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LIMBA May 7 Long Island Comm Real Estate Update
May 7, 2010 @ 12:00 am EDT
This meeting featured some "players" in the Commercial real estate field. They included Jack O’Connor of Newmark Knight and Frank, Marie Zere-Zere Real Estate Services and David Hunt-Hunt Corporate Services. Each person gave his openning remarks on the state of the economy as it relates to commercial real estate. Later we engaged in a lively conversational back and forth with the audience.
Jack O’Connor began with some illustrations of how the market in Suffolk County has deteriated in cost. The effect being that many properties were "under water" having a lower assessed value now than when the property was purchased. When asked "how significant a problem that was", O’Connor stated as long as revenues are sufficient to pay the mortgage it is less significant , but at the same time the businesses are hurting and many cannot meet their mortgage commitments. He gave an example of where a building was sold a couple of years ago for $150/sq ft was now being sold for half that amount. It wasn’t clear that this trend was going to reverse itself anytime soon.
Marie Zrere spoke next and while she was in general agreement with O’Connors remarks stated that reciting the present market conditions can lead to it becoming worse "A self fulfilling prophecy". Later in the program during Q&A she emphasized the importance of working with a broker no matter what the market conditions may be. According to Zere, there are no savings in going it alone, without a broker. The broker will be able to accomplish better outcomes having a more complete knowledge of the market.
David Hunt, who focuses on business in Nassau County gave us a somewhat more optimistic veiw. Nassau County properties have lost a much smaller percentage of their value than in Suffolk. Even with the high taxes in Nassau County there is still a high desire to purchase in Nassau. That really is good news for both counties. As Nassau holds its values there is a tendendency to support values in Suffolk.
There was a high degree of interest in this program judging by the turn-out and the number of questions from the audience. After we adjourned there were knots of people who connected with the speakers, and each other to continue the conversation.
Special thanks to our sponsors Belfor Property Restoration Services. In addition Tellers Chop House gave a door prize of dinner for two They also Gave a $24 coupon for lunch in promotion for their $24 Business lunch program to each person attending the breakfast. Teller’s other fine resaurants; Prime Steakhouse, Verace & H20
In the photo: Bill Miller M&T Bank, Jack O’Connor Newmark Knight & Frank, Marie Zere- Zere Real Estate Services, David Hunt- Hunt Corporate Services and Ernie Fazio, LIMBA