Tag Archives: Philadelphia commercial real estate


WCRE Third Quarter Report: Fundamentals Remain Strong

SOUTHERN NEW JERSEY & PHILLY CRE MARKETS PERFORMING STEADILY

October 6, 2017 – Marlton, NJ – Commercial real estate brokerage WCRE reported in its latest quarterly analysis that the Southern New Jersey market is in good shape, but remains in somewhat of a holding pattern.

“For most of 2017 we have seen an overall positive tone and conditions that usually indicate a period of strength,” said Jason Wolf, founder and managing principal of WCRE. “The national economy has been adding jobs, the financial markets are on a hot streak, and our market continues to attract outside investors – yet increased activity and enthusiasm are tempered by trouble in the retail sector and uncertainty related to current events.”

There were approximately 421,113 square feet of new leases and renewals executed in the three counties surveyed (Burlington, Camden and Gloucester), which represents an increase of approximately 6.6 percent compared with the previous quarter, and a 15 percent increase over the same period last year. While leasing showed moderate gains, the sales market was quite active during the third quarter, with more than 1.76 million square feet worth more than $105 million of completed sales transactions trading hands.

New leasing activity accounted for approximately 43.3 percent of all deals. Overall, net absorption for the quarter was in the range of approximately 91,600 square feet.

Download The Report (PDF) >>>

Other office market highlights from the report:

  • Overall vacancy in the market is now approximately 9.75 percent, which is a solid improvement over the previous quarter.
  • Average rents for Class A & B product continue to show strong support in the range of $10.00-$14.50/sf NNN or $20.00-$24.50/sf gross for the deals completed during the quarter. These averages have stayed within this range for most of this year.
  • Vacancy in Camden County maintained its dramatic improvement, standing at 10.8 percent for the quarter, down from 13.3 percent at the beginning of the year.

WCRE has expanded into southeastern Pennsylvania, and the firm’s quarterly reports now include a section on transactions, rates, and news from Philadelphia and the suburbs. Highlights from the first quarter in Pennsylvania include:

  • The Philadelphia industrial market continues its hot streak, and the outlook is positive. Vacancy rates for flex and industrial properties in Philadelphia are well below the regional and national averages, and this is expected to continue.
  • Philadelphia’s office market continues to gain strength across the board, with far lower vacancy rates than regional and national averages for both Class A and Class B properties in the Central Business District and the suburbs. We see increasing employment and new construction, both of which bode well for continued strength.
  • The Philadelphia retail sector is the one area that is not performing well. It has been affected by the same challenges facing retail businesses everywhere. Namely, the massive shift to online retailing and away from brick-and-mortar. Still, there were some positive signs amid the announced store closings and bankruptcies. Community shopping centers remain an area of strength in the market, with vacancy rates nearly half the national average.

WCRE also reports on the Southern New Jersey and Philadelphia retail market, noting slight declines in consumer confidence and related metrics as the third quarter wound down. Overall retail sales were 3.2 percent higher this year compared to 2016, and were likely impacted by the major hurricanes affecting Texas and Florida in late August and early September. Highlights from the retail section of the report include:

  • Retail vacancy in Camden County stood at 9.5 percent, with average rents in the range of $12.47/sf NNN.
  • Retail vacancy in Burlington County stood at 10.7 percent, with average rents in the range of $13.38/sf NNN.
  • Retail vacancy in Gloucester County stood at 7.9 percent, with average rents in the range of $14.10/sf NNN.

The full report is available upon request.

About WCRE

WCRE is a full-service commercial real estate brokerage and advisory firm specializing in office, retail, medical, industrial and investment properties in Southern New Jersey and the Philadelphia region. We provide a complete range of real estate services to commercial property owners, companies, banks, commercial loan servicers, and investors seeking the highest quality of service, proven expertise, and a total commitment to client-focused relationships. Through our intensive focus on our clients’ business goals, our commitment to the community, and our highly personal approach to client service, WCRE is creating a new culture and a higher standard. We go well beyond helping with property transactions and serve as a strategic partner invested in your long-term growth and success.

