tag:blogger.com,1999:blog-19339474186324008742024-03-17T22:59:41.289-04:00NAI Norwood Group BlogFROM OUR DESK TO YOURS: Your source for commercial real estate news in New Hampshire and around the world.Norwood Grouphttp://www.blogger.com/profile/17652747194895055603noreply@blogger.comBlogger168125tag:blogger.com,1999:blog-1933947418632400874.post-49083370740958256902021-03-16T09:12:00.003-04:002021-03-16T09:28:41.765-04:00Emergency Rental Assistance Coming For Tenants And Landlords Affected By The Pandemic<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjEqfB-sV1URpgbgJmVjkyUeOyTtBVAhjoksXUIJgyyoS2UZ5J1t99WqTceFPM8Kjp55Ja2yUeNnpxaLRlmuRuoBNWI6GxRG40YFR02XqsuORklrZunI7okFWHxuL1DG8yoV8LQhfRCy4RT/s1600/sba-1.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="977" data-original-width="1600" height="245" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjEqfB-sV1URpgbgJmVjkyUeOyTtBVAhjoksXUIJgyyoS2UZ5J1t99WqTceFPM8Kjp55Ja2yUeNnpxaLRlmuRuoBNWI6GxRG40YFR02XqsuORklrZunI7okFWHxuL1DG8yoV8LQhfRCy4RT/w400-h245/sba-1.png" width="400" /></a></div><br /> Help is on the way for New Hampshire residents who’ve been
having a hard time paying their rent and utilities during the COVID-19
pandemic, and the landlords who’ve struggled to pay their mortgages. <p></p><p>Gov. Chris
Sununu announced the New Hampshire Emergency Rental Assistance Program (NHERAP)
on Thursday 2/24, with the aim to provide assistance to eligible residents of
the state who have had trouble paying their rent and utilities during the
COVID-19 pandemic. The program will be administered by New Hampshire Housing
Finance Authority with assistance from the Governor’s Office for Emergency
Relief and Recovery.</p>
<h2 style="text-align: left;">What is the NHERAP and who is eligible?</h2>
<p class="MsoNormal">For eligible households, the NHERAP will cover current and
past due rent as well as utility and home energy costs. To be eligible for
rental or utility assistance, at least one person in the household must have
qualified for unemployment benefits, had their income reduced, had significant
costs, or faced other financial hardship due to the pandemic. The household
must also be at risk for homelessness or housing instability, and meet certain
income requirements.</p>
<p class="MsoNormal">Tenants that meet the above hardship criteria may receive
assistance for a total of 12 months, which is available retroactive to April 1,
2020, through the date of the application. The applicant may also receive
assistance for the rent and utility expenses going forward.<o:p></o:p></p>
<h2 style="text-align: left;"><o:p> How the NHERAP will work, and how to apply</o:p></h2>
<p class="MsoNormal">Landlords and utility providers will receive payments
directly from the fund, on behalf of the household. With the tenant’s
permission, landlords may apply for assistance on their tenant’s behalf. The
amount of money renters and landlords will be able to get through the program,
and when they’ll receive the funds, will be determined on a case-by-case basis.</p>
<p class="MsoNormal">One possible issue for some tenants and landlords though, is
the fact that the relief provided by the program will be capped at 80% of the
median income determined by region by the U.S. Department of Housing and Urban
Development. While the exact figure for 2021 are still to be calculated, in
2020 the HUD region that included a majority of the seacoast, labeled the
Portsmouth-Rochester NH region, had a median family income of $102,800.</p>
<p class="MsoNormal">The NHERAP application information, as well as full program
guidelines, were made available March 15, 2021 at <span class="MsoHyperlink"><a href="https://www.nhhfa.org/emergency-rental-assistance">nhhfa.org/emergency-rental-assistance</a></span>.</p>
<p class="MsoNormal">With more relief coming for tenants and landlords who have
had to deal with a year full of uncertainty and stress, both groups will
hopefully be able to relax, at least a little bit, as we hopefully head towards
the end of this strange time.<o:p></o:p></p>Norwood Grouphttp://www.blogger.com/profile/17652747194895055603noreply@blogger.com1tag:blogger.com,1999:blog-1933947418632400874.post-42914567305979685752020-11-19T10:28:00.001-05:002020-11-19T10:33:54.565-05:00How Presidential Elections, and Transfers of Power, Affect Commercial Real Estate<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi0xhDRRJFVa4XclKGqClJjOdEsEPQYGblMMzjusWIEDePjhsdH0Otkwx98xdvEsaSWFb0PATH1rejh4fMQiAuhnMC4c1n0r80qHRZVxLTLVOUGX2WGAL0kv_9AiuFBoTjjhH472mxR3oz5/s612/vote+stock+photo.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="406" data-original-width="612" height="265" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi0xhDRRJFVa4XclKGqClJjOdEsEPQYGblMMzjusWIEDePjhsdH0Otkwx98xdvEsaSWFb0PATH1rejh4fMQiAuhnMC4c1n0r80qHRZVxLTLVOUGX2WGAL0kv_9AiuFBoTjjhH472mxR3oz5/w400-h265/vote+stock+photo.jpg" width="400" /></a></div><p>With the election in the rearview
mirror, and a new administration set to takeover operations at 1600 Pennsylvania
Avenue in January, it’s time to look ahead. But, one topic we wanted to explore
that was relevant in the run up to the election, and should still be relevant
now as we transition to a new administration, is what effects a presidential
election has on commercial real estate.</p><p class="MsoNormal" style="line-height: normal;"></p><p class="MsoNormal" style="line-height: normal;">
</p><p class="MsoNormal" style="line-height: normal;">During election years, it’s not
uncommon for many investors to adopt a “wait and see” position due to the
uncertainty of a new administration’s, incumbent or otherwise, impact on trade
policies, interest rates, and tax law. Beyond the fear of the unknown, a new
administration, Republican or Democrat, doesn’t necessarily lead to chaos
within real estate markets. There may be, though, new policies put in place
that could affect valuations and overall return on investment of commercial
real estate property.</p>
<p class="MsoNormal" style="line-height: normal;">The four things most likely to be
affected by a Presidential election are:<o:p></o:p></p>
<p class="MsoNormal" style="line-height: normal; margin-left: .25in;"></p><ul style="text-align: left;"><li>Cap Rates</li><li>Tax Laws</li><li>Trade Policies</li><li>Appreciation
Rates</li></ul><p></p>
<h4 style="line-height: normal; text-align: left;">Cap Rates</h4><p class="MsoNormal" style="line-height: normal;">A <a href="https://www.investopedia.com/terms/c/capitalizationrate.asp" target="_blank">cap rate</a> is a tool frequently
used to indicate “the rate of return that is expected to be generated on a real
estate investment property. This measure is computed based on the net income
which the property is expected to generate and is calculated by dividing net
operating income by property asset value and is expressed as a percentage.” Low
cap rates indicate the overall risk assessment and return on investment (ROI)
are low, while high cap rates indicate high risk and high return.</p>
<p class="MsoNormal" style="line-height: normal;">Normally there are multiple
factors that can affect cap rates, but during an election year there is the
added variable of changes in interest rates as a new administration could cause
rates to fluctuate. There is also the added risk, or reward, of the market
reacting to new policies, which could affect available inventory.</p>
<h4 style="line-height: normal; text-align: left;">Tax Laws</h4><p class="MsoNormal" style="line-height: normal;">Depending on which party has a
majority in Congress, it is not uncommon to see changes or updates to current
tax laws when a new administration comes in. When looking at laws that affect commercial
real estate, the ones which could have an impact pertain to credits,
deductions, and liabilities. Tax laws can be a double edged sword when it comes
to commercial real estate, as new deductions could make a property an even better
investment, while an increase in tax liability when a property is sold will cut
down on the net profit the seller makes. As of this writing there is projected
to be a divided, or at the very least balanced Congress, which makes it harder
for either party to affect change for tax policies affecting commercial real
estate.</p>
<h4 style="line-height: normal; text-align: left;">Trade Policies</h4><p class="MsoNormal" style="line-height: normal;">While less likely to impact
commercial real estate, trade policies can affect different segments of the
commercial real estate market. Varied industries or regions can be disrupted by
changes in trade protocol with a foreign country, which could trickle down to
users and owners of commercial real estate.</p><h4 style="line-height: normal; text-align: left;">Appreciation</h4>
<p class="MsoNormal" style="line-height: normal;">Appreciation rates can be
affected by the uncertainty an election year brings, as commercial property
prices tend to rise slower in an election year as the market waits for the
election results. Historically, this has benefited property buyers.</p>
<h4 style="line-height: normal; text-align: left;">Other Potential Impacts</h4><p class="MsoNormal" style="line-height: normal;">What elections don’t do is upend
commercial real estate returns.<a href="https://commercialobserver.com/2020/10/biden-trump-commercial-real-estate-investment-returns/" target="_blank"> A recent report</a> which pulled National Council
of Real Estate Investment Fiduciaries Property Index data from the present back
to the 1970s, showed that ROI for institutional investors tended to do well
under both Republican and Democratic administrations, averaging better than 8.5
percent annually. The report shows that investors should focus on economic
cycles, interest rates, and developments in relation to COVID-19 to determine
property and leasing trends, and fundamentals.</p>
<p class="MsoNormal" style="line-height: normal;">The election, ultimately, won’t
have an immediate impact on the real estate market. While investment markets
will be affected, those effects will happen over the course of the
administration’s time in office, and will hinge on how policies affect spending
trends that drive growth and industry.</p>
<p class="MsoNormal" style="line-height: normal;">That doesn’t mean industry
professionals aren’t watching the election closely, though. In a <a href="https://www.globest.com/2020/08/06/cautiously-confident-multifamily-waits-for-election/" target="_blank">survey conducted by Berkadia</a>, both investment sales professionals and debt
professionals said that the election was one of the most important issues
impacting multifamily. There is possibility for disruption in the multifamily
market if eviction moratoriums continue and there is no program put in place
that backstops landlords.</p>
<p class="MsoNormal" style="line-height: normal;">While we could see changes to the
1031 Exchange program and the Opportunity Zone program under the Biden
administration, the long-term effects won’t be felt for a few years, until we
see how the market reacts to the laws and policies the new administration puts
in place. Regardless of political leaning though, investors should feel
confident that their commercial real estate investments should perform well, no
matter which political party is in charge.<o:p></o:p></p><br /><p></p><p></p>Norwood Grouphttp://www.blogger.com/profile/17652747194895055603noreply@blogger.com0tag:blogger.com,1999:blog-1933947418632400874.post-89310434570222156542020-09-24T12:10:00.006-04:002020-09-24T12:10:48.554-04:00CDC Outlines New Ban on Apartment Evictions<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEisicQcmRfw974xrIMOHjjwDrZv9ODfWIPqecDyIHA9XU8cjjMJ_oJEyGHwoaflOAawli4BCVrf5wA45xAAnvDI-Wt9-xtmCySXnAwVFOGxT1zZlgtHESAAKNWZ7re6nKEpq7svr-stmPuR/s1100/cdc.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="619" data-original-width="1100" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEisicQcmRfw974xrIMOHjjwDrZv9ODfWIPqecDyIHA9XU8cjjMJ_oJEyGHwoaflOAawli4BCVrf5wA45xAAnvDI-Wt9-xtmCySXnAwVFOGxT1zZlgtHESAAKNWZ7re6nKEpq7svr-stmPuR/s320/cdc.jpg" width="320" /></a></div><span style="font-family: Arial, sans-serif; font-size: 12pt;"><p><span style="font-size: 12pt;">Earlier in the pandemic tenants and landlords may remember
layers of complicated executive orders which outlined when tenants could be
evicted for non-payments. At a federal level the evictions were for all apartment
tenants whose landlord’s had a federally backed loan that lasted until the end
of July of this year. On top of that, in New Hampshire, an eviction ban for all
property types ran through June.</span><span style="font-size: 12pt;"> </span></p></span><p></p>
<p class="MsoNormal"><span style="font-family: "Arial",sans-serif; font-size: 12.0pt; line-height: 107%;">Under both of these programs it was noted that the rent
money was still due even though there was an eviction ban in place.<span style="mso-spacerun: yes;"> </span>However, there was concern that tenants who
were in economic trouble would see their rent accrue and be faced with a lump
payment at the expiration of these moratoriums. To combat this, Governor Sununu
used some of the CARES Act funding to put direct payments into the hands of
tenants who found themselves in these situations. The total funding amount was
$35 Million, with just some of those funds making it out as of September.</span></p>
<p class="MsoNormal"><span style="font-family: "Arial",sans-serif; font-size: 12.0pt; line-height: 107%;">Now <a href="https://www.unionleader.com/news/national/cdc-issues-sweeping-halt-on-residential-evictions-to-combat-virus/article_7446a653-8a37-50d1-92a1-b3a45c57b37f.html" target="_blank">another moratorium from the federal government has been issued</a>. This time from the CDC, which outlines that tenants of apartments
cannot be evicted for nonpayment alone. It only applies to tenants who earn
less than $99,000 individually or $198,000 jointly. Additionally, they have to
illustrate that they have exhausted all other assistance opportunities and that
their inability to pay is based directly upon COVID. Much like the other
eviction bans outlined above, this new program does state that the rent is still
due.</span></p>
<p class="MsoNormal"><span style="font-family: "Arial",sans-serif; font-size: 12.0pt; line-height: 107%;">This program is still new and it will take time to work
out. Based upon what we are hearing, there are various housing groups lobbying
around the order, which may result in further modifications or legal
challenges. In the short term the ban is in effect and landlords should read in
detail prior to taking any action against any tenant. <o:p></o:p></span></p>Norwood Grouphttp://www.blogger.com/profile/17652747194895055603noreply@blogger.com0tag:blogger.com,1999:blog-1933947418632400874.post-16546069309316776552020-07-23T15:05:00.000-04:002020-07-23T15:05:18.460-04:00What The Results Of The NH Business Resiliency Survey Mean For Commercial Real Estate<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjhUwKjLmw82BPR3Y5dQhcYu67drszlaRGyUb8xz1n4emtHhzUU23X5LVAVwHrxHW8L2k2d1C8ws7-w0Ad_rK-UILi44dT_kLc71hsjjPjTeAlFDEBsRnTZf-dK3akb97smiMSii6v1IkTb/s512/biz+owner+stock.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="328" data-original-width="512" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjhUwKjLmw82BPR3Y5dQhcYu67drszlaRGyUb8xz1n4emtHhzUU23X5LVAVwHrxHW8L2k2d1C8ws7-w0Ad_rK-UILi44dT_kLc71hsjjPjTeAlFDEBsRnTZf-dK3akb97smiMSii6v1IkTb/s320/biz+owner+stock.jpg" width="320" /></a></div><p class="MsoNormal">In June, the University of New Hampshire Survey Center
worked on behalf of the NH Small Business Development Center to conduct a
survey of over 1,500 small businesses in New Hampshire. The survey was
distributed through over 50 business organizations throughout the state, and
the highlights can be found here <span class="MsoHyperlink"><a href="https://www.nhsbdc.org/2020surveyresults">https://www.nhsbdc.org/2020surveyresults</a></span>. The questions asked in the survey were specific to the economy and COVID-19. </p>
<p class="MsoNormal">We wanted to share our thoughts on the results, as it
impacts commercial real estate.<span style="mso-spacerun: yes;"> </span>Let us
start with the more empirical data from the survey, as questions relating to a
business owners belief or concern can be heavily swayed by many subjective
items.</p>
<p class="MsoNormal">Employment is a key driver of real estate consumption. For
office space, a full time employee will need 200 to 300 square feet of space in
an office environment, though there is less of a clear correlation in the
retail and industrial markets.<span style="mso-spacerun: yes;"> </span>In
February of this year a similar survey noted that all businesses in the data
set averaged 22 employees, while the June survey resulted in 18. However, a
positive sign is that the decline in employment was centered on only 40% of the
businesses surveyed.</p>
<p class="MsoNormal">The suggestion from this correlates with the essential/non-essential
data. Just over half of all of those surveyed were deemed non-essential. These
were a wide range of retail, hospitality, and some service businesses.<span style="mso-spacerun: yes;"> </span>It remains to be seen, but it appears that
the steep decline in employment was centered on the non-essential businesses
within the retail facing world. Largely speaking, office employment appears to
remain steady.<span style="mso-spacerun: yes;"> </span></p>
<p class="MsoNormal">In addition to employment data, the survey also drew
inference on businesses ability to meet their other commitments, such as paying
rent. Close to half of all businesses surveyed claimed their revenue dropped by
50% or more. What is alarming is a majority of the businesses surveyed were
unable to defer or modify any payments to vendors, such as landlords. Clearly
this would create a huge imbalance that is not a surprise to anyone.</p>
<p class="MsoNormal">To reclaim these lost revenues, businesses sought new funds
from various services to meet obligations.<span style="mso-spacerun: yes;">
</span>Of the relief programs supplied by the Federal Government or the State,
the Payroll Protection Program was utilized by 60% of all of the businesses,
the Main Street Relief was used by about 40%, and the Economic Injury Disaster
Loan was used by about 25%.<span style="mso-spacerun: yes;"> </span>To get into
the numbers, it appears that food service and hospitality were more likely to take
out the EIDL Loans or the Main Street Relief Funds. These are the same
businesses who were more likely to have their employees go onto unemployment
while their businesses were deemed non-essential.</p>
<p class="MsoNormal">More subjectively, a majority of business owners feel that
the NH Economy will recover within the year. But, business by business, there
is concern about the forthcoming changes. A strong majority see work from home
being a key focus of their business planning, along with changing a physical
location. The data does not go into more specifics, but it is clear that we all
are looking at ways to be more flexible with our space. It remains to be seen
if this translates into a lower demand for office square footage.</p>
<p class="MsoNormal">Of note on the retail side would be that close to two thirds
of all respondents see the need for curbside pickup and the same amount for
delivery. In a practical sense, what will that mean for civil engineering
moving forward? Do we need new lanes and parking spots to accommodate the quick
in and quick out that these concepts demand?</p>
<p class="MsoNormal">The data is always to be taken for the snap shot it is.
