Submitted by A. Smith
Industry experts are predicting that the commercial real estate marketplace will continue to recover slowly in 2013.  The modest uptick in job creation coupled with a limited supply of new space will continue to force vacancy rates down in all sectors...

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Submitted by J. Debes
In many parts of the country, leasing activity at multifamily properties corresponds with seasonal changes due to climate (people don't like to move in cold, snowy weather), the school year (most families move during the summer so as not to interrupt schooling), and holidays (typically slowest time of year for leasing).  Late spring and early summer naturally tend to generate the greatest amount of leasing traffic and is, therefore, the time when...

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Submitted by A. Adams
The availability of mortgage funds to finance commercial real estate and multifamily projects until mid 2007 was unlimited and the lenders were very lenient in their underwriting procedures.  When the real estate bubble burst in mid 2007, the
lending market dried up and there were very few sources of funds available.  The funds that were available were all at very conservative underwriting standards.

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Submitted by S. Leonhard
Beginning this year, property owners now face a new 3.8% surtax that is part of the Affordable Care Act passed in 2010.This tax was introduced just hours before the final debate on health care legislation as a means of extending the life of the Medicare Trust Fund which is projected to run out of funding in just a few short years...

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Submitted by A. Smith
Medical office tenants require a unique set of space requirements and lease terms.  Operationally, medical office tenants must play by a separate set of rules that govern how things like hazardous materials, biomedical waste, patient confidentiality, compliance with occupational safety standards, and facility conditions are monitored and managed.  All of these items need to be considered when entering into a lease...

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Submitted by D. Saperstone
Recently, THE CABOT GROUP has become involved in the redevelopment and reuse of a center city property with significant historic and cultural value. The first development on the site, circa 1860s, was a church. Over the ensuing years, the church was demolished and became a prominent hotel. That use lasted until the mid-1960s. The hotel was subsequently razed and replaced by the country’s first enclosed shopping mall. As center city populations...

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Submitted by J. Debes
With the single-family market recovering and new supply from development coming on-line, analysts believe the "name your price" rent increase environment of the past couple years will start to dissipate in 2013.  Most operators can consistently grow NOI when demand outpaces supply.  However, when markets become more competitive, seasoned operators can still deliver profits by focusing on operating fundamentals such as vacant unit preparation or resident retention.

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Submitted by S. Leonhard
Real estate is often used as part of a long term investment strategy to increase diversification and provide a hedge against inflation.  Historically, the real estate industry indexes have shown a low correlation with the return of stock and bond investments.  Well occupied properties with long term leases provide a very stable cash flow and can act like an annuity or similar low risk bond investment.

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Submitted by D. Saperstone
Twenty-five years ago, when I first entered the commercial real estate business, if I wanted to find a suitable parcel of land or potential office location  for a client, I drove around pre selected neighborhoods looking for “for sale” or “for lease” signs, stopping often to take notes. Landlords and property sellers relied on the same, time honored marketing strategy—put a sign in the window or near...

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Submitted by B. Hunt
1) What is Facilities Management?

Facilities management is a profession that encompasses multiple disciplines to ensure functionality of the built environment by integrating people, place, process and technology.

2)Distinguish between an organization’s core and non-core business and describe the relationship between the two.

All companies and organizations have a primary focus or mission. How the organization plans to complete its mission would be considered its core business. All supporting functions that help the organization focus on its mission could be considered non-core business.

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Submitted by J. Debes
New construction for 2012 should result in 55,000 units for the year, well below the average of 125,000/year of 2000-2009.  New construction for 2013 is projected at 130,000. Freddie Mac recently forecast demand of 1.7 million new multifamily renter households through 2015 due to decreasing homeownership.  A recovery in the single-family housing market may slightly damper demand for rental housing.  REIS projects vacancies to remain in the low 4 percent range through 2015. 

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Submitted by L. Phair
What was a trend in apartment living 20 years ago is not necessarily the same for today’s renter.  Besides a great price and beyond updated amenities and a convenient commute to work, a renter’s wants and needs are ever changing.  Here are just a few of the 2012 trends today’s renters are shopping for:  Pay Rent Online – Who uses a checkbook anymore?  More and more bills are paid via the internet...

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Submitted by B. Duchano
It's curb appeal that lures new residents, and makes it difficult for existing ones to leave.  Curb appeal is an essential element that property managers cannot let slide in an economic downturn and also as important under a more stable economy.  Curb appeal will boost your bottom line, reduce marketing costs and improve NOI.  You get a higher quality resident who stays longer. 

