Real Estate

In Business: Commercial Real Estate Roundup
The real estate market in the Hudson Valley, Berkshires, and Litchfield hills has been on a wild ride. The pandemic fueled a lot of movement in the commercial and residential markets, and more recently, there’s been an uptick in demand for commercial real estate and mixed-use properties that can accommodate businesses and residents.
Although many businesses have shuttered, others are popping up. A slew of new breweries, distilleries, and restaurants have opened. Agri-tourism is also on the rise, and a few marijuana dispensaries have opened their doors. Towns are doing more to advise local businesses on how to attract more tourists and locals year-round. Several real estate agents in the region weighed in on the energy they have been seeing in the area.
Tri-corner properties
The commercial real estate market in the tri-corner area is dynamic and full of opportunity. “Right now, we’re witnessing a unique intersection of trends that are driving demand for commercial properties, especially in Millerton, Hillsdale, Great Barrington, and Hudson. Small-town revitalization along with post-pandemic lifestyle shifts are changing the way commercial space is used. As a result, mixed-use properties, especially those with commercial and residential possibilities, are highly sought after,” said Dan Mahar, principal broker, Mahar Real Estate in Hudson, NY.
Mahar is seeing a lot of activity in the sale of commercial land, which offers the flexibility to design something tailored to specific business operations. Breweries, distilleries, and restaurants are eager to find properties that enable outdoor dining and creative expansion, making it an ideal time for sellers to capitalize on this trend.
Another observation: office spaces aren’t going away. “While remote work is here to stay, many businesses still want to have a local hub where they can see and be seen,” said Mahar. For this reason, Mahar has a small, non-traditional real estate office in Hudson City Centre.
“This trend has led to more interest in co-working environments and versatile office setups, particularly from entrepreneurs who run online businesses and need workspace outside their homes. Whether it’s office space or commercial buildings, adaptability and location are the key factors driving interest,” added Mahar.
He noted that agricultural real estate is another area experiencing a rise in demand. Farms and farm-adjacent properties are appealing to both traditional and non-traditional buyers. “As local farms diversify their business models, incorporating agri-tourism or retail operations, commercial buyers are tapping into this growing sector. The opportunities to create unique, income-generating businesses in this space are significant, especially as the local food/dining experience movement continues to gain momentum,” said Mahar. Currently Mahar has the listing for a barn in Claverack, NY. Located on 5.23 acres, it is listed for $249,999.
Dutchess County & Columbia County
Austin Urban is a licensed real estate salesperson working under Copake Lake Realty Corp., in Craryville, NY. He covers residential and investment and sales in Dutchess County and Columbia County.
His family has a long history in the Copake Lake region. They have been homeowners there since the early 1990s and are the proprietors of Copake Country Club and restaurant. Committed to preserving the Copake Lake area’s beauty and standing as the social backbone of the region, they purchased the public golf course and restaurant in 2006, saving it from being scrapped for real estate development.
“We recently committed a complete remodel of the restaurant, bar, and pro shop and are making on-course improvements into the end of this season and early next spring,” said Urban.
Hudson on the horizon
Urban shares his insight on the Hudson region. “When things stabilized after the onset of the pandemic and into the last 18 months, it seemed like every commercial or mixed-use space on Warren Street in Hudson was for sale. Properties were being priced high all over the Hudson Valley region, but especially in Hudson. Maybe owners were trying to liquidate their investments when the market was high, but people still came in and bought and improved some of those properties,” said Urban.
Quite a while ago, there was a building for sale in Hudson, but it was not in usable shape. It was purchased and is nearing completion into a mixed-use building that will be a functional and aesthetically appealing contribution to the 7th Street Park.
Within the last 18 months, Urban saw many listings sit and expire, but he also witnessed a lot of movement. In just a few years, Ca’Mea Restaurant, The Cascades deli and café, Hudson Food Studio’s Asian fusion restaurant, Lawrence Park cocktail bar, Oak Pizzeria Napoletana, and Nine Cakes bakery – all staples in the Warren Street area – shuttered their businesses.
“In the same timeframe, I’ve seen a shift in ownership from businesses that have been here for 20 or 30 years to new businesses with fresh ideas. People are coming in to renovate and improve properties,” said Urban.
