When Feng Shui Helps Determine a Deal’s Fate

My article in the New York Times came out today on the unique aspects of doing business with the international community. While I do enjoy learning about the different cultural traditions, the real story is in how active the Chinese-American community have been.

In the past three months I have sold nearly $30 million worth of office condominiums to business owned by Chinese-Americans. They have a preference towards ownership since, from what I understand, in Asia they only own their office space, rather than rent. The buyers have also been very shrewd business people who recognize that the market is down 40% and it is a great time to buy. I expect that they will build great wealth in the next decade as values appreciate.

I congratulate all of our recent purchasers on a very wise decision, and I look forward to working on many more deals with people of all cultures.

/by

New Accounting Rules make Office Condominiums Even More Compelling

New accounting standards are in the works that will require companies to recognize new and existing lease payments as a liability on their taxes. 

In this market most companies are burdened with poor financials and heavy debt.  According to Shahab Moreh, a partner with accounting firm WeiserMazars LLP “Additional liabilities on the balance sheet for these companies will impact debt covenants with lenders, alter investor perception, and possibly affect credit ratings.”

If companies are required to record significant lease liabilities, they will choose to sign shorter leases.  Alternatively, companies will likely consider the option to own their space.

The changes in accounting laws will make office condominiums an even more attractive option for all companies.

For more information on the changes in the accounting laws please read the article from the NY Times titled “New Accounting Rules Ruffle the Leasing Market.”

/by

NYC Denied Attempt to Require Foreign Missions to the UN to Pay Real Estate Taxes

New York City has been denied by the U.S. Department of State in its attempts to make foreign missions to the United Nations pay taxes on property they own in New York.  Missions, like 501 C-3 non-profits, are exempt from paying real estate taxes when the own their space, including office condominiums.  However, missions and non-profits have to pay an above a base year on real estate taxes if they rent.  This tax exemption is one of the many reasons why it is so compelling for organizations to own their office space.

/by

The Highline 2.0

The Highline has been one of the best projects in NYC over the past decade. There are still dozens of development sites and exciting projects that are yet to be built….and its possible that the best is yet to come. 

/by

Should I Rent or Buy?

Here is a great article in the Small Business section of the New York Times about rationalization of a business owner who bought his warehouse instead of renting. 

/by

The Ground Zero Mosque is Symbolic of what makes the NYC Real Estate Market So Strong

Michael Bloomberg’s remarks on the Lower Manhattan Mosque reminds us of how our great city is made up of and built by people of all religions and origins. Whether it is Middle Eastern investors paying huge prices for our iconic buildings, or religious groups spending hundreds of millions of dollars to build religious and cultural centers, we all benefit; jobs are created and real estate values increase.

Here are some quotes from Bloomberg’s speech that eloquently sum up this historic day for our city:

“We honor America’s core principles and the heroes of 9/11 by defending freedom of religion”

“Our doors are open to everyone – everyone with a dream and a willingness to work hard and play by the rules. New York City was built by immigrants, and it is sustained by immigrants – by people from more than a hundred different countries speaking more than two hundred different languages and professing every faith. And whether your parents were born here, or you came yesterday, you are a New Yorker.”

“We have come here to Governors Island to stand where the earliest settlers first set foot in New Amsterdam, and where the seeds of religious tolerance were first planted. We’ve come here to see the inspiring symbol of liberty that, more than 250 years later, would greet millions of immigrants in the harbor, and we come here to state as strongly as ever – this is the freest City in the world. That’s what makes New York special and different and strong.”

/by