Development Sites & Your High Vacancy Rates
Managing uncertainty and unforeseen circumstances are a constant part of a real estate developer’s purview. One year ago, many of us would never have envisioned, let alone underwritten, today’s reality of a 25% vacancy rate in prime market-rate buildings along with a collections rate of only 70%. At STRATCO, we believe that risk mitigation is a staple of day-to-day operations.
While the 2019 legislative changes were a major destabilizer in the NYC RE industry, the COVID-19 pandemic has created far greater collateral damage. Land prices have plummeted over 40% in certain areas, while existing occupied buildings are now trading at discounts of up to 40% from the market peak. Amid the current pandemic, we are experiencing an exodus as New Yorkers looking to permanently relocate to less densely populated areas of the country.
RE developers with the “resiliency advantage” have cultivated various, successful business plans. Their agility and attentiveness allow them to devise multiple ways to execute. Developers have leveraged STRATCO’s expertise to foresee potentially compromising projects and identify seamless business opportunities.
We want to work together with you on assessing potential sites, providing a projected success analysis, and project budget. Today's "dark spots” (vacant regulated units) are often paved with gold if you are able to have the foresight to execute a plan that can relocate ‘pieces to a puzzle’ that otherwise would not have come together.
STRATCO Property Solutions is the premier NYC advisory firm on handling complex rent regulatory and tenant relations matters. With advisory on over 7,000 cases and a combined team track record of 30 years, we have the solutions to navigate today’s troubled waters.
This week we interview David Goldfischer from Chaves Perlowitz Luftig LLP on lease renegotiation's, lease termination's, and proposed language to add to new leases.
Please reach out if you would like consultation on a current project.
Robert Sedaghatpour
646-760-9723
robert@stratcoproperty.com
