Author: Created: 9/29/2011 12:58 PM
The Cabot Group
By slaraby on 11/4/2014 4:35 PM
Not a day goes by that the front page of every newspaper across the country features a story involving an act of terrorism somewhere. The same sad story seems to hold true for television news too. Fortunately for us, the violence is rarely at our doorstep but the worldwide threat of terrorism does impact commercial real estate in our country. Ever since that dreadful day in September 2001, the risk of another calamitous attack on US soil has severely limited the availability of affordable casualty insurance for owners of commercial property.

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By slaraby on 10/27/2014 12:33 PM
Ratings continue to have more influence on prospective renters.  Recent studies have shown that almost 70% of renters rely upon online ratings and reviews and approximately 26% of renters have posted reviews.  Apartment managers need to actively review and manage their ratings.  The most prominent sites are: apartmentratings.com, yelp.com, and google...

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By slaraby on 10/6/2014 1:47 PM
The lease at your office is expiring within the next 12 months and the time has come to contact your trusted real estate advisor to evaluate new options for your business.  It is important to collaborate with your real estate advisor to “help them help you” identify the best possible space for your organization.  Enlisting the support of a real estate advisor to guide you through the process will ensure that you identify the optimal location with the optimal amenities, under the most optimal terms.  There are a number of things that tenants and advisors alike should be cognizant of.

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By slaraby on 9/16/2014 9:10 AM
The competition for credit worthy commercial office tenants has never been more fierce.  This is particularly true is secondary and tertiary markets. Prospective tenants are becoming ever more aggressive with respect to demands for rent concessions from landlords. These concessions generally include the usual requests for increased free rent periods, increased improvement allowances and discounted/free employee parking...

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By slaraby on 8/5/2014 11:02 AM
Providing management services for commercial properties involves a laundry list of universal elements including landscaping, janitorial needs, mechanical system maintenance, snow removal, parking area maintenance, everyday minor repairs, vendor contract management and building security. Until recently, building security was viewed as a relatively insignificant line item on the annual budget projection. After all, events at commercial buildings, more often than not, involved ribbon cuttings which rarely made the front pages of the daily newspaper or local television station.

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By slaraby on 7/14/2014 9:30 AM
Halfway through the calendar year and 2014 is shaping up to be the best for apartments since the Great Recession.  Nationally, apartment occupancy hit 95% for the first time since 2008. Through May, effective rent growth of 3.7% was the highest since 2008 as well.   Absorption for new units in urban cores remains high although trends indicate increased supply has started to slow effective rent increases.  In suburban markets, effective rent increases continue at a healthy pace...

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By slaraby on 6/25/2014 8:19 AM

If you think of the most expensive rental markets in the country, several cities come to mind.  New York, San Francisco, Miami, Los Angeles, Seattle, and Washington DC, are probably among them.  What if I told you where there was a region with average rents almost 24% higher than any of those cities for comparable living space?  You may now be trying to identify any large...

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By slaraby on 6/24/2014 8:43 AM

There are two commonly used accounting methods utilized by professional real estate management companies.   One is the cash basis and the other is the accrual basis and both methods are widely used and accepted in the industry. By far the most common method, and the one generally preferred by property owners, is the cash basis.  As the name implies, the cash basis method of reporting reflects all items of income and expense when they are received...

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By slaraby on 5/27/2014 7:57 AM
Many analysts and industry experts wondered if multi-family would start to slow down in 2014.  After all, the sector has enjoyed almost six years of continuous improvement.  However, early results for the first quarter have analysts predicting continued strong performance for multi-family investments for years to come...

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By slaraby on 5/15/2014 2:46 PM
Irrespective of the size of the market or geography, many of the duties and responsibilities of commercial real estate advisors appear to be very much the same. Clearly, the role of commercial real estate advisor has changed over the past ten years or so. Not too long ago, those of us who interfaced with large corporations and/or large institutional organizations were primarily tasked with site selection and lease negotiation responsibilities—purely transactional roles.

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By slaraby on 5/12/2014 8:29 AM
Apartment ratings can be a good indication of the quality of life and service an apartment community provides its residents.  It makes sense that good communities would garner positive ratings, and in most cases this is true.  Property managers are able to monitor the positive and negative feedback from residents within their communities and take steps to increase the consistency of positive interactions.

