...........Breaking News.......Wilkins Soon to be Household Name...........
Commercial Strong, But Landlords Feel Pinch
By Susan Jorstad
“There’s as much or more interest as I’ve ever seen in retail in the Poconos and Lehigh Valley,” said Davis Chant, Chairman of the board of Davis R. Chant Realtors. “It’s just that the buyer’s ability to finance deals has become much more difficult and most buyers are cautious to get the very best value. There’s still a very strong level of interest – primarily for sites for retail development.”
The decrease in credit availability has spilled over into the commercial real estate market (CRE), leading financial institutions to be more cautious in lending practices and making less credit available for commercial building loans.
According to Robert Dye at PNC, one thing keeping buyers from coming back into the CRE market is availability of credit. “The subprime segment of the market has been shut down. Credit constraints are affecting the non-residential industry in terms of financing new projects. All areas of the country are feeling this and the Poconos area will not be immune.”
“CRE is moving,” said Rachel Hendricks, Deputy Director Pike County Industrial & Commercial Development Authority. “It’s not at the pace of two years ago, but properties that have been vacant a while are turning over or have recently turned over.
Rising gas prices, the national economy, and a slowdown in our residential market are dampening the pace from what it would be. Some local projects have been shelved, re-evaluated or delayed because of economic conditions on the national level. Infrastructure improvements and/or developments made now will poise areas to be on the cusp of the upswing.”
Hot spots for commercial real estate continue to be along the Rt. 611 corridor in Stroudsburg and Tannersville, Routes 6 and 209 in Milford and Matamoras and Rt. 6 and 652 in Honesdale.
Although there are far fewer foreclosures in CRE, relative to the residential market, there is a ripple effect, says Michael Baxter, Broker/Owner of Michael Baxter & Associates Commercial Real Estate and Property Management.
“Smaller builders are closing up shop or downsizing, which affects vacant space,” said Baxter. “Leasing has slowed down substantially. Landlords are feeling the pinch the most, with longer periods of vacancies. With commercial space, the absorption factor is slower. The biggest impact is along the 611 corridor with all the new retail projects, so the existing projects now have competition, and it affects the occupancy rate.”
As they move forward, incoming projects will create new jobs and lower real estate taxes in comparison to NY and NJ, all of which local experts predict will shorten the down cycle for the Poconos.
For more articles on the Economic Forecast including the feature article accompanying the above story, see the July edition of PBJ
PBJ is distributed throughout our community.
Check out the "Newsroom" tab on this Web site for distribution points.
Now in July- Available by subscription or call (570) 421-0100
PBJ's Economic Forecast issue
Foreclosure Update: Taking the temperature on commercial, residential real estate markets
Outsourcing vs. “Buying American”: Businesses which outsource and why; or, keeping it domestic
Getting off Foreign Fuel: Fuel alternatives explored and local gas stations get a handle (or not) on prices
Conspicuous Consumerism: The retail industry’s rocky road in luring the dollar
Workplace Profile: Local companies participate in Restaurant Week to boost business
Coming
Next Month...August 2008:
PBJ's Communications and Promotions issue
Making Waves on Radio: Comparing market share, playlists, and content courtesy of our local stations
Pocono Publications: Building buzz, reaching advertisers, keeping readers riveted
TV Comes to Main Street: Two broadcasters set up offices downtown and tell how they differentiate
Writing a Press Release: The bare basics for any business to get press
Professional Profile: Marketing help is on the way, thanks to local organizations
Endorsements
"I saw a copy of your December issue today. Fantastic work. Is there any way I could get 15 extra copies? Please let me know. Thanks so much!"
Tina Dennis
Manager - Marketing, Media and Public Relations
The Synchrium Group
"I would appreciate receiving your email newsletter, 'A Taste of PBJ.' I enjoy your publication very much, and am pleased with the growth of the journal. The articles are timely, and well-written. Congratulations to you and (writer) Ken Clark on the (PA Press Assocation) award! You don't need any additional evidence than that - you are doing a great job!"
Jerrold Fritz
Treasurer
NE PA Community Federal Credit Union
“Just a note to say thank you for your presentation at the Pocono Women lunch. You presented great information that was very helpful to me. Congratulations on your award too-- the Business Journal is a terrific publication.”
Erin Baehr, CFP, EA
Erin Baehr Financial
"As the Poconos continues to grow, so will its economic base. It will be an asset to have a publication devoted to keeping track of trends and noteworthy events for the people who choose to work and live in the Poconos."
Dr. Matthew J. Connell, Dean
Northampton Community College ~ Monroe Campus
"So many people focus on the business and industry surrounding the Poconos and ignore the thriving and growing economy within the Poconos. The Pocono Business Journal will prove to be a vital voice spreading the good news!"
Chuck Hannig, President/CEO
Spread Eagle Development Corp. ~ Spread Eagle Realty, Inc. ~ Hannig Enterprises, Inc. |