Commercial real estate is slow moving, as leases, purchases, and developments
take time. It remains to be seen how these statistics will impact the details
of the commercial real estate deal.</p>Norwood Grouphttp://www.blogger.com/profile/17652747194895055603noreply@blogger.com0tag:blogger.com,1999:blog-1933947418632400874.post-62707125535714552722020-06-25T10:59:00.000-04:002020-06-25T10:59:28.609-04:00Major Changes Coming To Rental Property In New Hampshire On July 1st<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhY4pxR-1h31KR_K6ue8dduHERowztyrjtEkDDESrYU3HKI1xbLwF6G8f6fP1Tl664KSo9uNA1skTbY9m5VQcmTBH3grL92jiVeBVbBY2HE1y_LMCwcRg3I8SMp4hog9AD8Nonry3fG_UoS/s1600/rental.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="420" data-original-width="640" height="210" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhY4pxR-1h31KR_K6ue8dduHERowztyrjtEkDDESrYU3HKI1xbLwF6G8f6fP1Tl664KSo9uNA1skTbY9m5VQcmTBH3grL92jiVeBVbBY2HE1y_LMCwcRg3I8SMp4hog9AD8Nonry3fG_UoS/s320/rental.jpg" width="320" /></a></div>
<div class="MsoNormal">
<span style="font-family: "Arial",sans-serif;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: "Arial",sans-serif;">Beginning on
July 1 there will be major changes to the prior eviction stays in New Hampshire
that were put in place through Executive Orders earlier in the pandemic.
However, apartment tenants who have concerns about rent payment should be able
to access the new $35M fund that will be set aside for assistance. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "Arial",sans-serif;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: "Arial",sans-serif;">On the
apartment rental side, throughout the pandemic there has been some concerns
about payment of rent from both renters and landlords. While unemployment rates
have risen to historical highs, renters without jobs have been concerned about
payments. Offsetting these concerns has been an infusion of additional funds
from the federal government to increase unemployment benefits. The net result
has been that tenant defaults and rent contraction has yet to surface in a
major way. However, with the expiration of the expanded unemployment benefits,
there is concern of some folks losing their ability to pay. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "Arial",sans-serif;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: "Arial",sans-serif;">The CARES Act,
passed by Congress, also afforded each state with so called Flex Funds. New
Hampshire’s share was $1.2B, and it has been used for various COVID related
challenges. One recent announcement, was that Governor Sununu will be taking
some of those funds and directing them to housing assistance:<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "Arial",sans-serif;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: "Arial",sans-serif;">“<span style="background: white;">Governor Chris Sununu has authorized the
allocation and expenditure of $35 million from the CARES Act Coronavirus Relief
Fund (“flex funds”) to support families or individuals in need of housing
assistance as a result of COVID-19. Of the allocated $35 million, $20 million
will be initially expended, with $15 million being held in reserve, for rent
stabilization and housing support.”<o:p></o:p></span></span></div>
<div class="MsoNormal">
<span style="font-family: "Arial",sans-serif;"><span style="background: white;"><br /></span></span></div>
<div class="MsoNormal">
<span style="background: white; font-family: Arial, sans-serif;">The goal of the program is to provide assistance for those
folks who may not have the funds to pay, or may otherwise have back payments on
their apartments that they may need to clear up. More on the fund can be found
here:</span><span style="background: white; color: #222222; font-family: "Arial",sans-serif;"> </span><span class="MsoHyperlink"><span style="font-family: "Arial",sans-serif; mso-fareast-font-family: "Times New Roman";"><a href="https://www.goferr.nh.gov/covid-expenditures/new-hampshire-housing-relief-program">https://www.goferr.nh.gov/covid-expenditures/new-hampshire-housing-relief-program</a></span></span><span style="font-family: "Arial",sans-serif; mso-fareast-font-family: "Times New Roman";">.
<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "Arial",sans-serif; mso-fareast-font-family: "Times New Roman";"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: "Arial",sans-serif; mso-fareast-font-family: "Times New Roman";">The goal is to have the funds and the distribution set up by
July 1, which coincides with the reopening of evictions.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "Arial",sans-serif; mso-fareast-font-family: "Times New Roman";"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: "Arial",sans-serif; mso-fareast-font-family: "Times New Roman";">On March 17, the Governor announced that he was putting a
freeze on evictions throughout the pandemic. While there were a narrow band
that could move forward, non-payment evictions were stopped. As a practical
matter, with the court system shut down, there was no channel for the process
to go through. This stay on evictions was for all asset classes. Office,
Industrial, Retail, and Apartments, were all collectively stayed on having
evictions. As of July 1 this is being lifted as a result of Executive Order 51.
More info on this can be found here: </span><span class="MsoHyperlink"><span style="font-family: "Arial",sans-serif;"><a href="https://www.governor.nh.gov/sites/g/files/ehbemt336/files/documents/emergency-order-51.pdf">https://www.governor.nh.gov/sites/g/files/ehbemt336/files/documents/emergency-order-51.pdf</a></span></span><span style="font-family: "Arial",sans-serif;"> <o:p></o:p></span></div>
<div class="MsoNormal">
<span class="MsoHyperlink"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: "Arial",sans-serif;">It is clear
that the goal is to soften the concern of non-payment by providing some floor
of support to those in need through the $35M flex funds, and dove tailing that
with the lift on the eviction freeze. It is worth noting that many landlords
and tenants on the commercial side have worked through payment plans, and the
hope is that the landing this summer, for all asset classes, will be as soft as
it can be. <o:p></o:p></span></div>
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<span style="font-family: "Arial",sans-serif;">Landlords and
tenants alike should also take interest in the fact that the Executive Orders
are not the only governing documents relating to evictions. As part of the
CARES Act, the federal government did put a stay on evictions for certain
federally backed mortgages on apartments. All parties should research
accordingly.<o:p></o:p></span></div>
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<span style="font-family: "Arial",sans-serif;">July 1 is right
around the corner, and it is very important for all parties to read about the
funds, understand if there is appropriate access to them, and see how these new
orders affect them, their families, and their businesses. </span><span style="font-family: "Arial",sans-serif; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
<br />Norwood Grouphttp://www.blogger.com/profile/17652747194895055603noreply@blogger.com1tag:blogger.com,1999:blog-1933947418632400874.post-60133056010666248502020-06-04T15:38:00.000-04:002020-06-04T16:01:59.942-04:00Contrasting Boston's Return to Work With New Hampshire's, And How It Could Affect The New Hampshire Office Market<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgXMvMHPiSBiFLkWaabpIRICGAMrJA6-jPJ5v4726Sd024yZgPh8Ort71SmaHZ3Dx7IS0aLN-7cFw50MDd8UM20CT4bid-D138t8eh7uwSZzw4gj_-deK-tcnaQaKj7sq_ggONzkYOnY2g5/s1600/boston.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="400" data-original-width="600" height="213" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgXMvMHPiSBiFLkWaabpIRICGAMrJA6-jPJ5v4726Sd024yZgPh8Ort71SmaHZ3Dx7IS0aLN-7cFw50MDd8UM20CT4bid-D138t8eh7uwSZzw4gj_-deK-tcnaQaKj7sq_ggONzkYOnY2g5/s320/boston.jpg" width="320" /></a></div>
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On Memorial Day week, Boston City Mayor, Marty Walsh,
announced the Return to Workplace Framework for Commercial Spaces the full
details of which can be found here: (<span class="MsoHyperlink"><a href="https://www.boston.gov/news/return-workplace-framework-commercial-spaces-boston">https://www.boston.gov/news/return-workplace-framework-commercial-spaces-boston</a></span>).
