Page 39 - BusinessWest May 27, 2024

82-84 North Street Northampton, MA 413-584-0310 www.dasullivan.com
General Contractor | Construction Manager | Owner’s Project Manager
BUILDING HISTORY SINCE 1897
Project Video:
Ferry Street Building 5 | Easthampton, MA
Photos by CHODOS, Inc
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Why Choose DAS?
that we’re out there and that, if there’s anything you need with commercial real estate, give us a call.’ There was a lot of going to lunches, playing in golf tournaments, and just ... being out there.”
This grunt work has certainly paid off over the years, as the Greeley company has continued its run of success, even during times of stress and duress for the commercial real- estate industry, which is still coping with many lingering effects from the pandemic.
Foremost among those is the sea change in the office market, which has definitely slowed since the pandemic and has seen vacancies increase as remote work impacts wheth- er companies will renew leases, as well as how much space they take if they do renew.
“Firms are creating opportunities for people to work
at home, and that has certainly created some shifts in the office market,” he said. “We have some big chunks of office space that are available or coming available; as leases expire, people are renewing for less space, and that adds up to more inventory.”
This shift is certainly countered by a tightening on the industrial and distribution side of the ledger, where fewer properties are coming on the market and those frequented by ‘for sale’ or ‘for lease’ signs are not on the market for long, and for obvious reasons.
“There are far fewer construction projects taking place
“When I came into the business, a manufacturing building was $50 a square foot, and now, it’s commonly $100 a square foot or more. To build new would be $200 a square foot.”
in this market because of higher interest rates, and this obviously helps with the value of existing inventory,” Greeley said, citing the laws of supply and demand. “The alterna- tive is to build new, and building new is going to be very expensive.
“When I came into the business, a manufacturing build- ing was $50 a square foot, and now, it’s commonly $100 a square foot or more,” he went on. “To build new would be $200 a square foot.”
As for the value of commercial properties — a huge issue in most major markets and communities of all sizes in the wake of COVID — Greeley said that, by and large, most properties in the region are holding their value, but this abil- ity is being sternly tested by rising interest rates.
“Someone can afford to pay less for an investment prop- erty if they’re financing some portion of the transaction,” he explained. “So I would say that investment real estate has deflated some, although the quality inventory seems to be holding value better than the lesser-quality inventory.”
Bottom Line
Looking ahead, Greeley said his company will continue to do more with less in terms of office staff, but continue to look for growth opportunities.
This could include hiring an additional broker or per- haps more, he said, adding that he is always looking for good fits. Meanwhile, the firm is looking at opportunities on the property-management side of the ledger and on the development side as well.
“I have an open mind for opportunities that may present themselves in the future,” he said. “I’m always looking at ways to grow.”
Not bad for someone who never gave much thought to working at the family business growing up — and is now the owner of the family business. BW
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