Central Location

We have seen a surge in the popularity of old industrial buildings this year.  Some of them are being used for residential repurposing, but many are put to use as warehouses.  Despite the complaints about our highways, Connecticut is located in a region where most places are accessible easily by truck, and rail goes through the state in more than one direction.  While we have become positioned as an unattractive place to do business, storing and shipping from here seems to be the exception.  Fewer jobs, especially fewer high-end jobs, are created with warehouses, but there is also less risk for the buyers or tenants.  In addition, some of those old industrial facilities have environmental problems, which are less of an issue when they are being used as warehouses, as opposed to living spaces.

Will our resurgence on the warehouse front lead to other development, or further investment in Connecticut?  It's too soon to tell, but it's good  news for those who have owned--and often sat on--those buildings for years now.  We're happy to advise you, if you are such an owner.

Investment Fever

The recent travails of the stock market have proven to be a boon for investment real estate.  The appeal of being able to see what you own, and touch it, is proving irresistible to investors from here and abroad.  We are seeing feeding frenzies for apartments, where buyers are making offers sight unseen, and office buildings, where we are surprised at the final sales prices.

Investors are being priced out of NYC and Boston, and are turning to us to look for available product.  We are happy to oblige, and are getting used to learning the nuances of moving money from country to country.  It's nice to know that the United States is still the place where people feel that their money is well spent.

If you are a buyer, you have new competition from overseas.  If you are a seller, you have new buyers.  This may be the time to cash out, and it may not matter whether you own apartments, retail, industrial, or commercial real estate.

Current Absorption Rates

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Busy, Busy, Busy

Although we can't yet see it in sales results, many of us are busier than we've been in years.  One agent recently told me that he has more going on than he's had in 20 years!  What does this tell us?  It says that people know that it's a good time to buy (true), that rates are low (very true!), and that the economic climate is improving (true).  Businesses are busy, but they are still not pulling the trigger on space.  Maybe they are too busy to do the work, or they aren't confident that sales will improve and stay better.  Whatever the reason, we are in the part of the cycle that reminds me of my old days of rowing college crew--the stroke has to raise the stroke by putting his/her oar in the water first and doubling down until everyone else catches up.  That's where the market is--we are doing the work, and the results haven't appeared yet.  But it appears that they will, meaning that those who rented or bought sooner will do better than those who waited.  Where will you be?

Greater New Haven is 19th Best Metro Region

Data Haven, along with other partners, has just published the results of a comprehensive study ranking Greater New Haven against 130 communities on categories such as People, Economic Opportunity, Health Needs, and Civic Life.  Greater New Haven ranked 19th out of the 130 in the survey, with region-wide graduation rates, health assessments, and happiness with quality of life at high levels.  Our population is aging, and the average age is high.  We are as diverse as the United States as a whole.  Those who commute from the suburbs into the center city earn better wages than those who live in the center city.

Some of these indicators are probably true in many places.  Others represent issues on which we have been working for decades.  In total, they are a rousing endorsement for the region, and reason for companies to locate or expand here, now and in the future.