<o:p></o:p></div>
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Today we contrast this with the Stay at Home 2.0 initiative
by New Hampshire Governor Chris Sununu and speculate what Massachusetts’ policy
means for office space, particularly along the corridors to New Hampshire. <o:p></o:p></div>
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It is worth acknowledging by almost any standard,
Massachusetts has been harder hit by COVID-19 than the Granite State. <span style="mso-spacerun: yes;"> </span>Reopening standards and regulations
surrounding masks and social distancing tend to be stronger in the Bay Stay. As
it relates to office space in New Hampshire, the standards for the Universal
Guidelines have been set by the corner office, and no additional local
regulations have superseded it. However, to the South, there is a statewide
standard for office space, and in this case the Mayor of Boston has added
additional layers to that standard. <o:p></o:p></div>
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When the stay at home orders are lifted in New Hampshire,
office employers and their staff who were previously “non-essential” can start
going back to their bricks and sticks offices.<span style="mso-spacerun: yes;">
</span>Currently, the regulations on these businesses are centered on the
employees and employers, not the built environment. For example, the standards
discuss temperature checks and Q&A with people entering the building.<span style="mso-spacerun: yes;"> </span>Some in New Hampshire are receiving guidance
from the Re-Opening Taskforce and then subsequent guidelines endorsed by the
Governor that is more specific to that industry.<span style="mso-spacerun: yes;"> </span>So, for example, hair stylists have specific
standards that really apply to just their niche, and the task force has
addressed this. <o:p></o:p></div>
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However, in Massachusetts the guidelines for office users
are in place and very clear. When they reopen the State has stated that,
“businesses and other organizations shall limit occupancy within their office
space to no more than 25 percent of the maximum occupancy level.” Keep in mind,
for standard office build out with mix of cubicles and hard offices, the
average demand is 4 people per 1,000 square feet (sf).<span style="mso-spacerun: yes;">
</span>That is a rule of thumb and you should consult your local code to check
what is appropriate for your business. So, the standard would be 1 person for
every 1,000 sf under the new reopening order.<span style="mso-spacerun: yes;">
</span><o:p></o:p></div>
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In addition, the statewide orders would ask for cubical
barriers to be taller than a standing person, that common areas be reconfigured,
and other broad based social distancing goals. Within Beantown, further
restrictions are in place, such as requirements for elevator density, lobby and
reception areas, as well as cafeterias. These guidelines are very
specific.<span style="mso-spacerun: yes;"> </span>As most of the office
environment is multi tenanted in the city, the reading of these does create a
challenge for both tenant and landlord as to the compliance. <o:p></o:p></div>
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While these specific standards for office space have not yet
been released in New Hampshire, we do know that in both New Hampshire and
Massachusetts there is a phased approach for these reopening’s. As metrics of
COVID-19 improve (or god forbid worsen) the standards may change over time. <o:p></o:p></div>
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What will this mean for the office market moving forward in
New Hampshire and Boston? Many have speculated, and we have commented, that
there could be dramatic impact from COVID on the office leasing market. Some
bloggers have stated that larger offices, with only 1 or 2 people per 1,000 sf,
will be the new norm, and office demand will rise. While others have said that
only a skeleton crew will go to offices, while most work from home, and office
space will plummet. But these trends are too early to tell. The only clear
piece of data is that for those employers who are looking to get back into
their buildings, there is exploration of new office furniture such as the
aforementioned taller cubicles. <o:p></o:p></div>
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However, in light of our headline, we should discuss what
these guidelines will do to the cross border tenants. Estimates are around
80,000 people travel from New Hampshire to Massachusetts each day.<span style="mso-spacerun: yes;"> </span>It is not out of the question to believe
that regardless of what standards are created in New Hampshire, that some
employers who see benefits of in person office space versus work from home may
open satellite locations in New Hampshire, rather than have team members
commute.<span style="mso-spacerun: yes;"> </span><o:p></o:p></div>
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In the long run, it will be curious to see if this
speculation will play out on a broader scale in the office market, with more
New Hampshire based satellites. The corollary would be in the residential real
estate market, where there is speculation of a lasting impact on people leaving
more densely populated areas to live in more rural environments. If this is
true, would it not also follow that the same is true for employers and lessees
of office space? <o:p></o:p></div>
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There is much that is speculation, and aside from anecdotal
stories about which office users will be opening up when, it is too soon to
predict long term trends. Until then we will watch the Stay at Home 2.0 orders
as well as the subsequent phasing levels and see how tenants and landlords
react.</div>
<br />Norwood Grouphttp://www.blogger.com/profile/17652747194895055603noreply@blogger.com0tag:blogger.com,1999:blog-1933947418632400874.post-9746981236764435832020-05-28T17:19:00.000-04:002020-05-28T17:19:29.882-04:00Looking At The HEROES Act And Its Potential Additional Funding For Real Estate<br />
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The Coronavirus Aid, Relief and Economic Security Act (CARES
Act) was passed into law on March 25, 2020.<span style="mso-spacerun: yes;">
</span>The Act had a number of large sweeping investments into states,
businesses and individuals. The main ones that we have focused on in these
blogs are those impacting real estate and small business. Tools within the Act
included the Paycheck Protection Program (PPP) and Economic Injury Disaster
Relief (EIDL).<span style="mso-spacerun: yes;"> </span>Recently the State of New
Hampshire has announced that the Flex Funds provided to the State within the
CARES Act will in part be used for a Main Street Relief Fund, which was just
put in place on May the 15<sup>th</sup>.<span style="mso-spacerun: yes;">
</span><o:p></o:p></div>
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However, with all of these funds it is clear that the
American economy is hurting even as states start to reopen. It should come as
no surprise that many people started pushing for additional rounds of
stimulus.<span style="mso-spacerun: yes;"> </span>And so it came to pass out of
the House of Representatives that the Health and Economic Recovery Omnibus
Emergency Solutions (HEROES) Act was passed on the same day Governor Sununu announced
the Main Street Relief Funds. The act outlines a number of spending and
investment priorities for future relief for Americans. However it is a long way
off from becoming law. <o:p></o:p></div>
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The $3 trillion dollar bill passed the Democratic controlled
house by a vote of 208 to 199. In order to move forward the bill would have to
pass the Republican controlled senate, where Senate Majority Leader Mitch
McConnell has said that we should wait until we see how prior rounds of
stimulus investment play out prior to passing new investments. Specific to the
HEROES Act, he described it as a, “big laundry list of pet priorities”. It is
clear that as written this bill is not going anywhere. <o:p></o:p></div>
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It is with that caveat that we jump into this writing to
explore the “pet priorities” in the act. If, and when, future rounds of
stimulus come, it will have to pass through the House and some of these
fingerprints may be left on the commercial real estate industry. <o:p></o:p></div>
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The bill takes aim at expanding the aforementioned PPP and
EIDL Loans. The former would be extended through the end of the year, with
carve outs to ensure that some loans are given to small businesses. The latter
would be given an additional $10 Billion worth of funding after those loans
have seen their funding sources shrink. <o:p></o:p></div>
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The SBA 504 and 7A programs would see their loan limit
increase to $10 Million each, which are currently at a fraction of those
levels. <o:p></o:p></div>
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A proposed moratorium on evictions of non-paying apartment
renters for 12 months after the acts passing would be one priority that would
impact landlords.<span style="mso-spacerun: yes;"> </span>In addition there
would be $100 Billion of funds for rental assistance. <o:p></o:p></div>
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These are but a fraction of the priorities outlined in the
$3 Trillion bill. Additional changes for personal and corporate tax structures
are detailed as well as additional investments for states and schools. All of
this discussion on stimulus is clearly theoretical. None of this has a chance
of reaching the President’s desk for a signature as written. Keeping an eye on
the text is important to understand what items could be coming down if we see
yet another round of stimulus. <o:p></o:p></div>
<br />Norwood Grouphttp://www.blogger.com/profile/17652747194895055603noreply@blogger.com0tag:blogger.com,1999:blog-1933947418632400874.post-86102716900681458042020-05-22T12:09:00.000-04:002020-05-22T12:09:47.086-04:00How The Main Street Relief Fund Will Help New Hampshire's Small Businesses<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEib1Rdd5S_ZACz_fSN1EDZBPTPnin9jCArFOKpcSFluxV9tpSkqcK36BUOS27ltMKwlobt6Y2Y8ZzYf8U_yknJmaysRghfQ08rb35btCiCgHEU0k1-nFA6acLIvjnlpx8cRM01o85DcBhEO/s1600/main+street.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="450" data-original-width="780" height="184" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEib1Rdd5S_ZACz_fSN1EDZBPTPnin9jCArFOKpcSFluxV9tpSkqcK36BUOS27ltMKwlobt6Y2Y8ZzYf8U_yknJmaysRghfQ08rb35btCiCgHEU0k1-nFA6acLIvjnlpx8cRM01o85DcBhEO/s320/main+street.jpg" width="320" /></a></div>
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There is more relief coming for small businesses in New Hampshire through the Governor’s Office for Emergency Relief and Recovery (GOFERR). The relief package was announced on Friday the 15<sup style="font-size: 9.8px; line-height: 0;">th</sup> of May, which is also the day the first applications could be made. Funding in the amount of $400 million of expenditure has been authorized to be given based upon needs. </div>
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With the authorization of the CARES Act, Congress created waves of relief for individuals and businesses. At this point most of us are familiar with the acronyms of PPP (Paycheck Protection Program) and EIDL (Economic Disaster Relief); there were additional benefits to individuals such as the stimulus checks and expanded unemployment benefits. In addition the CARES Act created Coronavirus Relief Funds. These funds were to be given to each state to be used as the state sees fit.</div>
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According to the Treasury, the funds are “to provide ready funding to address unforeseen financial needs and risks created by the COVID-19 public health emergency”. In addition the federal government put up some rails on how the dollars could be spent. Some of that is still up for interpretation so we will leave that for another blog.</div>
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New Hampshire was given $1.2 Billion in flex funds, and $400 Million of it has been earmarked for small businesses under the Main Street Relief program. Our interpretation is that the small businesses of New Hampshire really made their cases. The PPP and the EIDLs were helpful. However, some of the benefits of those programs either have been slow to pass or could not be realized by the businesses as they have been all or partially closed during the qualifying period. Additionally, as was widely publicized, the PPP was a race to the application booth which created the need for the second round of funding. </div>
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To put the amount of funding in context, in just New Hampshire the initial round of PPP loans covered some 11,000+ businesses and over $2 Billion dollars. This new Main Street Relief Program will be funded with roughly 20% of that amount. I never thought I would say that $400 Million may seem like limited funds, but it is so. As a result it appears that the State is adding qualifying language to their application process.</div>
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The PPP loans were first come first serve, and by and large had no liquidity test for approval. The Main Street Relief funds have two main differences. First, there is an open round of application. So long as you apply by May 29, 2020 you will be eligible. But it does not matter when in that two week period you apply. The second difference is that you must tell the State all of the additional funds you have received from the CARES Act. This presumably will allow them to prioritize the funds to small businesses that were left off of the carousel the last go around. All of the various dates and detailed information can be found here (<a href="https://www.goferr.nh.gov/covid-expenditures/main-street-relief-fund" rel="noopener noreferrer" style="color: #294b93;" target="_blank">https://www.goferr.nh.gov/covid-expenditures/main-street-relief-fund</a>).</div>
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From a real estate perspective there are a few items that are not clear, at least not yet. Are independent contractors as small businesses eligible for these funds? Are businesses that are otherwise holding companies for real estate eligible? Are the funds a loan, a grant or a blend? What can the funds be used for within the businesses? It will take time for these things to come to light, but in the meantime our advice is to review the application and make sure you are lined up prior to the May 29 deadline. </div>
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Norwood Grouphttp://www.blogger.com/profile/17652747194895055603noreply@blogger.com1tag:blogger.com,1999:blog-1933947418632400874.post-38351037202798037352020-05-14T16:59:00.000-04:002020-05-14T16:59:36.990-04:00Liquidity In The Debt Markets During COVID-19<br />
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<span style="font-family: Arial, sans-serif; font-size: 10.5pt;">Despite the late snow
into April it is spring in New England and we are getting ramped up for summer.
Lawn, irrigation and project crews have never been busier. Investors with
maintenance contracts are spending on their property despite the challenges being
faced with COVID. Some of that spending is coming from prepaid contracts, some
from cash from owners, while other capital is coming from the debt side of the
house. So how stable is that debt or line of credit?<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif; font-size: 10.5pt;">Lets start pre-COVID.
Back over the holidays when we were all carving a turkey, this was not
something to consider. The markets were flush with debt capital to deploy. This
created not only low interest rates but also flexible terms such as lower down
payments and other benefits. <o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif; font-size: 10.5pt;">Some have stated that
the 2019 liquidity in the debt side was similar to the pre-financial crisis
lending situation. From our perspective this is not the case. There were
low interest rates. There was flexibility in lending. But that is where the
similarities stop. When you think back to the challenges and the aftermath of
2008 and 2009, it was the underwriting. <o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif; font-size: 10.5pt;">Larger banks, many of
them from out of state came in and dropped money across all asset classes like
it was a snow day in April. When the dust started settling it became clear
that the fundamentals were poor. But that only became clear when the banks had
to take them back. We first hand reviewed these assets a decade ago when they
came to us for valuations on the work outside, we can say that the fundamentals
were off. They were off before the financial crisis. Keep in mind that the
underwriting the local lenders were using was still more conservative.
Aggressive but conservative. <o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif; font-size: 10.5pt;">Coming back to the 2018 and 2019 economy, there
has not been as much competition from out of state lending
institutions. The local lenders were flush with debt capital to deploy.
They were flexible however they were not irresponsible. The fundamentals,
particularly on the income valuation side were strong but not as crazy as they
were 10 to 15 years ago. On the face value one could say that the price of
multifamily on a per unit basis in Manchester has risen 30 to 40% over the past
three years. You may consider this a hyperinflation, however the low vacancy
rate and the underlying cash returns were still in place. In short the
fundamentals were there. </span></div>
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<span style="font-family: Arial, sans-serif; font-size: 10.5pt;">Now we come to Spring of
2020. Are the fundamentals still there? We have still historically low vacancy
rates for multifamily, office and industrial. The investment market has not
been able to get enough of single tenant net leased assets. There is no
inventory so pricing for assets is still high. However some lenders are looking
concerned on the fundamentals, just different ones than buyers are interested
in. <o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif; font-size: 10.5pt;">There is a concern of
the softening of the leasing market, particularly on the multifamily and the
retail side. Lenders look at B&C multi assets as a more risky proposition
and some are pulling out entirely (in the short run) while others are looking
at some principal and interest escrow that would have seemed strange to ask for
just 90 days ago. There is some evidence to back their claims up.
Non-essential retailers are asking for rent abatements in exchange for more
term; apartment tenants impacted by the current situation have come to
landlords seeking payment plans. <o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif; font-size: 10.5pt;">However despite these
challenges there is a huge influx of capital into the market. Despite the
challenges with the roll out the CARES Act did what it was intended in the
short run. It dumped so much capital into the market that it created a bit of a
rise in the stock market, it kept local businesses open and it kept some
mortgages and real estate tax bills paid. Some lenders and buyers view
this as the short term pain and the liquidity from the Fed will act as the
bridge because the fundamentals are still sound. <o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif; font-size: 10.5pt;">The take away for buyers and investors is
clearly the dynamic has changed. If you have not had a call with your lender in
a month, consider doing so. Clearly understand what their view of the world is
and how they are reacting to this economy. And continue to do so, weekly if
necessary, they are as much your partner as another equity holder. Now when you
go to invest back into that Spring time clean up you and your debt partner will
be on the same page. </span></div>
Norwood Grouphttp://www.blogger.com/profile/17652747194895055603noreply@blogger.com0tag:blogger.com,1999:blog-1933947418632400874.post-11466871349282603812020-05-07T14:46:00.000-04:002020-05-07T14:46:18.399-04:00What will reopening the economy look like in New Hampshire?<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgMnLU1bCOn0F1XJeYdLu9I6laqpLKsFu3aOSFlC8HmWW0EXU0BWi0GqiZg55GEF69zOryR7q3LnocpxUOjr6ox1eNXctjx5Az5JYFx75mOVpg4mhRszpMocyC3HG7d4h6KlP88gXtf8IDx/s1600/open+stock.jpeg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="333" data-original-width="500" height="212" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgMnLU1bCOn0F1XJeYdLu9I6laqpLKsFu3aOSFlC8HmWW0EXU0BWi0GqiZg55GEF69zOryR7q3LnocpxUOjr6ox1eNXctjx5Az5JYFx75mOVpg4mhRszpMocyC3HG7d4h6KlP88gXtf8IDx/s320/open+stock.jpeg" width="320" /></a></div>
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<span style="font-family: Arial, sans-serif; font-size: 10.5pt;">Many folks have been watching with a keen eye what it will look
like when the economy “reopens”. On April 27 we watched as States like Georgia
had some of the stay at home restrictions lifted. What does that mean for New
Hampshire and the rest of New England?<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif; font-size: 10.5pt;">The New York Times had an article in April contemplating what the
restaurant industry would look like upon a re-open. In the article it looked to
China, which is seemingly on the other side of the curve from the United
States. There restaurants must keep tables five feet apart and customers’
temperatures are taken at the door. Business is reported to be some 50% of
what it was pre-COVID.<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif; font-size: 10.5pt;">In Georgia there was reopening. The State has fared better than
some New England states despite having such a large international airport. The
government created guidelines on how to reopen the economy. Each business had a
list of 39 guidelines to ensure compliance. This consisted of everyone wearing
masks to the above mentioned small density inside. Some restaurants, like
the famous Waffle House, did act to reopen. Others did not, citing safety or
not wanting to be the first.<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif; font-size: 10.5pt;">Around the nation some
restaurants do wish to open but want to do so safely. Since the shut down,
some restaurants are better equipped for takeout while others have struggled to
change their offerings. Anecdotal evidence of restaurants that we spoke with
indicates that their gross receipts were about 10% to 20% of their average
weekly gross from the same time last year. Many owners were pleased that it
kept at least a handful of people employed, but obviously it created huge
ripple effects.</span><br />
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<span style="font-family: Arial, sans-serif; font-size: 10.5pt;">Up in New Hampshire there is a reopening task force created by the
Governor to explore the same issues that restaurant owners are facing in
Georgia. In the same week, as restaurants and other shops were opening up down
south, the New Hampshire task force was drafting a document called</span><span style="color: #294b93; font-family: "Arial",sans-serif; font-size: 10.5pt;"> </span><span style="font-family: Arial, sans-serif; font-size: 10.5pt;"><a href="http://r20.rs6.net/tn.jsp?f=001mS5lncwNAa5M2ILGIoNwo7wk5SHeMNN1UDESnp5SvFimCB56E8xoJsI0xFvpEEQtkxznQwBIoP5lKq0QkdT0qiJlzFZ89QeI-DM-GxxRtS0Vit1hh01wOcyb3ohPa_bHwrvzvwFe2tihmELSor0lIuxpUr4eq7sGthEfGIBVHn7QAsCKNLeHXC-4EFCo1hSXTnhc1I26073Q9BQt7EMVa5CpyxVGrIZ1mYpJPXB3LYM=&c=ASEEZy0rHDrcVi02JFAaahXXxyRUsouqDuWyFMYxLrb9kH8rWLyZTA==&ch=ls17w4nOKegj2l-nBw8reIN6r_N3HrqjEtSCVQr6K08vHmUV8rWH8w==" target="_blank"><span style="color: #294b93;">“Universal Guidelines for All New
Hampshire Employers and Employees”</span></a>. The five page document is
an instruction guide for policies that need to be adopted to reopen. As the
name suggests it is internal facing and does not contemplate customers as would
exist in restaurants, retailers, and some service industries. The task force
was writing those policies, and have drafted guidelines for restaurants, state
parks, manufacturing and even golf. You can find links to those guidelines <a href="http://r20.rs6.net/tn.jsp?f=001mS5lncwNAa5M2ILGIoNwo7wk5SHeMNN1UDESnp5SvFimCB56E8xoJsI0xFvpEEQtW0HbRXZKIJKug6LFEjoaDHNLzKsqDqg5sENhJ7jTO39n05wfhmhoJNQmuY0FWN0Yb2SrzAMhVYRKP-x4lqTx2jdqmMP0C7LogsJliBJ7mK329Q-QUN01n43V_HgK5Lzk&c=ASEEZy0rHDrcVi02JFAaahXXxyRUsouqDuWyFMYxLrb9kH8rWLyZTA==&ch=ls17w4nOKegj2l-nBw8reIN6r_N3HrqjEtSCVQr6K08vHmUV8rWH8w==" target="_blank"><span style="color: #294b93;">here</span></a>.<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif; font-size: 10.5pt;">It is not just the government that is wrestling with these issues.
