 212.398.1888 – or – click the icon below to schedule your consultation today.

How To Buy And Hold Office Space In Manhattan

Manhattan Office SpaceChoosing to buy and hold office space in Manhattan is one of the best ways to maximize your cash flow in the commercial real estate market. Buying and holding commercial real estate is a long term strategy requiring patience and careful planning. However, the payoff comes when the market is suffering a setback. The Manhattan market will rebound and you will  regain any losses over time with steadfast resolutions to your investment decisions.

Manhattan Office Space

It is possible for anyone to buy and hold office space in Manhattan. The real key is finding available properties that will continue to gain in value over time. Often this means knowing how the neighborhood is going to develop and what direction it is heading. It also requires sticking through rough patches in the real estate market and being willing to take a small loss short term for long term gains. In addition, buy and hold office space must be supported by a management team that is willing to find reliable tenants and keep them in place in order to maximize monthly income.

Questions To Ask

If you are considering any available property for potential long term investment, there are a variety of questions you need to ask before you begin.

  • What is the average rental rate for offices in the area?
  • Are there many new companies seeking office space in the area?
  • Will the property continue to carry its own weight even if the market is in a downward trend?
  • How many years do you plan to hold the property before you try to sell?

Your personal goals for the property will determine whether or not it is a good fit for you. Keep in mind that most buy and hold strategies play out over the course of a decade or more, so anything shorter term will probably not offset the risks of a market downturn in the immediate future.

Buy and Hold Manhattan Office Space

Buy and hold office space is especially successful if you are able to get your hands on a high end commercial property that is easily accessible. Small businesses are always looking for a great place to house their offices in the early stages of their development, and you can provide that space to them at a reasonable price. They are also often looking for places with some level of notoriety in their office space, so popular development areas often attract plenty of tenants on their own. You have the opportunity to make that space available to them and sign a lease that will cover the next several years.

The Team at Handler Real Estate Organization are happy to help you create a viable buy and hold strategy for your office space portfolio. Call 212.398.1888 – or – click the icon below today to schedule a consultation.

Want to Know the Latest Commercial Real Estate Market Updates in NYC?

find-office-space-nycEvery investor interested in jumping into the fray of NYC’s commercial real estate market must be informed and stay up to date. While many large news outlets publish statistics about the residential real estate market, commercial real estate market updates can be harder to come by. Major deals made in the commercial sector can have a profound effect on other real estate nearby and prospective developments.

Commercial Real Estate Market Updates Are Here

The good news for investors is that NYC’s local news sources do typically cover information about major real estate deals taking place in the city. Any time a new company decides to set up shop in a luxury high rise, you’re sure to hear about the $100 million deal. In addition, magazines like The Real Deal are dedicated to covering real estate news with a section dedicated to commercial real estate market updates.

Your Commercial Real Estate Team

No matter how much you want to learn about the real estate market, the reality is that you probably can’t keep up with all of the news on your own. Some stories never make it to the front page because they are just too complex to report on and follow. This is where your real estate team comes in handy. The broker and investment firm you choose must be dedicated to being in the know about the market 24/7/365. They are better equipped to sort through the most recent commercial real estate market updates and provide you with the details that really matter to your portfolio. This will save you time and money and also provide you with ample opportunity to ask questions and discuss what the news means.

Your commercial real estate investment firm is here to help you with any of your questions or concerns. They are a vital resource when you are looking for updates about real estate in NYC. They have an inside scoop on the best deals being signed. Insight into smaller deals that didn’t make the news is also helpful to your investment strategy.

Commercial Real Estate Professionals in NYC

The Team at Handler Real Estate Organization will be delighted to share their knowledge about recent changes in NYC’s commercial real estate market with you. The Handler Team strives to stay on top of all industry related news and provide their clients with the best and latest information. To learn more, call 212.398.1888 – or – click the icon below to schedule your consultation today.

How Handler RE Organization Can Help With Investment Strategy

39395927 - top view of handshake of a real estate agent and a client.Custom investment strategies don’t have to take a significant amount of your time when you’re working with professionals. It takes a team of dedicated and knowledgeable professionals to design a strategy that takes your investment game to the next level. By diversifying your portfolio and timing your purchases, you can experience the Handler difference in investment strategies.

One on One Consultation for Investment Strategy

The Handler Team will sit down with you for a one-on-one consultation. This is the time for you to clearly outline the current state of your investments and also to share your personal goals. In order for any strategy to be successful, it needs to serve your goals. It needs to mesh well with your current lifestyle, the lifestyle you wish to have in the future, and serve to minimize risks.

