New York Real Estate Journal

Recognizing opportunities in the 2009 Long Island commercial real estate market ensures success

January 27, 2009 - Spotlight Content
Predictions, assumptions and the ever popular magic eight ball are an increasing trend in the commercial real estate market. Everyone has an opinion on the outcome of 2009 even though no one can truly predict what will happen in commercial real estate during the next year. We think investors and sellers are better off spending less time trying to predict the future and expend more time adjusting to the changes that will occur. Being prepared is the best strategy when navigating the ever changing world of real estate. How does American Investment Properties prepare? We stay connected with the market and our clients. Whether it's speaking to local and national lenders or local and national investors, American Investment Properties is consistently keeping a close eye on the real estate market. Regardless of your role in the market, our clients' needs are our top priority. Our job is to sustain profits for our buyers and sellers. This means recognizing opportunities in current real estate transactions. Although foreclosures and refinancing dilemmas have plagued the headlines of the residential sector, commercial real estate on Long Island has yet to experience these problems. Reanalyzing the market using the latest statistics and comparables allows us to bring our clients the latest opportunities directly from our long standing sources. Our in-depth quarterly reports keep our clients up to date on the recent sales prices to ensure they stay competitive with their own property sales and purchasing transactions. 1031 exchanges, retail, office and triple net properties, raw land, apartment buildings and mixed-use property opportunities are a pinnacle topic for our clients. Our experience, proficiency and skill separate us from every other brokerage on Long Island. Leveraging clientele relationships through cutting edge methods for communication allows American Investment Properties to match the needs of our buyers and sellers. A few examples of this include using technologically advanced resources to keep us connected every minute of the day to strengthen and extend our existing network of trusted contacts. Linkedin and other business networking engines allow us to keep in touch with every aspect of the business at the touch of a finger. Although 2009 has just begun, there are already several positive angles to consider. Grubb & Ellis's 2009 global real estate forecast supports American Investment Properties' views. Their forecast cites the many opportunities that will be available to investors this year. "Debt will be the hot investment type in 2009." Debt investments could be made at the property level with owners seeking to refinance their properties. More equity investments will be made as well in 2009 as investors holding an estimated $300 to $400 billion in institutional, private and offshore equity begin to deploy their capital in response to property prices. Local and federal governments are actively supporting loans for construction projects that are at risk of halting to a standstill. Many cities are lending millions of dollars to development projects in an effort to proactively counteract stalling the construction of billions of dollars worth of retail and office building construction. Despite contrary belief, banks are still lending on commercial properties. Although the lending criteria are being scrutinized more closely than before, deals are still being done throughout the commercial property spectrum. Our extensive understanding and expertise has allowed American Investment Properties to take part in the sales of $250 million in commercial property transactions throughout the Long Island area. Our in depth advice and long standing relationships with the top players in real estate has allowed us to leverage the industry for our clients. Our retail clients are benefiting from ongoing new construction efforts on Long Island. Foreclosures are not affecting the commercial sector and vacancies are being filled gradually. Banks continue to lend on quality properties and deals are being made every day. American Investment Properties is prepared for substantial growth, foreclosures and anything in between. 2009 is the year of opportunity. The outcome of 2009 lies in the hands of every owner and buyer on Long Island. So if you're noticing that your commercial real estate broker is taking the year off, give us a call. Ron Koenigsberg is the president of American Investment Properties, Garden City, N.Y.