From the Business Review:
Building owners are generally having more success filling office space, and their tenants are paying slightly more per square foot, according to a survey by CBRE-Albany.
The average office vacancy rate in the five-county region surrounding Albany, New York, was 12.7 percent in the first half of this year, compared to 13.5 percent in the second half of 2014, according to the CBRE-Albany, the largest commercial real estate broker in the area.
Asking lease rates varied from $16.77 per square foot in downtown Albany to $18.16 for Class A suburban space. The overall average for the region is $16.50, a 31 cent increase over the second half of 2014.
Read the rest here: CBRE-Albany reports decline in office vacancy rate in Albany, New York, area – Albany Business Review.
From the Business Review:
Slightly more than 1 million square feet of industrial space was filled in the first half of 2015 in the Albany, New York, area, dropping the vacancy rate to the lowest level since before the last recession, according to a survey by CBRE-Albany. The vacancy rate among 63.1 million square feet of industrial space was 7.3 percent, compared to 8.9 percent in the second half of 2014. The industrial vacancy rate hasn’t been that low since before the 2007-08 recession, according to CBRE.
The “GlobalFoundries effect” has led to historically high leasing rates and faster leasing times on buildings within 10 miles of the Luther Forest Technology Campus, according to CBRE-Albany.
According to Richard Sleasman, President of CBRE-Albany, a major factor driving that demand is that suppliers are now committing to leases that are five to seven years long, as opposed to the shorter-term leases that were common when the computer chip plant opened several years ago. Short-term leases make it difficult, if not impossible, for developers to get financing for new construction.
The tightness of the market also means tenants are paying more.
The asking lease rate in Albany County increased 32 cents per square foot, to $4.59 per square foot, and $1.18 per square foot in Saratoga County, to $6.69 per square foot, compared with a year ago.
The overall average asking lease rate for the Capital Region fell slightly to $4.09 per square foot, a decline attributed to space available outside the core four counties.
Read the whole article at: CBRE-Albany reports big jump in warehouse leasing in Albany, New York, area – Albany Business Review
According to the Business Review, the U.S. Census Bureau reports that multi-family building permits in the Albany MSA (Albany, Rensselaer, Saratoga, Schoharie, and Schenectady Counties) significantly exceed single-family permits by 1,400 to 597 in the first six months of 2015, suggesting that “millennials” prefer to rent rather than buy.
However, this data is based on only six months of activity and single-family could catch-up and exceed multi-family in the last six months of this year, as it did last year. Other studies show that just as many millennials want to buy a home as want to rent an apartment.
Regardless of the balance between multi- and single-family permits, the Capital District Regional Planning Commission says that multi-family is growing significantly with an average of 939 multi-family permits issued annually from 2011 to 2014, compared to 590 from 2007 to 2010 (Schoharie County excluded).
Read the rest of the article here: Albany, New York, region sees big jump in multi-family building permits – Albany Business Review
There’s a mouthful. Floccinaucinihilipilification. It means, according to Dictionary.com, “the estimation of something as valueless.” It’s one of the longest words in the English language. It’s a good thing I don’t often appraise property as valueless- I’d hate to have to pronounce the word in court. I’d have to play this link instead: Dictionary.com audio. Thanks to my wife, Susan Snowdon, for her alert word-sleuthing.
I must be busy if I haven’t posted in this long a time. Here’s a short video I found of Poke-O-Moonshine from Doug Millen. I’ve appraised in its shadow in recent years, so I thought it might be appropriate. (OK, I just like it.)
The Uniform Standards of Professional Appraisal Practice (USPAP) has at least one major change for the 2014-2015 Edition. The changes are effective January 1, 2014. The change that is most important to appraisal consumers is the change to available report types.
We have had, in the past, three report types: the Restricted Use Report; the Summary Report; and the Self-Contained Report. The Self-Contained Report was the most detailed of the reports and was mostly used for court purposes and some lending clients. The Summary Report included summary discussions of the appraisal process and was the most used and asked for report format. The Restricted Use Report contained little explanation of the appraisal process employed and was used in cases where the intended user had detailed knowledge of the appraisal process and the subject property.
The report options in 2014 are trimmed to two report types: an Appraisal Report and the very brief Restricted Appraisal Report.
The Appraisal Report report type is used when there may be multiple intended users of the report who may not have detailed knowledge of the subject property or the appraisal process. The level of detail in the report will range from the old Summary Report standards (minimum) to that of the old Self-Contained Report and is tailored to the needs of the client by the appraiser. The Restricted Appraisal Report option is used only when the intended user(s) are knowledgeable about the subject property and the appraisal process.
One part of USPAP has not changed: no matter the report option selected, the appraiser must still perform the appraisal according to a scope-of-work decision which will result in a credible report. Therefore, the Restricted Appraisal Report option may not result in a considerably lower appraisal fee, because the appraisal process must be performed regardless of the report length and level of detail. Those appraisers using commercial appraisal software to produce the report generally allocate little of their fee to the report, because it is much easier to let the software generate the report than to produce the report separately.
Here’s an excellent video explanation of the USPAP changes from Christopher A. Rolly, MAI, with Commercial Investment Appraisers in Orlando, Florida.
I’m happy to discuss the appropriate appraisal process and appraisal report options with you. Call me at 518-227-0011 or email me at email@example.com.
USPAP (Uniform Standards of Professional Appraisal Practice) is the set of federal regulations that all licensed and certified appraisers must follow. They are changed on some level every two years and knowing those changes is the responsibility of the appraiser.
As a Regional Adviser for New York State’s Department of State, I review appraisals for compliance to USPAP and have seen violations ranging from subtle to flagrant. You can count on my knowledge of USPAP when I prepare your appraisal.
Here’s a video explaining the history of USPAP by Appraiser Ambush.
I wish I had such talent…but I can explain USPAP to you!
English: University at Albany College of Nanoscale Science and Engineering Aerial (Photo credit: Wikipedia)
From the Albany Business Review:
The nanocollege is expanding its $17 billion Albany, NY research campus, constructing a new 31,000-square-foot building that will provide more classrooms and lab space for its growing student body.Tech Valley High School in East Greenbush, NY will move into that space for the 2014-15 school year. The move is temporary until its permanent home at the college is built.The SUNY College of Nanoscale Science and Engineering announced in February that the high school would relocate into its soon-to-be-built Zero Energy Nanotechnology (ZEN) building. More on that here.The Zero Energy building won’t be finished until 2015.
Read more here.
Thanks to Susan Golashovsky for the link.