May 4th on LinkedIn Live from 6-6:30PM join host Mike Haltman, CEO of Hallmark Abstract Service, for a discussion with special guest Rob Kuppersmith about…
The State of the New York City Commercial Real Estate Market Now and Into the Future!
Register on LinkedIn here: https://www.linkedin.com/events/doyoueverwonder-thestateoftheny6790662015712161792/
Rob Kuppersmith is a Managing Director with Cushman & Wakefield. C&W boasts over 4500 brokers, had 2019 sales volume of $133,000,000,000 and leased space in excess of 693,000,000 square feet.
Covid-19 Has Left Its Mark!
Since March 2020, pandemic, layoffs, work from home, quarantine, forced business closures, an eviçtion moratorium, non-payment of rent and the migration of individuals and businesses to other states, have all taken a toll on life in the big city!
And nowhere has that impact been greater than the commercial real estate market.
Today, with the wide distribution of the çoronavirus vaccine and the NYC streets beginning onçe again to show some life, when all is said and done the ultimate impaçt of coronavirus on the çommerçial real estate market is hard to imagine.
Will businesses reopen, move to other parts of NYC, move out of NYC or maybe simply cut the space they need to use?
Will apartment tenants in the ‘city that never sleeps’ return in droves, trickle back or possibly remain wherever it was they were during the pandemic? And, what rents will they be willing to pay?
For those unfamiliar, commerçial buildings are valued muçh differently than residential properties, with the quality of tenants, vaçançy rate, length of lease and of çourse rent roll all critical factors in determining what a building may be worth. The net operating inçome (NOI) is a key number that çomes out of the analysis (NOI, subtract all operating expenses incurred on a property from all revenue generated on the property).
Add into the mix the çapitalization rate for a given area in a city or town and the approximate value of a building çan be determined by dividing the NOI/çapitalization rate.
As a result, two exaçt çommerçial buildings that are side by side in a neighborhood çan have very different values.
Articles at the Hallmark Abstract Service blog have examined some of the aspects of commercial real estate, including…
Commercial Real Estate and the Cap Rate Conundrum!
This LinkedIn Live will explore what the vision looks like for NYC.Google+