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!

Time to Pull the Trigger

One thing that people have been saying about commercial real estate for ages now is that "buyers and renters are looking, but no one is pulling the trigger".  Some of that is because of real and unfounded fears about the economy, some around here is about Connecticut as a place to do business, and some is just the normal foot dragging, exacerbated by the sense that whatever space they might be considering will still be available when they get around to making a decision.

Because this has persisted, there now is a shortage of certain kinds of space and buildings.  So it actually may not be true that it will still be there when a buyer finally decides.  Also, as we all know, there is quite a lag time between signing the contract and closing, and often as well between closing and occupancy (or optimal efficiency).  Therefore, if you have plans for 2015, and they involve increased production, increased distribution, increased employment, or increased sales, now is the time to be pulling the trigger.  It's closer than you think!

Where Housing Grows, Retail Follows

I blogged last time about the low vacancy rate for apartments in New Haven, and I'd like to expand on why that matters to the commercial market.  When people move into an area, they want the services they use to be convenient.  So, once residential appears, developers, franchisors, and service providers follow.  Companies use demographic information to determine where they should expand.  They know that renters eat out, go to bars, and seek out entertainment, preferably without getting into a car.  After all, that's why they rented in a center city to begin with. Recently, 360 State Street opened in the Ninth Square in New Haven and is already up to 80% occupancy.  I noticed that a new Irish pub just opened on the corner of the open space behind 360 State.  Would we need another Irish pub (there are six between that one and the center of Hamden) if not for all those renters?  This is especially true with renters, who may have more disposable income than new buyers. Also, the vast majority of the 360 State renters bike, walk, or take the train to work, making close by services more enticing. Since 360 State Street is so far ahead of projected occupancy rates, it has already had an impact on the area around it, and that will continue.  Soon we will see the food co-op opening, and I expect that dry cleaners, convenience stores, and pharmacies to follow.  Already, the chain deli around the corner is one of the best-performing franchisees anywhere.  Why?  Location, location, location.

Downtown New Haven has retail opportunities that should excite both investors and business owners.  And that means that the time to act is now.