Bart Feinberg of Sutton Real Estate brokered the $820,000 sale of 853 Waterloo-Geneva Rd. (Rte. 20), which is a 4,100 s/f NYS Troopers Barracks. The sale closed with a cap rate of 7.7%. FMV Associates, LLC purchased the property from Jackie Pottgen.

 

Kristen Nave and Karen Cannata-LaRocca of Sutton Real Estate’s Healthcare Group, represented the buyer in the purchase of a 3,000 s/f medical office building located at 127 Seeley Rd. in Syracuse. This property will become the new home of Bright Future Pediatrics. The sale price was not disclosed.

 

Featured on: NYREJ

According to Connect Commercial Real Estate, a leading company dedicated to delivering current real estate news, the second half of 2020 is looking at a strong recovery. Interest rates will continue to stay low which will perpetuate the flow of money in the commercial space.

In contrast to the rest of the economy, commercial real estate has stayed active within the industrial, investment sales, and multi-family sectors. Deal volume has increased and many properties are experiencing more cash offers than ever before.

However, outside these three areas, office and retail space are encountering various pressures.

To touch on an article Sutton posted earlier this year, “Office space is not dead, it’s just evolving.” The same goes for retail. The desire to open brick and mortar storefronts is still appealing to some who feel the need to shop in the physical sense. But stores may become more of a “teaser” with the majority of products still found on their websites. This will force stores to create a stronger online presence.

The decrease in retail directly affects the demand of industrial real estate. Stores are relying heavily on e-commerce and domestic manufacturing to keep up with online sales. These businesses need space to store their products, which is why sales (in the industrial sector) surged in the beginning of the pandemic.

Shifting to multi-family, the spike in unemployment has forced some homeowners to move into rental units. According to a Globe St. writer, “Many businesses are now operating remotely so flexible shelter or renting versus owning remains desirable. Graduating students with high debt will most likely choose to rent because securing a mortgage remains challenging.”

Those interested in investment properties need to be cautious of buying during a pandemic. Make sure your net operating income is high enough to outlast the recession and keep its value. Our nation hasn’t hit the recovery phase quite yet due to many still on unemployment. But as long as you are aware of which phase of the real estate market cycle you are in, you’ll know what you can safely pay on a property

 

Barton K. Feinberg
Director of Brokerage, Real Estate Associate Broker

 

Some information contained in this article is from Forbes.com and connect.media

Sutton Real Estate is well known as a Property Management and Brokerage company. But there’s another service we provide that is sometimes overlooked; accounting! Sutton handles a diverse portfolio of accounts, making us a well-respected and a trusted company to hire.

Some of the accounting services we provide include collection of revenue, payment of expenses, bank reconciliations, monthly financial reporting and annual budgets. We also work closely with your CPA to provide accurate and timely year-end information.

One of the resources our clients love includes paying rent online. We have partnered with Pay Rent Chex to receive payments electronically. Our tenants receive reminders and notices right away which keeps them accountable and you satisfied with cash-flow. Tenants are more willing to set up a recurring payment plan so there are no more late payments. Online payment also gives us digital documentation. This technology provides the most secure option for either parties – no more lost or stolen checks.

If you are starting a new real estate business or considering a change give us a call. We have a team of experienced accounting staff on hand ready to take on new assignments.

 

Shelly Casterline

Controller

In the Real Estate and Property Management business, Summer is always the busiest season. Sutton experiences it’s highest turnover rate from the months of May-September. And it’s no wonder! Who wants to move in Winter unless they absolutely have to? Things like graduation, new job prospects, and finding shorter commutes are all reasons why people look to move. These examples are those out of our control. For our managers, departing tenants need to be replaced as quickly as possible. Although you can’t foresee your tenants’ every move, you can stay on top of tenants who leave for reasons within your control.

Here are tips I like to give our managers during the chaotic season:

1. Bring your A Game – The best way to deal with turnover season is staying proactive. Don’t wait for your tenants to come to you. Email or call them to get a sense of their plan. Having organized notes of each tenant’s move out date will help you start the search process early and plan marketing initiatives. Utilize online spreadsheets to keep everything in order.

2. Vacations – Schedule your vacation around the high traffic months. It won’t help to be away with little/no communication with your tenants or to put someone less knowledgeable about the business in charge. Assigning work might become complicated. The headache of coming back won’t be worth the holiday.

3. Offer Loyalty Incentives for Renewing – Do you have it in your budget to offer a free or discounted month of rent? How about a unit upgrade? Free wifi? You can research plenty of ideas to motivate a lease renewal. Here’s a tip – millennial renters are most likely to respond to incentives.

4. Listen to your Tenants – Identify common themes you receive. If your tenants are willing to share feedback, you should listen. You will gain a reputation for being a trustworthy manager. Would they like to see kitchen upgrades? Do the hallways need new carpeting? Are the air conditioners working properly? Use these months to make updates, big or small.

 

 

Linda Charles

Vice President