The Crystal Ball is Hard to Read

If we all knew what was going to happen in the economy before it happened, we'd all be very wealthy.  As it is, people are wondering what will happen in the Trump Era.  For real estate, it should be a good thing, since he is, after all, a real estate developer himself.  We know that he's planning to cut taxes in certain ways, and he hopes to speed up the construction of infrastructure.  Against that, there is the possibility that he will eliminate or cut down the interest deduction for mortgages, or that his social policies will affect places like New Haven, which is a sanctuary city. On the whole, however, we should see some benefits for those who own and invest in real estate.

The stock market has already weighed in.  After an initial downturn, it went zooming back up, and clearly is behaving as though Trump will be good for business.  If so, real estate should have begun rising.  We can't tell what's under contract, but the lag time for closings in the commercial sector, and the length of time that a transaction takes, means that we haven't seen anything yet.   But we probably will.

Assuming that's true, the race will go to the swift.  Those that buy near the beginning of the rise will profit the most.  So, what are you waiting for?

Picking Up in Late Summer?

August is traditionally a time for beaches and BBQs, not real estate.  Many people are on vacation, and those who remain start to think of Labor Day as the acceptable point at which to pick up projects like moving or expanding.  And yet, this year, we seem busy as we hurtle toward September.  A lot of what we are working on has yet to close, and our commissions so far this year still lag behind last year's, but many of our agents say that they are busier than they have been in years. 

Some of this reflects the fact that every transaction is harder than it used to be; you can't count on anything simply proceeding through to completion without a few bumps along the way.  Some, though, does seem to suggest that Connecticut may at last be joining the ranks of all the other states that are embracing recovery.  While jobs have not gotten back to their 2006 high, they are headed in the right direction.  Ditto housing prices and construction permits.  Also consumer confidence, which is evident in the proliferation of new restaurants and retail ventures. 

Maybe this is the new normal.  A less seasonal, less steady expansion, but a tentative and welcome leap forward.  Okay, a step forward.  But it's progress, and we are glad to see it!

Our Newest Venture--Pearce Consulting Services

Pearce Commercial has expanded!  We've decided that there is a hole in the market, for a service lacking in today's complicated real estate world.  Much of the property being unused or underutilized in the commercial arena in our region belongs to corporations or municipalities, that aren't disposing of the property because of something that needs to be done, either in terms of zoning, rehabbing, or environmental cleanup.  Pearce has put together a group of experts that can guide that process from appraisal and evaluation through rezoning, marketing, and closing, and much, if not all, of the funds needed can come out of the proceeds at the closing.  In addition, many of these sites can then go back onto the tax rolls, and can employ workers and add to the grand list.  Some of our team are Pearce agents, allowing owners to pay for services through the commissions generated.

We have assembled construction, brownfield, wastewater, appraisal, financing, permitting, and marketing experts, who can provide one-stop shopping for all of those specialties, with one call to us.  Also, we can tailor the team each time, to offer the services needed to reclaim the property.  We know that it must be a good idea, because, after we formed our group, we noticed that another such firm was assembled in another part of Connecticut.  It's clearly an idea whose time has come, especially in an era when firms and cities and towns lack the resources to keep specialized experts on staff. Call us for details!

Office Space Update

CoStar, our national research tool, has found that the rebound in large company profits and sales is beginning to  expand to smaller employers.  Nationally, office space use is creeping up, and vacancy rates--already low due to lack of construction in recent years--are low.  This is in marked contrast to what we have been seeing in the past couple of years.  In our region, we have been noticing a bigger number of startups, maybe a natural  result of people being laid off from their jobs, but also a sign of confidence in the future of industry here.

If you are a tenant, now is the time to renew, expand, or lengthen your lease, before concessions disappear and landlords look to recover some of what they've given back recently.  If you are a landlord, good news appears to be around the corner.  And not a moment too soon for us!