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By slaraby on 5/6/2014 9:52 AM
When it comes to providing value added real estate management services, a well implemented request for proposal (RFP) process is critical to getting the best value for your client.
In this day and age of specialization many of the services required to properly care for your real estate investment involves the use of a specific vendor or supplier that is an expert in the service needed.  Certain services require unique or costly equipment to complete or that may be seasonal in nature.

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By slaraby on 4/4/2014 1:13 PM
Unless your organization has a fully staffed, in-house real estate department which is comprised of individuals having a wide range of real estate skill sets, the answer is always a resounding "yes".   Even if your real estate needs at the time seem simple, such as renewing a lease, your organization must always retain a level of bargaining power; something a dedicated real estate team can deliver through detailed knowledge comparable alternatives in the market.   By limiting yourself to only one option, you have no leverage to push for concessions, no matter how reasonable...

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By slaraby on 4/4/2014 1:11 PM
The New York State Department of Labor recently enacted reforms to the unemployment insurance system that will dramatically increase the cost to many employers.  Companies with a large proportion of lower wage employees, temporary seasonal staff or who experience higher turnover will be hit especially hard.  Real estate property management firms will fall into this category due to the large number of staff employed at the individual property sites they manage and the numerous seasonal staff they employ for landscaping and...

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By slaraby on 4/2/2014 9:29 AM

Commencing 6/1/14, the maximum building coverage under the National Flood Insurance Program (NFIP) will increase from $250,000 to $500,000 per building.  For properties that require such insurance, this could potentially mean a doubling of the premiums on flood policies.  As this coverage is usually mandated by lenders, properties will find themselves forced to absorb the increased operating cost negatively impacting Net Operating Incomes.  However, there are a few measures managers and owners alike can take to mitigate the costs of insurance premiums...

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By slaraby on 3/31/2014 8:09 AM
The issue of mold growing inside our homes and buildings is fast approaching the concerns we had with asbestos in the early to mid 70’s. Property management professionals and home owners alike need to increase their awareness of the hazards of mold and know how to deal with it in a safe manner so as to not sacrifice the integrity of the building structure or the health of its occupants. We must be able to identify mold, seek professional testing, understand the correct way to remediate it and then take the proper steps to prevent future growth. In the past ten to fifteen years...

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By slaraby on 3/27/2014 12:10 PM
Over the last several years, energy auditing start-ups have analyzed billions of square feet of commercial building energy usage analytics.  These metrics create highly useful data to learn how energy use can (potentially) be minimized.  These virtual audits can be part of a viability study to determine if energy efficiency measures should be examined.  The virtual studies are by no means a benchmark, but rather, a guide as to what may be possible to attain in energy savings within a facility.


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By slaraby on 3/26/2014 12:47 PM
A variety of circumstances may lead to the appointment of a Court Appointed Receiver to administer the affairs of a property. It is not unusual that the real estate is "distressed" in regards to one or more issues: vacancies, deferred maintenance, code violations, rent delinquencies, etc. These issues demand responsive, experienced and competent management so that the Receiver, as a fiduciary officer of the Court, meets his or her responsibilities as outlined in the Order of Appointment and as required under related governing regulations.

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By slaraby on 3/17/2014 9:05 AM
Recently, The Wall Street Journal ran an interesting piece in the opinion section that got me thinking about the reuse of vacant center city property. The article focused on the repopulation of hollowed out, long vacant residential city neighborhoods in Detroit.  The problems facing Detroit’s dramatically declining population and subsequent abandonment of older housing stock has forced the city and state governments to address the issue from outside the box. About one-third of Detroit’s 139 square miles lies vacant and about...

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By slaraby on 2/24/2014 3:52 PM
Robust job growth in some areas of the country has fueled multifamily completions in the past and  are expected to continue to do so into 2014.  Relatively high correlation between job growth and multifamily completions indicate a strong relationship that feeds the growing demand for housing in these areas...

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By slaraby on 2/13/2014 9:35 AM
With the exception of human resources, the single largest  operating expense for most businesses is the cost of their real estate.  For those businesses that do not own the space they occupy, the cost to occupy that space is driven by the terms of a lease agreement. These  business owners are usually best served by making one critical path decision regarding lease negotiations – engage non legal real estate expertise when negotiating the terms of a lease.

