Spring... May flowers...
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Dear Friends,
I was recently asked by David Winzelberg of Long Island Business News to give him a short assessment of the commercial real estate market on Long Island. I told him that the Long Island market has always been segmented by both location and type of real estate, and that what's true in one region might not be true 10 miles away. I reported that in the more desirable areas, the activity is brisk for all types of real estate - industrial, office and retail, and that there is already a lack of inventory in some areas, particularly buildings for sale.
When I spoke before the Long Island Appraisal Institute last November, I reported cautious optimism. Today I can remove the word "cautious." We are seeing increased activity in all sectors, and showings are much more plentiful than a year ago. The brokerage community still reports difficulty in finalizing transactions, but for the first time in five years, we are seeing tenants and purchasers actually compete for same buildings. A big and welcome change, along with our beautiful spring weather!
David G. Hunt
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Six Questions You Must Ask by David G. Hunt
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Q: Everybody seems to have an opinion on whether we should buy or lease our next business facility. How do we intelligently make this decision?
A: I have been helping companies make this decision for the last forty years, and here are the Six Questions that I ask them to help guide their decision:
1. What is your projected rate of growth as well as your estimated holding period for the real estate? For many companies, it takes between 5 and 10 years to amortize the upfront costs of a purchase. If you are a fast growing company that will outgrow your real estate in three years, you will be wise to lease. If you have a very stable need for space and foresee occupying your space for 10 years, it is likely that a purchase is your best choice.
2. What is the company's alternate use of capital? If you are earning a 40% return by manufacturing widgets, it is best to put your capital to work in your business, not in bricks and mortar! On the other hand, many a commercial building has funded the retirement for business owners who purchased buildings personally, and then leased the same building to their business, paying down the mortgage with lease payments from the company for 20 years.
3. What is your availability of capital? Purchasing real estate generally requires a substantial upfront costs - a down-payment,
Sometimes the answer is clear cut,
and sometimes not,
but at least you have covered
the major benefits and pitfalls... more
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Hunt Construction is here for you...
- Leaking roofs
- Repaving parking lots and driveways
- HVAC equipment repairs or replacements
- Landscaping
 - Building repairs
Let us know what you need!
"We Facilitate Your Business"
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CoStar First Quarter Industrial Report
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You can own this building for a lower cost than a leasing!
 | 39,250 Square Foot Office Building
For Sale! |
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Companies on the Move | |
Patchogue Business Center is moving to 18-28 East Main Street, Patchogue... Good Ground is moving to 183 West Montauk Highway, Hampton Bays... Brown Academy is moving to 55 Northern Boulevard, Great Neck... Arthritis Foundation is moving to 150 Broadhollow Road, Melville... GenServe is moving to 100 Newtown Road, Plainview... |
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Financing File
| Current Market Rates and Programs for the Long Island Commercial Marketplace
The SBA 504 loan program offers long term (10 or 20 years) fixed rate subordinate mortgage financing for the purchase and renovations of existing buildings or new buildings and equipment. Loans are up to 40% of the project cost..... (MORE) |
Our Corporate Headquarters 17 Dupont Street, Suite 4 Plainview, NY 11803 516-937-1000 www.huntcorp.com
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COMPARABLE SALES IN THE LAST 12 MONTHS
| City | Address | Property Type | Size SF | Office SF | Acres Total | Sold Price/SF | Sold Date |
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Bohemia
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217 Knickerbocker Avenue
| Industrial | 15,000 | | 1 | $73.33 | 5/13/2013 | | Farmingdale |
69 Allen Boulevard
| Industrial | 10,000 | 2,000 |
| $105.00 | 4/23/2013 | | Medford |
20 Industrial Boulevard
| Industrial | 6,000 | 900 | .46 | $93.33 | 4/10/2013 | | New Hyde Park |
351-355 Denton Avenue
| Industrial | 12,000 | | .30 | $100.00 | 4/1/2013 | | Melville |
25 Deshon Drive
| Industrial/Office | 186,148 | 40.000 | 18 | $55.06 | 3/28/2013 | | Bohemia |
105 Sunrise Road
| Industrial | 10,000 |
| .55 | $90.00 | 3/12/2013 | | | | | | | | |
For more Recent Sales, click here |
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©Copyright 2010, All Rights Reserved. The content of this web site may not be reproduced without the written permission of HUNT Corporate Services, Inc. All information is from sources deemed reliable and is subject to prior rental or sale, errors, omissions, change of price and withdrawal without notice.
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