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Submitted by M. Drouin
As a means of increasing value, investors often look to boost rental income through deploying capital into upgrading apartment homes in their portfolio.  This strategy can work well in primary markets with relatively low capitalization rates.  However if you have exposure to assets in secondary and tertiary markets, relying on rental growth to optimize net operating income can be risky.  Furthermore, because these markets have a lower barrier to entry, operators plans for rental...

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Submitted by D. Saperstone
Now that the protracted and often bitter election season is over, we in the real world can get back to business. There are numerous signs that the economy is improving, though it is painfully slow and uneven across the country. Interest rates will surely remain low for some time to come, the unemployment rate will gradually come down...

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Submitted by J. Debes
Second quarter results for multifamily this year were very good leading analysts to project another banner year ahead for market-rate housing.

Q2 Results:

• MPF Research reported that effective rents for new leases grew 1.2% for the top 100 metro markets in the second quarter, a 4% increase from the prior year.  The company also reported an occupancy rate of 95.2%, up from 94.9% in the first quarter
• Rents in most parts of the country have past pre-recession levels
• Marcus & Millichap reported apartment sales volume of $24.9B in Q2 2012, a 39% increase from the prior year.  Average $/unit was $101K at a 6.2% cap rate

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Submitted by S. Laraby
THE CABOT GROUP is pleased to announce completion of the Bob Johnson Chevrolet facility on West Ridge Road in Rochester, NY.  Driven by the General Motors initiative to become a customer-driven organization, Chevrolet dealerships across the country have tuned up their facilities to accommodate their clients.

Submitted by B. Hunt
THE CABOT GROUP recently assumed financial management and lease administration responsibilities for a multi-building office complex in Rochester N.Y. The property has numerous leases, with the majority of leases being triple net.

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Submitted by M. Drouin
Core real estate asset total returns have been on a tear since 2010.  Total US property returns have achieved 13.1% to 14.3% in 2010 and 2011, respectively.  It appears that institutional investors have an appetite for more acquisitions, especially core multifamily apartment properties.  In light of this, asset owners and managers that manage core assets should position them for some opportunistic pruning and twist their equity into the clearly undervalued non-core assets.

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Submitted by B. Duchano
Investing in employees is key to ensuring their success and the success of the organization.  Especially in a down economy, investing in your employees through learning programs and mentoring shows them you are committed to their success.

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Submitted By J. Sarpulla
In this digital age, many properties are wielding an inexpensive digital camera in order to handle their advertising photography in-house.  The easy use of a digital camera, however, does not guarantee an ad-worthy photo. It’s surprising how often apartment community staff will post photos to advertising web sites that may be decent quality photos, but have very poor product presentation.

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Submitted by M. Ward
It’s no secret that the costs associated with resident turnover can be exorbitant. Recent studies estimates move-out costs hover around $4,000, which includes loss of rental income, advertising, concessions and turnover costs preparing the unit for occupancy. So, how can we as property managers encourage lease renewals and ultimately increase value through NOI?

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Submitted by L. Phair
With occupancies continuing to trend favorably in the Treasure and Space Coast of Florida one would suspect that delinquency rates would climb as well.  With record average occupancies going into Q3 at 97%, the average delinquency rate at the close of July 2012 was less than 0.5%.

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Recent Project Featured in the New York State Real Estate Journal (NYREJ)

THE CABOT GROUP recently announced the completion of Dorschel Automotive Group's new Mini of Rochester dealership

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Submitted by J. Debes
Some would say it's a golden era for the apartment industry.  With such strong fundamentals,  operators must resist the temptation to engage cruise control.  This business requires constant vigilance because it is a business comprised solely of details - hundreds of details. 

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Rochester, NY
THE CABOT GROUP has offered innovative real estate solutions for over 40 years.  The company's record of innovation continues today.  THE CABOT GROUP recently announced a municipal and not-for-profit facilities management division to help communities and community organizations reduce costs associated with managing local facilities.

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Submitted by S. Leonhard
Like many other industries, improvements in technology have led to dramatic changes in the capability of real estate property management software.  Many of these new developments can help improve the return...

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Submitted by D. Saperstone
For at least the past two years, we’ve all heard that the recovery is “just around the corner.” Pundits on both sides of the political and economic aisles continue to debate where we are on the journey to the mythical corner. Painting with the broadest of brush strokes, these purveyors of limitless statistical data...

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Submitted by D. Saperstone
By definition, commercial property is used solely for business purposes. A very broad generalization of “commercial property” but strangely accurate. Shopping mall, offices buildings, apartments, gas stations, hotels and industrial parks are all commercial properties and represent investment...