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By slaraby on 1/16/2014 2:07 PM
Owners of commercial real estate and property managers have long recognized the benefit of the depreciation deduction.  Owners will frequently hire an engineering firm to conduct a cost segregation study on acquired property to identify and quantify assets with shorter depreciable lives.  These cost segregation studies help maximize the benefit of the depreciation deduction available to the owner.  However, there are significant costs and effort required to complete this work, and the practice has attracted increased scrutiny from the Internal Revenue Service (IRS).

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By slaraby on 1/14/2014 2:48 PM
Contracting out facilities management to an experienced firm not only alleviates the headache of day to day maintenance, it also bolsters the bottom line. One way THE CABOT GROUP delivers value to our clients is through the use of improved logistics.

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By slaraby on 1/13/2014 12:18 PM
Much has been written, both pro and con, about the appropriateness of governmental/municipal participation in real estate development projects; the so called public-private partnerships. Some opponents of such projects decry the need for public assistance to induce developers to invest in projects that are deemed relatively risk free. I must admit that on more than one occasion, I have found myself in agreement with those who shake their heads in disbelief...

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By slaraby on 1/7/2014 9:22 AM
Technology is an integral part of our day to day existence. Maintenance requests, alert systems, communication channels and the like are all put in place to ensure the safety and comfort of the tenant as seamlessly and as efficiently as possible.  How would the maintenance crew respond to a lapse in their service request servers? In order to prevent hiccups in customer service, facilities managers must take proactive steps...

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By slaraby on 12/30/2013 9:33 AM
We might suggest that 2014 will not outperform the success the apartment industry has enjoyed in recent years but it will still prove a good year.  Reasons for a slight slowdown in the shinning performance of recent years are:
Delivery of new Class “A” product - 231,000 units in top 100 markets - largest level of completions to come online in quite some time.

Job growth has not kept pace with rent increases - making it difficult to sustain aggressive rent increases...

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By slaraby on 12/18/2013 10:45 AM
Because of the government shutdown, figures for the third quarter of the year have only unofficially declared what has long been expected: the multifamily market continues to trend upward. Quarterly reports, recently released by a private research firm for the 2013 Q3 multifamily market, show sustained strength

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By slaraby on 12/17/2013 11:46 AM
By their very nature, disasters are unforeseen and inevitable, but that doesn’t mean that you can’t take proactively take action to avoid or minimize the impact they may cause.  Countless businesses succumb to catastrophic failures each year, losing valuable operating time, assets, and customer support in the process.

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By slaraby on 12/9/2013 2:44 PM
Inherent in the operation of every kind of real estate holding are utilities costs. These expenses – water, heat, and electric – can be delivered as needed, but strategic measures are able to deliver them at a reduced cost.  Enter retrocommissioning.

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By slaraby on 12/4/2013 9:14 AM

Submitted by S. Laraby
No predictive analysis is complete without a return to the data.  How did we do?

If you have been following our blogs which offer commentary and analysis of the spectrum of commercial real estate matters, you may know that we regularly comment on the current and future state of the multifamily market, particularly rent and vacancy rates.
By slaraby on 12/3/2013 9:04 AM

Submitted by P. Barry
For many, the winter months are filled with holiday cheer. For facilities managers, the winter months are filled with challenges.

Maintaining the condition of the property under the most adverse conditions requires hard work, attention to detail, and a little luck. Take a look at the list below to see if you’ve covered some of the essential preventative maintenance tasks necessary to keep your property in top shape for seasons to come

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By slaraby on 11/21/2013 11:36 AM
We send flowers to those who have had an impact on us.  We send flowers to those we care about.  They often symbolize momentous occasions, life's milestones: graduations, anniversaries, holidays, births and deaths.  We give flowers to the most important people in our lives.  What is the meaning of gifting flowers among business partners?

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By slaraby on 11/20/2013 9:42 AM
Submitted by P. Barry
As a facilities manager, protecting the interests of the client is in the job description; health obviously being one of these interests. With winter fast-approaching, a threat to health in the form of seasonal illness is on the horizon. Of particular virulence, and therefore concern, is the Norovirus – a virus responsible for the vast majority of nonbacterial gastroenteritis cases in the U.S. each year.