Learn more about WCRE online on Twitter & Instagram @WCRE1, and on Facebook at Wolf Commercial Real Estate, LLC. Visit our blog pages at www.southjerseyofficespace.com, www.southjerseyindustrialspace.com, www.southjerseymedicalspace.com, www.southjerseyretailspace.com, www.phillyofficespace.com, www.phillyindustrialspace.com, www.phillymedicalspace.com and www.phillyretailspace.com.

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A Quarter of Houston CRE Properties Suffer Flood Damage

As the flood waters continue to recede in Texas and Louisiana, officials caution the storm waters continue to pose threats to life and property. However, the region is shifting into recovery mode and beginning to take a full measure of the unprecedented destruction brought by Hurricane Harvey.

An assessment of the potential impact of the epic storm on the Houston commercial real estate market indicates 27 percent of the market’s gross leasable area, representing approximately $55 billion in property value, was likely affected by flooding.

This report is being offered through Philadelphia commercial real estate broker Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm, based on information collected and studies conducted by the by the CoStar commercial real estate information company.

Included in the estimated is 175 million square feet of commercial real estate market space located within the Houston metro’s 100-year flood zone that appears to have been inundated by the epic floodwaters, including some 72,000 apartment units and 20 million square feet of office space.

Harvey, which first made landfall at Rockport, TX, as a Category 4 hurricane early August 26 and then stalled over the Texas coast, broke all records to become the wettest tropical cyclone in the contiguous United States. Weather experts have estimated that through the middle of last week, the storms had dumped an estimated 20 to 25 trillion gallons of water on Texas and Louisiana.

The greater Houston commercial real estate market ranks as the sixth-largest metro area in the U.S. by total CRE space at 1.6 billion square feet. According to CoStar data as presented Philadelphia commercial real estate broker Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm, $16 billion of the $55 billion in property at risk is comprised of apartment buildings within the 100-year flood zone.

The densely populated Southwest Houston submarket segment of the overall Houston commercial real estate market, home to more than 66,000 apartment units, is likely to be the district most affected by flooding. Nearly 30 percent of the submarket’s apartment units are estimated to be impacted, with the Braeburn, Greater Fondren and Sharpstown neighborhoods having the largest number of units within the 100-year flood zone.

For more information about Philadelphia commercial real estate broker Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm specializing in Philly office space, Philly retail space, and Philly industrial space, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker that specializes in Philly office space, Philly retail space and Philly industrial space.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings, Philly office space, Philly retail space, Philly industrial space, and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly office space, Philly retail space or Philly industrial space with the Philadelphia commercial properties that best meets their needs.

As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.

If you are looking for Philadelphia commercial real estate listings and services – including Philly office space, Philly retail space, and Philly industrial space – Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

Please visit our websites for a full listing of South Jersey and Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

Chinese Government Moves to Reduce Overseas Real Estate Investments

The U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space –  could soon find out what happens when the government of the world’s largest country tightens the spigot on overseas investments from its citizens.

Last week, the State Council of the People’s Republic of China officially announced measures to curb outbound investment – a move Chinese officials had been hinting at all year.

Announcing the new measures were intended to promote the “healthy growth of overseas investment and prevent risks,” the new directives from China’s State Council cover all overseas investments including U.S. and Philadelphia commercial real estate properties, companies, and projects.

This report in relation to national and Philadelphia commercial properties is being offered through Philadelphia commercial real estate broker Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm, and was provided by the CoStar commercial real estate information company.

Prominently featured on the restricted list of the new investment guidelines now in effect worldwide – and in the U.S. and Philadelphia commercial real estate markets – are real estate, hotels, casinos, entertainment, sport clubs, outdated industries, and projects in countries with no diplomatic relations with China, as well as “chaotic regions” and nations that should be limited by bilateral and multilateral treaties concluded by China.

