June 22, 2016
Recently, we published part of our list for our Guide to Office Leasing. Below is part 2!
6. What type of security deposit is usually requested? Is it negotiable? The most important decision a landlord makes is whether or not a proposed tenant is a good credit risk. A tenant that defaults costs the landlord substantial amounts of time and money as the space can sit empty for months while litigation proceeds. A landlord loses out on the investment they made when spending the legal, brokerage and build out costs. It is a no-win situation for all concerned so a landlord requests financial information from a tenant at the onset of the process. This could include tax returns, audited financial statements and credit reports. The landlord then makes a decision as to the desirability of the tenant and their ability to meet the lease obligations for the full term. This is then translated into a dollar amount that the tenant will need to post for the term of the lease that the landlord will retain in the event of a default. Once a landlord decides on a security deposit amount, they are rarely willing to negotiate. Since a landlord’s liability decreases the longer a tenant is in the space in good standing, occasionally they will agree to “burn down” some of the deposit over the term of the lease. This would take the form of a certain amount being released to the tenant after a specific amount of time into the lease. For example, one month’s security might be returned after two years, another month after four years, etc.
7. Will the landlord take my use? Don’t they have to? A commercial landlord has latitude as to what uses they will consider for their building. They need to consider the overall building tenant mix, impacts on the elevators and other building systems and other important factors. A commercial landlord is fully within their rights to decline any use that they do not deem fit for their property.
8. What concession do landlords traditionally offer? There are many factors that will figure into this decision. How long is the lease? What is the base rent? What is the financial standing of the tenant? How desirable is the tenant to the landlord? Concessions usually take the form of either free rent of a tenant improvement allowance (TI). The TI is granted to the tenant to be used towards the buildout of their space. This is usually outside of the Building Standard Workletter (see below) and would be used for upgrades such as extra interior glass, nicer flooring or possibly even interior plumbing. A rent abatement is usually granted to give a tenant time to wrap up the affairs at the previous place of business as they move in to the new space. This avoids a double payment of rent. It can also be used when a tenant is building out their own space and the landlord agrees not to charge them rent during the time period that the space really isn’t useable as a place to conduct business.
9. Does it make sense to have exclusive brokerage representation? This is a tenant-positive for a number of reasons. An exclusive broker has a “fiduciary” (a legal duty to act solely in another party’s interests) obligation to work in your best interests. Knowing that they are protected with an exclusive representation, a broker is able to dedicate substantial time to locating the right space without the fear of another tenant beating them to it.
10. What is a “Building Standard Workletter”? Can I upgrade it? The building standard workletter refers to the tenant improvement work that will be included in the final negotiated base rent. This would normally include the basics of an office installation: Walls, flooring, doors, ceiling tiles and lights, etc. The standard workletter would almost always provide for a basic turnkey space but many tenants elect to upgrade various components of the workletter. See item 8 above.
11. What if I need more space during the term of my tenancy? Can I move to a larger space in the building? Most landlords will do their best to accommodate a proven tenant if their space needs change but that option is totally dependent on what is available in the building at the time the tenant decides they need more (or sometimes less) space. It is important to remember that the original lease is a binding document that protects both sides. Just as a landlord can’t move a tenant out because the market would support a higher rent than the tenant might be paying at the time, neither can a tenant decide that they need to close up or move to another building while the lease is still in force. Landlords will occasionally entertain allowing a tenant to buy their way out of a lease but that is rare and can be expensive to a tenant. Once a landlord has a tenant in place with a binding lease, it is unusual to let them off the hook.
Ingram & Hebron Realty deals with all of these issues on a daily basis. We have assisted hundreds of tenants in the leasing of millions of square feet of office space. It would be a rare situation that we haven’t successfully dealt with.
February 16, 2016
Original post here
By Paula Katinas
Brooklyn Daily Eagle
The Bay Ridge Fifth Avenue Business Improvement District (BID) will have nearly $90,000 in additional funding in its annual budget now that Mayor Bill de Blasio has signed a City Council bill into law which calls for a budget increase.
The Bay Ridge BID is one of nine BIDs around the city whose budgets will increase under the law signed by de Blasio on Feb. 8. The Bay Ridge BID budget will go from$$338,000 to $427,000 a year.
The Montague Street BID in Brooklyn Heights is also among those that stand to benefit from the new law.
The City Council passed the bill on Jan. 19. The legislation, which de Blasio requested, was sponsored by Councilmembers Vincent Gentile (D-Bay Ridge-Dyker Heights-Bensonhurst), Julissa Ferreras-Copeland (D-Elmhurst), Margaret Chin (D-Lower Manhattan) and Deborah Rose (D-Staten Island).
Gentile voted in favor of City Council legislation to form the Bay Ridge Fifth Avenue BID back in 2006.
BIDs are public-private entities that are funded by property owners in a commercial area who agree to pay an added assessment on their real estate taxes. The funds are used to enhance marketing to promote stores in the BID area, street beautification, public safety, business development, capital improvements and community services.
The New York City Department of Small Business Services oversees the city’s BIDS.
The first BID in the U.S. was established in New Orleans in 1975.
Gentile said the Bay Ridge Fifth Avenue BID, which runs along the avenue from 65th Street to 85th Street and represents hundreds of stores, is highly successful.
“If you live in Bay Ridge, you know that Fifth Avenue between 65th and 85th streets is one of the main attractions and areas of commerce in our great town. The BID was established to maintain and amplify its presence in our community. Over the past decade under the leadership of Executive Director Patrick Condren and President Jim Clark, the BID has delivered on its goals. Whether it’s through popular events like the Fifth Avenue Festival, keeping our streets secure, clean and beautified, the BID has and will continue to expand, drawing visitors, evoking Bay Ridge pride and acting as a prime example for future BIDs in my district,” Gentile said.
