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BUILDING & REALTY NEWS VOL 6 NO 7 SERVING WESTCHESTER AND THE MID-HUDSON REGION SEPTEMBER /OCTOBER 2007 Industry Panel: THE Commercial Sector Experiencing a Variety of Conditions HANLEY By Jeff Hanley, IMPACT Editor REPORT WHITE PLAINS The commercial real As we know, the large space users Fries noted that there continues to be estate market in the Westchester and of the 1980s are gone, he said. a variety of rent ranges in the retail leas- Mid-Hudson Region is producing mixed Lashins added that: ing arena. results, according to a panel of building Rents, based on his evaluations, are Were seeing rents of $60 per and realty industry members. approximately 20 percent higher than square foot in the Central Business Dis- The panel, speaking at the Septem- 20 years ago. trict area of White Plains, he said. Examining ber 20 General Membership Meeting of The regions Vacancy Rates have Rents of $35 to $45 to $50 are com- the Full Array of BRI the Building and Realty Institute (BRI), dropped, according to a report from mon along the Central Avenue Corridor said that the market is experiencing The Co-Star Group, an industry analy- (from the Westchester County Center in Events for Industry reasonably healthy conditions in the re- sis and information firm. Current rates White Plains to Yonkers). Members tail sector, but the same recent levels of are at approximately 10 percent, Both Lashins and Fries agreed that By JEFF HANLEY lukewarm activity in the office leasing Lashins said while quoting studies the retail sector is a better investment see page 2 arena. compiled by Co-Star. than the office leasing market. Ed Lashins of Lashins Development Cuddys assessment of the office Company of Armonk, Hank Fries of The Retail Scenario leasing market was in agreement with CO-OP Henry W. Fries Real Estate of White Fries termed the retail sector as a the evaluations of Lashins and Fries. Plains and William V. Cuddy Jr. of CB strong market, but one that has re- I expect this year to be on par with CONDO Richard Ellis of Stamford (Conn.) com- cently slowed down due to lending re- previous years, he said. posed the panel. The speakers deliv- strictions. Cuddy added that Fairfield County CORNER ered their assessments to more than 45 There is still a vibrant demand from (Conn.) is still an attractive destination industry members at the Crowne Plaza those in the retail area for land to build for the corporate sector. The desires of Hotel in White Plains. on, but banks have tightened their lend- financial service companies to be in the Lashins said that the office market is ing and developers, accordingly, cant Greenwich and Stamford areas are a alive and well, but that no significant in- get the money, he said. big factor in Connecticuts recent ability creases in leasing activity are expected As a result, construction activity in the to draw corporate users at successful in the near future. sector is at a dead halt, Fries added. levels. One, Two, Three Budget Time Is Quickly BRI Announces the Release of Its New Web Site Approaching! By HERB ROSE By Jeff Hanley, IMPACT Editor see page 2 ARMONKOne of the largest busi- The Building and Realty Institute of ness membership organizations in New Westchester and the Mid-Hudson Region York state has announced the release of its new web site. (BRI) last week unveiled the site, which COUNSEL’S CORNER The site, which has undergone a com- can be found at buildersinstitute.org or plete revision from the associations origi- nal web home, is now fully interactive, as- buildingandrealtyinstitute.org. sociation officials said. It contains full de- scriptions of the BRI and its affiliate said Ken Nilsen, president of the BRI. Formed in 1946, the association rep- groups, as well as the services and pro- We feel it will provide visitors to our site resents virtually every sector of the in- grams of each respective organization. with a complete description of our asso- dustry. The BRIs major affiliate organi- The pages also contain a calendar ciation, its affiliate organizations and zations are the Apartment Owners Ad- highlighting the BRIs upcoming events. the many services and programs we of- visory Council (AOAC), the Coopera- There are also links for those interested fer to members of the building, realty tive and Condominium Advisory Coun- in becoming a member of the BRI or its and construction industry. cil (CCAC), the Advisory Council of component groups. A link to IMPACT The BRI is a building, realty and con- Managing Agents (ACMA), the Home Newspaper and its past issues is also struction industry membership organi- Builders Advisory Council (HBAC) and available. zation with more than 1,700 members the Remodelers Advisory Council Were very excited about the site, in 14 counties of New York. (RAC). The