Monday, August 6, 2018

Never Too Soon to Think about Taxes

We are clearly in the dog days of summer, and many people are just sitting by pools, beaches, or air conditioners, but fall is just around the corner.  And what comes after fall?  The end of the year, and always faster than we think it will arrive.

If  you are a buyer or seller of commercial real estate, it makes sense to start end-of-year tax planning now. We don't know everything yet about the new tax act, but we know some things, and we know provisions that haven't changed.  In addition, any change in your circumstances, life choices, or tax status can cause you to need to plan for the future with an eye toward minimizing tax consequences.

One of the cardinal rules of transferring real estate is that it almost always takes longer than you think it will.  Hence, my mid-summer plea to think ahead.  Why rush in December, when you can get a jump on the end of the year by starting now?  Even if you want your property to go onto the broader market after Labor Day, the process of getting things set to list, taking good pictures, filling out forms, and tracking down signatures can be lengthy.  Vacations and back to school duties can also cause slowdowns.

Don't miss the fall bump in the market by beginning too late.  Call us today to take advantage of the time left before everyone packs up their picnic baskets and heads back to work!

Thursday, July 12, 2018

New Haven Rental Boom

Most people who follow the New Haven area real estate market know that we have had a surfeit of new luxury rental properties come onto the market in the past few years.  Most of them have surpassed their expectations in terms of the speed with which they filled up.  Even the projected decline in other rental interest has not materialized.

Now the question is:  What will pop up to service all these new renters, many of whom work in other parts of the State or even in NYC?  They clearly have been populating the many bars and restaurants that are constantly opening in New Haven, and have been a boon to lots of organizations.  There will be more needed to fulfill all of their needs, however.  Even dogwalkers will see the effects of a young professional demographic increase. Services that appeal to millennials, either because they save time or because they cater to new interests and requests, will continue to grow as this group expands.  Farm markets and other local options for eating will prosper, and traditional goods and services, including hairdressers, nail salons, and dry cleaners, will lengthen their hours to accommodate the needs of users who work later hours.

Although we've seen some increase in the demand for retail and service locations, we expect to see more in the future.  We probably don't even know either the total demand or the range of expectations that will arise, whether it is for breweries or cigar bars or something that hasn't yet been offered.  If you've thought about expanding  your business into our region, or starting a new company, here's your chance!  We're glad to help.

Monday, June 25, 2018

Difficult Searches

When our Commercial Department meets for sales meetings, the busiest part of the agenda is the part we call Needs. That's where agents bring up the buyers and tenants they have, and specify what those people are seeking. Often, the room goes quiet, because nobody knows of anything that fits the desired parameters.  Every once in a while, someone raises a particularly difficult request, but most of the time the answer is just that the market is short of listings in that sector, whatever it is.  And there are a lot of sectors without enough product.  Such is our current commercial situation in Connecticut.

It's interesting to be in a market where sellers complain that prices are low and selling times are long, yet buyers and tenants both say that there's nothing for them to buy or rent.  Some of that is a mismatch between what people want to sell/lease and what people want to rent/buy, but some is a true lack of inventory.  This blog post is an attempt to redress that.  If you have something to sell or lease, please don't be deterred by tales of woe you read.  Give us a call--we have buyers and tenants lined up for you!

Wednesday, June 6, 2018

We're Turning 60!

This week is Pearce Real Estate's 60th anniversary, and we're celebrating!  My father founded the company in 1958, after a 20-plus year career at the A.C. Gilbert toy company (now turned into artists' studios on Peck Street in New Haven).  Perhaps selling erector sets made him long to sell real buildings, and, early in his career, he actually sold the Gilbert building, after the company was downsized and sold.

Our original location, on State Street in North Haven, has been doubled twice, and we are still headquartered in that building today.  Over the years, we spread our territory, first to the Shoreline, and then to other commercial locations in Greater Hartford and in Milford, but we always have maintained our core principles of local independent real estate expertise and community service.  All eight offices today are filled with dedicated professionals who pride themselves on knowledge and integrity.

We'd like to think that we have indeed made Connecticut better over our 60 years in business.  In addition to providing thousands of hours of human service, and millions of dollars, to all kinds of non-profit organizations around the State, we have changed its landscape.  We have developed housing around the Greater New Haven region for most of that period.  With Don Lippincott, my father developed first an industrial park at Exit 10, and then what became in effect a regional mall at Exit 9.  The latter involved building a road and bridge, which is now called the Herbert H. Pearce and Donald B. Lippincott Commemorative Bridge, and leads to Home Depot, Target, and many other destinations.

His capstone project was New Haven's first mixed-use development, known as Whitney Grove Square.  It has shopping, office, residential, and parking at one location, with a bigger garage across the street. It was instrumental in moving people up from the Green to Whitney Avenue and Grove Street.  Buyers lined up through the night to buy the condos when they went on sale in 1986.  Many residents of the region now live in the heart of downtown New Haven, but it was unusual at the time.

We're proud of history, and of the perseverance that it has taken to survive and thrive for all of those 60 years.  We're prouder still of our associates, current and retired, who allowed us to do so.  And we are grateful most of all to the thousands of clients who have entrusted us with their sales, purchases, and rentals, for decades, and often for generations of the same families and corporations.  We look forward to the future, and know that it will be bright.

Tuesday, May 22, 2018

Lots of Churches

We have enjoyed becoming specialists in selling churches, as we have begun doing in the past  year.  It's a specialized business, and we are getting in gear with the various rules and regulations, and the special needs of congregations.  I recently returned from a meeting of brokers from around the country, and this is happening elsewhere as well.  Traditional denominations are consolidating their parishes, while new churches are springing up all over.

One of the challenges is to creatively reuse buildings that were designed when churches were the social centers of their neighborhoods.  Those neighborhoods have changed, and the way congregations operate has often morphed as well.  Sometimes it makes more sense to turn sanctuaries into housing or educational space.

Who would have thought that we would have moved from industrial and commercial brokers into agents who worked with churches, casinos, breweries, and marijuana facilities?  It's a brave new world out there, and we're proud to be in the vanguard.