Commercial real estate prices are steadily rising, which reflects a robust U.S. economy. When commercial properties are in demand, it shows that businesses are flourishing and businesses have confidence in the economy. Commercial properties can be retail establishments, office complexes, medical facilities, schools, warehouses, or multifamily housing units, as long as they are income-generating properties. Here are some recent noteworthy transactions in commercial real estate market.
Recent Sale of Brownstone in Brooklyn
According to the New York Times, there was a multi-million dollar sale of a mixed-use brownstone in Cobble Hill, Brooklyn. The specifics of this transaction include the following details:
The address is 212 Court Street (at Warren Street). The sales price was $5.5 million. Square footage of this building is 3,900. The buyer was 212 Court Realty L.L.C. The seller was John Scioli. The broker was Brian McDermott, of the Leventhal-Thompson Team at the Corcoran Group.
The newspaper article stated that this brownstone has retail space and two apartments contained in it. Since 1985, this property was the Community Bookstore, but there are plans to redevelop it. Brownstones are classics in American architecture, so it’s no wonder the above property sold at such a healthy price. The term brownstone refers to a type of brown sandstone used to cover townhouses in the 19th century.
Recent Lease Transaction in Manhattan
According to the same article, a property in Manhattan was leased to a Japanese Hair Salon owner. Hair salons are very popular in this fashionable city and include treatments such as haircuts, hair color, manicures, pedicures, massages, facials, and other spa services. The specifics of this deal include the following details:
The address is 178th Avenue (at West 21st Street). The annual rent is approximately $117,864. This breaks down to $157.15 per square feet. The 10-year lease has a five-year renewal option. The tenant has four rent-free months to complete a build-out. The previous tenant was a restaurant named Rafaella.
This property has 750-square feet on one floor, and a basement with the same square-footage. The new tenant’s name is Hiroin Hair Salon. The broker was Hiroko Onishi of Nezu Properties. The landlord is 170-178 Ninth Avenue L.L.C. and the landlord’s brokers are Howard S. Aaron and Margaret Royer of Square Foot Realty.
Lease Terms
Although the lease term on the above property was for ten years, lease lengths vary. The larger the tenant, the longer the lease usually is. For example:
- Office space ranges from 5 to 10 years.
- Retail space ranges from 5 to 10 years.
- Multi-family home leases generally last 1 year.
- Industrial leases average approximately 4 years.
These are just two of the most recent transactions that have occurred in the U.S. commercial real estate market. Many more sales contracts and lease agreements are in the works.
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