This article will help anyone looking for information pertaining to a commercial real estate and commercial lending in the State of
The entire state of Connecticut has long been thought of as bedroom community
to New York City, and in lot of ways, that still holds true. The Connecticut economy
is tightly linked with that of NYC, and the same holds true for its real estate
market. The most obvious consequence of this is that, though real estate across
the state is expensive, the commercial and residential real estate closest to
New York is the most expensive. Indeed, prices in this area are second only to
those in California's poshest areas.
Connecticut's real estate, like that in New York City, is almost completely
developed, so investors or buyers in the Connecticut commercial real
estate market will likely be looking at existing development. One way
to break into this expensive market is through foreclosure. During the boom,
businesses and individuals eager to move onto to any Connecticut real estate,
bought or leased more than they could afford. Foreclosures are up in Connecticut
in both the commercial and residential arenas, providing a window of opportunity
into the Connecticut market.
Another way businesses are getting into prime urban real estate is with flex
use. In the last few quarters, demand for flex industrial/office space
has been growing, helping drag the sector out of the doldrums it fell into in
the wake of 9/11. Experts attribute the demand to the changing nature of the
American economy - transitioning from an industrial/manufacturing economy to
a service/knowledge-based economy. Most of the takers of flex space are tech
companies who have no manufacturing or very light manufacturing, packaging software
or manufacturing electronic components on a very small scale.
Perhaps the cheapest way to get into Connecticut's commercial market
is through its Urban Enterprise Zones and Enterprise Corridor Zones. These zones
exist in depressed industrial areas such as Hartford, and are intended to encourage
redevelopment and new residential and commercial development. Developers within
the zones are given tax breaks and other incentives such as utility discounts.
In terms of pure office space, vacancies are low and steady
across the board. If you're looking to enter the market, there's a little bit
of dynamism in the New Haven, which is sort of a secondary market to Boston,
Stamford or Hartford. Lessees and buyers in this market tend to be young businesses
just beyond the start up phase and satellite offices of larger established businesses.
A relatively new and dynamic sector of the Connecticut market is vacation
property - not just second homes but resorts built to accommodate Connecticut's
tribal casinos. Unlike Indian casinos out West, Connecticut's casinos are more
open to outside development. This is partially because the casinos don't sit
on acres and acres and acres of sovereign tribal land. Development surrounding
casinos includes hotels, resorts and theme parks.