Locating the Right Properties

Once you have had a consultation with Handler’s team, it is time to begin gauging available properties in NYC to see whether or not they fit into your big picture. Over time, the properties that you shop for will likely change because your investment portfolio will begin to mature and become more diverse. The deals that you seek today may not be the same targets you get excited about next year. This is why it’s helpful to have a guide along the way so that you don’t miss out.

Handler Real Estate Organization is dedicated to providing long term solutions to your investment problems. Our team will actively evaluate your portfolio on a regular basis for changes. Simply buying your first property and leaving it to sit is not enough to push rapid growth. We will stay vigilant in the hunt for more properties meeting your present and long term needs.

Handler Real Estate Organization’s property management division is also a helpful tool for investors. Once you have purchased a property, the Handler Team will connect you to qualified tenants and secure favorable lease terms.

Investment Strategy

Handler Real Estate Organization has a proven track record in NYC’s commercial real estate industry. You will have the support you need to keep your properties generating money. The end result is a complete investment solution for anybody interested in commercial real estate.

The Handler Real Estate Organization Team will happy to meet with you today about your investment goals. To learn more – call 212.398.1888 – or click the icon below to schedule your consultation today.

America’s Best Commercial Real Estate Investment Markets

54337895 - portrait of business people standing back-to-back against new yorkBecoming a successful commercial real estate investor begins with choosing the right market at the right time. Issues like politics, infrastructure and industry can all have an impact on the way a particular market fares. Certain of America’s commercial real estate investment markets seem to thrive no matter the political and economic climate. New York City just happens to be one of them because of its cultural diversity and size.

Commercial Real Estate Investment

New York City is a major center for international travelers and business. The city itself is home to people of all different nationalities, along with serving as an American hub for many overseas companies.

International

While some cities tend to skew towards one particular industry like technology or manufacturing, NYC is extremely diverse and offers tons of opportunities for new investors from any background. There is an endless stream of newcomers always looking to get their start in New York. Now, you can be sure your commercial real estate investment plan will be put to good use.

Scale

In addition to New York City’s impressive array of businesses, it also covers an incredible amount of space. The city and all of its suburbs have grown to encompass more than 13,000 square miles, providing plenty of space for new investors and developers to spread their wings. Each burrough has its own personality and the outlying suburban centers have plenty of up and coming opportunity. Whether you are interested in luxury office space, warehouses, retail storefronts or vacant land for building there is more than enough room to find what you’re after.

Infrastructure

In order to keep up with the rapid growth of NYC’s population, local and state governments have invested heavily into infrastructure for the city. For investors this is a bonus, as you can rely on mass transit and high speed internet connections nearly anywhere in the city. If you are looking to make a commercial real estate investment that is centrally located and accessible for tenants and their customers, you’re in luck. Recently, NYC has also launched a number of green energy and water conservation efforts. This action has reduced start up operating costs within New York. It has made NYC more appealing to small business owners who otherwise couldn’t afford some of the city’s pricier locations.

Commercial Real Estate Investment

New York City remains one of America’s largest cities with endless potential for economic growth. The commercial real estate market within NYC is regarded as one of the most promising across the nation. This is due to the assurance offered by having such a diverse range of businesses and investors actively operating year round.

The Team at Handler Real Estate Organization will help you find the deal of a lifetime. Their team of experienced brokers know how to find great investment opportunities to fit any portfolio. Schedule your consultation today by calling 212.398.1888 – or – click the icon below.

Top Features of a Great NYC Property

47539214 - new york city skyline showing the west-side in autumn.Choosing a great NYC property is about more than just the price tag and zip code. There are dozens of factors that should have an impact on your decision. Future developments, crime rates, and mass transit are all external considerations holding significant weight when comparing several properties within NYC.

A Great NYC Property

In order to maximize returns on a real property investment you need to be aware of the current state of the neighborhood. Also consider any upcoming zoning changes to the area. Some of the most valuable properties in the world are currently sitting vacant because investors have failed to realize that a new development coming into the area is about to make property values skyrocket. If you are constantly on the lookout for up-and-coming areas, you are likely to find plenty of available properties ripe for the picking.

Accessibility

Whether you are shopping for a great NYC property for retail or office purposes, properties that are easily accessible by major roads and mass transit continue to increase in value. Having enough parking space is also a consideration for some. You want your employees to have an easy time getting to you, but you also want to be visible to passersby as they get off of trains and walk down the street.

Rental Returns

If you are looking at a building that already has a lengthy rental history, you may be able to gather some information about how it has performed in the past. You may also be able to purchase multi-unit buildings with tenants still in place. Ask your broker to research the rental return rates of the property for the last few years to determine whether the price is fair.

Think Outside the Box

In recent years NYC has tried to boost development by offering tax incentives and other perks to investors and developers in their real estate market. NYC’s industrial and commercial abatement program offers tax discounts on some properties in an attempt to spur growth in the area. You can take advantage of these programs today and use them to build up a strong portfolio before the tax rates change.

