Local Real Estate Market Conditions and Trends.
The Flood of 2011.........Worst natural disaster to hit this community since the late 1930's. Thousands of people and 100's of businesses hurt.....it changes a lot of things........stay tuned.......Demolition of homes continues.
Student Housing: This is a solid market with SUNY enrollment at 17,000 and growing every year.
The talk of additional 1,000 student beds has not hurt this market. Several conversions talked about for Binghamton CBD, time will tell. Hm!!!! Binghamton should have embraced the student trade 30 years ago. It might not be too late. This brings to 23 the big projects in the works. Lots of smaller ones though. New dorms filling up. Some contraction here now, ???
Industrial: Over 5,000,000 Sq. Ft. of available space,not including IBM Glendale. Lots of old junk arround. Market not completely dead though. Some signs of life arround. We sold a 64,000 Sq Ft warehouse this year. Some big recent activity in Binghamton and Kirkwood......locals moving arround....BAE to IBM Endicott, and that is really good news. GE Westover history, 23 acres to ?????? Link in Kirkwood sold.
Central Business District: Johnson City is 40 % vacant with the SUNY Nursing New Program will make some difference. The Major Binghamton office buildings never achieved a reasonable level of occupancy, and the situation worsens. The new University Office/Classroom building has stirred some excitment.....we'll see where that goes. Endicott coming back slowly, but will never see the packed Washington Ave., Endicott of the early IBM period.. Midtown Center fire total gut and closed down the 10 story Press Bldg next door, now big law suit here and student conversion happening, IDA trying to get Old Library for their own use, and now going to SUNY Binghamton. Court/Collier new bldg and Collier/Hawley new bldg in news. CBD Bing East slowly picking up. Bing CBD is Student Conversion Area. Sheltered Workshop to VA.
Commercial: Scattered small properties arround beg to be sold or rented. The Big Malls have killed this market. Vestal Parkway begging for tenants. Several 1,000 to 2,000 sq ft users moving in. Sears,Macy, Gander, Binghamton K Mart, Kohl, history. Soon JC Penny???
Shopping Centers: Little news of anything on the horizon. "Everybody" like WalMart, for example, is already here. WalMart has opened a second store in Johnson City. That will kill the rest of Johnson City CBD. Vestal Parkway is still "Retail Number 1 " , but feeling the usual recycling pains as they reshuffle. New Price Shopper in Chenango Bridge, local residents cheer.We got lucky and sold 2 local centers this year. Ken Wilson after 5 years finaly sold and to be restaurants.
Investment: New York City has taken over our rental market. 95 % of the apartment sales in the last 7 years has been from down state. Some fallout already...foreclosures.....high expectations.....opps....just because you think you bought it cheap does not mean you got a deal. Some resales at less than the purchase price a few years ago. Local sellers were quick to catch on, and all prices are up in clouds now. Everybody the loser here(except the very first sellers and brokers that sold for all cash). The Buyer From Phila. that bought 93 properties has filed and has defaulted on all...what a mess....and he is not making it easy for the dozens of mortgage holders to come back in and clean up his mess. Lots of owners given up trying to sell. The foreclosures continue. We just sold a $1.2 M modern Apt project.
NNN INVESTMENT GRADE PROPERTIES: The few local properties that fall into this category, Walgreens, CVS, Advance, etc are sitting as cap rates rise and investors dig deeper into the underlying and wonder were we will be after this "Depression" is over. And, while they are digging and wondering, they are not buying. The 1031's are about the only action. National sales in this group are off 75% ......
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