Be Prepared

As a commercial real estate broker here in New York City, I am often asked the same questions:

1.??????How is the market?

2.??????Where do you see the market going?

3.??????Is now a good time to sell?

The first question is relatively straightforward – gauging the current ebbs and flows of the market – new assignments, tours, contracts, and closings are measurable by previous quarters, years and cycles. The next two questions are far more subjective. While everyone wants to have the crystal ball, there are far too many external factors that we cannot predict.

Let’s look at the past four years – June 2019 rent laws, a global pandemic, and the precipitous rise in interest rates and inflation. Factors such as these are out of our control. However, there are certain practices that can help hedge against outside interferences. If you watch any military or outdoor survival show, the resounding message is: “Be prepared”.

This is true for property owners as well. Being aware of not only what is happening but what could happen is key. I’d like to present some tips and reminders that can help build not only long-term value but can help during unexpected events.?For the past four years, I have been posting weekly videos and have touched on some of them.

1.??????Be aware of expiring leases and vacating tenants.

2.??????Check debt maturity and terms and explore replacement options.

3.??????Contact real estate tax certiorari and challenge property assessments annually.

4.??????Keep updated list of completed and pending deferred maintenance items.

5.??????Have all municipal filings in order (proper DHCR registrations and destabilizing paperwork).

6.??????Keep any environmental testing results and remediation paperwork.

7.??????Address any open building violations and construction permits.

8.??????Keep track of ownership, succession, surrogate court approvals and title transfers.

This is a partial list of items within your control that can add or retain value for your properties. Being prepared during the hold period and good times will help in adverse times or when it is time to consider a sale or refinance.

Should you wish to discuss a specific property or issue, our team would love the opportunity to speak with you.

Best regards,

Thomas A. Donovan

Partner, Vice Chairman

917.566.1384

[email protected]