by mgranizo-ohare on December 13, 2010
Due to the anticipated increase in household formation from an improving economy, multifamily housing is the one commercial real estate sector that is expected to perform well in 2011. Multifamily vacancy rents are predicted to decline and rents are expected to increase 1.4 percent-particularly in the major metro areas. The New York City Multifamily housing market is expected to do well both in the short and long terms. Rising employment levels coupled with continued growth in hospitality and retail trade sectors will further strengthen the basis for recovery in our City.
Consequently, Manhattan is expected to see an increase in rent growth in the 6 percent range. The Bronx has experienced building activity due to its tight housing market and it affordability as compared to the other boroughs. It has seen an increase in effective rents of 3.4 percent and promises to continue to maintain low vacancy levels in 2011. Northern Brooklyn, a historically strong renters’ market, is anticipated to see a resurgence in rent growth. Other markets in Brooklyn, however, such as Bedford-Stuyvesant, Crown Heights and Bushwick are expected to experience a slower pace of growth. In the largest borough, the Queens Multifamily housing market is expected to benefit from job growth as well and is anticipated to see a 2.8 percent increase in revenues.
[Data Sources: NAR, Commercial Real Estate, Quarterly Market Report, November 29, 2010; and Marcus and Millichap, Fourth Quarter 2010, Apartment Research Market Update.]
For Multifamily Property Offerings that Meet Your Purchase Criteria, Contact Marti O’Hare at mohare@frandimapropertiesllc.com.
by mgranizo-ohare on June 7, 2010
Most real estate investors know the importance of purchasing insurance for their commercial property. The common risks they protect against are liability for slip and fall incidents and damage caused by fire or other hazards. However, there are other key factors to consider when shopping for and reviewing insurance policies for your commercial real estate investment.
A. Proper Valuation- Often investors end up paying more on premiums because their policies insure the property up to the resell value rather than replacement value. The replacement value is the cost to repair or replace the property at the time of the loss by using like kind and quality materials. It is not the market value of the property. In determining the replacement value of your property, industry standards are used such as construction class, square footage, year built etc… Be sure to insure your property to its proper replacement value. Insurance companies will never give you more to repair or replace the property than the replacement value at the time of a loss, so it doesn’t make sense to insure to an inflated market value.
B. Flood Insurance- If your property is in New York City, insuring it against flood damage may not be at the forefront of your mind. However, with the numerous water main breaks throughout the City in the past five years, insuring against flood damage is key to protecting your investment. Remember, a flood can be caused by sources other than coastal waters and rivers. Water main breaks are more common than you might think, and the cost to repair or replace damaged floors, walls and carpets, as well as the cost of mold remediation, can be quite expensive. Flood coverage is not [read more...]
