All Forum Posts by: Cason Acor

What is the nature of the business? A building with a 15 year lease will definitely be worth more than the same building with a 3 year lease, assuming the tenant is viable and rents are at market. 

By the sound of things, I can say the listing agent is probably a big reason why the building has sat on the market for so long. Your questions are fine. 

Can the space be easily retrofitted for cold storage? Warehouse with cold storage capabilities is was is exploding in demand right now because of the increased popularity of grocery pickup and delivery. That is what I would consider, especially in a place as densely populated as NYC. 

You can reach out yourself to the real estate departments of companies you would like to lease to, or you can hire a leasing broker/property management company to do it for you. 

In my market, the collection rate for office properties is still 95%+ across all classifications. The default rate has been MUCH lower than anyone anticipated so far. 

He’s most likely referring to purchase price. 

Is the rail spur still in operation? If so, there are tenants who will pay a premium for a build-to-suit with rail access. I have a client who’s been looking for a property with rail access for almost a year, and those aren’t very common. 

This raises red flags all over the place. First, you should notify his brokerage, then inform the local board of Realtors and whatever state body is responsible for real estate licensing. This is a clear breach of fiduciary duty and blatant negligence. 

This also raises serious questions for me about the agent’s experience and level of professionalism. As a commercial agent myself, there is NO WAY I would be giving my seller’s name out to prospective buyers, let alone addresses and social security numbers. This guy has no idea what he’s doing. 

Empty buildings are typically priced using a price per square foot. 

Which product type are you referring to?

Definitely not impossible to do tenant interviews. Get their contact info from the seller and call them. Ask them how the pandemic and shutdown is affecting their business. Do they have a lot of debt, or are they well capitalized? Can they still pay their lease? Do they have reserves? If so, how long can they last? All things I would want to know.