In addition, China said it would redirect overseas investment currently in national and Philadelphia commercial real estate listings specifically to support the framework of its 2013 “Belt and Road Initiative.” More specifically, China said it would encourage domestic investors to put their money into eligible projects in Southeast Asia, Pakistan and Central Asia, and beyond to the Middle East, Europe and Africa. The State Council said it would encourage companies to invest up to $1 trillion in that initiative, with the goal of strengthening China’s trade links in those regions, which have surged this year.

Mergers and acquisitions by Chinese companies in countries that are part of the 68 countries officially linked to the Belt and Road Initiative – and are not among U.S. and Philadelphia commercial real estate listings – totaled $33 billion year to date, surpassing the $31 billion tally for all of 2016.

At the same time, Chinese investment in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – has plunged by 50 percent in the first half of 2017. However, despite the huge drop, the amount of Chinese money flowing to the U.S. is still likely to be the second-highest for Chinese investment in the U.S. on record, including mergers and acquisitions, it was reported.

For more information about Philly office space, Philly retail space and Philly industrial space or other Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker that specializes in Philly office space, Philly retail space and Philly industrial space.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly office space, Philly retail space or Philly industrial space with the Philadelphia commercial properties that best meets their needs.

As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philly office space, Philly retail space or Philly industrial space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

Please visit our websites for a full listing of South Jersey and Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

Philadelphia Industrial Vacancy Increases to 5.9 Percent

The Philadelphia industrial market ended the second quarter of 2017 with a vacancy rate of 5.9 percent.

The vacancy rate in the region’s commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – was up over the previous quarter, with net absorption totaling positive 1,782,519 square feet in the second quarter. That compares to positive 9,931,174 square feet in the first quarter 2017. Vacant sublease space increased in the quarter, ending the quarter at 1,193,014 square feet.

The flex building segment of the Philadelphia commercial real estate market recorded net absorption of positive 428,315 square feet while the warehouse building market recorded net absorption of positive 1,354,204 square feet in the second quarter 2017.

This report on Philadelphia commercial properties is being made through Philadelphia commercial real estate broker Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm.

Tenants moving into large Philadelphia commercial real estate properties in 2017 include: Uline moving into 1,070,000 square feet at Liberty Business Center III – Building 1, Mattel moving into 1,002,000 square feet at 575 Old Forge Road, and PepsiCo moving into 502,754 square feet at 545 Oak Hill Road.

Rental rates among Philadelphia commercial real estate listings ended the second quarter at $4.84, a decrease over the previous quarter.

Fourteen buildings totaling 5,075,807 square feet were delivered to the commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – in the quarter, with 15,226,755 square feet still under construction at the end of the quarter.

This trend is compared to the U.S. national industrial vacancy rate, which decreased to 5.1 percent from the previous quarter, with net absorption positive 71.76 million square feet in the second quarter. Average rental rates connected to Philadelphia commercial real estate listings increased to $6.22, and 537 industrial buildings delivered this quarter totaling more than 64.4 million square feet, with almost 272.4 million square feet still under construction.

For more information about Philly office space, Philly retail space and Philly industrial space or other Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) or Lee Fein (lee.fein@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker that specializes in Philly office space, Philly retail space and Philly industrial space.

Wolf Commercial Real Estate is a Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly office space, Philly retail space or Philly industrial space with the Philadelphia commercial properties that best meets their needs.

As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philly office space, Philly retail space or Philly industrial space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

Please visit our websites for a full listing of South Jersey and Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

National Price Indices Trending Upward at Midyear

Midyear 2017 pricing trends continue to rise steadily across all U.S. regions and types of properties as the equal-weighted U.S. Composite Index rose by 1.4 percent in June, contributing to a second-quarter gain of 5 percent, as the value-weighted U.S. Composite Index advanced by a similar 1.3 percent for the month and by 4.1 percent for the quarter.

Driven by the second-quarter and recent monthly advances, the value-weighted U.S. composite index, reflecting larger asset sales common in core segments across the commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – erased losses earlier in the year, and expanded by 5.4 percent over the 12-month period ending June 2017.

