Month: October 2025

By Rod Bacon

According to area professionals, the commercial real estate market in the region is, while somewhat challenging, doing well.

Tom Roohan, owner of Roohan Realty in Saratoga Springs, said that the increase in interest rates post-Covid is making it difficult for investors to purchase commercial properties. 

“A lot of us were spoiled by lower interest rates,” he said. “Low interest rates mean a lower cap rate, which means higher value. That has been frustrating for many people because things they refinanced are built at a certain interest rate that is no longer available to us. That makes it hard for us to sell the property.”

He noted that interest rates that were as low as 3.75 percent have risen to 6.75 percent or 7 percent, depending upon how much is put down and the quality of the property.

Despite that, some very desirable office space is available in the Spa City. The agency just listed a 2,100-square-foot corner office for lease in the historic Van Raalte Mill building at 125 High Rock Avenue. The $6,000- per-month lease is all inclusive except for communication and includes a reception area, conference rooms, kitchen, eating area, and substantial parking. Listing agents are Amy Sutton and Megan Brenensthul.

It is on the market because Marshall + Sterling Insurance consolidated some of its Upstate New York offices in Latham. 

“It’s a nice historic building space that is very bright because it’s in a corner of the building,” Roohan said. 

By Rod Bacon

The Schultz family has a long history of providing high quality construction services in the Capital District and beyond.

Between a company started by William J. Schultz in 1970 and another subsequently launched by his son, William M. Schultz, in 2000, clients have benefitted from their expertise for 55 years.

William J. Schultz left his family’s 30-acre vegetable farm in Colonie in 1955 to join the U.S. Navy, where he was trained as a radioman. According to his son, following his four-year hitch he decided he “wanted to do something else with dirt” and took a job with Hoffman Excavating, a utility company in Colonie. He worked there for several years and in 1961 moved to Rosen-Michaels, a precursor to The Michaels Group. The company had its own land development arm called Glenmont Development Corporation and he was its general manager. 

“They would buy a parcel of land and it might be wooded or a farm field, and they would hire an engineer to design street layouts and determine the maximum number of houses permitted by zoning codes,” said Schultz. “Then Glenmont Development would do all the land clearing, utility installations, and road construction.”

There was a recession in late 1968 resulting in very little call for new housing starts. Because builders no longer wanted to develop raw land Rosen-Michaels decided not to continue with its Glenmont Development subsidiary. 

Always having had an entrepreneurial spirit, he took a leap of faith and started Schultz Construction, Inc. in 1970. He purchased two pieces of equipment from Rosen-Michaels as well as a small dump truck, with which he did road construction and underground utility work for private land developers and builders as well as installing underground utility pipelines for potable water, sewer collection, and drainage systems for municipalities.  

By Mitchell Muroff
Muroff Hospitality Group

As someone deeply rooted in hospitality real estate—having owned and operated multiple franchised hotels across the Northeast and Canada, and now brokering and advising hospitality assets throughout New York State and New England—I’ve witnessed plenty of market cycles. My firm’s nationwide database connects regional hotel owners with serious buyers and investors. Lately, one thing stands out: while the industry has faced its share of headwinds, hotel transaction activity has remained surprisingly steady.

Market Stability and Buyer Confidence

Across much of upstate New York and New England, occupancy levels have softened slightly since their post-pandemic peaks. Still, average daily rates (ADRs) have held firm, signaling that buyers continue to value well-located, well-run assets even as they become more selective.

Meanwhile, interest rates have started to ease after a long tightening cycle, bringing renewed attention to hotel acquisitions that show clear upside. Financing remains cautious, but deals are getting done—particularly when buyers combine traditional bank debt with other creative lending programs.

Financing and the Role of Local Lenders

In markets like Warren County, Saratoga, and the greater Lake George region, regional banks remain essential to hotel lending. Their familiarity with seasonal demand and tourism patterns allows them to underwrite transactions that larger national lenders might overlook.

Many buyers also rely on SBA 504 and 7(a) loans, which give lenders added protection and allow borrowers to secure 20- to 25-year fixed-rate financing on the SBA portion at competitive rates. This structure reduces lender risk while giving buyers predictable long-term debt service—an especially attractive option for smaller or first-time investors.

Even so, banks continue to scrutinize borrowers closely and often require more equity than before. Seller financing can help bridge the gap, though not every owner is willing to extend it.