Domain Properties consists of principals and brokers who are market savvy, professional, committed, and genuinely interested in our clients needs. Whether you are looking to sell your property, or acquire new assets, our experienced and educated team will work diligently to negotiate, secure and close, the best deal for you.
With a strong working knowledge of the commercial real estate market, both in the United States and internationally (we speak nine languages between us), Domain Properties is able to efficiently and effectively assist investors with the acquisition and sale of real estate. It can be a few hundred square feet of office space in Manhattan
or a 1 tenant building, either way, our diverse team has the knowledge and contacts to deliver.
As Domain Properties continues to grow, we are also developing long lasting, and profitable, relationships with our clients.
Commercial real estate (NYC) is a preferred market for investors. Due to the
recent economic downturn, analysts had predicted the collapse of U.S. commercial
real estate. Yet this sector is on the rise rather than headed for a fall.
Recently, however, a Federal Reserve official informed a congressional committee
that the market had been near bottom. Indeed, there had been far worse
predictions for U.S. commercial real estate. Analysts believed that the market
would fall, bring the economy back towards a recession, and create a crisis in
Across the country, commercial real estate shows overall improvement. Obviously,
the sector would not have been expected to thrive in a recession. Yet the
commercial category stays in business. The sector has no place to move only
upward in the aftermath of economic turmoil. Better performance and higher
profits can be expected in this market especially in dynamic centers such as New
In 2010, market fundamentals stabilized and the sector took an important step
towards recovery. Signs of stabilization were the result of more demand for
commercial space. The popularity of Manhattan properties among buyers and
investors points to the promise of Commercial Real Estate NYC.
Office Buildings in New York City
Office real estate in New York City provides excellent opportunities for buyers
and investors. Although NYC was not as affected by the economic downturn as the
rest of the US, every area of the country felt the recession to a certain
degree. Since New York City businesses have national and international
connections, its commercial real estate had to deal with the effects of economic
strife elsewhere. Of course, New York City is a historically-sound market that
survives and thrives despite of adversity.
Opportunities in New York City
During this period of economic recovery, the real estate industry puts its best
effort into attracting buyers to NYC offices. The industry is willing to make
concessions to match up owners with profitable Manhattan properties. 'Office
Buildings For Sale' In New York City is a buyer's market – and a good deal for
Today is the perfect time to offer that office
building for sale in Manhattan.
Domain Properties, experts in New York City real estate, have gained recognition
for their expertise in working with buyers and sellers of commercial NYC real
estate. The Domain Properties Commercial Real Estate NYC team offers discreet
and confidential 'person-to-person' dealings with clients about Manhattan
In a 2010 survey by the Society of Industrial and Office Realtors, 57% of the
participating 600 market experts predicted improvements in the office and
industrial sectors throughout the year. Vacancy rates in office space started to
level off in 2010 and should improve dramatically by the end of this year. Even
during 2010, New York City (as well as Long Island, N.Y., and Honolulu) showed
low vacancy rates in the office sector.
In fact, New York City demonstrated one of the lowest vacancy rates.
Entrepreneurs recognize the power of being in business in a global center like
New York City. Honolulu and NYC had office vacancy rates close to 9% while other
office markets recorded rates over ten percent.
No Shortage of Tenants
At present, NYC office space looks attractive to tenants - especially with
offers of lower rent. The cost of rent for
office space was expected to fall
2.7% during 2010 and an additional 2.1% in 2011. In 2010, The National
Association of Realtors (NAR) suggested that the vacancy rate for office space
should show a slight rise at 16.7% towards the end of the year.
The vacancy rate, however, is expected to decline slowly and reach 16.4% in the
last quarter of 2011. More tenants will be searching for
The renewed interest is an encouraging sign for existing office spaces as well
as new developments. Obviously, upscale office buildings have higher rents and
attract powerful investors, prestigious tenants, and affluent clients.
Google Buys New York City Office Building
The December 2010 sale of 111 Eighth Avenue to Google, Inc. for $1.8 billion was
the biggest office building sale of the year in terms of price. The sellers were
Taconic Investment Partners, Jamestown and New York State Common Retirement
Fund. Once the headquarters of the Port Authority of New York and New Jersey,
the 2.9 million sq ft building is now owned by Google. The corporation will
occupy 500,000 sq ft as the largest tenant.
NYC Commercial Properties – Building Class Definitions
real estate NYC is a winning investment, not all buildings
are created equal in the Big Apple.
NYC office buildings (like office buildings
across the US) are classified as Class A+, Class A, Class B, and Class C. Keep
in mind that a Class A building in a small town might not have the same
characteristics as a NYC Class A property.
Definitions of building class vary according to markets. Buildings are
classified relative to other properties in their market. Commercial real estate
agents, as well as owners and managers, organize office space into "classes."
The groups use various factors to define the different office environments.