A <a href="http://r20.rs6.net/tn.jsp?f=001mS5lncwNAa5M2ILGIoNwo7wk5SHeMNN1UDESnp5SvFimCB56E8xoJsI0xFvpEEQt7dFu-xtpNni4LzHdE8QUuijRCU0WVxC1N9jdL_RqO5fjZCqxs55Tv9Dr484YLYlROLqEeepUpRgyy1lfhmk1Xm3wFAAqF7IKR2iugVYPkT4Fg_1A2OPHVBQ1f9ooSWWgJkVuz_b-DuPyj0Qz7jAqwj8iUHZs0Dk9QE4zogyM3IhSh2TcCnRpt2Qoq7Nqb02iHRgB-ndTrHMqtHdpNmkaJjCMWunuLnm6MhpZ5KjwdlQJKpMi99fEU4UVs4GCofWcNSP5zirBDubFRZgTB04Lew==&c=ASEEZy0rHDrcVi02JFAaahXXxyRUsouqDuWyFMYxLrb9kH8rWLyZTA==&ch=ls17w4nOKegj2l-nBw8reIN6r_N3HrqjEtSCVQr6K08vHmUV8rWH8w==" target="_blank"><span style="color: #294b93;">Change.Org petition from Manchester</span></a>
has received some high publicity. The concept is to shut down Elm Street to
auto traffic, and make it for pedestrians. In the warm summer months
restaurants can have more sidewalk space for their tables to create more social
distancing. The thought is it will help kick start an otherwise hard hit
portion of the economy and their employees.<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif; font-size: 10.5pt;">Presently the pandemic is measured
in weeks while the concept of reopening is measured in days. As more time
passes the path for restaurants, their employers, employees and landlords will
become clearer. </span>Norwood Grouphttp://www.blogger.com/profile/17652747194895055603noreply@blogger.com0tag:blogger.com,1999:blog-1933947418632400874.post-13465802274548434512020-04-30T11:47:00.000-04:002020-04-30T11:47:15.280-04:00Leases In The Time Of COVID-19<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiv7GpXyhHBIuivZmuVPlrrsnm8lraendqEHyLG1JMx657fJp7g8DATxLxlotYsjxwEP6dP8E762a01aYmAJ0BJrfHXFXBFuZXBJeRZ9fad_7yZLArtUG6eZ_JsEh49l71fJPbYEmBeqCiv/s1600/lease-agreement_GkkoDUv__SB_PM.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="677" data-original-width="1000" height="216" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiv7GpXyhHBIuivZmuVPlrrsnm8lraendqEHyLG1JMx657fJp7g8DATxLxlotYsjxwEP6dP8E762a01aYmAJ0BJrfHXFXBFuZXBJeRZ9fad_7yZLArtUG6eZ_JsEh49l71fJPbYEmBeqCiv/s320/lease-agreement_GkkoDUv__SB_PM.jpg" width="320" /></a></div>
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COVID-19 has had a giant impact on our way of life, though
at his point that doesn’t need to really be said. But with every day that
brings us a new normal that we have to adjust to, it also brings new
repercussions. That is also true for the commercial real estate sector,
particularly commercial real estate investors and users.<o:p></o:p></div>
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As more and more businesses begin to shut their doors to
work from home, or because of government mandates, questions have begun to
arise for both owners of commercial spaces and their tenants. The biggest
question of all, “do tenants have a right to stop paying rent due to the
coronavirus?” This is a complicated question, one that, depending on how long
the pandemic lasts, might be answered by the state, if not federal, government.<o:p></o:p></div>
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The answer to the question is, in most cases, no. Whether a
tenant has a right to stop paying rent due to “force majeure” or any other
number of clauses is ultimately based upon the specific language and terms laid
out in each specific lease agreement. This, though, does not take into
consideration if a floor or entire building is closed down by either the
property manager or owner. Before mandating a floor or building closure,
landlords and property managers should carefully review all possible impacts
that decision could have.<o:p></o:p></div>
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While the legalese of each specific lease will ultimately
determine whether a tenant is required to pay rent, landlords and tenants
should still review their leases to ensure they understand their rights in
these unprecedented times. </div>
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At the end of the day though, due to the stress that
many tenants, especially those in retail and hospitality, will be feeling at
this time, the government may see it fit to step in and take extraordinary
measures to ensure that businesses and people survive the financial impacts of
the pandemic. For multifamily owners and tenants there have already been
discussions within government of suspending rent payments, and some states,
including New Hampshire, have already suspended evictions. This is also
inclusive of commercial evictions as well. <o:p></o:p></div>
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The most important thing for tenants and owners to do right
now is open up communication channels to discuss issues both tenant and
landlord face, and come up with creative solutions that benefit both parties.
For example, relaxing enforcement of continuous operation covenants, or, if a
tenant comes to a landlord needing rent relief, entering into short-term
arrangements that provide partial base rent abatement.<o:p></o:p></div>
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While challenges do indeed lay ahead, they can be overcome.
By understanding that we are all feeling financial and personal stress right
now, and finding ways to work with each other, we can come to a common ground
that is fair to both parties. Taking this approach in life, and in real estate,
will make dealing with the effects of COVID-19 at least a little easier to handle.<o:p></o:p></div>
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<br />Norwood Grouphttp://www.blogger.com/profile/17652747194895055603noreply@blogger.com0tag:blogger.com,1999:blog-1933947418632400874.post-73260879929989018032020-04-16T09:42:00.003-04:002020-04-16T09:42:31.844-04:00Maintaining The Health Of Your Investment Property During COVID-19<br />
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<i>The COVID-19 Virus has
made a giant impact on the health of people around the world. We encourage
everyone to be vigilant and follow the guidelines in place to protect oneself.
Not to minimize the health effect, these articles will be about COVID-19’s impact
on real estate, which is our expertise. The stock and bond market is widely
transparent on a minute by minute basis and we hope to provide a transparency
into the real estate market.<o:p></o:p></i></div>
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<i><br /></i></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjYnug45esz6bM5B_jK1C0WIPOc_l0USUeg22kNW0-cb1qhSDrerb3VOPhG8WBxYwpwdyaScUKCgVTJ69VYR3JX7MybApmxWqx_G_03dVOz-5XixzlSNyCFMe6KnMFxoS5Oq9D4cNfCFX-P/s1600/cleaning+products.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="408" data-original-width="612" height="266" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjYnug45esz6bM5B_jK1C0WIPOc_l0USUeg22kNW0-cb1qhSDrerb3VOPhG8WBxYwpwdyaScUKCgVTJ69VYR3JX7MybApmxWqx_G_03dVOz-5XixzlSNyCFMe6KnMFxoS5Oq9D4cNfCFX-P/s400/cleaning+products.jpg" width="400" /></a></div>
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COVID-19 has thrown us all into unprecedented times. We’re
all getting used to a new normal, and that is also true for commercial real
estate investors and users. With the highly contagious nature of COVID-19, and
its ability to live on different surfaces for multiple hours, and sometimes
days, the cleaning of work spaces and common areas has never been more
important to maintain the health of building tenants and guests.<o:p></o:p></div>
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But, responding to this pandemic starts with awareness. Owners
and property managers should consider educating their tenants on steps that
they can take to limit the chances of others getting sick. Spreading
information through emails, mailers, and posted notes can be done to ensure
that tenants are aware of what the disease is, how to prevent it, and how
landlords and property managers are monitoring the situation and keeping
tenants informed of updates, and especially what precautions are being taken.<o:p></o:p></div>
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Awareness is only part of the battle, though. Landlords and
property managers should be proactive about disease control measures. The
frequency of regularly scheduled cleaning could be increased, with a primary
focus on making sure that regularly touched surfaces, such as door handles,
counters, devices, etc. are cleaned as frequently as possible. Consider
stocking up on disinfectants and supplies, and hand sanitizer and disinfecting
wipes could be made available in all common areas.<o:p></o:p></div>
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According to some experts, though, the first line of defense
against COVID-19 is improving a building’s air quality. Improving air quality
is not only the best way to improve a building’s health, but also give it its
biggest ROI. Owners or facility managers could consider running the fans,
upgrading the filters, and keeping the filters clean. Also, by letting in fresh
air in large quantities, owners and property managers can help dilute airborne
contaminants, reducing the risk of infection. <o:p></o:p></div>
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If improving air circulation is not an option, then
investments could be made on improving air circulation. By upgrading filters to
what’s known as an MERV rating of 13 or higher (which is what hospitals use)
filtration systems will be able to catch more than 80 percent of viral
particles. Higher humidity ranges, between 40 and 60 percent, are also optimal
for lessening a virus’ ability to spread, but tenants’ comfort level should be
kept in mind when exercising this option.<o:p></o:p></div>
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In the event that a guest visiting the building has been
diagnosed with COVID-19, owners do have an obligation to notify all other
tenants and occupants of the building that a person who has entered the
building has tested positive for the virus, and what steps are being taken to
ensure tenants’ health and well-being. All common areas should be, if possible,
closed off for a deep clean and disinfection. Depending on the terms of the
lease the tenant signed, owners and property managers may or may not be
responsible for the deep clean of the tenant’s space, and that includes any
extra precautionary cleaning as well. <o:p></o:p></div>
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<div class="MsoNormal">
Owners, property managers, and even tenants, can no longer
sit idly by and hope that COVID-19 doesn’t affect them. It is all of our
responsibility to help flatten the curve, and that begins with being proactive
about the health of a building. The sooner we flatten the curve, the sooner we
can get back to normal.<o:p></o:p></div>
<br />Norwood Grouphttp://www.blogger.com/profile/17652747194895055603noreply@blogger.com0tag:blogger.com,1999:blog-1933947418632400874.post-62037591907378563262020-04-09T09:08:00.000-04:002020-04-09T09:11:30.807-04:00COVID-19 and Investment Real Estate: Apartments<br />
<div class="MsoNormal">
<i style="mso-bidi-font-style: normal;">The COVID-19 Virus has
made a giant impact on the health of people around the world. We encourage
everyone to be vigilant and follow the guidelines in place to protect oneself. Not
to minimize the health effect, these articles will be about COVID-19’s impact
on real estate, which is our expertise. The stock and bond market is widely
transparent on a minute by minute basis and we hope to provide a transparency
into the real estate market. Check back each week for a new look into how COVID-19 is affecting the commercial real estate industry.<o:p></o:p></i><br />
<i style="mso-bidi-font-style: normal;"><br /></i></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg0jbfLLSFx6wSYSXfza6w58rtIOIqFa1L4NtvprJRYjeWBH6BTimWrrlZw0CLJqsfEcJeyO-oM49OhwJCaqCz-qvKZ3cnyke9AqZO9IG45lXVUWH2-SIck1FUk5O_G0yHbHGTe9oEGaSP1/s1600/multifamily.jpeg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="526" data-original-width="800" height="262" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg0jbfLLSFx6wSYSXfza6w58rtIOIqFa1L4NtvprJRYjeWBH6BTimWrrlZw0CLJqsfEcJeyO-oM49OhwJCaqCz-qvKZ3cnyke9AqZO9IG45lXVUWH2-SIck1FUk5O_G0yHbHGTe9oEGaSP1/s400/multifamily.jpeg" width="400" /></a></div>
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In a retrospect, it will be easy to see how the path for
COVID-19 was forthcoming, and took some time to hit domestically. But, from the
reaction of the stock market, it felt like the impact was overnight. The week
that followed was a rollercoaster, but the same cannot be said for the
investment real estate market. The reality is that until we see a string of
real estate closings we will not be able to pin point the actual market in the
investment world. For many apartment owners though, it’s business as usual. <o:p></o:p></div>
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The investment world of commercial real estate has long been
a hot market. Nothing speaks that fact truer than apartments. Fueled by
historically low vacancy and interest rates, investors have flocked to that
asset class, which has driven up the per door price, and driven down the
capitalization rates.<span style="mso-spacerun: yes;"> </span>In addition,
apartments have been seen as an investment class that is protected from some of
the concerns in the larger real estate economy. “Everyone needs a place to live,”
and, “Amazon cannot take away the need for apartments,” have been phrases of
conventional wisdom. <o:p></o:p></div>
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In speaking with investors this past week, these thoughts
still prevail. They feel that, in the long run, apartments are one of the safer
asset classes out there. Some investors have even made plans in this low
interest rate environment, to free up capital for more acquisitions. Others are
staying put, waiting to see how the market plays out.<span style="mso-spacerun: yes;"> </span><o:p></o:p></div>
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There are facts that everyone agrees on, though. One is that
no one is a seller right now. It is not out of concern that the market is down
and investors won’t get their value, but rather that investors do not want to
put their money elsewhere. The second is that investors/landlords will need to
work through the next few months with their tenants with compassion, with
payment plans being one solution, particularly for those tenants with jobs in hard
hit industries. <o:p></o:p></div>
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When investors were asked about the impact of the order by
the Governor to put off all evictions in the State of New Hampshire, again
there was some common ground. Most folks believe that the tenants who will pay
are going to pay, and those who will not, won’t. In the end, investors feel the
impact of COVID-19 will take a little time to work through the system. <o:p></o:p></div>
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So far folks have not seen changes to their income stream,
with some investors noting that they are still getting rental applications.