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By slaraby on 11/15/2013 1:03 PM

Submitted by S. Leonhard
Sometimes referred to as an Asset Management Plan, a well prepared annual operating budget should include a narrative executive summary,  a summary operating statement and a detailed operating statement supported by clearly documented assumption notes and explanations.  The executive summary should briefly describe the current status of the property...

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By slaraby on 11/12/2013 10:39 AM
Submitted by P. Barry
Success in business is contingent on adapting to a changing environment. The Affordable Healthcare Act is one such instance of this, where Healthcare providers and their affiliates are presented an opportunity to capitalize on an expanding industry. To do so, however, requires understanding the implications and nuances of the legislation.

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By slaraby on 10/31/2013 8:39 AM
Submitted by P. Barry
The digital age has ushered in a fully integrated era, everything from HVAC controls to service requests are centralized in the ‘Cloud.’ What this means for facilities management is efficiency. The impact of the Cloud is far reaching:
1) Data Center Consolidation
Before, each business required on-site mainframes for their data. Now, the Cloud...

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By slaraby on 10/28/2013 7:31 AM

Submitted by J. Debes

Many economists and industry leaders worry that oversupply and increasing costs of living indicate a cooling of the recently hot apartment industry.  Rents throughout the US are rising faster than incomes by about a $1.75 for every dollar earned according to the Center for Housing Policy.  The combined cost of living for housing and transportation in the 25 largest metro areas increased by 44%...

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By slaraby on 9/25/2013 8:52 AM
Submitted by D. Saperstone
Commercial real estate is a highly diversified industry
-diverse property types – retail, office, multi-family, industrial, office, healthcare, etc.
-diverse forms of property interests – developer, owner, tenant, investor, lender, etc...

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By slaraby on 9/16/2013 9:48 AM
Submitted by S.Laraby
Real estate occupancy costs are among the largest expense to any medical practice.  It is important that when the decision regarding space is made, it is the perfect fit for the practice, both present and future.  In the present, it is essential that the space accommodates those with special needs, as well as the specialized equipment of the facility.  Because leases on medical spaces tend to be longer than typical office lease, it is also important that the space is...

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By slaraby on 9/13/2013 9:34 AM
Submitted by S.Laraby
Multifamily advertising has turned the corner and the days of print advertising, and increasingly so, digital advertising are limited.  Consumers are armed with the skills, knowledge, and most importantly, social networks to make informed decisions about the best multifamily living spaces.  Who would be an "Advocate" for your organization? These would be the people who like your company the most...


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By slaraby on 9/10/2013 1:52 PM
Submitted By P. Barry
Technology affords efficiency by optimal resource allocation. Through integrated data collection, analysis, and informed regulation, modern industries have been able to pin-point and eliminate sources of waste in their respective processes. Now, this same approach is being taken to the functional systems of a building. The result: the ‘smart building,’ an investment in efficiency that pays dividends...

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By slaraby on 8/28/2013 9:05 AM
Submitted by J. Debes
In the past 10 years, the means by which property managers market their properties has constantly evolved.  In the not too distant past, marketing budgets allocated all their funds to print advertising.  As apartment-listing services such as apartments.com, apartmentfinder.com, rent.com, and apartmentguide.com established themselves as leading sources for new leases, budget allocations began to favor internet spending over print.  Nowadays, most companies do not spend any money on print advertising...

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By slaraby on 8/13/2013 7:53 AM
Submitted by D. Saperstone
Nationwide, the commercial real estate market continued it’s slow but steady improvement in the 2nd quarter of 2013. Virtually all asset classes showed improvement versus the 1st quarter of 2013 and versus the same period in 2012. Nationally, the office vacancy rate stood at 15% which reflects a slight improvement over Q1 results. However, the improvement in the office market is really market specific with considerable gains in many relatively small markets and no gain in other larger markets...

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By slaraby on 7/22/2013 8:09 AM
Submitted by S. Laraby
Identifying the best real estate investments is no easy task.  There are a myriad of different measures to reach an often hypothetical valuation.  Net Present Value (NPV) offers investors the best option to measure the present value of future cash flows of a project, while taking the discount rate into consideration.  In real estate, the opportunity cost, or the next best investment alternative is often used...

