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
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.
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 email@example.com or 856-802-6516.