Category Archives: Commercial / Residential Real Estate

By Christine Graf

The residential real estate boom that is occurring throughout the country has Capital Region real estate agents scrambling to find homes for their clients. Much of the demand is being fueled by millennials who are in their prime home-buying years and make up the county’s largest demographic.

The decline in interest rates that took place during the past year has made purchasing a home especially attractive. Mortgage rates dropped in 2020 and reached a record low of 2.65 percent in January. Those in the industry say demand far exceeded supply of homes, and low supply has been the primary driver for the rapid increase in home prices.

“It’s nuts,” said Howard Denison of DeMarsh Real Estate in Glens Falls. “People are offering up to 10 percent more than asking. There was a two-family ranch that sold within four hours. Potential buyers are getting upset and disgusted.”

According to Susan Kassal of Hunt Real Estate, during her 19 years in real estate she has never witnessed such high demand for residential properties. Many of her customers make offers on three to four houses before securing a winning bid, and a surprising number are making all cash offers. Although the majority of the cash buyers are relocating from cities, she said some are local.

“I’ve never seen so many all cash offers. Cash is winning, and if you have cash and come in on the first day or two you can grab it. Even in the $400,000 or $500,000 range, you are seeing cash. We’ve seen people come for vacation homes and pay cash, and they are beating out local people. It’s causing a lot of frustration, but in the last month or so I’ve seen the inventory picking up. And we are finding homes for all of our buyers. But you have to be the first one in.”

By David A. Kubikian, Esq.

When people own something of sentimental value, they are sometimes unsure of how to pass it down to their family for future generations to enjoy. This is especially the case with a vacation home or camp that has been in the family for years.

Example: You own a beach or lake-front vacation home for years in a now sought-after area. You have seen your children (and grandchildren) grow up there and recall memories of watching sunsets over the water, roasting marshmallows over a campfire, and teaching the kids how to swim. It may be difficult to think that this home will be sold out of the family when you die and would like to preserve it for enjoyment of generations to come.

How can you best insure this property will be there for future generations to enjoy (and at times cohabitate), as your family tree grows or in future after your passing?

Who will be responsible for paying the Insurance? Taxes? Repairs? Maintenance? Fees?

Who decides which family members or friends use it and when?

What impact would future divorces or bankruptcies have on the property?

How can you protect the property from a Medicaid spend down?

By Christine Graf

Unlike the residential real estate market which has boomed during the COVID-19 pandemic, the commercial real estate market has experienced a significant decline, according to those in the industry.

The demand for commercial space has been impacted by pandemic-related business closures and the changing demographic of the workforce. According to a Gallup poll, 72 percent of white-collar workers were still working remotely in May 2021.

Many companies are expected to  switch to a hybrid model or to allow employees to continue working exclusively from home after the pandemic ends. If this happens, the demand for commercial office space could drop significantly.

The pandemic also led to a dramatic increase in Ecommerce, which was already a threat to brick and mortar retailers who now fear that consumer behaviors that changed during the pandemic may become permanent. A record number of stores closed in the U.S. in 2020 leaving 159 million square feet of retail space vacant.

Despite these concerns, Howard Denison, associate broker at DeMarsh Real Estate in Glens Falls, said the local commercial real estate is rebounding after being “under the weather” for the past year.

He has been working in real estate for 31 years and attributes much of the recovery to the Route 9 sewer project in Moreau. The addition of a municipal sewer system in the town’s commercial corridor is expected to lead to development and economic growth in area where growth had stagnated.

By Jennifer farnsworth
At the heart of the new Phoenix Inn in North Creek is owner Diana Espalza, who not only bought the former Copperfield Inn, but transformed the space into a successful resort—all during a pandemic.
Espalza, originally from Colombia, South America, said she dreamed of owning her own hotel her entire life. When she came upon the Copperfield Inn property, she knew it was the space she wanted.
“I love construction and I fell in love with this building at first sight,” said Espalza.
It was last December when Espalza purchased the inn and COVID-19 happened in March. She took time to learn more about the business and come up with a vision for what she wanted. She said the name “Phoenix” came to her after she went through what described as a rough experience.
“Like the Phoenix is reborn from the ashes, that is what I hope to do in my personal life. I am trying to make this building as successful and prosperous as it once was,” said Espalza.
She renovated the heating and air conditioning system and made structural improvements to the roof and several rooms. She added patio space.