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By slaraby on 7/18/2013 8:19 AM
Submitted by A. Adams
The mortgage interest rate market has a significant impact on loan underwriting and property valuation for  commercial real estate.  The United States has adopted an accommodative interest rate policy for the last eighteen months.  The Federal Reserve, based upon the United States weak economic results, has kept interest rates at historic lows.
By slaraby on 7/9/2013 2:15 PM

Submitted by S. Laraby
Recently released market data indicates that apartment demand has accelerated, growing to the highest level since late 2010.  Vacancy rates from Q1 to Q2 remained at 4.3% driving strong expectations for the multifamily segment.  As Bill McBride of Calculated Risk Blog points out, "Over the last four quarters, national vacancies have declined by 50 basis points, a bit slower than last quarter's year‐over‐year decline in vacancy of 70 basis points...

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By slaraby on 7/5/2013 7:48 AM

Submitted by J.Debes
Social media's influence in the leasing process continues to gain popularity with growing user participation of ratings websites like Apartmentratings.com,  Yelp, Apartments.com, Google and others.   Customer reviews have become an integral part of most websites like Amazon.com and consumers rely heavily upon the opinions of other consumers when making purchase decisions...
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By slaraby on 6/10/2013 9:04 AM
Submitted by S. Laraby
In the United States, municipal facilities management has been driven largely by the need to reduce operational costs and to simplify implementation of services provided.  From janitorial services to landscaping to preventative maintenance to construction, outsourcing these services can lower costs and improve quality.  Compared to many other countries, the U.S. model for doing so is in its infancy...


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By slaraby on 5/1/2013 1:52 PM
Submitted by A. Smith
Industry experts are predicting that the commercial real estate marketplace will continue to recover slowly in 2013.  The modest uptick in job creation coupled with a limited supply of new space will continue to force vacancy rates down in all sectors...

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By slaraby on 4/29/2013 7:46 AM

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

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By slaraby on 4/19/2013 2:41 PM
Submitted by A. Adams
The availability of mortgage funds to finance commercial real estate and multifamily projects until mid 2007 was unlimited and the lenders were very lenient in their underwriting procedures.  When the real estate bubble burst in mid 2007, the
lending market dried up and there were very few sources of funds available.  The funds that were available were all at very conservative underwriting standards.

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By slaraby on 4/8/2013 8:16 AM
Submitted by S. Leonhard
Beginning this year, property owners now face a new 3.8% surtax that is part of the Affordable Care Act passed in 2010.This tax was introduced just hours before the final debate on health care legislation as a means of extending the life of the Medicare Trust Fund which is projected to run out of funding in just a few short years...

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By slaraby on 4/4/2013 11:56 AM
Submitted by S.Laraby
Multifamily dwellings offer economies of scale that can provide cost savings for residents over single homes.  The same relationship exists for energy efficiency as small changes can add up to sizable cost savings as well.  The American Council for an Energy-Efficient Economy (ACEEE) and CNT Energy recently released a report outlining some efficiency benchmarks that can have a substantial impact on multifamily communities...

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By slaraby on 4/2/2013 1:12 PM
Submitted by A. Smith
Medical office tenants require a unique set of space requirements and lease terms.  Operationally, medical office tenants must play by a separate set of rules that govern how things like hazardous materials, biomedical waste, patient confidentiality, compliance with occupational safety standards, and facility conditions are monitored and managed.  All of these items need to be considered when entering into a lease...

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By slaraby on 4/1/2013 9:51 AM
Submitted by D. Saperstone
Recently, THE CABOT GROUP has become involved in the redevelopment and reuse of a center city property with significant historic and cultural value. The first development on the site, circa 1860s, was a church. Over the ensuing years, the church was demolished and became a prominent hotel. That use lasted until the mid-1960s. The hotel was subsequently razed and replaced by the country’s first enclosed shopping mall. As center city populations...

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By slaraby on 3/4/2013 1:03 PM
Submitted by J. Debes
With the single-family market recovering and new supply from development coming on-line, analysts believe the "name your price" rent increase environment of the past couple years will start to dissipate in 2013.  Most operators can consistently grow NOI when demand outpaces supply.  However, when markets become more competitive, seasoned operators can still deliver profits by focusing on operating fundamentals such as vacant unit preparation or resident retention.