Time will tell, but it appears that the initial reaction from the apartment
sector is that the impacts have not been felt. <o:p></o:p><br />
<br />
Are you a landlord? Let us know how the pandemic has been affecting your multifamily/apartment investments in the comments below.</div>
<br />Norwood Grouphttp://www.blogger.com/profile/17652747194895055603noreply@blogger.com0tag:blogger.com,1999:blog-1933947418632400874.post-82921633279559650932020-04-02T09:51:00.003-04:002020-04-02T09:57:51.659-04:00COVID-19 and the Overall Real Estate Market<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhJXOGr7EMX_kJfKKrys8c5YS12hsOP8bG0V6o9Kvbn3vbI2HGZ0wFSvhTkY38kKTu7-Fl9ML2fZSbqBUEj8Fim_GmSnB5ujFwMtRD2UilHykHke3xogXwKQdqb2CvseGRXwUB34ZO0G8aF/s1600/manchester+aerial.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="541" data-original-width="750" height="230" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhJXOGr7EMX_kJfKKrys8c5YS12hsOP8bG0V6o9Kvbn3vbI2HGZ0wFSvhTkY38kKTu7-Fl9ML2fZSbqBUEj8Fim_GmSnB5ujFwMtRD2UilHykHke3xogXwKQdqb2CvseGRXwUB34ZO0G8aF/s320/manchester+aerial.jpg" width="320" /></a></div>
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<i style="mso-bidi-font-style: normal;"><br /></i></div>
<div class="MsoNormal">
<i style="mso-bidi-font-style: normal;">The COVID-19 Virus has
made a giant impact on the health of people around the world. We encourage
everyone to be vigilant and follow the guidelines in place to protect oneself.
Not to minimize the health effect, these articles will be about COVID-19’s impact
on real estate, which is our expertise. The stock and bond market is widely
transparent on a minute by minute basis and we hope to provide a transparency
into the real estate market.<o:p></o:p></i></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
What at first appeared to be a slow moving pandemic, snapped
across our domestic world quickly to start the month of March.<span style="mso-spacerun: yes;"> </span>Many of us faced choices on if our businesses
would enforce work from home policies, and where our children would be educated
and cared for during the school day.<span style="mso-spacerun: yes;">
</span>These questions are still playing out and changing on a daily
basis.<span style="mso-spacerun: yes;"> </span><o:p></o:p></div>
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<br /></div>
<div class="MsoNormal">
The investment markets are in a state of flux. Stocks
continue their up and down pace while investors try and get a sense of the next
steps in the market. The same rapid movement cannot be said of the real estate
market. By nature the real estate cycle is slower. It is a less liquid asset
and it takes time to sell and have the market react to external factors. In
place leases impact value, and those too take time and have long term. Finally
the debt markets impact value, and again, that takes time to work through the
system.<o:p></o:p></div>
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<br /></div>
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At our offices the reaction from users of commercial space
have been mixed. Since the week of March 9, 2020 we have seen some folks pull
back.<span style="mso-spacerun: yes;"> </span>Some of them were expansion
tenants, while others were user/buyers with new locations.<span style="mso-spacerun: yes;"> </span>For each story of someone delaying plans
there is another story of someone moving forward. <o:p></o:p></div>
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<br /></div>
<div class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
<br />
<ul>
<li><span style="font-family: "symbol"; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]-->National users of space, with multiple leases
expiring, continue their review to look at the longer picture on relocation
choices. They are in the market. </li>
<li><span style="font-family: "symbol"; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]-->Local users, with multiple businesses or
divisions, are shifting their focus to those businesses less impacted by recent
events that are in need of space. They are still in the market. </li>
</ul>
<!--[if !supportLists]--><o:p></o:p></div>
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<o:p></o:p></div>
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These examples may shift overtime, but they do illustrate
the types of people who have businesses impacted by COVID-19, but remain in the
market to find new lease space. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
We will explore more of the investment real estate market
over time, but the immediate reaction is, again, mixed. Some investors look at
the dip in the stock market and assume that real estate should be at a discount
as well, while others see a premium in the asset because of the volatility on
Wall Street.<span style="mso-spacerun: yes;"> </span>History has shown us that
one week is too short of a time to take any meaningful conclusions away,
because of the aforementioned speed of the real estate market.<span style="mso-spacerun: yes;"> </span><o:p></o:p></div>
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<br /></div>
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Certain sectors of the investment market will likely remain
strong, such as those properties with apartments, grocers or medical practices.
Services that are needed no matter the state of the economy. Additionally, the
quality of the income stream is always important, but more so in this past
week, as conversations regarding franchisee or franchisors signing of leases is
becoming crucial. <o:p></o:p></div>
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<br /></div>
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This is the first of many articles we plan on distributing
to our clients, customers and friends. We are all in this together, and we hope
to empower you during this unprecedented time with our collective knowledge. <o:p></o:p></div>
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<br />Norwood Grouphttp://www.blogger.com/profile/17652747194895055603noreply@blogger.com0tag:blogger.com,1999:blog-1933947418632400874.post-81087049458291568812020-03-03T11:54:00.000-05:002020-03-03T11:59:46.820-05:00How The 2020 Session Of Congress Could Impact Commercial Real Estate<div class="MsoNormal" style="text-align: center;">
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi0sro_ZEnQ0ASU5BBNZKWBSoXMX5cCJ-bv8Y895j_Xv84VGfhBz6iEi_4yKh7pemOGhcKHRWU1g_07sAfX2aXvkgH5OqmEWbckOJzMieZ8NOGCvFsio7ovk31K34IFj5Pwl5ce0ejlHMXQ/s1600/congress.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="488" data-original-width="717" height="271" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi0sro_ZEnQ0ASU5BBNZKWBSoXMX5cCJ-bv8Y895j_Xv84VGfhBz6iEi_4yKh7pemOGhcKHRWU1g_07sAfX2aXvkgH5OqmEWbckOJzMieZ8NOGCvFsio7ovk31K34IFj5Pwl5ce0ejlHMXQ/s400/congress.png" width="400" /></a></div>
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It’s the first quarter again, which means a new year and a
new session of Congress. Don’t worry, we’ll leave the politicking to the
politicians. In this month’s blog we want to take a look at a few issues that
will be working their way through the House and Senate at some point on a
federal level, and are poised to have an impact on the commercial real estate
market.<o:p></o:p></div>
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The first issue we’re going to look at is that of the
extension of the National Flood Insurance Program (NFIP). While originally
scheduled to lapse the first week of 2020, Congress’ latest budget bill
extended the program through September 30<sup>th</sup>.<span style="mso-spacerun: yes;"> </span>Allowing time for Congress to work toward a
long-term reauthorization of the program. <o:p></o:p></div>
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Getting that extension through was huge. If the NFIP lapsed
it would have prevented the program from selling new policies or renewing
existing ones. This could have caused a major logjam for sales of properties
that required flood insurance. The last time Congress allowed the program to
lapse was in 2010, and the National Association of Realtors said up to 40,000
property sales were put on hold during the almost a month it took for Congress
to put together an extension.<o:p></o:p></div>
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While we tend to think of flood insurance as a need for the
areas around the Mississippi, the reality is that there are many commercial
buildings in the Granite State that are along rivers, and tidal bodies that
require flood insurance to obtain a mortgage. <o:p></o:p></div>
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Another program that was set to lapse this year but got a
last minute extension is the Terrorism Risk Insurance Program (TRIP). TRIP was
established after 9/11 as a response to the period of disarray in insurance
markets that ensued in the aftermath. The program requires certain private
insurers to offer coverage against acts of terror and in return the government
acts as a backstop in the event the insurance company is required to issue a
payout due to a terrorist attack.<o:p></o:p></div>
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If NFIP and TRIP were to have lapsed with no alternative in
place, it’s fairly safe to say that stability would have been disrupted in not
only the insurance markets, but the real estate and commercial mortgage lending
markets as well.<o:p></o:p></div>
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Another topic nationally is marijuana legalization. Starting
January 1<sup>st</sup> Illinois became the 11<sup>th</sup> state to legalize
marijuana for recreational use. As more and more states legalize the sale of
marijuana, companies and industries that interact with the cannabis industry
are finding themselves walking a tightrope between the state and federal
government. While New Hampshire has not endorsed recreational marijuana, many
of our neighbors have. For those who are interested in being landlord’s to
industries in this space this is an important topic to follow. <o:p></o:p></div>
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As a way to protect commercial real estate and other
industries as they do business with cannabis companies a bill was introduced
called the Secure and Fair Enforcement (SAFE) Banking Act. The bill would
protect businesses from federal prosecution for dealing with cannabis related
businesses (CBR) that are legal under state law, such as leasing space for a
recreational cannabis store or industrial facility for cultivation. <o:p></o:p></div>
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<br /></div>
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Currently, as marijuana is still illegal on the federal
level, any company that does business with a cannabis related business is at
risk to be prosecuted. This is along with the fact that most banks won’t do business
with cannabis related businesses, which means any transactions done with a CBR
are cash-only transactions, which puts employees at risk and opens up
opportunities for white-collar crimes.<o:p></o:p></div>
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Unfortunately, though it has the backing of the National Association
of Realtors, Credit Union National Association, the Real Estate Roundtable, and
other various organizations, the SAFE Banking Act may be doomed. It’s been
three months since the bill passed the House, and many Republicans in the
Senate, including the chairman of the Senate committee on banking, Mike Crapo,
have spoken about their significant concerns with the bill. Concerns that could
derail it entirely.<o:p></o:p></div>
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These are just a few of the issues being talked about on
Capitol Hill that could have major effects on the commercial real estate
industry as a whole and could affect you as an investor or user. What are your
thoughts on these issues? Is there a bill we didn’t talk about here that you
think could is an important issue for those involved in the commercial real
estate sector to be aware of? Let us know in the comments. <o:p></o:p></div>
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As the year goes on make sure to stay tuned to our Facebook,
Twitter, and LinkedIn pages for updates on these issues and follow-up blogs on
the happenings in Washington and how they might affect the commercial real
estate industry.<o:p></o:p></div>
<br />
<br />Norwood Grouphttp://www.blogger.com/profile/17652747194895055603noreply@blogger.com1tag:blogger.com,1999:blog-1933947418632400874.post-12592535735963052452019-12-09T13:01:00.000-05:002019-12-09T13:01:06.251-05:00Making Sense Of Commercial Leases<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi7IJzwoeCf0sdSAzYrLtLYp9lMGcd36ENFxs0cOSa2dxxCdvBkurQ5n9GgZtQtjaF5IG9_pPYWUVztMqdyDvY3Ay65PkGJDp_NPVqIzfAXeuH5RLP8zdOJsUkVAUQKQzaa1N8tWqCaMnaZ/s1600/lease-agreement_GkkoDUv__SB_PM.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="677" data-original-width="1000" height="270" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi7IJzwoeCf0sdSAzYrLtLYp9lMGcd36ENFxs0cOSa2dxxCdvBkurQ5n9GgZtQtjaF5IG9_pPYWUVztMqdyDvY3Ay65PkGJDp_NPVqIzfAXeuH5RLP8zdOJsUkVAUQKQzaa1N8tWqCaMnaZ/s400/lease-agreement_GkkoDUv__SB_PM.jpg" width="400" /></a></div>
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<div class="MsoNormal">
Whether you are a real estate investor trying to find a user
for your space or a business owner trying to find a new space for your company,
you will more than likely find yourself needing to sign a lease. In commercial
real estate there are two types of leases: net leases and gross leases, and
each can be altered into different variations. For those not familiar with the
commercial leasing process and what the different kinds of leases can mean for
both owner and user this stuff can make your head spin.<o:p></o:p></div>
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<br /></div>
<div class="MsoNormal">
But have no fear, what is that on the horizon? Why, it’s NAI
Norwood Group charging in to save the day and explain the difference between
gross and net leases! <o:p></o:p></div>
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<br /></div>
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Please, hold your applause and awards. We’re not heroes,
we’re just passionate about educating people about the world of commercial real
estate. So, let’s begin.<o:p></o:p></div>
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<b style="mso-bidi-font-weight: normal;">Gross Lease Vs. Net
Lease<o:p></o:p></b></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
The two main categories of leases take varied approaches as
to whether and/or how much the tenant or landlord is responsible for paying
property operating expenses such as utility bills, taxes, insurance, etc. <o:p></o:p></div>
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<br /></div>
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In a gross lease, also known as a full service lease, the
tenant pays a set sum or amount for rent based on what was negotiated when the
lease was signed. It doesn’t matter if the expenses end up being higher or
lower than expected, the tenant pays the same rate. You can find these leases
in all property types. Sometimes when the cost of utilities is hard to sub
meter or if the landlord just wants to keep it simple. <span style="mso-spacerun: yes;"> </span><o:p></o:p></div>
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<div class="MsoNormal">
In a net lease structure the tenant is responsible for rent
as well as the expenses, often categorized into nets: property taxes,
insurance, utilities and maintenance. Which and how many of these nets they are
responsible for depends on the type of net lease they have. Tenants tend to pay
less for base rent in a net lease because they are shouldering some of the
property operations. So overall they pay the same amount, the difference is
that tenant is at risk for the increase in these expenses. <span style="mso-spacerun: yes;"> </span>Net leases are most common in industrial and
retail facilities. <o:p></o:p></div>
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Simple enough of an explanation, right? But let’s get a
little more granular, because both types of lease have variations and
subcategories.<o:p></o:p></div>
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<b style="mso-bidi-font-weight: normal;">A Look At Lease
Variations<o:p></o:p></b></div>
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Some common variations to the above would be an “Increase
Over Base Year” gross lease. In these cases there is one lump sum for rent that
was agreed to upon lease signing. So the tenant is not responsible for the
expenses. However the landlord does have an ability to collect the increase
over the base year on certain expenses. In other words the landlord can pass
along the increases to the tenant.<o:p></o:p><br />
<br /></div>
<div class="MsoNormal">
Another variation, though slightly less common, is a pure
net lease. In these scenarios maintenance of the building and grounds is passed
along to the tenant. For example, in most leases if the roof fails or the
parking lot splits, the landlord needs to take care of it. However in some
leases the tenant assumes all of these costs. <o:p></o:p></div>
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A majority of the leases we deal with tend to fall into the
full gross, modified gross or triple net category. <o:p></o:p><br />
<br /></div>
<div class="MsoNormal">
As an investor or tenant, the kind of lease signed can
drastically alter the income and risk an investor sees, and the amount of rent
and responsibility a tenant has. Have more questions about gross leases versus
net leases? Reach out to us! Our expert agents and brokers would be happy to
answer any questions you have, whether you’re looking for a space to lease or
trying to find a tenant to lease your space.<o:p></o:p></div>
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Norwood Grouphttp://www.blogger.com/profile/17652747194895055603noreply@blogger.com0tag:blogger.com,1999:blog-1933947418632400874.post-34110916243860926292019-05-21T10:43:00.000-04:002019-05-21T12:39:48.723-04:00How Experiential Retail Will Revitalize The Shopping Mall And Other Retail Spaces<br />
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</div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgwcaXQ-QnLI7ACD6bgihZvhW1QaWGmwYtqhumzU386C8PJgYxgFbdusNg0M2dKfYyA1pOLUg9RtF1tm1oBfG1_dY2l38bg1AXuEOwhywumoqvZHgnYrafLddWMFJNEVpF_whFRhiWvxpB3/s1600/shopping-mall-1137238.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="900" data-original-width="1600" height="225" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgwcaXQ-QnLI7ACD6bgihZvhW1QaWGmwYtqhumzU386C8PJgYxgFbdusNg0M2dKfYyA1pOLUg9RtF1tm1oBfG1_dY2l38bg1AXuEOwhywumoqvZHgnYrafLddWMFJNEVpF_whFRhiWvxpB3/s400/shopping-mall-1137238.jpg" width="400" /></a></div>
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Last month two of our brokers, Deana Arden and Judy
Niles-Simmons, were <a href="https://www.nhbr.com/reinventing-the-shopping-mall/" target="_blank">featured in an article by NHBR</a> for their work in helping to
revitalize the Steeplegate Mall in Concord. This got us reflecting on the ways
traditional retail has been changing and, as it continues to migrate online,
the ways in which retail properties are either evolving to attract consumers or
going extinct.<o:p></o:p></div>
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The Steeplegate Mall is a great example of how brick-and-mortar
spaces are changing with the times, as Amazon swallows more and more retail
sectors. As retailers like Circuit City, Bon-Ton, and Old Navy move out,
Altitude Trampoline Park, Capital City Charter School, ViParty Bounce House, and
ZOO Fitness Club move in. A pivot away from being a traditional retail space
to, as the article states, a consumer engagement space. A pivot that more and
more landlords and retailers are taking as the industry continues to be
disrupted.<o:p></o:p></div>
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So how are other shopping centers and strip malls across the
country filling the vacant anchor spaces traditionally leased by disappearing retailers,
and drawing consumers back in?<o:p></o:p></div>
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One option is indoor virtual reality theme parks.<o:p></o:p></div>
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<br /></div>
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Legend Heroes Parks, a Singapore-based franchise of indoor
virtual reality theme parks, <a href="http://www.roi-nj.com/2019/01/29/tech/singapore-indoor-virtual-reality-theme-park-makes-entry-to-u-s-retains-r-j-brunelli-as-real-estate-broker/" target="_blank">is looking to break into the U.S. market</a> by
targeting vacant anchor and sub-anchor spaces at regional malls and strip
centers. The parks, which use a combination of technologies, including virtual
and augmented reality, to help guests experience a wide range of rides, games
and other kinds of entertainment, have the potential to bring millennial's back
to the malls and strip centers they’ve ignored in recent years, by offering
them something more than just hanging in the food court and browsing the same
old stores.<o:p></o:p></div>
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Bringing in businesses, like Legend Heroes Park, aimed at
the tech-savvy and fickle millennial generation, can potentially bring those
dollars back into the shopping centers they’ve deserted. But what can retail
spaces do to attract families?<o:p></o:p></div>
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<br /></div>
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Fair Oaks Mall in Northern Virginia has found a way to get
families through their doors and keep them in their stores longer, and it
starts with the holiday season. The mall’s annual <a href="https://www.unionleader.com/news/business/it-s-all-about-selling-the-holiday-experience/article_c7945018-4334-598b-b0b9-4c0d5e5a551b.html" target="_blank">Santa’s Flight Academy</a> gives
kids an interactive experience set at the North Pole, which culminates in
meeting Santa and getting to see their name and photo pop up on a screen
showing Santa’s “nice” list. This all takes holiday shopping from a chore done
by the parents, to an experience and an event for the whole family.<o:p></o:p></div>
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<a href="https://www.naproperties.com/places/avalon/" target="_blank">Avalon</a>, located in Alpharetta, Georgia, expands on this by
attracting consumers to its mixed-use shopping center by offering programmed
experiences, such as comedy nights, yoga classes, fireworks shows and more.