Hundreds of commercial properties are currently available around NYC. You can often find a great NYC property not by looking at the building itself, but by considering the environmental factors that will impact the building’s value in the future. A commercial real estate broker can help you evaluate properties based on these criteria for best results.

Top Team in NYC to Find a Great Property

The Team at Handler Real Estate Organization are here to help you find a great NYC property. They will narrow down the features most important to you and identify great opportunities for investments. Call 212.398.1888 – or – click the icon below to schedule your consultation today.

Let NYC’s Renowned Investment Portfolio Advisers Help You

columbus_circle-_nyc-_midtown-_manhattanBuilding a suitable investment portfolio takes time and patience. There are many factors that can impact the viability of a particular portfolio and oftentimes the investor is too emotionally involved with their investments to make the right decisions on their own. Advisors exist to help separate the facts and give investors more insight into the types of properties that can help them grow.

Evaluating Your Investment Portfolio

The first step in guiding you toward your next great investment is evaluating your current real estate portfolio. Your advisor will sit down with you, explore all of the real estate you currently own, and look into how well it is currently performing. The goal of the evaluation is to look at the big picture and try to find weaknesses that could be improved upon. Once you see your overall performance metrics you might also learn a thing or two about your preferences and tendencies.

Evaluating New Properties

Once your advisor has identified holes in your investment portfolio, their next task will be locating properties that can help you overcome those hurdles. They will conduct research into the property’s current rental rates, cash flow opportunities, renovation costs, and more. Using all of these numbers, you will be able to see whether or not an available property offers sufficient promise to be added to your portfolio.

By The Numbers

Many investors get started in real estate because they fall in love with the immaculate office buildings and artistic stone storefronts. This is one of the reasons that investors get in over their heads or rush into questionable deals. An advisor can save you a ton of time and money by taking a hard line look at strictly numbers and making realistic assumptions about the property’s performance. They can help steer you away from investments that will push your portfolio off course and redirect you toward more profitable opportunities on the horizon.

No matter what your personal goals are for your investment portfolio, the help of a skilled advisor is always appreciated. A second set of eyes to run the numbers and ask questions that you haven’t already asked yourself can help you uncover some of the missing links that will really turn your portfolio around. Advisors who specialize in commercial real estate can be especially useful in providing you with proven strategies for improving your returns and offer you insight into what the market is currently doing.

NYC Investment Portfolio Experts

The Team at Handler Real Estate Organization has years of experience in commercial real estate investments and they are happy to help you enhance your portfolio. Click the icon below – or – call (212) 398-1888 to schedule your consultation.

NYC Real Estate Advisory Specialists At Your Service

39395927 - top view of handshake of a real estate agent and a client.Real estate advisory specialists provide a high-end service to investors in the NYC commercial real estate market. Real estate advisors have a deep knowledge of their markets and provide personalized property searches to help you find the absolute best property on the market when you are ready to buy.

What Real Estate Advisory Specialists Do

Primarily, real estate advisors act as a filter between the investor and the owners of available properties. This liaison role reduces wasted time and money by streamlining the investment process. Most advisory services begin with a detailed interview during which you have the opportunity to outline exactly what you need out of your next investment. Your personal preferences for amenities and attributes of properties will be specified. You may also set forth your investment goals and budget guidelines to help the advisor create a detailed profile of an ideal property.

Why You Should Use A Real Estate Advisory Specialist

Once you have taken the time to get your real estate advisory specialists up to speed, your job becomes very easy as the investor. Depending on your purchasing timeline, the advisory team may spend several weeks pooling data to provide you with a comprehensive list of properties fitting your needs. You can further narrow this list down to determine which ones you would like to see. Your advisor will conduct additional research into the properties that you have chosen to get a better grasp of how each one will fit into your investment portfolio. After you have visited and walked through several properties, you can sit down with your advisor to discuss the pros and cons of each one. You will gather their opinion on the market conditions that could impact the viability of each choice.

Real Estate Advising in NYC

NYC is made up of a diverse range of property types and neighborhoods. Due to the complex nature of NYC’s different retail and industrial zoning, real estate advisory specialists are particularly helpful in navigating the market. You may find that they can point you in the direction of new developments and established commercial hotspots that you otherwise would have missed on your own.

Whether you are just starting out as an investor in the commercial real estate market or you are adding to an existing portfolio, the help of seasoned real estate advisory specialists can simplify your search and improve your results. They will do all the digging and provide you with a guided tour of the current market.

Darell Handler and the Team at Handler Real Estate Organization provide extensive real estate advisory services to investors in NYC. For more information about how they can help you find your next investment, click the icon below – or – call (212) 398-1888.