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By slaraby on 2/8/2013 8:34 AM
Submitted by S. Leonhard
Real estate is often used as part of a long term investment strategy to increase diversification and provide a hedge against inflation.  Historically, the real estate industry indexes have shown a low correlation with the return of stock and bond investments.  Well occupied properties with long term leases provide a very stable cash flow and can act like an annuity or similar low risk bond investment.

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By slaraby on 1/22/2013 2:11 PM
Submitted by D. Saperstone
Twenty-five years ago, when I first entered the commercial real estate business, if I wanted to find a suitable parcel of land or potential office location  for a client, I drove around pre selected neighborhoods looking for “for sale” or “for lease” signs, stopping often to take notes. Landlords and property sellers relied on the same, time honored marketing strategy—put a sign in the window or near...

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By slaraby on 1/21/2013 11:02 AM

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

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

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

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

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By slaraby on 12/3/2012 1:45 PM

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

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By slaraby on 12/3/2012 1:42 PM
Submitted by L. Phair
What was a trend in apartment living 20 years ago is not necessarily the same for today’s renter.  Besides a great price and beyond updated amenities and a convenient commute to work, a renter’s wants and needs are ever changing.  Here are just a few of the 2012 trends today’s renters are shopping for:  Pay Rent Online – Who uses a checkbook anymore?  More and more bills are paid via the internet...

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By slaraby on 12/3/2012 1:40 PM
Submitted by B. Duchano
It's curb appeal that lures new residents, and makes it difficult for existing ones to leave.  Curb appeal is an essential element that property managers cannot let slide in an economic downturn and also as important under a more stable economy.  Curb appeal will boost your bottom line, reduce marketing costs and improve NOI.  You get a higher quality resident who stays longer. 

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By slaraby on 12/3/2012 1:38 PM
Submitted by M. Drouin
As a means of increasing value, investors often look to boost rental income through deploying capital into upgrading apartment homes in their portfolio.  This strategy can work well in primary markets with relatively low capitalization rates.  However if you have exposure to assets in secondary and tertiary markets, relying on rental growth to optimize net operating income can be risky.  Furthermore, because these markets have a lower barrier to entry, operators plans for rental...

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By slaraby on 11/28/2012 1:58 PM
Submitted by D. Saperstone
Now that the protracted and often bitter election season is over, we in the real world can get back to business. There are numerous signs that the economy is improving, though it is painfully slow and uneven across the country. Interest rates will surely remain low for some time to come, the unemployment rate will gradually come down...

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By slaraby on 10/16/2012 8:07 AM
Submitted by J. Debes
Second quarter results for multifamily this year were very good leading analysts to project another banner year ahead for market-rate housing.

Q2 Results:

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

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By slaraby on 10/16/2012 8:04 AM

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


Greg Stahl, owner of Bob Johnson Chevrolet, sees the updates as an opportunity to keep his dealership on the leading edge within the market. Bob Johnson Chevrolet was recently named "Dealer of the Year" by General Motors for ranking high in sales and its continued commitment to delivering these essential brand elements to their clients.

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By slaraby on 10/16/2012 8:02 AM
Submitted by B. Hunt
THE CABOT GROUP recently assumed financial management and lease administration responsibilities for a multi-building office complex in Rochester N.Y. The property has numerous leases, with the majority of leases being triple net.

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By slaraby on 9/11/2012 11:42 AM
Submitted by M. Drouin
Core real estate asset total returns have been on a tear since 2010.  Total US property returns have achieved 13.1% to 14.3% in 2010 and 2011, respectively.  It appears that institutional investors have an appetite for more acquisitions, especially core multifamily apartment properties.  In light of this, asset owners and managers that manage core assets should position them for some opportunistic pruning and twist their equity into the clearly undervalued non-core assets.

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By slaraby on 9/11/2012 11:36 AM
Submitted by B. Duchano
Investing in employees is key to ensuring their success and the success of the organization.  Especially in a down economy, investing in your employees through learning programs and mentoring shows them you are committed to their success.