Class definition is not a 'definitive' science and has no formal or
international standard. The classifications refer to certain specifics. Class B
and Class C classifications within a market will depend on the characteristics
of the Class A buildings. A
commercial real estate practitioner will determine
the Class A buildings (based on prime location, full-service amenities, and
other guidelines) and proceed to label other buildings relative to those
Generally, the Building Owners and Managers Association International (BOMA) is
opposed to publishing the classification rating for individual properties. If
potential tenants understand the basics of the classification process, this
information could give them more insight into a building. If tenants think,
however, that Class A in a rural community means the same thing as Class A in
Midtown Manhattan, BOMA would be justified in their objection. In that instance,
the tenant would not have the proper information and could not make an informed
The purpose of the rating system is to encourage standardization of discussion
about office markets (including individual buildings) and to encourage the
reporting of office market conditions in the different classes. Yet BOMA insists
vehemently that the organization does not agree with publication about
individual buildings. The metropolitan base outlining the main Class A, B, and C
definitions is used within an office space market.
* High-rise building with prime central business
* Landmark quality
* District location (the best of the Class A buildings)
* Built since 1980
* Concrete and steel construction* – Expert construction
* Highest quality materials and finishes – Attractive buildings
* High quality building infrastructure
* Generally, 100,000 sq ft or larger - Five or more floors
* Strong identifiable location - Convenient access (public transportation,…)
* State-of-the-art systems according to BOMA guidelines
* Business/support amenities
* Professional manager
* Premier tenants
* Highest rental rates
* Definite market presence
* Certain cities use type of building materials to determine classifications.
For example, Riverside, California specifies steel frame for Class A buildings
and concrete and masonry for Class B buildings.
* A grade below Class A
* Slightly older buildings – Good management - Quality tenants
* Building finishes – Fair to good
* Good quality systems – not at Class A level
* Can be targeted by investors planning renovations to restore them to Class A
* Well maintained – Functional
* Average rental rates
* Good tenants
* Lowest grade for useable office buildings.
* Older office buildings (usually, 20+years)
* Located on less desirable streets in older sections of the city
* Higher than average vacancy rates for their market
* Less impressive architecture
* Limited infrastructure
* In need of extensive renovations
* Antiquated technology
* Lower rental rates - Difficult to lease
* Often targeted for re-development
* Tenants requiring functional space
In addition to the above classifications, potential office tenants must consider
a variety of other factors.
* Security and life safety infrastructure
* Backup Power
* Elevator quantity and speed
* HVAC capacity
* Floor load capacity
* Ceiling height
* Common area improvements
* Nearby amenities (restaurants, dry cleaning, ATM,… )
The international base is for use by investors among several metropolitan
Investment Quality Properties
Investment quality properties are unique buildings located in the best
metropolitan markets in the world. These properties are classified as
outstanding not only on the local or national scene but within the international
investment community. Obviously, upscale NYC properties would fall unto this
Since investors use this gauge, it is easy to understand the intense interest in
the luxury market in New York City. As well,
triple net properties in NYC can be
a safe investment for a first-time investor. Domain Properties provides expert
handling of sales for commercial properties,
properties in NYC, office buildings, and
residential properties, as well as
* Located in premier metropolitan area
* Design and construction quality
* Highest quality finishes
* State-of-the-art systems
* Mix of exceptional amenities
* Outstanding building management
* Solidity of tenants
* Solid tenant markets
* May house a tenant for whom property is named
Investors can purchase 'trophy' material without buying investment grade
properties but, usually, trophy properties are investment grade. Michael Vargas,
a principal and co-founder of the Vanderbilt Appraisal Company defines trophy
properties as those in the top 1% of sales.
According to Vargas, trophy properties in New York City can carry a price tag of
$10 million or more. Vargas says that he uses the $10 million figure because
sales of that caliber were almost commonplace before the economic downturn.
Properties in the $20 million range were the source of excitement in Manhattan
before the housing crash.
Yet there is differing opinion about the price needed to
buy trophy properties
in New York City. Sixteen of the city’s top-selling brokers, as well as three
appraisers, named amounts from $10 million to $45 million. Several agents gave
higher prices for uptown (and for town houses) than for downtown.
One agent thought a buyer would pay $40 million for a trophy apartment uptown
but only $25 million downtown. Another agent said $25 million for an uptown
apartment and $15 million for downtown trophy apartment. Maybe Vargas gives the
best definition of trophy properties - “ rare, special and coveted by many, like
a Picasso.” One of the biggest NYC real estate deals in 2010 involved a trophy
building. Designed by the renowned architect Robert A. M. Stern, the penthouse
at Superior Ink in the West Village was sold for $31.5 million.
According to Jones Lang LaSalle's winter 2010 Skyline Review, Midtown's
office buildings showed an increase in average asking rental rates. Between
June-December, rent for the submarket's high-end buildings rose by 6.8 percent.
Rates for upscale spaces in Midtown increased to $77.65 per square foot in
winter 2010 from $72.71 per square foot at the beginning of the year.
* Sufficient size and stature that they merit attention by large national and
* Good design and construction - rarely monumental design or first-class
* Maybe located in secondary metropolitan
* Possess a stable tenant base
* Conformed to popular design conventions at the time of construction
* No exceptional materials or construction methods
* Functional design and construction – Not focused on aesthetics or image
* Design hardly ever reflects the image of any particular tenant or occupant
* Large building to attract national and international attention
* Minimum size requirements are lower for properties located in premier office
* Often occupied by multiple tenants
Commercial real estate NYC is in a class by itself. The NYC market has all the
essentials for profitable investment. Expect to see more buyers and investors
showing an interest in Class A, Class B, and Class C
office buildings for sale
in New York City. Interest is building among investment communities in all
classes of Manhattan properties.