Courtesy Roohan Realty
By Rod Bacon
The war in Iran, rising interest rates and a recent increase in the Federal Reserve’s benchmark interest rate are prompting some businesspeople to postpone major commercial property investments, but regional real estate professionals remain optimistic about the local market.
Tom Roohan, president, broker and owner of Roohan Realty in Saratoga Springs, said the right inventory is key to an agency’s success. His firm currently has a broad mix of commercial properties and commercially zoned land for sale or lease.
Three months ago, he sold a property at 165 High Rock Ave. to Nate and Tonya Robinson for $1.15 million. They established Max Level Fitness & Athletics there.
He noted, however, that the area lacks available multifamily homes.
“If young people want to buy a multifamily home so they can live in part of it and rent the rest that’s a positive economic plan,” he said. “But there are not enough two-family or four-family homes in the area.”
Roohan said there have been more 1031 exchanges than in the past. The tax strategy allows investors to sell business or investment property and reinvest in a similar property while deferring capital gains taxes.
Tom Savino, an associate broker at Albany-based CBRE Upstate NY, said the commercial real estate market has pulled back somewhat. Leasing remains steady, but buyers are cautious.
“We had a fair amount of momentum in the first quarter coming into summer. It seemed that people had more confidence to move forward. But once the war broke out and interest rates and costs rose they became nervous about pulling the trigger,” he said.
Interest rates on conventional commercial mortgages in October 2025 ranged from 6.1% to 7.2% for fixed terms. The reported current range is 6.38% to 7.66%. Multifamily and apartment rates increased the most, from 5.5% to 6.2% a year ago to 6.44% to 7% for conventional or agency-backed financing.
Savino said he has a “mixed bag” of properties for sale or lease. Interest in undeveloped land also has slowed.
Savino said freestanding buildings are in demand in Saratoga County because few are available. He sees weakness in warehouse, distribution and industrial properties.
He has retail space on Broadway in Saratoga Springs that is not yet vacant.
“I’ve gotten a lot of inquiries on that,” he said. “There aren’t many choices downtown so when something comes up it gets a lot of attention.”
In contrast to Saratoga Springs’ relatively tight market, Glens Falls is seeing significant growth, said Bob Sears, an associate broker at Berkshire Hathaway HomeServices Blake, REALTORS.
“Both Glens Falls and Queensbury have substantial growth,” he said. “There is also growth in Hudson Falls, although it’s not as strong. Properties are less expensive there so people are coming into that area because they can make good investments.”
Sears said companies including Bonacio Construction and Patten Property Development are renovating older buildings in Glens Falls.
“People want to be downtown because of the convenience of being within walking distance of restaurants and retail shops,” he said.
Sears said less inventory is available than even two years ago. He attributed the decline to uncertainty about how the economy will perform over the next two or three years.
Despite reduced commercial inventory, Sears said several office spaces are available for lease and a few office buildings are for sale on Bay Road. Queensbury also has retail space for sale or lease in prime locations.
Craig Darby, an associate broker at CBRE Upstate NY, sees strengths and weaknesses in the Glens Falls commercial market. He said the industrial segment is “slightly off,” while the office segment has improved from a year ago.
“People are checking and double checking where the economy is going, not sure what will happen in the mid-term elections,” he noted. “Having said that, I think there was more uncertainty last year in the office segment because people were unsure whether they should grow or downsize.”
Darby said Glens Falls’ economic outlook is improving. He cited improvements on South Street and more people choosing to live in the city.
Darby cited a fully renovated building owned by Brad Bovee at 419 Dix Ave. in Queensbury as an example of activity in the area. The building is available for lease and is considered a “flex building” because it can accommodate commercial or industrial uses.