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By slaraby on 9/11/2012 11:16 AM
Submitted By J. Sarpulla
In this digital age, many properties are wielding an inexpensive digital camera in order to handle their advertising photography in-house.  The easy use of a digital camera, however, does not guarantee an ad-worthy photo. It’s surprising how often apartment community staff will post photos to advertising web sites that may be decent quality photos, but have very poor product presentation.

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By slaraby on 9/11/2012 11:11 AM
Submitted by M. Ward
It’s no secret that the costs associated with resident turnover can be exorbitant. Recent studies estimates move-out costs hover around $4,000, which includes loss of rental income, advertising, concessions and turnover costs preparing the unit for occupancy. So, how can we as property managers encourage lease renewals and ultimately increase value through NOI?

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By slaraby on 9/11/2012 11:09 AM
Submitted by L. Phair
With occupancies continuing to trend favorably in the Treasure and Space Coast of Florida one would suspect that delinquency rates would climb as well.  With record average occupancies going into Q3 at 97%, the average delinquency rate at the close of July 2012 was less than 0.5%.

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By slaraby on 7/20/2012 9:05 AM

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

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

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By slaraby on 7/18/2012 10:37 AM
Submitted by J. Debes
Some would say it's a golden era for the apartment industry.  With such strong fundamentals,  operators must resist the temptation to engage cruise control.  This business requires constant vigilance because it is a business comprised solely of details - hundreds of details. 

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By slaraby on 7/10/2012 8:49 AM
Rochester, NY
THE CABOT GROUP has offered innovative real estate solutions for over 40 years.  The company's record of innovation continues today.  THE CABOT GROUP recently announced a municipal and not-for-profit facilities management division to help communities and community organizations reduce costs associated with managing local facilities.

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By slaraby on 7/3/2012 9:28 AM
Submitted by S. Leonhard
Like many other industries, improvements in technology have led to dramatic changes in the capability of real estate property management software.  Many of these new developments can help improve the return...

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By slaraby on 6/26/2012 12:01 PM
Submitted by D. Saperstone
For at least the past two years, we’ve all heard that the recovery is “just around the corner.” Pundits on both sides of the political and economic aisles continue to debate where we are on the journey to the mythical corner. Painting with the broadest of brush strokes, these purveyors of limitless statistical data...

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By slaraby on 5/10/2012 1:31 PM
Submitted by D. Saperstone
By definition, commercial property is used solely for business purposes. A very broad generalization of “commercial property” but strangely accurate. Shopping mall, offices buildings, apartments, gas stations, hotels and industrial parks are all commercial properties and represent investment...

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By slaraby on 5/4/2012 9:01 AM

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

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By slaraby on 4/19/2012 8:20 AM

Submitted by J. Debes
Marcus & Millichap recently released THE APARTMENT OUTLOOK for 2012.
Here are some interesting highlights from the report: The apartment sector has fully moved into an expansion cycle as defined by the broad based recovery in vacancy rates, rising rents, improved operations for Class B and C properties, and the start of a new construction cycle.
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By slaraby on 4/3/2012 2:29 PM
REIS Reports details the top 10 and bottom 10 Apartment vacancy rates in the country.  Rochester, NY ranked among the top 10. 

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By slaraby on 3/29/2012 3:41 PM
Submitted by S. Leonhard
If you have recently acquired or constructed real estate, or have made a significant renovation or remodeling investment, you have an opportunity to benefit from a Cost Segregation Study.  In addition to reducing your taxable income for a number of years...


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By slaraby on 3/28/2012 3:18 PM
Submitted by S. Laraby
In recent history, multifamily investments have not looked as attractive as they do right now.  In Q4, 2011, vacancy rates have dropped for the 5th quarter in a row while rent levels have increased the last 8 quarters...


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By slaraby on 2/24/2012 1:12 PM
Submitted by J. Debes
Often, Homeowners Associations engage a third party to provide them with a "reserve study" to determine what major maintenance related expenditures will the Association likely incur in upcoming years - roof replacements, asphalt replacements, siding...

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By slaraby on 2/23/2012 8:52 AM
Submitted by A. Smith
You have just spent the last 3-6 months (or maybe 2-3 years) working with your Real Estate Advisor to establish a list of office space requirements, tour potential sites, review proposals, negotiate terms, get internal approvals, finalize lease documents and coordinate the details of construction and relocation...