By Jill Nagy
Area real estate brokers expressed glee recently as they described the current local market, using expressions like “great,” “excellent,” “very, very strong,” “unusually hot,” and “booming,.”
Inventory, especially of houses at the lower end of the price range, is low and a new listing rarely stays on the market for more than a week, they said.
Susan Kassal of All American Properties in Glens Falls, said she showed a townhouse on a Sunday and received three offers for it by the following Monday.
“Literally within minutes of being listed, they are sold,” said Daniel Davies of Davies-Davies & Associates in Queensbury—but admitted that he was exaggerating a bit.
People are attracted by relatively low prices, favorable financing, a stock of historic buildings, and the beauty of the area. Peter Hoffman of Glen Street Associates in Glens Falls, for example, recalled when he was practically laughed out of a local banker’s office when he asked for a $1 million loan. Today, loans of $7 million or more are not unusual. Bankers are more willing to lend because they have seen successful projects, he said.
On the commercial side, many buyers are looking for investment property. With a volatile stock market and low interest rates on savings and bonds, investors see real estate as a stable investment, said Davies.

By Christine Graf
Buddha Ventures, an LLC owned by Nancy Scumaci of Bolton Landing, purchased property at 16 Exchange St. in Glens Falls for $348,250.
The 4,000-square-foot building is home to Milk & Honey, Juicin’ Jar and Advokate LLC. It also includes a private two-story apartment that is occupied by a tenant.
Ann Parrish, the owner of Milk and Honey, purchased the building in 2005. It was not on the market at the time Scumaci expressed interest in buying it.

By Jennifer Tsyn
Whether your business is just starting up, expanding, or relocating, you are likely to find yourself negotiating a lease. Of major concern to most commercial tenants are the maintenance, upkeep and repair of their space and the entire building. These issues should be carefully negotiated and then written into the lease.
1. Who is responsible for repairs and maintenance of the tenant’s space?
Commercial leases often require that tenants maintain, repair and replace those portions of the HVAC, electrical, plumbing, and water and sewer systems that are located inside or outside of the leased space, but which exclusively serve the leased space.
Tenants should always take steps to learn whether the heating, cooling and ventilation for their space will be provided by a shared HVAC unit or a designated HVAC unit, and whether that unit will be considered to be inside their space or outside of it (for example, if there is a rooftop unit).
In addition, tenants should be aware that maintenance, repair, and replacement are not the same thing, and each should be addressed. If the tenant is going to be required to “maintain” any of the HVAC or other systems, the tenant should make sure to know if they will need to enter into a contract for regular maintenance with an outside provider, and, if so, how much that is expected to cost.

By Maureen Werther

As Glens Falls and the surrounding region continues to experience growth in the business, educational, industrial and healthcare sectors, it is also balancing new growth with a commitment to rehabilitating and modernizing older existing structures to preserve the region’s history and aesthetic.

Peter Hoffman, his wife and business partner, Suzanne Hoffman, have taken on 17 projects in as many years. Their interest in expanding opportunities in the region and also preserving some of its architectural beauty keeps growing.

“We have been in the commercial market in Glens Falls since 2004, and every year we see more progress,” said Hoffman.

They just completed a $2 million renovation and modernization of the former Glens Falls Post Office on Warren Street, turning it into professional office space. The building was originally erected in 1915 and had been earmarked for demolition. Hoffman said it is an “absolutely amazing” building, adding that he has rehabbed more than a dozen older buildings and “this one is the most amazing building that we have done.”

Work began on the post office in May.Hoffman said it is ready for rental, with several interested potential tenants. He said that he expects there to be about 45 people working there within the next six months, which he calls a “big ripple in a little pond.” An additional influx of business and consumers will make a big difference in the local community.

By Maureen Werther

For Warren and Washington counties, the real estate news is mostly good, according to Ted Wilson, owner of All -American Properties with offices in Glens Falls and Chestertown.

Wilson and his team of 22 agents have seen markets at their worst, their best and somewhere in between. He described the current residential market as “stable,” noting that the statistics from 2017 and 2018 are pretty similar. It could also be called a “flat” market, but Wilson is quick to point that he would rather have a stable market over one that is in decline.

For years, interest rates were a strong determinant for people contemplating entering the real estate market. Wilson said that rates have remained low for so long and they are no longer the determining factor they used to be.

“Nobody even seems to think of them anymore,” he said. Unless they rise, which some indicators are pointing to for the future. However, the bygone days of 8, 9 and even 10 percent interest rates are dim memories for most home buyers, with first-time buyers having no experience with higher rates.