Tags: Warren Buffett | Berkshire Hathaway | Herb Hirsch

Warren Buffett's Brokerage Firm Expands Into Commercial Real Estate

Warren Buffett's Brokerage Firm Expands Into Commercial Real Estate
(Dreamstime)

By    |   Wednesday, 28 June 2017 11:23 AM

Warren Buffett is expanding his company’s real estate brokerage business for commercial clients.

Berkshire Hathaway HomeServices New York Properties, a brokerage for homebuyers, has hired Herb Hirsch to lead a new commercial division in New York that will focus on leasing, according to the New York Post.

Hirsch hired Dina Fisher and Jeffrey Berman at the new operation.

“When I told them I was joining Berkshire Hathaway, they jumped aboard,” Hirsch, who opened the office in March and is now hiring more brokers, told the NY Post. “The name speaks for itself, and there is a lot of interest and people looking to buy commercial property in New York.”

Hirsch is now seeking commercial tenants for a 300,000-square-foot development site in the Water Street area of downtown Manhattan.

Meanwhile, commercial landlords are facing pressure as retailers close brick-and-mortar stores in response to more online competition.

Eight of Manhattan’s 11 major retail neighborhoods saw availability rates grow between 0.6 and 8.2 percent, according to data from Cushman & Wakefield cited by the Real Deal.

Ralph Lauren is closing a 39,000 square-foot flagship store on Fifth Avenue, which has been the home to luxury retailers for years. Ralph Lauren is obligated to pay $70,000 per day on the lease that expires in 2029 if the company can’t renegotiate the deal.

“Retail dynamics and challenges are certainly not unique to New York,” Sam Chandan, an economist and associate dean at New York University’s Schack Institute of Real Estate, told the Real Deal. “New York has a very unique retail footprint by virtue of it being a dense tourist market and one where most retail is ground floor or street-facing. There will be some difficult adjustments.”

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Berkshire Hathaway HomeServices, the brokerage for homebuyers, hired Herb Hirsch to lead a new group named Berkshire Hathaway HomeServices New York Properties that will focus on commercial leasing, according to the New York Post.
Warren Buffett, Berkshire Hathaway, Herb Hirsch
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2017-23-28
Wednesday, 28 June 2017 11:23 AM
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