Don't Forget Not-for-Profit Sector

Sometimes, when we bemoan the condition of business expansions (few) in Connecticut these days, we overlook the fact that we have a robust non-profit sector.  This is especially true in Greater New Haven, where more than half of our largest employers are not-for-profits.  That means that there is more demand, perhaps, for real estate than we might initially think. 

Although we think of not-for-profits as not having much money, in some cases that isn't true.  Many work on essential services, and are funded by governmental sources.  Although that can be problematic these days, in some ways it isn't any different than having a for-profit business depend upon clients that may or may not purchase their goods and services within a particular time frame.  And cash flow issues are not limited to the not-for-profit world.  

In addition to the health of their organizations, not-for-profits are often more flexible about the types of space they can use, and what they can make work.  If the price is right, they may not require the same fit-up as other businesses, since their clients would not expect, and might even not enjoy, seeing fancy offices for a charitable or governmental agency.   

Even cash flow can often be worked out, if landlords or sellers are willing to take money over time, or wait for a federal or State grant to be funded.  Once it is, you might be able to, as they say, take it to the bank.  Even donated funds are now usually documented with signed pledges, and those usually come in on an annual basis.  

So don't count out a whole sector of our economy.  It's out there, and it occupies space. 

End of Summer Hopefulness

Greater New Haven's Commercial and Industrial Realtors held their annual outing yesterday, and the mood was upbeat.  Although a lot in August seems to be on hold for Labor Day and the coming of fall, most people were busy, or had the prospect of being busy in the weeks to come. 

That doesn't mean that all the property is being snapped up, however.  Really attractive office space is still begging, in many cases, for tenants.  And New Haven's dependence on not-for-profit employers and institutions leaves us vulnerable to changes in State and national funding.  However, retail has made a comeback, and flex and warehouse space is tight in some places.  There is somewhat of a disconnect between what buyers want and what sellers have to offer, but hey--there are buyers now!