BRI is based in Armonk. Realty Groups to Sponsor Oct. 11 Candidates’ Forum By Jeff Hanley, IMPACT Editor WHITE PLAINSTwo realty industry struction industry membership organi- members of the co-sponsoring groups An Update on Important membership organizations will be the zation with more than 1,700 members to voice their views on the major issues co-sponsors of an Oct. 11 forum featur- in 14 counties of New York state. The affecting our industry. Rulings For Both The ing candidates for seats on the West- WCBR represents more than 7,000 real The meeting will start with a recep- chester County Board of Legislators. estate professionals in the Westchester tion and a buffet dinner at 6:30 p.m. Co-op and Apartment The Building and Realty Institute and Mid-Hudson region. The program will begin at approxi- Building Owner Sectors (BRI) and the Westchester County The meeting will present the candi- mately 7:30 p.m. Board of Realtors (WCBR) are co- dates with an opportunity to deliver their Details on the conference will soon sponsoring the event, which is sched- views on the major issues of concern to be mailed to members of the sponsor- By KENNETH J. FINGER, CARL L. FINGER uled for a 6:30 p.m. start at the Crowne the local business community and the ing organizations. Those interested in and DANIEL S. FINGER Plaza Hotel in White Plains. realty industry, said Ken Nilsen, presi- making advance reservations can call see page 5 The BRI is a building, realty and con- dent of the BRI. In turn, it will also allow the BRI at (914) 273-0730. PAGE 2 - IMPACT - SEPTEMBER/OCTOBER 2007 CO-OP One, Two, Three – Budget Time CONDO Is Quickly Approaching! CORNER BY HERB ROSE and figure realistically. percent of the budget. Careful unpaid bills can not be in- Taxes are another story, planning is needed to cover cluded in a reserve set aside. making it prudent to budget an risks which could bankrupt the With an annual budget of additional 10 percent over last building, but there could be $1,000,000 (monthly $83,000), NEW YORKArtur Rubinstein, than 60 percent of the expendi- years bill. Taxes are always considerable economy in your reserve should be no less the fabled concert pianist, and tures are mandated and non- rising and certiorari refund pro- deductibles in coverage. than $332,000. One budget I Albert Einstein, the mathemati- negotiable. ceedings may help reduce the Energy and heating costs examined claimed a reserve cal genius and sometime violin- bite. Many municipalities have are another big bite consuming fund of $225,000, with ist, were attempting to play The Key Items added a garbage collection another 10-to-15 percent of the $250,000 of unpaid bills. Do the some intricate piece of music The mortgage and taxes are charge, which appears like operating budget. It is realistic maththats a negative one day. the largest single items and, more taxes. to budget last years cost, plus $25,000! Rhythmically, the piece was unless there is a new re- 10 percent to avoid running You can count! But you must somewhat involved, necessi- financing, this years into trouble. accept the fact that mainte- tating numerous starts and mortgage payment is Ten to 15 percent of the nance goes up each year, that stops. Finally, after many tries, the same as last years. You can count! But buildings running cost may be unemotional preparation for in- Rubinstein faced Einstein and Mortgage payments are you must accept the loosely categorized as discre- evitable expenses will dictate said: One, two, three, cant slightly complicated in tionary. Porters and janitors the quality of living space, and you count? that they include two li- fact that maintenance salaries fit into this grouping, care must be taken about new Yes, cant you count? abilities. as well as landscaping, inci- projects to alter your building. Budget time for preparing One is the interest on goes up each year, dental painting and building re- the 2008 budgets is fast ap- the mortgage and the that unemotional pairs. In the final analysis, a Herbs Hints: proaching. And, with the an- second is the reduction great deal of this expense may 1) Change those bulbs to guish and apprehension gen- in the loan (or principal), preparation for be unavoidable. the new energy-saving ones. erally felt, one would wonder which is called amortiza- inevitable expenses Cosco has them (8 for $10.50!) how much calculating is com- tion. Interest is calcu- The Trouble Areas 2) Change your Smoke and lated as an expense, mon. Although most buildings will dictate the quality Last, but not least, are the Carbon Monoxide Alarm Bat- while amortization is not! issue a mandated financial re- Budget-Bustersroof, eleva- teries with the change of the A $1 million dollar port, few are read and fewer of living space, and tor, boiler, oil tank, windows and clock on Nov.