Welsh Chester Galiney Matone, Inc.
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Brian Chester
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(973) 538-9246 x101
Website: www.wcgm.com
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Over the past 40 years, the principals of Welsh Chester Galiney Matone Inc. (WCGM) have built an extraordinary reputation in the field of real estate appraisal and consultation. Our company is distinguished by its unparalled experience and expertise, thorough understanding of all types of real estate, and ability to satisfy a client’s requirements anywhere in the country. While our firm is widely regarded as being the best in its field, we have never lost sight of the number one objective in every assignment we undertake: to exceed the expectations of every client.
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Written by Brian Chester
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Sunday, 18 April 2010 19:00 |
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We were perusing the latest copy of the Korpacz Investor Survey to see what inducements are being offered nationally by landlords hoping to attract tenants. It appears that some retail tenants are getting as much as a year free, with the average being in the neighborhood of four months. This was not the case as recently as one year ago. Strip shopping centers report that virtually all of them are potentially offering free rent, which is an eye opener on conditions.
The situation with respect to free rent being offered to office tenants is on a par with retail, although many were offering free rent last year. The current average being offered is four months, with the number being slightly higher in cities as opposed to the suburbs.
Free rent in industrial space was also offered as an inducement last year. However, the percent of landlords offering it has increased. In the case of warehouse space its availability has gone from 53% to 92% of landlords. As with office space, the average number of months is about four.
With respect to apartments, close to 100% report offering free rent, with the average length of time being 2.1 months in the middle Atlantic states.
Landlords are also offering tenant improvement allowances that can range as high as two to three times the average. Any inducement is on the table, from paying tenant’s moving costs to the occasional lease buyout. We frequently hear anecdotal evidence from New Jersey landlords and tenants. An appraiser who is attuned to the market can help advise you with respect to your particular situation.
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Last Updated on Monday, 19 April 2010 14:18 |
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Written by Brian Chester
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Friday, 20 November 2009 09:12 |
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How much work goes into an appraisal?
Quite a bit, actually. We personally inspect each property and photograph it. We maintain an extensive in-house database of comparable properties and stay up to date through our subscription to Costar Information Service. We also subscribe to multiple sources of information to obtain zoning, flood and tax maps and information, demographic data, and market trends. In most cases we perform a cash flow analysis with Argus and a replacement cost analysis with Marshall and Swift We analyze the neighborhood where the property is located as well as its employment trends. Because of the number of appraisals we have done in New Jersey alone, we have an enormous amount of market data and expertise to draw upon. Our staff includes 5 senior appraisers who are MAIs, a CPA as well as 8 staff appraisers and researchers. A typical appraisal done for mortgage financing can take from 30 to 40 hours to complete.
Appraisers, who must be licensed by the State of New Jersey, must take certain college courses, as well as 300 hours of appraisal training courses, 3000 hours of appraisal work, and must pass an exam in order to be licensed by the state. Holders of the MAI designation have more stringent requirements.
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Last Updated on Thursday, 04 February 2010 00:45 |
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Written by Brian Chester
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Friday, 20 November 2009 09:09 |
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What else can we tell you?
Because we are in constant contact with bankers, brokers, tenants and property owners, we are uniquely well-suited to let you know where you stand with regard to your real estate. All of the different property types are facing different kinds of pressures right now. Retail and apartments used to be perceived as safer than office or industrial properties, but substantial increases in unemployment combined with the wallop of losses in the value of stock and housing have kept people out of the stores, and have discouraged people from renting apartments. Office and industrial properties are experiencing increasing vacancy as everyone holds their breath for things to settle. If you have a vacant building that you do not know what to do with, or you are a tenant hoping to capitalize on the weakness in the market, we can advise you.
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Last Updated on Thursday, 04 February 2010 00:46 |
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Written by Brian Chester
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Friday, 20 November 2009 09:10 |
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I have heard that appraisers have three approaches to value. What does that mean?
Appraisers have three ways of valuing property. They can tell you the replacement cost under the cost approach. They can tell you what your property should sell for under the sales comparison approach. Both of these are familiar to anyone who has purchased a house. The last approach is the income approach. Under this approach, the appraiser figures out how much net income the owner ought to be able to make from the building, usually over a ten year period, as well as what the building would sell for after the ten years are up. Growth rates, inflation and present value are calculated with prevailing market norms to come up with the total income the property will generate over the ten year period, plus the amount gained at resale, all reduced to present value, which is the value of the property under this approach. The three values are then reconciled and a value estimate is given.
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Last Updated on Thursday, 04 February 2010 00:46 |
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Written by Brian Chester
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Friday, 20 November 2009 09:08 |
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How often should my property be appraised?
Previously, the Appraisal Institute recommended that commercial property be appraised at least once every three years. Just recently they have indicated their support for revisions to the Global Investment Performance Standards, which recommend that commercial property be appraised once every 12 months. The reasons given were to protect investors in this time of rapidly deteriorating market conditions. Real estate values are in flux as never before as we face higher unemployment, decreased demand, tighter lending requirements and bank failures due in no small part to falling real estate values.
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Last Updated on Monday, 30 November 2009 15:22 |
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