"The Commercial Corner"
By Jerry Lott, Licensed Real Estate Broker
This is my first attempt to write a column about the commercial side of the real estate business. I therefore, invite any comments or suggestions as to topic content or writing ability!
The good news bad news is that the commercial industry in general is in a depressed state; as are most of its brokers, but the potential upside is unlimited if you learn the basics of how to find, handle and close a property. To that end, I hope to be teaching a continuing education class on basic commercial transactions sometime this year for the Rockland County Board of Realtors. Stay tuned for upcoming dates.
My first subject is the "New York State Empire Zone and You".
What is it you might ask? And how does it affect me as a licensed real estate professional?
The Rockland County legislature created the Empire Zone on September 5th 2005
The "zone", was instituted in New York state many years ago to attract new industry and jobs, in various areas, considered non-competitive with our New Jersey and Connecticut neighbors. Its chief purpose was to allow companies from out of state, or currently in New York State, to receive major tax incentives. These incentives were designed to help companies compete in the current and future market place. So, even if you are not a broker/sales agent, whose niche is strictly commercial real estate, new companies and jobs coming into Rockland will mean, among other things, more people looking for more places to live!
Commerical News
Neighborhoods are built around these industrial businesses. They contain new shopping areas; office buildings and small family run establishments all of which can be defined under the banner of "commercial real estate".
In order for a new business to qualify for this "zone", it must meet stringent requirements imposed by the state and local government. It may sound obvious, but it is crucial that you know if a particular property is "zone approved". The best source for a potential tenant or buyer is to bring them to the Rockland Economic Development Corporation (REDC) located at One Blue Hill Plaza in Pearl River. This organization acts as the clearing house for the application process in conjunction with the Empire State Development Agency and the State Department of Taxation and Finance. The REDC is the basic source for all information about the benefits available to your client.
Please note! It is very important to start this process after a location is agreed upon, but before any lease or contract is executed. The reason being, that the client might lose its leverage within the zone along with the intended benefits.
Currently Rockland County has areas designated by the local municipalities in conjunction with NY State. (See attached map and note that the red areas are zone approved locations) One of the major requirements, specify the number of jobs coming into the area with the employer; and the potential hiring of additional employees in the near future. The New York State Empire Zone is anything but "new", it is currently functioning in New York from Buffalo to Long Island. It has been successful, even in this tight economy, in attracting new industry to the state. Today there are more than 9,500 certified businesses employing over 385,000 people state wide!
In conclusion this tool helps to create a symbiotic relationship between all real estate professionals in our county. I look forward to working with all of you in your future endeavors and increasing your commissions.
If you have any questions about this article you can reach me on my cell phone at 914-525-3288 or at my office 845-268-5450 x12. I would be happy to point you in the right direction if you need assistance.
Stay healthy- the rest will take care of itself
Jerry
