The Corona Virus (COVID-19) has had an enormous impact on all of us.  These are trying times and it is important that we support one another as much as possible as we navigate this unprecedented event. With that in mind I thought I would update you on what is happening in the Commercial Real Estate market.

Commercial real estate remains relatively attractive as interest rates have fallen to historic lows. With the uncertainty in the stock market and low yields on bonds, commercial real estate has become appealing to many investors for its stability.

Some categories of commercial properties will be negatively impacted by the downturn in the economy. Office properties with longer-term leases are well-positioned to withstand the downturn. The multi-family sector may experience an insignificant impact depending on the unemployment rate in the short-term, while the demand for affordable housing units will continue. Industrial properties may be adversely affected as a result of supply chain issues, but next day delivery warehousing/logistics (Amazon) will continue to grow. Hospitality and transportation assets are stressed due to travel restrictions and cancellations across all sectors of the economy.

Before COVID 19, retail was evolving from your traditional malls by repositioning themselves with a larger mix of entertainment, hospitality and other non traditional retail use. The negative impact on the retail sector will be determined by the persistence of COVID-19. The small retailers will be impacted the most and there will be limited backfill tenants for vacancies. Once the current situation has stabilized, the retail sector may receive a boost from investors due to the low interest rates.

Transactions that were in escrow during the past 30 days are closing, but a few have also been postponed. Much of the interest has been in single -tenant investment opportunities such as Starbucks, drugstores and others.  It is not business as usual, but we continue to service our clients and address their needs.  We are reimagining the way we do business as we adhere to the health guidelines, directives, laws and Executive Orders from the Governor surrounding COVID-19.  Please do not hesitate to contact us with any inquiries, questions or concerns that you may have. We will do everything in our power to get you safely into buildings that you may be interested in, as well as any other needs you may have.

We wish you and your families all the best in the coming weeks and months ahead. I will remain in touch and update you as things progress.

 

Sincerely,

Bart

 

 

Barton K. Feinberg

Director of Brokerage, Associate Broker

First, we hope all of our tenants, clients and people we do business with are safe and healthy.

The Coronavirus has had more of an immediate impact on our lives and our community than any event I have lived through. In the course of a week, almost every aspect of our daily routine is different and has required us to change the way we temporarily live and work. Although the strategy changes daily, we wanted to update you on what Sutton is currently doing to provide essential services and support to our tenants and clients.

Sutton Real Estate’s main office in Franklin Square is closed, but, we have equipped our management staff and sales team with the resources to work remotely and continue to provide necessary services and support to our apartment residents, commercial tenants and brokerage clients.

The management offices at Sutton’s residential properties are closed to the public. We have adjusted the hours and modified the duties of our maintenance and cleaning staff to continue to provide essential services while protecting the health and safety of both staff and tenants.

We will get through this. The Central New York Community has always rallied during difficult times. There are many businesses and individuals that have been hit harder than others. If you have an opportunity to help someone that has been impacted by the events related to Covid-19, please lend a hand.

 

Louis G. Fournier

CPM, President

Bart Feinberg of Sutton Real Estate brokered the deal between seller Alciati & Alciati, LLC for  642 North Salina St.,  the Central Restaurant Supply–a family business for 50 years–and the buyer, Robert Campbell of Moved Today’s Rentals. The  buyer is an independently owned rent to own and retail sales home furnishing store, relocating from 705 N State St. The sale price was $575,000.

 

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