Commercial Real Estate and the Scary Stuff…..

So, it is Halloween week and it occurred to us that, just as we shiver in anticipation of that goblin around a dark corner, commercial real estate is not immune from the fear of uncertainty. Changes in the Capital gains tax and in the FASB rules for lease expense accounting are looming on the horizon. The uncertainty is what is scary. It appears that FASB will require conformance with the practice common elsewhere in the world – carrying of all lease obligations on a balance sheet. The capital gains tax requires some legislative and executive branch action to preserve current rates.

The good news is that this stuff need not be scary. Working with professionals in real estate, law and accounting, owners, buyers and lessees of commercial real estate can make informed, logical decisions based on current and anticipated market, legal and financial conditions. The market information is current and ready – NAI CIR just updated our Harrisburg Regional Commercial Real Estate Market Report.

NAI CIR Named Exclusive Listing Agent by Dauphin County General Authority for 230 acre Pennsylvania Golf course

Harrisburg, PA,  — NAI CIR, a leading Camp Hill, PA based commercial industrial real estate brokerage firm, has been named the exclusive listing agent for the sale of the 230 acre Dauphin Highlands Golf Course in Swatara Township.  Swatara Township recently re-zoned the entire course area.   

NAI CIR COO Robin Zellers and Jason Sourbeer are marketing this property on behalf of the owner, Dauphin County General Authority.

Strategically located at the Harrisburg East Exit (247) of the PA Turnpike, this links style course has been ranked with a 4 Star Rating by Golf Digest Magazine and as one of the country’s Top 100 “Must Play” Courses by Golf Link. The course averages approximately 35,000 rounds per year. While offered as an operating golf course, Dauphin Highlands offers valuable and flexible redevelopment opportunities

Swatara Township, home of Dauphin Highlands, recently enacted a new Mixed Use (MU) district zoning ordinance for the property. The new zoning classification is designed to accommodate multi- family and single family residential, office, commercial and light industrial uses.  

NAI CIR is Central Pennsylvania’s oldest and largest exclusively commercial industrial real estate brokerage firm. As the Central PA member firm of NAI Global, NAI CIR provides local expertise combined with global resources.

For further info contact Robin Zellers, rzellers@naicir.com, or Jason Sourbeer, jsourbeer@naicir.com. Find us on the web at www.naicir.com. PO Box 8910, Camp Hill, PA  17001, phone – 717-761-5070. 

Editors note: this announcement is not an indication of an impending purchase offer.

NAI CIR Clients….expect Trust…Loyalty …Service

At a recent NAI CIR sales meeting, our professional agents described why a real estate owner, tenant, or buyer should choose them…what sets them apart from competition. Interestingly, while NAI CIR focuses a myriad of resources on our platform and professional tool kit, those were not the focus of our agents’ strengths.

NAI CIR agents focus on trust, loyalty and service. We collectively take pride in our culture of trustworthiness, loyalty and unmatched professional service. Our platform and toolkit includes a comprehensive and current property database, best practice templates, systematic marketing programs and our NAI global reach (www.naicir.com).  While these tangible resources are valuable, it is important to learn that our agents recognize the real value to our clients.

We work in a highly competitive and confidential arena. This is a high risk business with high value consequences to our clients. We are fortunate to maintain strong, ongoing relationships with clients we have served for our 40 years in business. We respect their loyalty and understand our obligation to meet their requirements the right way. On occasion we will misstep and when we do, we must step back and focus on the critical factors necessary to our clients’ success…Trust…Loyalty….Service.

Harrisburg Commercial Real Estate Recovery?………….it’s all about jobs…….

Dr. Peter Linneman, NAI Global’s Chief Economist, just issued the Summer 2010 Linneman Letter. Dr. Linneman, who will be the featured speaker at the Central Pa. Real Estate Symposium in December of this year, is renowned as one of the nation’s leading commercial real estate forecasters. Read a summary of the Linneman Letter here:  http://www.naicir.com/portals/36/docs/pubdownload.pdf

For real estate recovery, Linneman says, it’s all about the economy….namely job growth. Recovery without job growth just doesn’t fill buildings. So, what can we expect here in Central PA? Over time, job growth (and job retention) in Central PA runs a bit ahead of national averages. Linneman projects steady job growth through 2013 at which time he suspects we will have balanced job losses since 2008.

For Harrisburg and Central PA, that seems to project ongoing job growth and further stabilization for the next 2 years. This means increasingly strong activity in our commercial real estate markets. Anecdotally, within the last 8 weeks at NAI CIR, we are seeing a greater number of transactions closing – both on the leasing and sales fronts. We believe the paralysis is over. Values appear to be adjusting, buyers are actively closing and tenants are moving. In Central PA, commercial real estate deals are getting done.

 (Hear Dr. Linneman’s live webcast July 21, 2010 @ 1:00PM @ NAI CIR offices. Call us for a reservation @ 717-761–5070 or email:   info@naicir.com

CENTRAL PA COMMERCIAL/INDUSTRIAL LAND SALES…… ARE CLOSING?

Within the last 2 weeks, we have taken a number of Central PA vacant commercial land transactions to settlement. The sales included retail land (16 acres), commercial land (14 acres) and industrial land (2 acres and 5 acres). Purchasers included users (retail and industrial) and speculative developers/investors (commercial). While we will absolutely not claim that the land market is back to 2005 – 2007 levels, closing activity is a strong indicator of the settling of values.

Land has always been an investment requiring a stout heart. Generally, successful land investors take a very long-term view of property appreciation. They understand that the real estate market will always cycle and expect that, over time, land values will always increase. Success in this long view requires strong equity positions.

Since 2nd quarter of 2008, Central PA commercial/industrial land sales have been few and far between. Developers, users and investors are now identifying unrecognized value in some of the land on the market (i.e. – properties that are priced right)…and jumping on it. This combination of value recognition and buying confidence is good news for Central PA.

Harrisburg Regions Ranks Top 5 in Forbes Most Livable Regions….

Forbes Magazine has ranked the Greater Harrisburg Region (comprising Dauphin, Cumberland and Perry counties) as the fifth most livable region in the United States. Forbes ranked 200 regions across the country using five metrics: unemployment, crime, income growth, cultural environment and cost of living. This news comes after last year’s Forbes ranking of the region as the nation’s fifth best region in terms of positioning to recover from the recession.

While on a local basis we are often focused solely on local challenges (e.g. – the City of Harrisburg’s debt crisis or the inability of state government, right in our backyard, to pass a budget in a timely manner), outside neutral observers see our region as a very livable environment with strong basic economic strength and opportunities for future growth.

Good news, now let’s work on maintaining that positive attitude.

NJ NAIOP Honors NAI Member

Peter O. Hanson, SIOR, Chairman of NAI Hanson, Hackensack, New Jersey was honored last night, Thursday May 13th, with the Lifetime Achievement Award by the New Jersey Chapter of NAIOP.

NAIOP honored Hanson for his many years of leadership in state-wide commercial industrial brokerage and national leadership as a founding member and former Leadership Board Chairman of NAI Global.

Robin Zellers, SIOR, of NAI CIR Harrisburg, and current Chairman of the NAI Global Leadership Board, attended with associates from NAI New York City and the NAI Global Special Asset Services Group.