Avalon has built itself around being more than a shopping center. Instead,
being a community gathering space focused on not just extending dwell time, but
making sure it is time well spent.<o:p></o:p></div>
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It isn’t just the owners of brick-and-mortar retail spaces
trying to draw the crowds back to their properties, though. <a href="https://www.npd.com/wps/portal/npd/us/news/tips-trends-takeaways/experiential-purchasing/" target="_blank">Retail brands are investing in experiences</a> for their shoppers to streamline and enhance the
shopping experience from the moment they step through the door.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Lululemon, the yoga-inspired apparel chain, offers yoga
classes in its stores as well as relaxation pods where customers can listen to
self-guided meditations, presumably as a comedown from that yoga-high. At Whole
Foods, customers can take a cooking class and hit the aisles right after to
pick-up the ingredients needed to make the dish for their family that night.
And, at the House of Vans in London, shoppers can purchase a new pair of
hi-tops and immediately try them out at the skate park located below the sales
floor.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
But experiential retail can be as simple as making the
shopping experience more convenient. Like how Nike installed digital lockers at
its new store in Los Angeles for customers who wanted to buy their shoes online
and pick them up in-store. Or The Home Depot, whose app allows customers to
find the exact aisle and bay the product they’re looking for is located in. So
they can spend less time wandering and more time working on their projects.</div>
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<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
As it becomes easier to buy goods at the push of a button,
brick-and-mortar retail needs to invest in new ways to get customers through
the door. Experiential retail and consumer engagement spaces are slowly
becoming the future of retail, and the best tool to get shoppers away from
their screens and back into the stores. <o:p></o:p></div>
<br />
<br />Norwood Grouphttp://www.blogger.com/profile/17652747194895055603noreply@blogger.com2tag:blogger.com,1999:blog-1933947418632400874.post-7152548634900792152019-04-03T12:15:00.000-04:002019-05-21T10:47:14.075-04:00How Proposed Legislation Could Affect Commercial Real Estate In New Hampshire<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiILZnfVjPeSN8W5OzH5nGwxqdA4oCWVgStRbPl5dL4S01W4hWNbtqfy3e5_V3RhGZJ6BE4opEn6D0jZdQ4f5m7Z-SqmitG1p0juuM9I2aAdpo3qfMTzxJxK2IFQb9ugkygMxZpqjNfRVbF/s1600/norwood+bills+blog.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="408" data-original-width="612" height="266" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiILZnfVjPeSN8W5OzH5nGwxqdA4oCWVgStRbPl5dL4S01W4hWNbtqfy3e5_V3RhGZJ6BE4opEn6D0jZdQ4f5m7Z-SqmitG1p0juuM9I2aAdpo3qfMTzxJxK2IFQb9ugkygMxZpqjNfRVbF/s400/norwood+bills+blog.jpg" width="400" /></a></div>
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</div>
<div class="MsoNormal" style="margin-top: 12.0pt;">
Do you hear that? The sound of
pencils scrawling new bills, Democrats and Republicans bickering, it must be a
new legislative session!<o:p></o:p></div>
<div class="MsoNormal" style="margin-top: 12.0pt;">
And a new legislative session
brings with it, well, new legislation. Some of which, if passed, will impact
the commercial real estate sector in both positive and negative ways. Let’s
take a look at some of the proposed bills that could affect the world of CRE.<o:p></o:p></div>
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But, before we get into the
proposed bills and their effects, a little primer on the New Hampshire State Legislature.<o:p></o:p></div>
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New Hampshire, by far, has <a href="https://www.nh.gov/almanac/government.htm" target="_blank">the largest legislative body in the United States</a> at 400 State Representatives and
24 State Senators for a whopping total of 424 legislators. The next closest
state is Pennsylvania with 253 legislators. New Hampshire’s legislative body is
bigger than the legislative bodies of Canada, South Korea, and Australia. Yeah,
chew on that for a bit.<o:p></o:p></div>
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Done chewing? Let’s continue,
then. <o:p></o:p></div>
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An interesting part of New
Hampshire’s legislative process, though not unique to the Granite State, is
that all proposed bills get a public hearing. At the federal level the Speaker
of the House or the President of the Senate has the power to table proposed
bills, denying them from going to committee. While the leadership has authority
in New Hampshire, every bill, no matter how odd, must get a public hearing. Though,
most will inevitably fail.<o:p></o:p></div>
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Let’s move on from this Civics
lesson and take a look at some of the proposed bills that could affect New
Hampshire’s commercial real estate sector should they become laws.<o:p></o:p></div>
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The first bill we’re going to take
a look at is <a href="http://gencourt.state.nh.us/bill_status/billText.aspx?id=736&txtFormat=html&sy=2019" target="_blank">House Bill 667</a>(HB 667) which proposes that any property that has
a well with new construction should have that well tested to ensure well water
meets quality standards before a certificate of occupancy will be issued. <o:p></o:p></div>
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HB 667 is one of many proposed
bills that deal with ground water, but one of the few that are focused on
private wells. The bill comes as we continue to learn more about what PFOAs,
PFASs and other contaminants mean to us as humans. <o:p></o:p></div>
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Presently, the state of New
Hampshire has no authority to regulate a private well. So, for example, if I
was selling my office building that had a well, and there were high nitrates in
that well, and you were fine with that, we could go through with the sale and
not have to worry about any governing body getting involved. Whereas if a
public system was found to have high nitrates the city would have the owner
shut the system down and cure it. <o:p></o:p></div>
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The way the proposed legislation
would be enforced is through new construction upon certificate of occupancy.
Meaning, if you were to build a new commercial property and the city came to
inspect said property, and found that the well water did not meet state standards,
the city would deny you a certificate of occupancy.<o:p></o:p></div>
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The issues with the bill don’t
come from what it is trying to do, protect our drinking water, but from how the
bill is currently written, as it introduces a whole new standard that didn’t
exist before.<o:p></o:p></div>
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The more specific concern for
commercial practitioners is that HB 667 is agnostic to property type. For
properties zoned for daycares and restaurants it may make sense to have well
water regulated. But for properties zoned industrial, which tend to have barely
any water consumption, it may be unnecessary.<o:p></o:p></div>
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The next proposed legislation that
we are going to look at is <a href="http://gencourt.state.nh.us/bill_status/billText.aspx?sy=2019&id=475&txtFormat=html" target="_blank">House Bill 561</a>(HB 561) which would allow towns to
create their own laws and zoning regulations that would prohibit formula businesses
in certain zones. For those not familiar with the term, the bill describes a
formula business as a food based franchise, like McDonald's or Starbucks.<o:p></o:p></div>
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The concern with HB 561 is that it
allows the Planning Board or Zoning Board, whose main goal is the regulation of
land use, to regulate a person’s business, branding, vendor chain and so forth.
<o:p></o:p></div>
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While the intent behind the bill
is to protect local, community-based businesses, what it fails to take into
consideration is that a lot of these corporate, formula-based businesses are
owned by local business owners who are just franchisees. So, while HB 561 would
protect the mom and pop shops that we usually associate with local business, it
would hurt non-traditional local business owners as well. For the moment HB 561
has been tabled, but it could be revived in another legislative session.<o:p></o:p></div>
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Access to affordable housing is
very important to New Hampshire employers and their employees, and we consider
it a commercial real estate issue. There are two bills concerning housing that
we’ll look at. One, <a href="http://gencourt.state.nh.us/bill_status/billText.aspx?sy=2019&id=215&txtFormat=html" target="_blank">Senate Bill 15</a>(SB 15), would require that on an annual
basis, $5,000,000 in revenue derived from the Real Estate Transfer Tax (RETT)
is allocated to the NH affordable housing fund. New Hampshire spends far fewer
dollars than our neighboring states on affordable housing programs and has <a href="https://www.fool.com/slideshow/15-states-highest-cost-living/?slide=7" target="_blank">one of the highest costs of living in the country.</a> Anything to bring that cost down
and help retain workers is welcome.<o:p></o:p></div>
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The next is <a href="http://gencourt.state.nh.us/bill_status/billText.aspx?sy=2019&id=989&txtFormat=html" target="_blank">Senate Bill 306</a>(SB
306). SB 306 would create a Housing Appeals Board to hear appeals of decisions
of municipal land use boards. Currently, if a property owner wanted to appeal a
decision made by a land use board they would have to appeal to the Superior
Court which can be an expensive and time-consuming process. <o:p></o:p></div>
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SB 306 would create a three-member
board made up of a lawyer, an engineer and another member of the public,
appointed by the Supreme Court, all of whom would be required to have expertise
in land use law or housing development. The board would be required to hear
appeals within 90 days of filing and rule within 60 days after hearing the
appeal.<o:p></o:p></div>
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This is fantastic for developers
and homeowners as what currently can cost thousands of dollars in legal fees
and wasted time can, if SB 306 is passed, be reduced to a $250 dollar filing
fee and a roughly 180 day turnaround time for appeals. Time, as the old adage
goes, is money, and money that could be used to create more housing opportunities
for New Hampshire’s workforce. SB 306 is currently tabled in the Senate, so we will have to wait and see when it is brought back-up.<o:p></o:p></div>
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These are just a few of the
proposed bills that could affect those in the commercial real estate sector.
What are your opinions on the bills we talked about? We’d love to hear your
opinions in the comments. And don’t forget to let your State Rep and State
Senator know your opinions as well. There is still time to make your voice
heard.<o:p></o:p></div>
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<br />Norwood Grouphttp://www.blogger.com/profile/17652747194895055603noreply@blogger.com1tag:blogger.com,1999:blog-1933947418632400874.post-61784314699851862712019-01-22T16:54:00.000-05:002019-01-23T14:33:57.057-05:00A Look Into The Government Shutdown's Effects On The Commercial Real Estate Industry<div class="separator" style="clear: both; text-align: center;">
<img alt="government shutdown effects on commercial real estate" border="0" data-original-height="414" data-original-width="960" height="170" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh5vgaFzY1lTpZmY4vc3ugVuE3YmYOvMCjpnJDoVFc7IrJJTHIUTNJzteQ0w_JABTLL79cYLbbWdhBV_uh1hmO0oSe4TG1Unulejwdy9ZCDXE6YeE73axKweWDNUoNfc0qjdemAyLbMtyAk/s400/capitol-panoramic-56a236e95f9b58b7d0c7f838.jpg" title="government shutdown effects on commercial real estate" width="400" /></div>
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As 2019 begins, events from 2018 are seemingly dragging
themselves into the New Year. Namely, the continued government shutdown. The
ongoing gridlock in Washington has brought many government agencies to a
standstill, with “non-excepted” government employees being placed on furlough,
prohibited by law from using their government emails or other federal
resources.<o:p></o:p></div>
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The ripple effects are widespread, affecting national parks,
federal research agencies and even the panda cam at the Smithsonian National Zoo.