Clark said the BID plans to use the new funding to host an outdoor “Taste of Fifth Avenue” street fair in June to promote the avenue’s restaurants.
February 10, 2016 – 1:48pm
October 2, 2015
December 15, 2014
Cushman & Wakefield is rumored to be close to purchasing investment sales and mortgage brokerage Massey Knakal Realty Services in its entirety for $100 million. A source with knowledge of the deal said the purchase should close today.
New York-based Massey Knakal had hired financial services firm Perella Weinberg Partners to sell either a 49 percent stake in it or the entire firm last month, according to previous reports.
A representative for Massey Knakal declined to comment on the sale. Via a spokesperson C&W said “Massey Knakal is one of the premiere real estate brokerage and advisory services firms, but as a matter of policy we do not comment on market rumors or speculation regarding potential strategic transactions.”
November 3, 2014
Brooklyn site renamed ‘NYU Langone-Cobble Hill’
By Mary Frost
NYU Langone Medical Center reopened a walk-in emergency department at the former Long Island College Hospital (LICH) in Brooklyn early Friday morning under a new name: “NYU Langone-Cobble Hill.”
Inside the refurbished facility, NYU Langone staff familiarized themselves with computer systems and made up observation beds.
Outside, protesters chanted, cried and hugged long-time LICH nurses and healthcare workers as they streamed out of the emergency room doors at the end of their final shift.
Read More HERE…
October 20, 2014
Earlier this week Brooklyn Heights Blog sat down with David Kramer, a principal of Hudson Companies, in their Greenwich Village offices. Hudson Companies was recently chosen by the Brooklyn Public Library and the New York Economic Development Corporation as the successful bidder for the Brooklyn Heights Library Redevelopment Project. by Michael Randazzo on October 18, 2014 10:28 am
March 7, 2014
Brooklyn’s Next Frontier
Know where Prospect/Lefferts Gardens is? No? You’re behind the curve. All the developers speaking at Bisnow’s recent Brooklyn New Development Frontiers event have multifamily projects in the works there, as institutional investors feed on Williamsburg and Downtown Brooklyn. Real Estate BISNOW
May 24, 2013
Brooklyn Nets fans poured into the area Monday night for the second game of the NBA playoffs, but most didn’t stop by nearby businesses on their way into the arena.
The promise of an influx of hungry ticket holders was part of the argument arena proponents used to push for the Barclays Center. And before concerts, new customers have materialized, with restaurants as far away as Clinton Hill and Carroll Gardens reporting a bump in diners.
Continue Reading Here…
April 5, 2013
The transformation of Fulton Mall from a Downtown Brooklyn den of cheap cellphone outlets and fast-food joints into a more upscale shopping hub is set to take a significant step forward Thursday with a deal to open a Century 21 Department Store.
The popular discount retailer would provide a high-profile anchor for the City Point development, a mix of mostly retail and apartments that is one of the largest projects under way in Brooklyn. It would be the first new traditional department store to open in Downtown Brooklyn since the area slid into decline in the 1970s.
By landing Century 21, developers said they would be able to break ground this summer on the bulk of the City Point development—675,000 square feet of retail and commercial space and 690 new market-rate and “affordable” apartment units at Dekalb and Flatbush avenues.
The deal—set to be announced on Thursday—could also potentially accelerate the timeline on a later phase of the development, a 680-foot-tall residential tower that would be the tallest building in Brooklyn. The developers, Washington Square Partners and Acadia Realty Trust, plan to break ground on the tower by 2017.
“We would not have moved forward without an anchor. Century 21 was what we really needed to make this project a reality,” said Paul Travis, project executive and president of Washington Square Partners.
Continue Reading here…
October 19, 2012
The Fulton Street Mall in Downtown Brooklyn has been changing rapidly in recent years, as national retail chains flock to the mall, a shopping strip that once housed local sneaker stores and jewelry repair shops.
The latest retailer to sign a lease is the furniture chain Raymour & Flanigan, which will occupy 28,000 square feet on the second floor at 490 Fulton Street. The store is scheduled to open in February. The discount department store chain Century 21 and H&M and T. J. Maxx also plan to open stores. Other national chains, including Gap, Áeropostale and Express, have opened stores along the mostly pedestrian mall, which stretches 17 blocks from Boerum Place to Flatbush Avenue.
“This will be the largest furniture store in Downtown Brooklyn,” said Scott Milnamow, a senior vice president of real estate development at Raymour & Flanigan. “We looked at a number of different neighborhoods, but we felt like the other national retailers are going to Fulton Street, and we wanted to be a part of that tenant mix.”
Other companies that are considering leasing property on Fulton Street Mall include Armani Exchange, Victoria’s Secret and Nordstrom Rack, brokers who have shown them spaces said.
“I’ve been doing deals on this street for 20 years, and only recently are we starting to see a real shift toward national retailers,” said Barry Fishbach, an executive vice president at RKF.
Spurring the change on Fulton Street is a growing student population, thousands of new residential units, millions of dollars in infrastructure spending by the city and several new hotels. The Downtown Brooklyn Partnership says Downtown Brooklyn houses 11 colleges, and hosts 100,000 office workers and 150,000 shoppers daily. In the last six years, 5,200 apartments have been built and four new hotels have opened with a total of more than 1,000 rooms.
Continue Reading Here…