When it comes to the New York City real estate market, there is no denying the fact that opportunities always exist. This holds true in many sectors, including both residential and commercial properties.
Recently, a ground-floor retail condominium at 2770 Broadway was purchased by real estate firm Walter & Samuels for $20.5 million.
This commercial property entails 9,500 square feet, which works out to a price of approximately $2,000 per square foot. This sale goes a long way in showing that the commercial real estate market in New York City is once again booming.
At this time, there are two tenants in the building, LensCrafters and Bank of America. Both tenants have approximately seven years remaining on their leases. As a result, the buyer will step into a situation in which he is receiving a return of as high as 5 percent.
Better yet, when the leases expire in several years, the investor will be in position to increase his margin due to the fact that both tenants are currently paying less rent than market rates.
There is always a lot of action in the New York City real estate market. This purchase shows that the cost of commercial space is on the rise. It also shows that good deals can still be had if the investor knows where to look and how to move through the process. For help finding and negotiating the best deal on a commercial property, hiring a local attorney is generally a good step to take. An investment should be predicated on sound information; commercial lease legal teams are there to protect your financial interests.
Source: Crain's New York Business, "Retail space on W. 107th St. fetches princely sum" Joe Anuta, Mar. 04, 2014