NY Boss Blog
The Only NY Building Owners Multiple LIsting Service

The forecast for the NY Commercial Real Estate Market for 2011 is more of the same! Unfortunately the economy is still dragging down the real estate market in both the commercial & industrial sectors.

Despite some sporadic activity in Manhattan the mood is doom & gloom if the real estate brokers & owners are honest with themselves. The appraised valuations are dropping and the rental prices are following the same route.

The hard liners who are holding out for top dollar will have empty properties for quite a while especially if the owners believe that the rental & sale prices they received last year should be the prices they get this year.

Its not going to happen unless the property is a marquee site with the best location in town and there are only a few of them. The balance of the properties will sit vacant unless the real estate brokers are able to convince the owners that in order to successfully market the property deep deductions are necessary.

This all may sound rather harsh but reality sometimes is! There are properties in the boroughs that are empty for over three years now and the owners are still deluding themselves as to the turn around being right around the corner.

Add to this economic mess is the banks reluctance to lend money! They are is the business to lend money but they are making it extremely hard to do so. More money towards the down payment, less percentage of money on loan to value, very conservative appraisals and personal guarantees make for a very bleak future.

As a result of NY Boss the owner of 135 Woodworth Avenue has successfully leased approximately half of the building to a distribution company from NJ. The main reason that NY Boss helped the owner lease  the premises was the wide coverage and detailed information presented in the website.

After trying many types of marketing including Craig’s List, local real estate brokers and real estate ads the owner decided to try using NY Boss with the special discount that was being offered to new listings.

Many people responded to the listing and finally the NJ company was able to negotiate a five year lease at market price! The owner even though he wishes  not to be named he has expressed total satisfaction with NY Boss.

If you have a property in the NY Metro area list it on NY Boss and get real results.

Gloomy with a chance of another downturn. That’s about it is a nutshell! The market is still in a downward spiral with the bottom yet to be reached. Despite the rosy forecasts that keep popping up the reality is quite simple.

The commercial real estate market is still in a free fall and hopefully will find the bottom by Spring/11. With investor confidence at an all time low the only solution is a slow and painful recovery punctuated by ups & downs. The days of daily deals being made every day are gone and now a more sensible approach is being taken by the smart investors.

This may sound very negative but reality is reality and the economy is partly to blame along with an absurd method of investing. This being that there would never be a downturn! Well, many people have short memories and the result is where we are today.

Hopefully, in twenty years when we may find ourselves in the same position our memory will go back to today and more caution will be exercised. Hang on tight because the rough ride is not over yet!

Yes, the city needs money and the property owners are footing the bill. With constant rises in real estate taxes the property owner is overwhelmed by the burden and there is no end in sight.

Add to this the Con Edison usage charges and the ever increasing water & sewer quarterly fees and you have stressed  property owners. The vacancy rate is increasing due to business closures and companies moving out of the area. NJ seems to be the place to go for cheaper rents and other charges!

Now factor in a mortgage on the property that needs to be paid each & every month and it is actually a surprise that more industrial/commercial properties have not gone into foreclosure. Probably a main factor is the stability of the interest rates.

If the Feds let the interest rates go crazy the Great Depression of the early 1930′s would be far exceeded by one happening today. So with stable interest rates the building owners are holding on.

Eventually the bubble has to burst if times do not get better in terms of business. The core manufacturing jobs are leaving the city due to the high costs which leaves little opportunities for unskilled labor. What are they going to do since their choices are limited?

It’s a real mess and hopefully the natural economic progression will provide some relief but certainly not for a while. Have a good day and vote in November for the candidate of your choice!

In the first two quarters of 2010 commercial/industrial real estate activity has been very slow. With the recession in full swing leasing and sales have dropped considerably except for sporadic small properties.

The possible reasons for this are; local companies that are suffering from diminished sales,  revised banking protocol making financing more difficult, unrealistic owners holding fast on their asking prices and possibly basic fear of the future.

It appears that this trend will continue through the end of 2010 and maybe even into the Spring of 2011. Local commercial brokerage firms are reporting weak interest including Corporate Realty which specializes in industrial sales and leasing in the Bronx and Westchester counties.

This is the million dollar question on every one’s lips with many answers but with few real solutions. Your oldest customers are feeling the pinch and new customers don’t return phone calls. What to do that will generate business?

NY Times advertisements only produce real estate brokerage calls and mass mailing benefits the US Postal Service with limited response. E mails are the next big thing but spam filters kill your html or text message before entering the potential clients computer.

Opt in e mails get little or no response but at least you know that your  email program works! If you fax information it better be to a company that knows you because random faxing is against the law as is random e mailing.

That leaves cold calling both by phone and walk-ins. This may or may not produce results but both aren’t against the law. I would suggest trying all of the above that are not illegal and certainly don’t give up.

We are still in the process of developing NY Boss so it becomes the place to go if you are a buyer or prospective tenant. It will be the place where owners showcase their properties directly to the companies. There’s nothing like it anywhere and it’s time has come!

Despite what the other NYC boroughs are experiencing the Bronx is still holding it’s own against the tide of the current recession. This is not to say that the values of commercial/industrial real estate have not declined in the last eighteen months but it has lost less value then the other boroughs.

This holds also for the rental & sales market in retail and office segment even though there is a greater amount of space available then this time last year. The outlook seems to indicate that this trend will continue well into next year.

The lending institutions are also becoming a bit more stringent in their requirements which has adversely affected the sales market for all types of property in the Bronx. This has a direct effect on capitalization but with owner financing increasing the sales market is still moving along if not slowly.

The rest of the year will see a reduction of prices which will spur more sales but at lower numbers. With favorable interest rates those in a position to buy will do so. Unfortunately if any other crisis comes up this little bit of light may be dampened. Let’s hope for the best!

The owner and landlords should also benefit from NY Boss in these times since this multiple listing service is only for owners & landlords. This gives the owners & landlords a place to showcase their properties directly to prospective buyers & tenants. There’s nothing better in the marketplace!

There is a “By Owner” classification that is well known and refers to an owner selling or leasing his property without the use of a real estate broker. If you look you will see many signs on buildings and stores that have these words.

The advantage to the property owner is obvious since if he deals directly with the prospective buyer or tenant he does not need to pay large real estate commissions that can be as much as 7%.

The advantage to the prospective buyer or tenant is that since the owner is saving money this can be used as part of the negotiations to save both parties money. There are real estate brokers that are able to facilitate the negotiations especially if one or both parties are not very experienced.

But if both parties to the negotiations are experienced it pays for them to deal directly which makes the negotiations go much smoother than if a middleman is involved. This is where NY Boss helps both the building & property owners and the prospective buyers & tenants.

NY Boss is a “By Owner” website which benefits commercial & industrial building & property owners.

Join NY Boss Today and save $$!

NY Boss has announced the July/10 advetising discount special whereby all new ads will recieve an automatic savings of 25% off the regular advertising plans retail price structure. This introductory offer will be in effect for the entire month of July/10.

NY Boss is the only commercial multiple listing service in New York that is just for building & property owners. This property showcase gives the prospective buyers & tenants a place to go where they can deal directly with the owners which saves time & money.

Join NY Boss today and save $$.

NY Boss is proud to announce that Gentile Construction has subscribed to NY Boss and has ordered three ads for properties they currently are marketing. These properties include a construction yard in Eastchester, NY, an office Building in Yonkers, NY and a building lot in Scarsdale, NY.

These ads should be added to NY Boss.com by the end of this week.