Spring Back Into Shape

Submitted by J. Debes In many parts of the country, leasing activity at multifamily properties corresponds with seasonal changes due to climate (people don’t like to move in cold, snowy weather), the school year (most families move during the summer so as not to interrupt schooling), and holidays (typically slowest time of year for leasing).  Late spring and early summer naturally tend to generate the greatest amount of leasing traffic and is, therefore, the time when multifamily managers/operators should focus their efforts in preparing their properties for this prime season….

Now is a Great Time to Lock in Interest Rates

Submitted by A. Adams The availability of mortgage funds to finance commercial real estate and multifamily projects until mid 2007 was unlimited and the lenders were very lenient in their underwriting procedures.  When the real estate bubble burst in mid 2007, the lending market dried up and there were very few sources of funds available.  The funds that were available were all at very conservative underwriting standards. In the last few years, the financial markets finally have loosened to the point that almost all traditional lending sources have returned to…

Medicare Real Estate Tax?

Submitted by S. Leonhard Beginning this year, property owners now face a new 3.8% surtax that is part of the Affordable Care Act passed in 2010.This tax was introduced just hours before the final debate on health care legislation as a means of extending the life of the Medicare Trust Fund which is projected to run out of funding in just a few short years. While there is still guidance needed from the IRS, we do know that the tax applies to many forms of investment income including interest, dividends,…

Creating More Efficient Multifamily Communities

Submitted by S.Laraby Multifamily dwellings offer economies of scale that can provide cost savings for residents over single homes.  The same relationship exists for energy efficiency as small changes can add up to sizable cost savings as well.  The American Council for an Energy-Efficient Economy (ACEEE) and CNT Energy recently released a report outlining some efficiency benchmarks that can have a substantial impact on multifamily communities (Engaging as Partners: Introducing Utilities to the Energy Efficiency Needs of Multifamily Buildings and Their Owners). According to analysis provided by Energy Manager Today…

Medical Space Needs – A Leasing Perspective

Submitted by A. Smith Medical office tenants require a unique set of space requirements and lease terms.  Operationally, medical office tenants must play by a separate set of rules that govern how things like hazardous materials, biomedical waste, patient confidentiality, compliance with occupational safety standards, and facility conditions are monitored and managed.  All of these items need to be considered when entering into a lease for medical office space. Physically, medical office tenants will often need to make extensive renovations to any space they choose to lease.  Beyond simply finding…

Redevelopment Projects Make Good Sense

Submitted by D. Saperstone Recently, THE CABOT GROUP has become involved in the redevelopment and reuse of a center city property with significant historic and cultural value. The first development on the site, circa 1860s, was a church. Over the ensuing years, the church was demolished and became a prominent hotel. That use lasted until the mid-1960s. The hotel was subsequently razed and replaced by the country’s first enclosed shopping mall. As center city populations migrated to the suburbs, the indoor shopping mall no longer had a population to serve…