Finding What's Not There

Usually, when you are looking for something to purchase, you expect to choose from among the options available, either at a retail outlet, or on line.  Real estate has become very different these days.  There is often a disconnect between what sellers are offering, and what buyers want to buy.  And that's where the agents come in.


In the olden days, we sat down with people, and showed them a physical book of properties available, or took them in our cars to see what was listed.  Now, we've become experts in finding what is not on the market.  We frequently scour an area, or brainstorm together at an office meeting, to try and locate what a buyer or renter is hoping to find.  It's not uncommon for us to chase down leads, or contact out-of-town owners upon seeing a half-empty parking lot or signs of disuse, in order to present more choices to clients. 


That's where the distinct advantage of a local company comes in.  We are big enough to network all over the world, to promote listings on line, and to have the technology necessary to accomplish transactions.  However, because we know Connecticut, and have our whole team of local experts, we can search with purpose, having a good idea of where things not on the market currently may be located, or carved out of a larger property.  In one recent search, only a couple out of almost 20 properties were being marketed for sale or lease.  The others came through networking with owners, agents, State and town officials, and each other.


That's the future of real estate brokerage--agents as consultants--and we are in the vanguard.  We advise people who have found buildings and land, people who are looking, and people who haven't looked.  We seek out alternatives, identify and sometimes eliminate obstacles, and smooth the way with regulations.  It's the best way for us to work--as partners with our clients--and the best way to access our services.  Sometimes change really is good for everybody!

New Year, New Start

It's a new year, we have had a lot of good news about our region's economic recovery at last, and our Governor has started a new term. Things are looking up, and doing it while interest rates are still low. What are we still waiting for? Product! We still need well-maintained, well-priced buildings for sale, especially in the 5,000-10,000 sf range. Although some sellers may be holding back in the hope of greater appreciation, there are lots of reasons for selling when the buyers are around. There has been a spate of job recovery in the greater New Haven region, so we know that businesses are expanding. We also know that our rental market is bursting at the seams, and has the lowest vacancy rate in the country still, so there are consumers out there, who would utilize retail and other services. We just need a little push, and the simplest way to get it is to find some sellers either to sell out or to list and move. How about it?

Commercial Follows Residential

One of the truisms we know about real estate is that commercial usually lags residential by nine months to a year, whether it is going into a recession or coming out of one.  Well, here we are again.  The residential market in most parts of the country has already shifted from a buyer's market to a seller's market, largely due to lack of supply.  While Connecticut is lagging behind other places, it too is showing signs of marked improvement.  Prices here have not risen on the whole, but are certainly poised to do so at any time.  Multiple offers are commonplace lately, and inventory in certain submarkets is tight.

What does that augur for commercial sales and leases? We expect to see increasing demand and decreasing supply by the middle of the year, and much of that will be tied to consumer demand.  If you look around any restaurant, you can see that purse strings have loosened.  Retail is turning around, and, if we're lucky, office will follow.  Let's all hope so!

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.