Archive for January, 2010

Greater Hartford’s Vacant Office Space Increased To 21.2% in 2009

Saturday, January 16th, 2010

The Hartford, Connecticut office market saw nearly 760,000 square feet of space become vacant in 2009 that wasn’t offset by new leasing, representing the second year of a trend and eclipsing the 560,000 square feet recorded in 2008, according to the Hartford Courant. Experts expect the trend to continue for 2010 with forecasts of another 300,000 square feet not being offset by new leasing.

The current trends are to contract, consolidate and downsize whenever possible, trends that are reflected by the slowdown in the financial services industry, rising unemployment and the general stunting of business growth by the recession. These trends are mirrored for markets all over the country.

With available office space in the greater Hartford area reaching 21.2% in 2009 and expected to hit 23% by the end of 2010, it continues to be a tenants market with tenant retention being landlord’s No. 1 priority. These numbers can be implanted in almost all major markets across the nation, much of it due to corporate downsizing and aggressively pushing a “work-at-home” strategy to cut leasing costs.

Read the full article from The Hartford Courant here.

Posted in Eastern, Leased, Office, Real Property | No Comments »

Foot Locker Shoe Sale Begins the Retail Store-Closing Parade

Sunday, January 10th, 2010

Foot locker announced at the beginning of the year that they will be closing 117 stores across the nation. The chain is not the only victim of a rough economic climate with Macy’s, Pier 1 Imports, Trans World Entertainment Corp (operator of f.y.e), and jewelry retailer Zale Corp, all being slated for mass closings this year as well.

It’s tough to see a light at the end of the tunnel as many retailers will be closing their doors throughout 2010, but things will not be as bad as last year. Still with the combination of closings in 2009 and upcoming ones in 2010, there will be ample retail space left vacant driving rent and property value down in the process.

Read the full article from bnet.com here.

Posted in Real Property, Retail, Store Chains | No Comments »

Further Slide Seen in Commercial Real Estate

Thursday, January 7th, 2010

According to The New York Times in their article, “Further Slide Seen in Commercial Real Estate” there are 180 major buildings totaling $12.5 billion in value that are facing foreclosure or bankruptcy in Manhattan alone. Rents for commercial office space in the area fell faster over the past two years than in any such period in the last half century.

Many New York City commercial real estate experts say that despite some flickering signs of economic recovery, big buildings and giant apartment complexes have further to tumble. Owners of troubled properties will face a final day of reckoning or in some cases lose their properties. One expert predicts that the value of New York metropolitan office buildings will decline by 58% from its late 2007 peak.

There still is the opportunity to snap up some great bargains in the down economy, however. Investors looking toward the area could bring a much needed growth in overall sales, with some people suggesting that it may be healthy for the city’s real estate market to have a down cycle.

There is still much pessimism for many reasons with one of the main ones being taxes on these commercial buildings. Residential and commercial development generated $307.7 million in tax revenues, not including property taxes, from 2000 to 2007. The industry had a $12 billion effect on the local economy during that period. The tax base is enormous in NYC and it helps fund many of the basic services that make it operate.

Read the full article from The New York Times here.

Posted in Apartments, Eastern, Leased, Multi Family, Office, Owner Occupied, Real Property | No Comments »