A Little Bit of Chutzpah Goes a Long Way

Nobody likes a pushy Realtor!! There, we said it, and we wholeheartedly agree. We don’t like to deal with pushy Realtors, either. They mostly make our ears want to fold over. That being said, we can’t help but respect someone who isn’t afraid to get their point across with a little Chutzpah.

To be honest, we’ve been accused of this ourselves. We, sometimes, push the envelope a little; like helping a prospective tenant see a bigger picture when they’re fixed on one particular type of space or when we approach a large, international tenant for a small neighborhood property that would be a great fit.

The key to having Chutzpah that will impress and not come across arrogant or annoying is in truly believing that you are doing what’s in the best interest of the client, tenant or seller. Sincerity, or your lack thereof, will always show through.

Buddy Budiansky, CCIM and Ron Frederick, PA are commercial real estate professionals specializing the sales and leasing of properties in the Daytona Beach, Ormond Beach, Port Orange, Florida area. Email them at info@buddyandron.com

1st Quarter 2011 Update – How’s Daytona Beach Looking… #cre

The Volusia County Economic Development’s 1st Quarter Update Report for 2011 is in and it’s not as bleak as you might think.

The winners for Employment were Education and Health Services, up .6% over 2010, Retail Trade, up 1.3% over 2010, and the big winner was Leisure and Hospitality, up 7.8% over 2010. 

It comes as no shock that the biggest job loser was Construction at 10.2% down, but surprisingly Federal Government jobs were next on the chopping block at 9.3% down.

On the Commercial New Construction front it’s encouraging to see Permits in Daytona Beach up. The actual number of permits was down from 38 in 4th quarter 2010 to 30 in 1st quarter 2011, however, the construction value jumped from $4,375,000 in 4th quarter 2010 to a whopping $51,199,094 1st quarter 2011.

Ormond Beach, Holly Hill and South Daytona were all sporting  ‘goose eggs’ in 1st quarter 2011 Commercial Construction Permits.  And, while Port Orange was down from the 2010 numbers, the $1,005,126  construction value still shows growth. Also, down but not out is Daytona Beach Shores with a $757,149 commercial construction value.

You can check out the full Volusia County Economic Development first quarter 2011 update report here http://floridabusiness.org/Q12011.pdf.

Buddy Budiansky, CCIM and Ron Frederick, PA are commercial real estate professionals specializing the sales and leasing of properties in the Daytona Beach, Ormond Beach, Port Orange, Florida area. Email them at info@buddyandron.com

Make an Offer Already – part two #cre

Image by NobMouse via Flickr

So, What Can a Commercial Property Seller Do?

1. About Buyers – We’re sorry to be the ones to have to tell you this; Buyers will always be fickle. What appears to work on the cursory showing may not actually do the trick. Savvy Sellers can offer to help the property better suit an interested Buyer by offering to add or remove an interior element, putting in more parking, work toward changing the zoning, etc.

2. About Inventory - Even if your property is the only one available of a particularly desirable size or location…see About Price #3.

Is Commercial Real Estate #cre a “Compelling Opportunity” for Investors?

Prudential Real Estate Investors seem to think it is according to their recent report.

The report sites long-term investment benefits, the upcoming positive supply/demand cycle, and growth associated with rising economic activity as some of the “compelling” factors.

It goes on to state that public companies that own and/or operate real estate (REITs) are better positioned to take advantage of the current market rates.

Read the full ten page report here (report is nicely done and includes many charts and graphs): http://www.prei.prudential.com/view/page/pimcenter/6815

 

Buddy Budiansky, CCIM and Ron Frederick, PA are commercial real estate professionals specializing the sales and leasing of commercial properties in the Daytona Beach, Ormond Beach, Port Orange, Florida area. Email them at info@buddyandron.com

Top 10 Real Estate Turn Around Markets…No Surprise Daytona Beach Didn’t Make The List

It’s no surprise that the Daytona Beach real estate market didn’t make Move.com’s top 10 metro areas on the road to recovery.

It’s not for lack of trying on our part. We have actually listed and sold more properties so far this year than all of 2010. Our commmercial market is getting more active while sale and leasing prices are continuing a downward slide, however, the slide has slowed to crawl of late. We’re hopeful that we’ve finally neared the bottom.

Although Move.com, which runs the Realtor.com website, is compiling data from the residential real estate market, this is still an indication of real estate overall and will impact businesses.

Read the article on CNN Money‘s website below.

http://money.cnn.com/galleries/2011/real_estate/1104/gallery.10_turnaround_towns/index.html

Buddy Budiansky, CCIM and Ron Frederick, PA are commercial real estate professionals specializing the sales and leasing of properties in the Daytona Beach, Ormond Beach, Port Orange, Florida area. Email them at info@buddyandron.com

Make An Offer Already!!