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By slaraby on 2/16/2012 10:53 AM
Submitted by S. Laraby
A Homeowners Association, commonly referred to as an HOA, is a corporation developed for the purpose of managing, marketing and maintaining a residential community.  The entity is typically created by the developers and ownership is transferred to...
By slaraby on 2/8/2012 9:39 AM

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

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By slaraby on 1/25/2012 2:32 PM
1) A broker is your gateway to commercial real estate and acts as your representative for all facets of the transaction. As a trusted advisor, a broker optimizes the process and maximize the value delivered to the client in many ways which is essential when embarking on such a complex endeavor...

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By slaraby on 1/25/2012 11:56 AM
Submitted by S. Laraby
Robust projections for multifamily growth are fueled by many favorable conditions within the marketplace.  Limited vacancy of multifamily units, declining homeownership, favorable demographic trends and attractive government sponsored programs all fuel the trend toward this type of housing, for both tenants and owners...



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By slaraby on 1/23/2012 4:22 PM
Submitted by D. Saperstone
Successful people love to hang out with other successful people!  There’s a certain energy that emanates when smart, successful business people talk about their businesses and the challenges they’ve overcome to make their respective operations winners.

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By slaraby on 1/16/2012 11:18 AM
Submitted by J. Debes
Industry experts expect another strong year for multifamily in 2012, thanks to the same fundamentals that made 2011 a great year.  Creation of new rental households that accompanies job market revival, continuing preference of rental housing opposed to home ownership, thanks to weak for-sale...

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By slaraby on 1/13/2012 12:25 PM
Submitted by S. Laraby
A new trend has emerged among universities, high schools, and even grade schools: administrators outsourcing facilities management/maintenance.  Many schools turned to outsourcing during the recession to minimize overhead and remain flexible in the changing market.  Outsourcing these services reduces costs but many have...

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By slaraby on 1/11/2012 10:52 AM
Submitted by A. Smith
Whether owned or leased, a company’s real estate costs are often its second most significant annual expense, just behind its payroll commitments.  In order to confidently make decisions on matters that will have such a significant financial impact to the organization, a company will want to make sure that 1) due diligence has been completed on the requirements, opportunities and terms for an agreement and that 2) the financial details of an agreement are understood and supported from within the organization...

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By slaraby on 1/3/2012 4:19 PM
Submitted by G. Bryant
Understanding and comparing occupancy of competing facility options can be challenging when rates are quoted in different terms. Tenants will encounter a myriad of different terms which will differ in definition from one Owner or broker to another.  To make things more difficult, different Owners include different things in their CAM...

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By slaraby on 12/22/2011 2:44 PM

Submitted by S. Leonhard
The AMO designation is the most widely recognized indication of professionalism in the real estate management industry.  It is awarded to only the most experienced and well qualified management companies in the business.  Since its establishment in 1933, the Institute of Real Estate Management (IREM®) has only awarded the prestigious designation to firms with a proven track record of...

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By slaraby on 12/22/2011 2:34 PM
Submitted by S. Leonhard
Commercial property insurance, also known as business property insurance, offers protection against accidents, damages due to fire, theft, vandalism, storms or many other specific events that may be outlined in the policy. Policies generally cover the cost of replacement or repairs of the property, inventory, equipment, important papers and even lost income...

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By slaraby on 12/22/2011 2:32 PM
The Consumer Product Safety Commission (CPSC) is revoking its interpretation of the term "unblockable drain'' as used in the Virginia Graeme Baker Pool and Spa Safety Act (VGB Act)....

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By slaraby on 12/22/2011 2:32 PM
Submitted by D. Saperstone
The real estate axiom  “location, location, location” is hard to deny.   A property’s location is often the prime driver of rents, assuming the property has been well cared for and managed. However, it’s absolutely imperative that a bond of trust develop between the owner/investor and the property manager/consultant. There are well established industry mathematical formulas that...


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By slaraby on 12/22/2011 2:29 PM
Written by Timothy Maechling and Jeffrey Bredeson
An organization can realize immediate benefits from outsourcing Facilities Management to the experts.  More importantly, it allows employees to focus on what is important-- the business.  "When you set up an outsourcing relationship, indirect benefits begin to accrue. These show up as overhead reductions and increased productivity, and make the company more efficient."...

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