But you didn’t come here for the pandas. You came here to find out what effects
the government shutdown is having on the commercial real estate industry. So,
let’s take a look.<o:p></o:p></div>
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To start, small businesses will have a harder time attaining
non-conventional loans, as the Small Business Administration (SBA) announced in
a Facebook post on December 22 that, due to a lack of government funding, it
will remain inactive until further notice. <o:p></o:p></div>
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For the commercial real estate sector the repercussions of
this will be felt in potentially stalled deals and projects. Businesses that
had been planning to apply, or already applied for, a 504 loan through the SBA,
to use towards the construction, renovation or purchase of a building or land,
have had to place their plans on hold until the loans can be processed. <o:p></o:p></div>
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But, it’s not just the end of the government shutdown
businesses have to wait for. Once the government opens back up, and government
agencies open their doors, there will be a massive influx of loan applications
from certified development companies (CDC) across the country trying to get their
loans approved by the SBA.<o:p></o:p></div>
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“There’s going to be an enormous backlog. So the SBA is
going to have to buy some time to get through all of these loans that are going
to be submitted to them simultaneously,” said Laura Brown, Vice President of
BDC Capital and CDC New England. In years past BDC Capital and other CDCs have
seen the SBA come out of shutdowns with a more scrutinizing eye. Screening out
deals they would normally approve. “There’s going to be some delay, it’s going
to take a little bit longer to catch up for everybody, the CDCs and [the SBA].”<o:p></o:p></div>
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This waiting game can complicate things for the borrowing
business. The longer the wait for the loan is, the higher the chance for any
potential purchases of buildings or land to fall apart. Especially if the
seller gets cold feet, or is highly motivated to sell.<o:p></o:p></div>
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Some local CDCs are trying to bridge the gap left by the SBA’s
closure by providing direct financing options that can be approved completely
within the CDC. Allowing some stalled deals to get moving again, without having
to wait for the government to open back up and the SBA to wade through the
flood of loan applications that continue to build up each passing day.<o:p></o:p></div>
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The multifamily sector which, after a great 2018, enters
2019 with some uncertainty, will not be helped by the shutdown. Both the
Department of Housing and Urban Development (HUD) and the Federal Housing
Administration (FHA), while not completely closed, have seen a significant
portion of their staff furloughed. The effects of this being that HUD will take
more time to process loans for housing projects and enforcing federal housing
regulations, while the FHA has made no commitments that it will endorse new
loans for its multifamily program. <o:p></o:p></div>
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Locally, most multifamily financing takes place
conventionally. However, HUD does provide loans for many larger projects that
may not otherwise work without that financing. In the same fashion, the FHA
provides a good amount of financing to smaller owner occupied buildings of four
units or under.<o:p></o:p></div>
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While buyers haven’t been left completely in the cold, as
both agencies are still operating, the staffers are spread so thin that any
movement will be slow. Meaning anyone who relies on these loans for new
mortgages or refinancing are going to have to live with delays.<o:p></o:p></div>
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Commercial owners could be impacted in a number of different
ways. Due to the SBA’s closure, any tenants that rely on SBA loans to help them
pay rent could have a hard time getting by, especially if the shutdown drags
out for an extended period of time. While there is relatively little chance
that any of these tenants would default on their rent, they could be forced to explore
cost-cutting measures to ensure they are able to pay it on time. And any
entrepreneurs who were looking to fund a start-up with an SBA loan will have to
put those plans on hold, or find other means of funding. Potentially making it
more difficult to afford space, and harder for landlords to fill space.<o:p></o:p></div>
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It’s not just those that rely on SBA loans that could see an
impact. Retail and hospitality businesses whose clientele is made up of a
majority of government workers have seen foot traffic dip in recent weeks as
offices have been closed and workers, not sure when their next check will come,
have curbed their spending. The effects of this being felt most heavily in
economies where government workers make up a large portion of the local
workforce.<o:p></o:p></div>
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And what about landlords who lease office space to the
government through the General Services Administration (GSA)? At the moment,
they don’t have too much to worry about, as there is no risk of rent payments
not being made. The question, though, is will payments be made on time? <o:p></o:p></div>
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As the GSA receives funding that can be carried over from
one year to the next, it has been able to keep its doors open and staffers
working, while making sure lease payments are being made on their due dates.
But, as the balance of carryover funding has declined in past weeks, the GSA
has begun to furlough their employees, as of Monday, January 7. The question
then becomes, if the shutdown continues on, how long can the GSA go before it
is unable to make rent payments on time?<o:p></o:p></div>
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The effects of the government shutdown are far reaching
within the commercial real estate sector. Too far to properly cover in one blog
post. While, so far, it has mainly brought only discomfort, the big question is
what happens if it extends to 30 days and beyond? And at what point do doomsday
scenarios need to be taken seriously? It’s enough to make you want to grab a
beer. Just hope that your beer of choice was approved by the Alcohol and
Tobacco Tax and Trade Bureau before the government shutdown.<o:p></o:p></div>
<br />
<br />Norwood Grouphttp://www.blogger.com/profile/17652747194895055603noreply@blogger.com1tag:blogger.com,1999:blog-1933947418632400874.post-13710438426653131682018-12-11T11:54:00.001-05:002018-12-11T11:54:48.161-05:00The Rising Cost Of Construction And Its Effects On Commercial Construction in New Hampshire<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjPBU82kn5cTlD2Ouge2coRODqeUOMPFjjTPQeR9bj6QsKUWl-2SAVDPcgCWEnr5EKOLBCQrZgRM7X78nPGEwKMM_e8T5oG6SWkWfkMij7JoNHYMINXdxVnwqVC5V-ZEOaMSWyZNcl7jsDj/s1600/pexels-photo-439416.jpeg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="960" data-original-width="1280" height="300" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjPBU82kn5cTlD2Ouge2coRODqeUOMPFjjTPQeR9bj6QsKUWl-2SAVDPcgCWEnr5EKOLBCQrZgRM7X78nPGEwKMM_e8T5oG6SWkWfkMij7JoNHYMINXdxVnwqVC5V-ZEOaMSWyZNcl7jsDj/s400/pexels-photo-439416.jpeg" width="400" /></a></div>
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Since 2014 construction costs have steadily risen across the
United States due to the continued increase in the cost of materials and a
labor shortage that has gripped the construction industry. And New Hampshire
contractors and construction companies haven’t been spared. But how are these
factors affecting the commercial construction industry here? And in what ways
are they affecting building projects across the Granite State?<o:p></o:p></div>
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<b>Where have all the skilled laborers gone?</b><u><o:p></o:p></u></div>
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The unemployment rate sits at 3.7 percent as of November 2018, with approximately 155,000 jobs created in that time. And employers
within the construction industry and the trades are having a harder and harder
time finding young, skilled workers to fill their employment needs. Part of
this is because of the stigma that has been placed on having a career in
construction. A thinking that has pushed young people away from the trades and
toward a four year degree.</div>
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“We need to make construction sexy again.” said Bill Jean,
Director of Business Development for Fulcrum Associates. “There are still those
trades that are very physically labor intensive, but a lot of the trades are
getting a lot more technical requirements associated with them now… I think
you’re finding that you’re needing a little bit more of a technical staff, technical training.” There are a number of initiatives underway that are hoping
to change how construction and trades careers are perceived, and employers recognize
the need to invest in better training and apprenticeships for the next
generation of skilled laborers.<o:p></o:p></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjVzmPmLuKAt3wZaerCg3c5ujZQB2CHPiafpvz9JL1vW3n_eOFXjAZ528VD4Eec2p-Kdb4uPhCjIaLC10x4cdC-oz9gcXnuhB8wldxZRNiPRBYSu_RTg5LGqm0qHacwB9U8UfkuhSiD_eq_/s1600/construction-site-build-construction-work-159306.jpeg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="853" data-original-width="1280" height="213" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjVzmPmLuKAt3wZaerCg3c5ujZQB2CHPiafpvz9JL1vW3n_eOFXjAZ528VD4Eec2p-Kdb4uPhCjIaLC10x4cdC-oz9gcXnuhB8wldxZRNiPRBYSu_RTg5LGqm0qHacwB9U8UfkuhSiD_eq_/s320/construction-site-build-construction-work-159306.jpeg" width="320" /></a></div>
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New Hampshire, though, faces a unique challenge with its
labor shortage: the exodus of young people. Their ‘exit: stage right’ leaves
the Granite State as one of the oldest states in the nation, with a rapidly
aging workforce and population. The<a href="http://eyeonhousing.org/2017/06/age-of-construction-workers/" target="_blank"> median age of a construction worker</a> in New
Hampshire is 44 years old, 3 years older than the national median of 41. As
companies see their workforce get older and retire, they are not seeing nearly
enough young talent come into the trades to replace the retirees. This doesn’t
tell the whole story though.<o:p></o:p></div>
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The industry is still bothered by the scars of the last
economic downturn, which saw many skilled tradespeople leave the area. Historically,
many tradespeople in the construction industry have been migrant, going where
the work is. The last downturn heavily impacted the New England market, with
those that moved out never coming back. Trying to fill the boots of the
tradespeople that left the area during the last recession has put that much
more stress on companies that are already struggling to find workers for their
current projects.<o:p></o:p></div>
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<b>Materials don’t come cheap</b><u><o:p></o:p></u></div>
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On top of the need for workforce, construction companies are
getting hit in the wallet by the steadily rising cost of materials. Looking at
almost any graph of materials cost from the past few years looks like the hill
Sisyphus was forced to roll his boulder up. As of this writing, according to an
analysis of U.S. Bureau of Labor Statistics done by Associated Builders and
Contractors, construction material prices were 7.4% higher than they were at
the same time the year before. Crude oil was up 47% over the past year. Much of
that cost being due to mounting trade tensions between the U.S. and China, as well
as the shadow of impending sanctions on Iran. Iron and steel were up 12.2%
buoyed by the current tariffs, and with iron ore forecasts showing a continued
rise in price that won’t subside any time soon. Finally, softwood lumber was up
5.4%, also affected by trade tariffs. <o:p></o:p></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjsLE8YTLaS-toIpPvyuV2KBM9bVcP-Mag2mfuiwYeQtsFWGpAihTEQ6ETVexRLXFm9gh70jWkxeva-dPa_bh1GiVycMCA6_Jhp861alnwXthVwDvOydStn_VOasYO04LEbVQeBN25Hpbum/s1600/iron-rods-reinforcing-bars-rods-steel-bars-46167.jpeg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="853" data-original-width="1280" height="213" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjsLE8YTLaS-toIpPvyuV2KBM9bVcP-Mag2mfuiwYeQtsFWGpAihTEQ6ETVexRLXFm9gh70jWkxeva-dPa_bh1GiVycMCA6_Jhp861alnwXthVwDvOydStn_VOasYO04LEbVQeBN25Hpbum/s320/iron-rods-reinforcing-bars-rods-steel-bars-46167.jpeg" width="320" /></a></div>
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While the price increase for materials like softwood lumber
haven’t affected New Hampshire’s industry much, due to resources in the
Northeast and Canada, the rising cost of steel initially caused some friction
within the market as the volatility during the early days of the tariffs caused
prices to fluctuate almost daily. Unable to eat all of those price increases,
many companies, like Fulcrum Associates, were forced to pass off the cost to
the end user. Affecting planned projects and their budgets. <o:p></o:p></div>
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<b>What does the crystal ball say?</b><u><o:p></o:p></u></div>
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While both of these variables seem to paint a dire picture
for commercial construction in New Hampshire and nationwide, how much has the
rising costs really affected business? According to the latest <a href="https://www.bdcnetwork.com/contractors-remain-upbeat-q2-according-abc%E2%80%99s-latest-construction-confidence-index" target="_blank">Construction Confidence Index</a> released by Associated Builders and Contractors at the end of
September, not much. The outlook from most construction firms is that sales
will continue to rise over the coming months, with higher profit margins
expected. The survey found that the CCI for sales expectations rose from 72.2
to 72.6 during the second quarter, and expectations for profit margins
increased from 63.4 to 64.5. <o:p></o:p></div>
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Bill Jean and Fulcrum Associates concur with the report.
“Beyond 12 months the crystal ball gets a little fuzzy, but certainly if you’re
looking at a 6 to 12 month window we feel very confident about the strength of
the market and the industry. We don’t see a great trend upwards in
profitability, but we’re still finding that work is being heavily competed for.
There’s a lot of it out there, and there’s probably more of a volume available
out there [today] than there has been in the last decade.”<o:p></o:p></div>
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The chances for any sort of slowdown in commercial
construction in the short-term seems unlikely. The long-term outlook is not as clear.
The biggest challenge to the commercial construction industry in the future is
finding talented, young tradespeople. Access to labor and the shallow depth of
the region’s trade talent pool happens to be the primary factor for the
increasing cost of commercial construction in New Hampshire and the rest of the
Northeast region. A rising cost that may or may not eventually catch-up with
the industry, especially as it plans for a decline to the growth the industry
has been enjoying. For the moment though, the cup runneth over.<o:p></o:p></div>
<br />Norwood Grouphttp://www.blogger.com/profile/17652747194895055603noreply@blogger.com1tag:blogger.com,1999:blog-1933947418632400874.post-12092593927565734682018-01-15T11:33:00.001-05:002018-01-15T11:34:24.981-05:00NAI Norwood Group Sells 26,000+/- SF Office Building<div class="MsoNormal" style="margin-left: 4.0in; text-align: justify; text-indent: -4.0in;">
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<b><span style="font-family: "arial" , sans-serif; font-size: 24.0pt;">PRESS RELEASE </span></b><span style="font-family: "arial" , sans-serif; font-size: 11.0pt;">Contact: Cassie Farley 668.7000<o:p></o:p></span></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgn8oLygBPXcYMOrGtmUb0m_QXrv4FQL74JYc3jAHtc2n9lygD0WB9RWj62ynfSXhWvxVb55qBHy8MQTbQQBBc5D8m7PiMSXomwZubV77nSGUJ2io_2-uAG3vdwG1dtx_ymMzL1jh4nmUbP/s1600/DSC_0450.JPG" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="212" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgn8oLygBPXcYMOrGtmUb0m_QXrv4FQL74JYc3jAHtc2n9lygD0WB9RWj62ynfSXhWvxVb55qBHy8MQTbQQBBc5D8m7PiMSXomwZubV77nSGUJ2io_2-uAG3vdwG1dtx_ymMzL1jh4nmUbP/s320/DSC_0450.JPG" width="320" /></a><b><span style="font-family: "arial" , sans-serif;">NAI
Norwood Group Sells a 26,000+/-SF Office Building at 44 Franklin Street in
Nashua, NH </span></b><span style="font-family: "arial" , sans-serif;">– NAI
Norwood Group is pleased to announce the recent sale of a two-story, 26,000+/-SF
professional office building located at 44 Franklin Street in Nashua, New
Hampshire. Up until approximately the late 1990’s, this building was more
familiarly owned and operated as the main headquarters for the Nashua
Corporation. Karl Norwood, Perry Snow and Matt Bacon of NAI Norwood Group represented
the seller, <b>44 Franklin Street, LLC, </b>in
the transfer of the property to the buyer, <b>Lofts
34, LLC </b>(aka Brady Sullivan Properties).