Image by Kevin Lawver via Flickr

OK, so your commercial property is listed with a prominent commercial broker.

It’s on your local MLS and listed on commercial real estate sites like Loopnet and CoStar.

Your broker is sending out mailings and email campaigns to target markets.

Prospective buyers are calling and coming out to see the property.

So, why won’t they Make An Offer Already?

This seems to be the ‘Battle Cry’ of today’s sellers. After all, it sounds like a reasonable assumption; if a buyer is interested he would make an offer, right?

Not necessarily, let’s look at why.

1. Buyers – Remember, just because a Buyer acts interested during the showing doesn’t mean he’ll stay interested. Buyers can be fickle. What seems to suit his business’ needs at the property may look different when he gets back to her office and begins to process the space. He doesn’t want to make an offer on a property that isn’t exactly right for his business.

This brings us to…

2. Inventory - It may not be that your property won’t really suit his business’ needs, it may be that after looking at your property he went on to see three others before going back to his office. There is a vast amount of commercial properties on the market these days. Buyers can have their ‘pick of the litter’ so if something about your property isn’t quite right there is another property down the street that might be perfect. Why would he put in an offer on your property when there are others available in better condition, in a better location, with more amenities?

And, that brings us to…

3. Price – You’ve done your homework and stay updated on the current market value for your property. You’ve adjusted your price accordingly to stay ahead of the pack… 

…So, why won’t they Make An Offer Already?

4. Financing – Banks these days are very cautious; most are not offering commercial mortgages at all, and those that do have beefed up their criteria to make it nearly impossible to qualify.

See Next Post – What Can a Commercial Property Seller Do?

 

Buddy Budiansky, CCIM and Ron Frederick, PA are commercial real estate professionals specializing the sales and leasing of properties in the Daytona Beach, Ormond Beach, Port Orange, Florida area. Contact them at info@buddyandron.com.

Prudential Investment Management’s US Spring 2011 Report Brings Flowers #cre

Although it is a bit of a cautious celebration, the latest quarterly report from Prudential Investment Management mostly confirms what we are seeing here in the Daytona Beach, Ormond Beach, Port Orange market; Movement.

Below is a peek at the Executive Summary. Hit the logo above or click HERE to read the full report.

Market Perspective Executive Summary

• With the economy growing at a healthy pace, commercial real estate fundamentals are finally moving in a positive direction in all sectors. Fears of a double-dip recession have mostly abated, although turmoil in the Middle East and the disaster in Japan are reminders that exogenous events are always lurking. Questions remain as to how strong the recovery will be and how long it will take the space markets to fully recover from the recession.

 

• The momentum should continue in the apartment and hotel segments, which bottomed a year ago, due to increased demand for rental units and rising travel. Fundamentals are just shifting to positive in the office, retail and warehouse sectors. Gains in those property types are bound to be inconsistent based on the market and segment.

We are seeing movement in the Office market but have been experiencing inconsistent activity in the Industrial and Retail markets. And, it’s pretty safe to say that the Hotel market is on the rise; of the nine Hotel/Motels sold within the last year Five of them were in Q1 of 2011.

 

• Capital continues to flow to commercial real estate, particularly “prime” assets in “gateway” cities. Acquisition yields in a handful of core markets have been reduced to historically low levels. Transaction activity is up about 50% from a year ago and should reach 2004 levels.

 

• Looming over the market is the prospect of rising interest rates. That would increase the cost of capital and likely push acquisition yields higher,  which could impact property values. However, to the extent that rising rates are a harbinger of a stronger economy, upward pressure on capitalization rates could be moderated by increasing risk appetite and expectations of higher income.

 

• Availability of debt capital is strong and expanding. CMBS programs, insurance companies and the largest banks are lending at a healthy level for stable properties. Debt is scarcer for properties with leasing issues, although an increasing number of specialty lenders are looking to fill that niche. The volume of loan resolutions is growing as banks get healthier, but the pool of overleveraged loans that are being extended rather than refinanced remains massive.

 

• After two strong years of appreciation, REIT stocks are relatively pricey, but there is upside if earnings growth is robust. Access to capital is once again a strong point for REITs, which are on pace to raise more than $50 billion of debt and equity for a second straight year. REITs are looking to use that capital for growth through property purchases and mergers. The first quarter alone produced $26.4 billion of announced M&A activity, which already makes it one of the most active years in industry history.

