Long Island economic data you can't afford to miss: New projects and ventures are on the horizon

As speculation continues about the outcome of the upcoming election and the current economic market, Long Island finds itself in a league of its own. Development and construction are proving the strength of Long Island's economic future. The real estate market is thriving with buyers who are creatively finding ways to continue purchasing properties despite the recent lending pattern of banks. Sellers in the current market are finding that placing their property on the market exclusively with one broker yields a high selling price. With about 80% of banks reported to have tightened their lending standards on commercial real estate loans over the past three months, buyers are developing strategies to prosper despite obstacles. Banks are diligently scrutinizing potential risk factors when lending in commercial real estate. On Long Island, risk factors are continuously being minimized by the rate of increase in retail rents. Rents on Long Island have shown a steady increase over the past few months. Buyers have proven their confidence in the local markets through their increase in all cash offers. In order to secure a winning bid on a property, buyers are skipping bank financing and bidding with all cash offers. More and more properties are being sold as a result of these all cash offers. This eliminates the need for bank financing and ensures a smooth transaction. Buyers are also looking more to sellers for financing rather than the bank. New projects and ventures are on the horizon for the fall and winter. In Wyandanch, confidence in Long Island's real estate market was confirmed by the town of Babylon who initiated rebuilding efforts with a recent purchase of $5 million worth of land on Long Island Ave. Plans call for the town to sell these properties to developers. The land occupies about 4 acres. Plans will call for office and residential projects to enhance the community's economy. In Glen Cove, the Glen Isle Project is well underway. Most recently, the Industrial Development Agency and Community Development Agency approved plans to redevelop Glen Cove's underutilized waterfront. The next step for the Glen Isle Project is to acquire approval from the city of Glen Cove's Planning Board. This will entail a review of environmental and other impacts of the proposed project including traffic, utilities and fiscal impacts. The people of Glen Cove will also have a chance to review the plans. Long Island's first solar energy generating company is being formed by a group of architects, engineers, and attorneys. Members of the Fortunoff family are backing the new venture, First Light Renewable Energy. Developing solar installation for commercial and municipal properties will provide long-term work and opportunities for local businesses. Property sellers are increasingly placing their properties on the market with one exclusive broker as opposed to an open listing. With an exclusive listing, a broker is able to dedicate the time and effort that is needed to attain the seller's desired price. Recently, I sold the Kikkert Plaza strip center located in Long Beach for $1.05 million at a remarkable capitalization rate of 5.4%. This price was attained through an exclusive agreement. The Zomick's shopping center in Cedarhurst was sold for $6.3 million or a near record setting price per s/f of $573. Another exclusive opportunity produced a sale price of $2.1 million or $313 per s/f for the West Village Green shopping center in Hicksville. These are all ideal examples of properties that were sold on an exclusive basis through American Investment Properties.        Commercial real estate remains resilient despite recent market changes. Although banks have tightened their guidelines, commercial real estate on Long Island remains competitive in every aspect. Rents are increasing, new development and construction plans are on the rise, as well as a growing increase in seller financing instead of bank financing. These are all indications of an aggressive and thriving commercial market. In the coming months we look forward to seeing the commercial sector of the real estate market prosper. Please check in with American Investment Properties at www.aiprops.com for the most current and up to date sale announcements, market news, and analysis. For all of your commercial real estate needs, please think of American Investment Properties. Ron Koenigsberg is the president of American Investment Properties, Garden City, N.Y.