Not all the shopping in December was done at the malls. This month has been a very active one with several large commercial real estate transactions.
Typically the fourth quarter, and in particular the month of December, has always been a busy period for commercial real estate closings, and this year is no different.
In fact, in late December has been busier than usual. According to filings in the Erie County Clerk's Office, more than $1.2 billion of CRE, or commercial real estate deals, have closed in recent weeks. Last year, during the same period, $1 billion in CRE deals closed in December.
So what's driving this activity? Hannah Commercial Real Estate Greg Zadrozny offered his insight.
"This year, it seems like something is up as there's no tax changes or tax ramifications," Zadrozny said. "A few years ago, when there was tax changes expiring at the end of the year you saw a little more urgency. But this year, as we we've been shopping some loans, and it's funny, the banks are all busy trying to get things closed before the end of the year, which is kind of unusual."
And what are some of the notable deals? Niagara Falls based investors Black Pearl Traders paid $1.3 million for a pair of Maple Road office buildings in Amherst, the recently closed Al-E-Oops restaurant at Genesee and Harris Hill Roads in Lancaster went for $610,000 and the Cheektowaga property that houses the John Black Company on Broadway, just across from Holly Twin Rinks sold for $890,000.
Will we see this trend continue? Zadrozny said yes.
"I think the election has pushed promise towards next year, and I think we're gonna we're seeing people have a more positive attitude about the economy," he said. "I think that's probably pushing it.
Expect to see more high profile CRE closings in the next few days as investors scramble to meet the December 31 deadlines.
