Darren Lizzack, MSRE Associate VP NAI James E. Hanson 201 488 5800 x104 This e-mail address is being protected from spambots. You need JavaScript enabled to view it More Info

What is a 1031 Exchange (Like-Kind or Tax Deferred) and Why Should You Care?

There are two fundamental reasons someone would purchase real commercial property. The first reason is because the tax code/law enables the property owner to depreciate the asset over time and thereby creating a tax benefit for the ownership. The general idea is that over time, the bricks and mortar of the building lose economic value because like everything else, wear and tear is caused naturally and in theory, you should not be able to sell the same bricks and mortar for the same price many years later after construction.

Darren Lizzack, MSRE Associate VP NAI James E. Hanson 201 488 5800 x104 This e-mail address is being protected from spambots. You need JavaScript enabled to view it More Info

Medical Office Real Estate Symposium- McGraw-Hill Conference Center- March 30, 2010

I had the privelage of sitting with a group of panelists at the Green Pearl Events Medical Office Real Estate Symposium on March 30, 2010. If you would like to view some of the panel discussions, please click here. If you would like to view my panel discussion, continue reading...

Darren Lizzack, MSRE Associate VP NAI James E. Hanson 201 488 5800 x104 This e-mail address is being protected from spambots. You need JavaScript enabled to view it More Info

Healthcare Bill Passes, What Now for Medical Office Buildings (MOB) and Professionals?

I had the privilege of attending and speaking at the Green Pearl Events Medical Office Real Estate Symposium on Tuesday, March 30^th 2010 at the McGraw Hill Conference Center in Manhattan. There were over 230 people from 171 firms who attended this well timed event shortly after the new health care reform bill had passed. While I do not want to focus on what happened at the event, I would like to share some of my thoughts after attending this great event. (Click here to view my panel discussion).

Darren Lizzack, MSRE Associate VP NAI James E. Hanson 201 488 5800 x104 This e-mail address is being protected from spambots. You need JavaScript enabled to view it More Info

New Jersey Commercial Real Estate Alliance Unveiled

I hope this message finds you well. I wanted to follow up with my readers this month after the New Jersey Commercial Real Estate Alliance (www.njcrea.com) has been publicly unveiled only one month ago. The concept of this specialized group has been well received from all the people I have spoken with during my travels and I wanted to use this opportunity to express some of the valuable tools that are now available to you and I highly recommend you tap into these resources if need be.

Darren Lizzack, MSRE Associate VP NAI James E. Hanson 201 488 5800 x104 This e-mail address is being protected from spambots. You need JavaScript enabled to view it More Info

Letter of Intent (Offer) to Lease Commercial Real Property

I hope you all enjoyed the holidays and I want to wish you and your families a prosperous 2010! Last month, I provided my readers with information on the Letter of Intent (Offer) to Purchase/Sell Real Property. With today’s stringent borrower requirements and increased scrutiny in the banking industry, more companies are steering away from purchasing commercial property and leaning towards leasing options as a good alternative. That being said, this month’s news article focuses on the letter of intent (offer) to lease real property. What are the most critical elements to consider when attempting to lease commercial space in today’s environment?

When you think about purchasing/selling real property, the biggest and most obvious thing that comes to mind is the sale price. While I would agree with you that this is very important, there are many other issues that should be carefully thought out when preparing a letter of intent (Offer to Purchase) commercial property. For the purposes of this blog, I will focus on some of the items that should be considered as you prepare your proposal to acquire real property.

During my travels this past month, I have been speaking to a number of professionals that have all agreed with me that during what is typically the busy season for commercial real estate transaction, activity is still moving extremely slowly! It is not to say that deals are not happening, however, most of the deal activity tends to be lease transactions due to the fact that banks are still proceeding with extreme caution, and your credit must be exceptional in order to take advantage of borrowing money today for commercial transactions. And most of the lease transactions today are typical of renewals, early renewals which Tenants are taking advantage of; Tenants have some leverage to renegotiate favorable terms and in some cases, take advantage of slight rental reductions. The savvy Landlords will do this all day long knowing that with so much vacant space on the market, coupled with decreasing rental rates, they are much better off keeping their existing tenancies and maintain long-term relationships with their tenants.

I know the last couple months, I have been providing a snapshot of the Commercial Real Estate market in northern NJ and I wanted to move away from it for this month’s “blog.”  I will discuss something that should grab the average reader’s attention more so than some of my past writings. I am also pleased to announce the unveiling of the Commercial Real Estate Alliance (www.njcrea.com), which is timed quite well given the growing trend of today’s social networking media; if you haven’t gotten on board with this, you are missing out on opportunities.  Up until now, my email blasts have been traditional in nature with respect to proving you, the reader, with information without having the ability to provide feedback and invite the thoughts and comments of others.  If you go to my company’s profile, you will find my blog page which will now host all these monthly “newsletters” as blog entries and I invite you to participate and provide feedback for not only for me, but for others to view and comment.

I hope you all enjoyed the end of summer and you spent your Labor Day doing something that will have created memories to last. With the onset of fall, I wanted to share some of my thoughts with you pertaining to the state of the economy today as we head into the fall season here in New Jersey. I am also trying to prepare you for the unveiling of the New Jersey Commercial Real Estate Alliance (www.njcrea.com) which I have been working with a team of professionals over the past year or so to bring to the forefront a wealth of information that you may tap into to help assist you with making informed real estate decisions.

This month’s Topics:

I. Commercial Real Estate- Industrial, Office, & Retail

II. Coming Soon- NJ COMMERCIAL REAL ESTATE ALLIANCE (www.njcrea.com)

I hope this email finds you enjoying your summer; I know it goes by quickly for all of us. I wanted to take this opportunity to briefly discuss the latest information as I am seeing things today with respect to each market sector, Industrial, Office and Retail markets. I am also going to share with you some of my general thoughts of where the commercial real estate arena is today and where we are heading. Lastly, I am going to introduce you to something I have been working on putting together with some friends for the past year and a half with the creation of NJ Commercial Real Estate Alliance (www.njcrea.com).