Residential foreclosures became a topic of national importance during the recent recession. While foreclosures of commercial property did not become a national issue, they take place on a regular basis in New York and around the country. When owners of commercial real estate face foreclosure by a lender, they should keep in mind that they do have rights under New York law.
The historic office tower at 230 Park Avenue, commonly referred to as the Helmsley Building, has been sold for $1.2 billion. The deal is one of the biggest Manhattan office building transactions in recent years. The 34-story building sits astride Park Avenue just north of Grand Central Station. The tower was constructed in 1929 by the New York Central Railroad Company and served as its headquarters for many years.
In New York City, lessors of commercial property typically expect some negotiation when they present a proposed lease to a prospective lessee. Obviously, the amount of monthly rent is one of the most critical terms. But base rent alone is not the only figure the potential tenant must consider. Commercial leases vary greatly in terms of which party is responsible for other costs including utilities, property taxes, maintenance and insurance. There are four basic types of commercial lease that handle these costs in different ways.
Renting commercial space in New York City can be a complex proposition. Whether you are looking for retail space, office space or industrial property, it is important to understand key lease provisions and negotiate terms that are as favorable as possible.
According to a recent news report, Canadian investors are buying heavily in U.S. commercial real estate, including at least one landmark property in Manhattan. Developers and pension funds from north of the border are reportedly looking to the U.S. market because the large Canadian pension funds have a tight grip on the domestic market, and comparatively few Canadian properties are being traded.
When a commercial property owner gets into litigation with a tenant, the expense can be a huge drain on the bottom line. Sometimes it takes a little outside help to resolve the situation and get back to making a respectable profit. For the owners of the International Olive Building, a landmarked structure at the corner of Broome Street and Mercer Street in Soho, that outside help came from Crown Acquisitions, who took out a 49-year lease to manage the building.
Lower Manhattan is becoming a popular choice for businesses seeking to relocate. Downtown's commercial property market recently saw a major deal finalized, as BNY Mellon signed a lease for 350,000 square feet of space at 225 Liberty Street, on the site of the former World Financial Center. BNY Mellon is relocating to the site from its old headquarters at One Wall Street.
A popular Lower Manhattan restaurant is suing its landlord, claiming the landlord is trying to drive it out of its space to make room for a more profitable tenant. P.J. Clarke's, part of a popular chain, has occupied the space at the former World Financial Center since 2006 and became a popular spot as the neighborhood recovered from the September 11, 2001 terrorist attacks.
The commercial real estate market in New York City is pretty hot right now, and the prices of commercial properties in the city are much higher than other major cities in the U.S. However, a new survey found that commercial property in Manhatten may be overvalued, according to Marks Paneth & Shron, a New York accounting firm.
The tech world has its sights set on New York City and more tech start-ups are moving to New York. With the increase in tech jobs moving to New York, more commercial properties are being required to update their Internet connections.