According to the Hillsborough County Registry of Deeds, the property
sold for $2,500,500. <o:p></o:p></span></div>
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<span style="font-family: "arial" , sans-serif;">This professional office building -
along with its ownership rights, and parking rights involved with two nearby
parking lots - was acquired by the buyer to combine with their immediately
adjacent mill property located at 34 Franklin Street, currently being renovated
into approximately 200+/- residential apartment units, and thereby provide
additional parking which is in short supply in this area. At the time of the sale, the 44 Franklin
Street building was home to the Public Defenders, which tenant occupied the
entire second floor. The vacant first floor portion was soon hoped to be a new
location for Compass Innovative Behavior Strategies, which business operation
specializes in behavioral therapy for autistic children and is currently
headquartered in Bow, NH. For full
details on this sale, please contact Karl Norwood, Perry Snow or Matt Bacon at
603-668-7000 or info@nainorwoodgroup.com. <o:p></o:p></span></div>
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<span style="font-family: "arial" , sans-serif; mso-bidi-font-style: italic;">NAI Norwood
Group is an affiliate of NAI Global, the world’s leading managed network of
independently owned commercial real estate brokerage firms. Through this network of 355 offices in 55
countries, NAI Norwood Group is able to leverage their 45+ years of dedicated
local experience around the world. With our extensive background and strong
local contacts, we are able to assist individual corporations in negotiating
leases, sales, business brokerage, investments, relocation, site selection and
development. For more information please visit </span><a href="http://www.nainorwoodgroup.com/"><span style="font-family: "arial" , sans-serif;">www.nainorwoodgroup.com</span></a><span style="font-family: "arial" , sans-serif; mso-bidi-font-style: italic;">. Or contact
one of our offices: 116 South River Road, Bedford, NH 03110, (603) 668-7000 or 28
Deer Street Suite 301, Portsmouth, NH 03801 (603) 431-3001.</span><b><span style="color: #373737; font-family: "arial" , sans-serif;"><o:p></o:p></span></b></div>
Norwood Grouphttp://www.blogger.com/profile/17652747194895055603noreply@blogger.com1tag:blogger.com,1999:blog-1933947418632400874.post-29399981754904578842017-12-07T16:21:00.001-05:002017-12-07T16:21:58.620-05:00Tax Reform Could Impact Affordable Housing<div class="MsoNormal" style="margin-left: .5in;">
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<span class="ember-view"><span style="background: white; border: none 1.0pt; font-family: "helvetica" , sans-serif; font-size: 11.5pt; padding: 0in;">Congress is
proposing to gut LIHTC in the house version of the tax reform bill, as
illustrated in a recent article (</span></span><a href="http://bit.ly/lihtcnh" target="_blank"><b><span style="background: white; border: none 1.0pt; color: #827be9; font-family: "helvetica" , sans-serif; font-size: 11.5pt; padding: 0in;">http://bit.ly/lihtcnh</span></b></a><span class="ember-view"><span style="background: white; border: none 1.0pt; font-family: "helvetica" , sans-serif; font-size: 11.5pt; padding: 0in;">) by Kenneth Viscarello, Attorney at Sheehan Phinney,
published in the NH Business Review. Attorney Viscarello outlined the proposed
impacts in terms relevant to the housing market and means of financing such
projects that we face in New Hampshire, and points out a couple of key changes
that especially relate to the for-profit developers of affordable housing in
this state.<o:p></o:p></span></span></div>
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<span class="ember-view"><span style="background: white; border: none 1.0pt; font-family: "helvetica" , sans-serif; font-size: 11.5pt; padding: 0in;">The current
code supports a public-private partnership that is essential to providing
adequate stock of affordable housing, since the government can’t (and many say
shouldn’t) be charged to meet the need, both from an efficiency standpoint and
that of practicality. Without the corporate tax exposure, need to buy
these tax credits by the primary purchasers today will be reduced, and, as
Attorney Viscarello points out, there are no other offsets to benefit
LIHTC. While not a one-dimensional issue, this impact is important to
consider.<o:p></o:p></span></span></div>
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<span class="ember-view"><span style="background: white; border: none 1.0pt; font-family: "helvetica" , sans-serif; font-size: 11.5pt; padding: 0in;">If you are
interested in housing development, news relating to the industry, or just want
to discuss commercial RE topics, please feel free to reach out to me through my
<a href="https://www.blogger.com/LinkedIn.com/in/mattbacon">profile</a>, email me, or call my office at
603-668-7000 x216.</span></span><o:p></o:p></div>
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<b><span style="color: #af2d37; font-family: "arial" , sans-serif; font-size: 10.0pt;">Matthew
Bacon, MiCP</span></b><o:p></o:p></div>
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<span style="color: #657276; font-family: "arial" , sans-serif; font-size: 10.0pt;">Commercial
Real Estate Advisor</span><o:p></o:p></div>
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<span style="color: #657276; font-family: "arial" , sans-serif; font-size: 10.0pt;">116 South River Road | Bedford NH
03110 <b>| </b>Main +1 (603) 668-7000<o:p></o:p></span></div>
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<b><span style="color: #c00000; font-family: "arial" , sans-serif; font-size: 12.0pt;">Cell +1 (603) 724-4554</span></b><span style="color: #657276; font-family: "arial" , sans-serif; font-size: 10.0pt;"> <b>| Direct
+1 (603) 637-2005 </b><o:p></o:p></span></div>
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<span style="color: #657276; font-family: "arial" , sans-serif; font-size: 10.0pt;"><a href="http://www.linkedin.com/in/mattbacon"><span style="color: blue;">LinkedIn.com/in/mattbacon</span></a><o:p></o:p></span></div>
Norwood Grouphttp://www.blogger.com/profile/17652747194895055603noreply@blogger.com1tag:blogger.com,1999:blog-1933947418632400874.post-66414023012166766242017-12-07T16:17:00.001-05:002017-12-07T16:17:10.892-05:00What do Federal Tax Plans Mean for Real Estate?<div>
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There’s no indicator that the changes will structurally affect values</h3>
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BY CHRIS NORWOOD</div>
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There has been much debate over the merits of the U.S. House and Senate tax plans coming out of Washington. For me, this forum is not to judge good or bad, but to give some insight on what the proposals are and what the likely outcomes could be.</div>
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In my role as a commercial real estate broker and volunteer for the Commercial Investment Board of Realtors, I visited Washington each of the last six years to discuss real estate issues with our representatives. This gives me a good insight as to which way the leaves are blowing.</div>
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First a quick disclaimer and civics lesson: While there has been a push to “get the bill passed before Thanksgiving” and now to “get the bill passed before the end of the year,” we really have no idea when or even if it will pass. If everything passes, the House and Senate will have to reconcile before anything gets sent to the president. Users and investors should not take this article for investment advice, as it is the equivalent of trying to pick today who will win the 2018 World Series. There is just no way to know. (Except it should be the Boston Red Sox.)</div>
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Also, taxation is like a Whac-A-Mole. You may see savings in one area, but expense in another, so seek your tax adviser for a look at the whole picture.</div>
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While the focus of this article practice is commercial real estate, many folks have questions on residential real estate. Both plans call for the elimination of deductions on home equity line debt. In addition, the House calls for the amount of interest on debt in excess of $500,000 to be nondeductible (currently the limit is $1 million). It also eliminates outright the deductions on second homes. Also of importance to the state of New Hampshire is that the House and Senate plans cap real estate tax deductions at $10,000.</div>
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<strong>One key issue that came as a surprise</strong> on the commercial real estate front was proposed changes to depreciation. Currently, commercial real estate depreciation schedules are either 39 years or 27.5 years. Don’t ask me why those are the numbers – no one ever accused the tax code of making sense. The proposed change would have a nominal impact on multifamily investment assets, however on the office, industrial and retail front, we will see that you will be able to depreciate 4 percent of your asset’s value each year as opposed to roughly 2.5 percent. That is a considerable shelter which could increase the value on those asset classes.</div>
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Realtors have often been concerned about changes to Section 1031, which allows investors to sell an asset and defer taxation so long as they invest back into the economy with another “like kind” asset. Both plans offer no changes to this policy for real property. However there are some subtle changes for personal property that could affect items like equipment and specialty fixtures such as lighting. Best to consult your tax advisor with any questions here.</div>
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<strong>On the speculative side of the investigation </strong>is the Senate’s proposal to combine this tax plan with changes to the Affordable Care Act. While the details of this are not specific, there is a tax on investments that is embedded in the ACA. If a reconciled bill comes before the president, it is not certain at this time if that tax will remain or if it will go. The formula is somewhat complicated, but in short, the tax is 3.8 percent on investment gains above a certain dollar amount, based on earnings. Most folks are not even aware that this exists now, so it is unclear what impact this will have.</div>
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There is a saying that you should “never let the tax tail wag the investment dog.” I think the proposed changes are a good example. The changes here can have a major effect on your commercial real estate assets, both as investors and users. Tax reform could affect a small 2,000-square-foot office condo or a 100-unit multifamily investment. However, at this juncture there is no indicator that a sweeping change (such as the passive income/loss rules in the mid-1980s) will structurally change values. Yes, there will be market fluctuations as a result and some asset classes will win and some will lose, but the macro factors of supply/demand and interest rates will trump these proposed changes (pun intended). Stay the course on your real estate goals. Your needs are likely more important than these tax changes.</div>
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<em>Chris Norwood is president of NAI Norwood Group, Bedford. Greg Bryant of Bedford Cost Segregation and Lynne Bagby of Asset Preservation Inc. both assisted in helping to explain the subject.</em></div>
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http://www.nhbr.com/December-22-2017/What-do-federal-tax-plans-mean-for-real-estate/Norwood Grouphttp://www.blogger.com/profile/17652747194895055603noreply@blogger.com0tag:blogger.com,1999:blog-1933947418632400874.post-14005960239119642612017-08-15T10:41:00.000-04:002017-08-15T10:41:39.925-04:00Investors Buying Office Space in Bedford NH<div class="MsoNormal" style="margin-right: -0.25in; text-align: left;">
<span style="color: #444444; font-family: Arial, Helvetica, sans-serif; font-size: large;">Bedford NH - NAI Norwood Group is
pleased to announce two recent office sales in the Bedford NH market. 10
Chestnut Drive is a 13,690+/-sf two story office building off the busy Route
101 corridor comprised of a number of small, local businesses. According to the
registry of deeds it sold for $790,000.
116 South River Road Building B was a 7500+/-sf two story, steel framed, brick
façade condo that sold in the prestigious Coldstream Office Park at 116 South
River Road. According to the registry of deeds it sold for $870,000.</span></div>
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<span style="color: #444444; font-family: Arial, Helvetica, sans-serif; font-size: large;">“It is clear that these sales are a
testament that a Bedford business address continues to be highly desirable.”
Noted Louise Norwood, Principal at the firm. “With so much new development in
town, along with the low interest rates, the demand remains high.”</span></div>
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<span style="color: #444444; font-family: Arial, Helvetica, sans-serif; font-size: large;">“Both of these assets were sold to
investors.” Added Chris Norwood, President of the firm, “With an additional
sale of a small condo unit earlier in the summer, this marks our third
investment product sale in Bedford in the last 60 days. While the owner
occupant market is strong, the proof is here that investors are still seeking
sound real estate as diversification to their other investments.”</span></div>
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<span style="color: #444444; font-family: Arial, Helvetica, sans-serif; font-size: large;">NAI Norwood
Group is an affiliate of NAI Global, the world’s leading managed network of
independently owned commercial real estate brokerage firms. Through this network of 400+ offices and
7,000+ professionals, NAI Norwood Group is able to leverage their 45+ years of
dedicated local experience around the world. With our extensive background and
strong local contacts, we are able to assist individual corporations in
negotiating leases, sales, business brokerage, investments, relocation, site
selection and development. For more information please visit <a href="http://www.nainorwoodgroup.com/">www.nainorwoodgroup.com</a>. Or contact
one of our offices: 116 South River Road, Bedford, NH 03110, (603) 668-7000 or 28
Deer Street Suite 301, Portsmouth, NH 03801 (603) 431-3001.</span><b><span style="color: #373737; font-family: "Arial",sans-serif;"><o:p></o:p></span></b></div>
Norwood Grouphttp://www.blogger.com/profile/17652747194895055603noreply@blogger.com0tag:blogger.com,1999:blog-1933947418632400874.post-36383180951210977572017-08-08T11:46:00.000-04:002017-08-08T11:46:35.071-04:00NAI Norwood Group Sells Land in Kittery for One Million Dollars per Acre<div class="separator" style="clear: both; text-align: center;">
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<span style="font-family: "Arial",sans-serif;"><span style="color: #444444; font-size: large;">Kittery ME – NAI Norwood Group is
pleased to announce the sale of 1.96+/- acres located at 275 US Route 1 in Kittery,
Maine. The site was the former home of Maine’s original outlet center. Greg
Whalen of NAI Norwood Group represented the seller, KTP Shops LLC, in the transaction.
It closed on July 27, 2017 in the amount of $1,960,000.<o:p></o:p></span></span></div>
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<span style="font-family: "Arial",sans-serif;"><span style="color: #444444; font-size: large;">The site will be the new home of a
Hampton Inn and Suites. The 32,000+ retail building currently residing on the
site will soon begin the demolition process. This project has been a long time
coming. It went under agreement nearly three years ago and has fought a long,
hard battle through Maine’s court system. For full details on the site
renovation or the court case, please contact Greg Whalen at 603-431-3001 or <a href="mailto:gwhalen@nainorwoodgroup.com">gwhalen@nainorwoodgroup.com</a>. <o:p></o:p></span></span></div>
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<span style="color: #444444; font-size: large;"><span style="font-family: "Arial",sans-serif; mso-bidi-font-style: italic;">NAI Norwood
Group is an affiliate of NAI Global, the world’s leading managed network of
independently owned commercial real estate brokerage firms. Through this network of 355 offices in 55
countries, NAI Norwood Group is able to leverage their 45+ years of dedicated
local experience around the world. With our extensive background and strong
local contacts, we are able to assist individual corporations in negotiating
leases, sales, business brokerage, investments, relocation, site selection and
development. For more information please visit </span><a href="http://www.nainorwoodgroup.com/"><span style="font-family: "Arial",sans-serif; mso-bidi-font-style: italic;">www.nainorwoodgroup.com</span></a><span style="font-family: "Arial",sans-serif; mso-bidi-font-style: italic;">. Or contact
one of our offices: 116 South River Road, Bedford, NH 03110, (603) 668-7000 or 28
Deer Street Suite 301, Portsmouth, NH 03801 (603) 431-3001.</span></span><b><span style="color: #373737; font-family: "Arial",sans-serif;"><o:p></o:p></span></b></div>
Norwood Grouphttp://www.blogger.com/profile/17652747194895055603noreply@blogger.com0