Seaport Real Estate Services Blog - Commercial

2024 Rhode Island Commercial Mill Rates by Town

Tax rates, even within a state, are not universal! In Rhode Island, commercial mill rates or tax rates differ compared to residential rates in many towns, but are the same in others. Based on the 2024 data, the average residential property tax for the 39 municipalities in Rhode Island is approximately 14.35, while the average for commercial property is about 20.37. Interestingly, 27 of the municipalities have a higher commercial rate! Why is there this discrepancy? What do some towns provide that makes the mill rate different?

A higher commercial tax rate often reflects the higher level of services available within the area. This discrepancy might also indicate the degree of reliance on property tax within the municipality. Tax rates tend to be…

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2024 CT Mill Rates

Connecticut's real estate taxes can vary greatly depending on the municipality and districts within them.  The graphic above illustrates the base rates for each town. Additional rates are applied to specific locations where services are provided.  These services can include public water, sewer, trash removal,  police services, or a firehouse.  A town or district with a lower Mill rate may not offer these services.  Your real estate agent will be able to help you to determine the services offered and their importance to you when purchasing real estate. The average property tax rate in CT for 2024 is $28.93, with the highest being Hartford at $68.95 and the lowest being Salisbury at $11. 

How to Calculate Connecticut Property Taxes

The…

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Community Redevelopment: How Seaport Commercial Agents are Revitalizing the City of Norwich

Original article from Claire Bessette of The Day | January 16, 2024 7:02 pm • Last Updated: January 16, 2024 9:49 pm Norwich ― New York-based real estate developers Ernest and Alfred Tollja learned about Norwich in 2018 from a persistent Norwich comedian who drove to their comedy theater nearly every night and pressured them to buy a building in his hometown. Six years later, the two brothers, originally from Albania, own more than a dozen apartment buildings in Norwich, with a total of 117 apartments. That comedian, however, has moved to upstate New York, the pair said Tuesday. On Thursday, they completed the purchase of three prominent lower Broadway buildings that are part of a larger revitalization…

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Commercial Property Owners!!! Do not make these mistakes before selling.

Maximizing Long-Term Value in Real Estate and Business Sales: Top 5 Strategic Mistakes to Avoid

By Tim Bray, Broker/Owner, Seaport Real Estate Services

Hello, I'm Tim Bray, the broker/owner of Seaport Real Estate Services and a graduate in Real Estate & Urban Economics from UConn. Through my years of experience, I've seen how focusing on short-term gains can lead to long-term challenges in real estate and business sales. Let's explore the top five strategic mistakes to avoid for maximizing long-term sale values.

1. The Pitfall of Underreporting Income Underreporting income, particularly through cash transactions, may offer short-term tax benefits, but it drastically reduces your property's perceived profitability and legal standing. Accurate…

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Major Distress for Commercial Properties Nationally

In the world of commercial real estate, the Debt Service Coverage Ratio (DSCR) is a critical metric that plays a pivotal role in the refinancing of properties. A DSCR lower than 1.2 often signals trouble, and recent trends across the country have shown an alarming 602% increase in properties grappling with this issue. However, the impact is not uniform across the board, as we'll see in the case of Connecticut, particularly in New London County.

National Context: Nationally, the picture is stark. In just the last 30 days, properties in distress have skyrocketed from 5,562 to a staggering 33,495, covering about 1.5 billion square feet of space. This surge reflects a significant shift in the commercial property landscape, indicating a broad-scale…

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On the Path to the Elite CCIM Designation at Seaport Commercial

We're incredibly proud to spotlight Kyle Schrader, one of our most dedicated and industrious realtors. Kyle is consistently striving for excellence, and is currently working diligently to obtain the prestigious CCIM designation.

???? What is the CCIM Designation? The Certified Commercial Investment Member (CCIM) designation, administered by the CCIM Institute, is among the most esteemed credentials in the real estate world. Achieving this signifies expertise in financial, market, and investment analysis, and exceptional negotiation skills. Those who earn this are recognized as leaders in the commercial investment real estate sector.

???? Why is the CCIM Designation a Game-Changer?

1. Mastery in Financial Analysis: CCIMs make data-driven…

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Rising Tide of Red Signs: Navigating Commercial Real Estate's Rough Waters

Alarm bells are ringing nationwide due to concerns about commercial loan defaults. Unlike residential loans, commercial loans typically operate on a non-recourse basis, allowing borrowers to simply return the keys to the bank if they can't meet their obligations. These loans usually reset every 3-5 years, and many that originated around 2018 are approaching this critical period. The prevailing concern is that numerous commercial properties won't produce sufficient cash flow, leading to a wave of defaults and property surrenders.

Thanks to data from my former company, CoStar Group, I am well-positioned to monitor the situation. Across the country, there are 1,661 properties that are either in default, bank-owned, or undergoing the foreclosure…

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The Adverse Impacts of Withholding Cobrokerage Commissions in Commercial Real Estate

In recent years, the commercial real estate industry has seen a concerning trend where commercial brokerage firms opt not to offer co-brokerage commissions to buyers' agents. The withholding of these commissions can have significant negative consequences for property owners, buyers, and the industry's reputation as a whole. 

Adverse Impacts of Not Offering Cobrokerage Commissions

1. Reduced Market Exposure

Cobrokerage commissions incentivize buyers' agents to bring their clients to a property, which expands the pool of potential buyers. By not offering these commissions, commercial brokerage firms limit the property's exposure to the market. This can lead to longer times on the market and, ultimately, lower sale prices.

2. Lower Sale…

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The Two Faces of Commercial Real Estate

The commercial real estate market operates within two distinct segments: off-market and on-market transactions. Each segment has its unique characteristics, advantages, and disadvantages, catering to different types of investors and property owners.

Off-market transactions refer to commercial properties that are bought and sold without being publicly advertised or listed on popular real estate websites like Crexi and Loopnet. These deals often occur through personal connections, word of mouth, or specialized brokers with extensive industry networks. Off-market properties may exchange hands before the general public becomes aware of their availability, offering several advantages: 

Less competition: Off-market transactions can allow…

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The Low-Interest Bridge Loan Dilemma: A Financial Tightrope

Commercial real estate projects can be a lucrative investment opportunity for those who are willing to take on the associated risks. While financing options for these projects vary, bridge loans are often used to cover the gap between the initial investment and the eventual long-term financing. However, recent trends in the market have shown a rise in bridge loans with radically lower interest rates than the current rate. This may seem like an excellent opportunity to save on interest costs, but it poses significant risks to investors and lenders alike.

First, it's essential to understand what a bridge loan is. A bridge loan is a short-term loan used to finance the gap between the purchase of a property and long-term financing. Typically, these…

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