At the beginning of COVID, I thought there would be a big opportunity for doing deals in Commercial Real Estate. I quickly found out that many owners were dealing directly with customers and not working with agents. The old school, "take cover" mentality had kicked in "BIGLY!"
Coupled with the uncertainty of the market and having a current tenants breaking leases, owners have been hesitant to relinquish control to a broker.
Also, the nature of commercial deals seems to have consolidated and specialized. The movie industry has swooped in to snap up bargain basement big box warehouse lease deals. Alternatively, small kiosk storefronts seems to be the rage for such businesses as coffee brewers.
Alternatively, small retail business owners in larger storefront spaces are failing. Many of these businesses have under-utilized income producing square footage, and even with the city allowing for sidewalk table access, many restaurants have been strapped with staffing problems and short/long term financing issues.
What's the next move? Commercial Real Estate deals in Manhattan hit an all time low since 2009, only twenty one (21) deals were completed in Q3. So, it's kind of like investing in the stock market at this point. If you have money saved and want to start and/or expand a business, you have leverage to find a good deal right now. Keep in mind that owners/landlord's are wary of entering into long term leases. Also, all parties signing a lease MUST have it thoroughly reviewed by an attorney making sure to include clauses related to catastrophic events and insurance liabilities related to COVID. All good reasons to HIRE a competent and professional Real Estate Agent (like yours truly!) to help you (owner/landlord and/or customer looking for space) transact these deals.
Please feel free to contact me at anytime to discuss further! alan@modernspacesnyc.com
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