Today's 'location, location, location' is 'prime, prime, prime'.

Every agent and broker in the business will tell you three words: location, location, location. My take on that is "prime, prime, prime." That's never been more true today, as those of us in the commercial real estate brokerage business deal with buyers who want the best deal, sellers who think they can always get more for their property and reject good offers, banks that are demanding more and more dollars down on new purchases, and increasing risk for new development.

New York is a rare city in that we can all agree almost every part of the city will be newly developed and worth far more in a few years. Whether you're discussing the evolution of Washington Heights or the Lower East Side, or the activity in Long Island City, the conclusion is the same: the New York City market is strong and will continue--even at a reduced pace--to increase in value for the real estate investor.

Sellers know this, buyers know this ... but banks don't always believe this. They track the news about Wall Street and they become nervous. It's just one reason to always consider buying prime property, or as close to prime property as you can afford or secure.

My firm recently brokered, off-market, the sale for a major commercial building on West 57th Street--for $60 million in cash--a building that just 20 years ago sold for less than $2 million, and during the peak of the last recession. The buyer's security back then: the location was prime. It's the same today.

There's a lot of talk now about "new prime property," in what are relatively untested areas of the city. The Financial District is a great example. Sure, there are few parts of the city that can match FiDi for its history and architecture, not to mention its proximity to Wall Street businesses and in some cases, water views. New condos are springing up and luxury retailers like Hermes have opened stores in the area. But does that really make it prime?

Some foreign buyers seem to think so. With a weakened dollar we're seeing activity from a new generation of foreign buyers: the Irish and Koreans are just two of the international buyer profiles investing in downtown New York. Middle East buyers have been and continue to be a strong presence in the commercial market, but they're often buying entire blocks, not just buildings! The power of the euro has also attracted Italians and French to the city--although they are primarily residential buyers.

Commercial property in the FiDi area has appreciated substantially in the past decade, and commercial buildings now routinely sell for $450-550 PSF. Commercial leases in the area run on average $50-80 PSF, and new condo development in the area is selling for anywhere from $1,100-1,700 PSF. But does this appreciation mean growth in the area is limitless? The answer is no. There simply isn't enough infrastructure--in terms of services, local businesses and proven consumer traffic and spending--to make this area so "prime" that is can flourish if the local economy plateaus.

And with recession fears mounting any of the service-driven companies and brands (drugstores, chain restaurants and stores, etc.) that might normally enter an emerging 'lifestyle' neighborhood may think twice, or delay their opening in the area.

Real estate investors need to focus on the best buys in the best areas. It's that simple.

Whether you're working with an experienced investor, a first-time investor or a foreign buyer who may fit either description, the goal is to sell them prime property. The return for them is obvious. The return for you as a commercial broker is a lasting relationship based on smart business.

BY SHAY ZACH, ITZHAKI PROPERTIES