Business Buzz
By Rich Baehrle
The commercial real estate market in Margate is about to go through some dramatic changes. With the boom in the housing market, the value of commercial properties has become more attractive to convert them into luxury housing.
You are seeing everything from landmark restaurants like Liang’s House Asian restaurant hit the market for $1,990,000 to the Baker Burger which is listed at $3,199,000. The town would like a commercial presence maintained on the lower level, but the value of the properties is in the residential component above the stores. Another landmark location that is currently on the market is 8 Essex Avenue. This location is better known as the home of the famous Down Beach Deli. Hopefully, new buyers will maintain the current uses or attract new entrepreneurs.
It appears that restaurants are not the only properties being purchased. The Sunoco business located at 7701 Ventnor is currently under agreement. We will have to wait to see if this property will be converted into residential. The shore communities are struggling to maintain a balance between commercial and residential. We must be careful and make sure we have things for people to do and go out to eat when they visit the Jersey Shore.
When you go throughout Margate you must notice that there is new construction everywhere (approximately 80 new construction permits). Smaller homes are being torn down to make way for large beautiful new homes. Values have escalated beyond the imagination. We are seeing values increase at rates of 25% and more. If interest rates don’t increase substantially, we should continue to see a booming market. Some people are cashing out with the tremendous increase in values and buying lesser value homes on the mainland ie. 55+ communities. The challenge if you sell high, you must buy high now.
The bottom line nothing is forever. It is fortunate Margate is a great City that has passionate people who care about their community. When new plans are proposed, they are carefully reviewed so they will maintain the quaint small town feeling that makes it such a special Jersey Shore Town.
Rich Baehrle of Berkshire Hathaway Fox and Roach. Can be reached at 609-226-6680 or 609-641-0011 richardbaehrle@gmail.com
www.getrichinrealestate