 

 

Buddy Budiansky, CCIM and Ron Frederick, PA are commercial real estate professionals specializing the sales and leasing of properties in the Daytona Beach, Ormond Beach, Port Orange, Florida area. Email them at info@buddyandron.com

2011 So Far Has Been a Blur…

The clock struck midnight on December 31st, 2010 and there was a mad dash in the commercial real estate arena! OK, so it hasn’t happened exactly that way, but it sure feels it. Where did January, February and March go? For us; we’ve been listing properties, leasing properies and selling properties…it’s GREAT!! Our assistant still hasn’t come out from all of the paperwork, and we’re not done.

We listed:

44,713 sq ft High Traffic Shopping Center – 2242 SR 44, New Smyrna Beach – 3,000,000

33,478 sq ft Retail/Showroom with Warehouse – 2240 SR 44, New Smyrna Beach – $6 psf NNN

3,235 sq ft Retail/Showroom/Office Space – 2240 SR 44, New Smyrna Beach – $11 psf NNN

1,000 sq ft Retail/Office Space – 2242 SR 44, New Smyrna Beach – $14 psf NNN

65,000 sq ft lot with Restaurant Building For Sale – 195 W Granada Blvd & Britain Ave. – $900,000

43,000 sq ft lot with Restaurant Building For Sale – 195 W Granada Blvd – $1,100,000

22,921 sq ft Commercial Lot For Sale – Britain Ave. – $280,000

2,500 sq ft Flex Warehouse Space w/Office For Lease – 460 Lpga Blvd., Unit E  – $1,000

Five Unit Investment Property – 460 Lpga Blvd For Sale- $350,000

Office Suite with Five Private Offices, Plus for Lease – 2435 S Ridgewood Avenue – $1,100

Beautiful Showroom/Office Building For Lease – 566 Ballough Rd – $5

Beautiful Showroom/Office Building & Vacant Lot For Sale – 566 Ballough Rd – $500000

2.3 Acres Commercial Land w/Building – 357 Sunset Drive For Sale – $275,000

4,750 Sq Ft A/C Warehouse – 970 N Clyde Morris Blvd. – $7.00 psf Annual NNN

…And this is just what we’ve listed…

Buddy Budiansky, CCIM and Ron Frederick, PA are commercial real estate professionals specializing the sales and leasing of properties in the Daytona Beach, Ormond Beach, Port Orange, Florida area. Email them at info@buddyandron.com

New Businesses Come to the Daytona Beach Area

Image by Tjololo Photo via Flickr

We spend a lot of time and energy marketing our many commercial properties, and believe me, we really enjoy the paycheck that comes from our hard work.  But, it’s personally satisfying when we have a hand in helping businesses in our area purchase a property or move into a better space, or, in the case of the following companies, open up a new shop in the Daytona Beach, Ormond Beach, Port Orange area.

We wish the following business much success!

Orthodontic Specials of Florida
Located at 434 N. Halifax Ave, Suite 3, Daytona Beach, FL

Bayside Cooling, Inc.
1725 S. Nova Rd, Unit B-2, South Daytona, FL

Harvest Time International
3350 Ridgewood Avenue, Port Orange, FL

Dr. Janet Brown, Veterinarian
32 Caroline Street, Dixie Commons, North Ormond Beach Area, FL

Ace Gymnastics – Daytona, Inc.
1725 S. Nova Rd, Unit N-106, South Daytona, FL

Buddy Budiansky, CCIM and Ron Frederick, PA are commercial real estate professionals specializing the sales and leasing of properties in the Daytona Beach, Ormond Beach, Port Orange, Florida area. Email them at info@buddyandron.com

In Commercial Real Estate it Pays to ‘Sell’ to Everyone

Every Tuesday morning at 10:00 am you’ll find us in the corner conference room of our Daytona Beach office pitching our listings and discussing the changes in the Daytona Beach commercial real estate market with the ‘movers and shakers’ in our office. You’re probably thinking, “oh, you’re talking about an office meeting, how boring!” Well, yeah it’s an office meeting, and yeah sometimes it can get pretty boring, but just about every week something new comes from it.

Many real estate professionals mistakenly assume sending out a flyer to their co-workers is enough. They are really missing the boat not taking the time to ‘sell’ to their office. And by ‘sell’ I mean talk, face-to-face, about the property’s high points and advantages, ask questions about the buyers they are working with and help fit them to the property. More times then not a point comes up that gets the agents thinking about who they can show the property to.

Sure, there are times that we just can’t get the agents excited about a certain property, but isn’t from lack of trying.

Buddy Budiansky, CCIM and Ron Frederick, PA are commercial real estate professionals with Prudential Commercial Real Estate FL specializing the sales and leasing of properties in the Daytona Beach, Ormond Beach, Port Orange, Florida area. Email them at info@buddyandron.com