The area has become quite active with distilleries and dispensaries, new restaurants, and cocktail bars. Within the last year, Riverbend Dispensary and Gotham Dispensary both opened within a few months of one another. Three breweries have debuted: Upper Depot Brewing Co., Return Brewing, and Union Street Brewing Co. Other openings include Savona’s Trattoria & Bar, Via Cassia, Camilla’s Pizzeria & Grill, and The Hereafter cocktail bar.
On the market: Hudson
Copake Lake Realty Corp. currently has a listing at 223 and 225 Warren Street in Hudson. A mixed-use opportunity in the heart of town, the attached properties offer three commercial units, three residential apartments, a three-car garage, and a charming courtyard. It was previously home to a long-time business.
“225 Scoops is a good example of a new business attracting both tourists and locals. Above the retail space, there are three apartments, which collectively have eight bedrooms with longstanding occupants, which is good for the landlord,” he concludes.
“I’ve heard the other area near Union Street unofficially referred to as ‘the brewery district’.” In that area, there are three breweries. Urban noted that they are all within walking distance of one other and host events together. On a side note, staffing remains extremely difficult throughout the region, especially during the peak season when demand is high.
In the smaller towns of Copake, Hillsdale, and Chatham, Urban has noticed a lot of effort on behalf of the towns to try to collaborate to attract more tourists and locals. He is a member of the Copake Economic Development Advisory, a volunteer committee that advises small towns on how they can assist businesses or attract more tourists or business opportunities. “Other towns have also started similar committees to better help businesses and attract tourists through new ideas,” said Urban.
The Millerton, NY, and Litchfield, CT, markets
Millerton, NY-based Elyse Harney Real Estate’s sales agents bring more than 35 years of experience to buyers and sellers. Their work spans more than 40 diverse communities from Litchfield to Dutchess, Columbia, and Berkshire counties.
Associate Broker Arleen Shepley offered a snapshot of Elyse Harney Real Estate’s current business. “Prices are level. Properties are priced to sell since the low inventory creates escalation of the list prices,” said Shepley. She continued to explain that buyers currently hail from the local region as well as from New York City. Demand has been great depending on the property and location.
“I wouldn’t say any category is booming. If the numbers work for the buyer, meaning it has to make money, it sells,” said Shepley. In Millerton, two buildings are currently listed for sale. They include 50 Main Street, which is a commercial space with two apartments, and 1 John Street, which offers both office and retail space. A commercial space at 5 Main Street sold in September 2024. It offers retail space on both floors. There’s talk about an art gallery opening. The property at 56 S. Center Street, Millerton was under agreement at press time.
In North Canaan, four buildings were for sale at press time. They include: 10 Railroad Street, a commercial space with a one-bedroom apartment upstairs, and 58 Main Street, a commercial space that was formerly used as a Catholic Church and has potential to be used as a mixed-use space. There’s also 117 Main Street, another commercial space with potential for mixed use; 403 Ashley Falls, a commercial space with various retail and/or office space; and 5 Miner Street, a commercial space housing a United States Postal Service.
Two buildings in the area recently sold. 170 Ashley Falls sold in May 2024 and was previously home to a hair salon. The space can be utilized as a retail or office space. The other was 14 Grace Way, which was an industrial storage space.
In Salisbury, the number of days on market ranges from 19 to 360 days. At press time, 105 Route 7, an automotive building, was listed, and 315 Main Street was under contract. Previously used as a residential space, 315 Main has commercial zoning. Finally, 333 Main Street sold in March 2024. It offers retail space on the first floor and office space on the second floor.
Residential properties with aspirations of going commercial
Ninety percent of the business that Andrew Gates, associate broker at Houlihan Lawrence in Millbrook, NY, manages is in residential properties, but he has handled some small, interesting commercial deals. The kinds of commercial deals he sees are all warehouses being converted into residences.
Gates just sold one-quarter of the Perotti Farm in Millerton for $17,000 an acre. “We sold 85 acres of an estate parcel with beautiful regional views. Even though the prices are well below where they were in the 2005 timeframe, the sale of land has been up dramatically in the last year,” he said.
“I think there is a lot of demand for residential property that can be used as event space.” Gates referred to such places as “soft hotels” that can be used for seasonal or short-term rentals. “They tend to be very aspirational, but purchasers may experience difficulty with the coding of the town, which may prohibit them from doing what they want to do in terms of using it as a business.”
“Overall, it’s an exciting time for commercial real estate in the region. As demand grows, it’s essential to stay ahead of the curve,” concluded Mahar. •