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Submitted by S. Leonhard
In December of 2011, the U.S. Treasury Department and IRS issued temporary regulations on the treatment of amounts paid to acquire, produce, improve or repair tangible property.  The regulations are effective for tax years beginning January 1, 2012.
Change in Accounting Method
The new regulations included significant changes from prior guidance, and many property owners will have to change their tax accounting methods to conform...

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Submitted by J. Debes
Marcus & Millichap recently released THE APARTMENT OUTLOOK for 2012.
Here are some interesting highlights from the report: The apartment sector has fully moved into an expansion cycle as defined by the broad based recovery in vacancy rates, rising rents, improved operations for Class B and C properties, and the start of a new construction cycle.
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REIS Reports details the top 10 and bottom 10 Apartment vacancy rates in the country.  Rochester, NY ranked among the top 10. 

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Submitted by S. Leonhard
If you have recently acquired or constructed real estate, or have made a significant renovation or remodeling investment, you have an opportunity to benefit from a Cost Segregation Study.  In addition to reducing your taxable income for a number of years...

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Submitted by S. Laraby

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Submitted by D. Saperstone
With the exception of human resources, the single largest  operating expense for most businesses is the cost of their real estate.  For those businesses that do not own the space they occupy, the cost to occupy that space is driven by the terms of a lease agreement. These  business owners are usually...

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Submitted by J. Debes
Often, Homeowners Associations engage a third party to provide them with a "reserve study" to determine what major maintenance related expenditures will the Association likely incur in upcoming years - roof replacements, asphalt replacements, siding...

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Submitted by A. Smith
You have just spent the last 3-6 months (or maybe 2-3 years) working with your Real Estate Advisor to establish a list of office space requirements, tour potential sites, review proposals, negotiate terms, get internal approvals, finalize lease documents and coordinate the details of construction and relocation...

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Submitted by S. Laraby
A Homeowners Association, commonly referred to as an HOA, is a corporation developed for the purpose of managing, marketing and maintaining a residential community.  The entity is typically created by the developers and ownership is transferred to...

Submitted by S. Leonhard
In certain situations where a company or individual is in default on loan obligations, such lenders or creditors may seek appointment by an authorized court of law of a Receiver to safeguard their interests.  The Receiver is an independent party to the foreclosure and reports to the court.  His responsibility is to...

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1) A broker is your gateway to commercial real estate and acts as your representative for all facets of the transaction. As a trusted advisor, a broker optimizes the process and maximize the value delivered to the client in many ways which is essential when embarking on such a complex endeavor...

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Submitted by S. Laraby
Robust projections for multifamily growth are fueled by many favorable conditions within the marketplace.  Limited vacancy of multifamily units, declining homeownership, favorable demographic trends and attractive government sponsored programs all fuel the trend toward this type of housing, for both tenants and owners...



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Submitted by D. Saperstone
Successful people love to hang out with other successful people!  There’s a certain energy that emanates when smart, successful business people talk about their businesses and the challenges they’ve overcome to make their respective operations winners.

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Submitted by J. Debes
Industry experts expect another strong year for multifamily in 2012, thanks to the same fundamentals that made 2011 a great year.  Creation of new rental households that accompanies job market revival, continuing preference of rental housing opposed to home ownership, thanks to weak for-sale...

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Submitted by S. Laraby
A new trend has emerged among universities, high schools, and even grade schools: administrators outsourcing facilities management/maintenance.  Many schools turned to outsourcing during the recession to minimize overhead and remain flexible in the changing market.  Outsourcing these services reduces costs but many have...

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Submitted by A. Smith
Whether owned or leased, a company’s real estate costs are often its second most significant annual expense, just behind its payroll commitments.  In order to confidently make decisions on matters that will have such a significant financial impact to the organization, a company will want to make sure that 1) due diligence has been completed on the requirements, opportunities and terms for an agreement and that 2) the financial details of an agreement are understood and supported from within the organization...

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Submitted by S. Leonhard

The Consumer Product Safety Commission (CPSC) is revoking its interpretation of the term "unblockable drain'' as used in the Virginia Graeme Baker Pool and Spa Safety Act (VGB Act)....

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Submitted by D. Saperstone

Submitted by A. Smith

Submitted by J. Debes

Submitted by S. Laraby

Submitted by G. Bryant
New York law permits commercial real estate brokers to represent both the buyer and seller (or lessee and lessor) relative to the sale (or lease) of a property, without the requiring the broker to notify both parties to the transaction of the broker’s dual representation.  This is analogous to an attorney attempting to...

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Submitted by J. Debes
While sovereign debt concerns and a slow growth cast a pallor over the state of the general economy, the commercial real estate (CRE) market, particularly multifamily housing, continues to shine. Several factors account for the resiliency of the multifamily market...

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Submitted by S. Laraby