This report in relation to national and Philadelphia commercial properties is being offered through Philadelphia commercial real estate broker Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm.

Pricing momentum, however, remains strongest in the lower end of the market in 2017. The equal-weighted U.S. Composite Index, reflecting the more numerous but lower-priced property sales typical of secondary and tertiary U.S. and Philadelphia commercial real estate properties, increased 17.5 percent over the past year, the strongest 12-month period on record.

Of note among property types studied by Costar Realty Information Inc. is the U.S. Office Index, where stable fundamentals supported 11 percent growth, the only double-digit growth rate among the four major property sectors over the 12-month period. The four major property-type indices in the U.S. and Philadelphia commercial real estate markets recorded price growth of an average 2 percent during the second quarter.

The Prime Markets Indices, dominated by transactions in the largest core coastal metros, have generally increased more slowly than the broader national property type indices, in keeping with the larger pricing index growth rates in non-core markets involving national and Philadelphia commercial real estate listings.

Continuing a trend of declining investment sales transaction activity that began last year and is likely to last through 2017 in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space, composite sale pair volume totaled $128.7 billion in the 12-month period ending in June, down 2.2 percent from the previous 12-month period.

Steady pricing growth also increased across all four major U.S. regions in the second quarter as did those involving U.S. and Philadelphia commercial real estate listings. Regional indices advanced by an average of 1.9 percent. The Northeast Index saw the strongest growth over the 12-month period at 11.7 percent while the South Index advanced 9.9 percent. The West Index increased 8.2 percent and Midwest Index rose 7.4 percent during the same period.

For more information about Philly office space, Philly retail space and Philly industrial space or other Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker that specializes in Philly office space, Philly retail space and Philly industrial space.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly office space, Philly retail space or Philly industrial space with the Philadelphia commercial properties that best meets their needs.

As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philly office space, Philly retail space or Philly industrial space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

Please visit our websites for a full listing of South Jersey and Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

E-Commerce Comes to Food Shopping as Amazon Buys Whole Foods

Grocery stores, once considered more immune to risks from online competition compared with its clothing and department store counterparts, may not be as resilient as many have long thought.

After Amazon dropped the recent bombshell news that it plans to buy Whole Foods Market Inc. for $13.2 billion, some investors and analysts in the commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – are reassessing the prospect for e-commerce to make more rapid incursions into the food retail business.

This CoStar report in relation to national and Philadelphia commercial properties is being offered through Philadelphia commercial real estate broker Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm.

Other skirmishes between grocers and online retailers involved with U.S. and Philadelphia commercial real estate properties that have been growing over the past couple of years are now intensifying. National name-brand food product makers are redirecting millions of dollars into e-commerce efforts to boost sales directly to consumers.

This month, Campbell Soup Co. announced plans to accelerate the company’s digital and e-commerce capabilities by forming an e-commerce unit in North America and setting a goal in its U.S. and Philadelphia commercial real estate markets of generating $300 million per year in e-commerce sales over the next five years.

“E-Commerce is a significant growth opportunity for Campbell, and it represents the future of food commerce,” said Mark Alexander, President – Americas Simple Meals and Beverages, for Campbell Soup. “Only those who get there in a fast and smart way will win, and Campbell intends to do just that. We have an accelerated strategy to invest and grow in this space.”

The move is also seen as a response to slumping organic sales in the U.S. Campbell’s sales, which decreased 1 percent over the last nine months, which were driven by a 1 percent decline in organic sales, reflect higher promotional spending and lower volume in relation to its national and Philadelphia commercial real estate listings. In its Americas Simple Meals and Beverages division, the most recent sales numbers were down 2 percent.

In fact, equal weighted comparable grocery store sales growth within the industry is decreasing across the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space. Year-over year grocery sales were increasing a little more than 4 percent annually three years ago; that flattened to about 0.3 percent in fiscal year 2016, according to analysis by CoStar Portfolio Strategy.

Campbell’s goal to reach $300 million in e-commerce sales would represent 3.6 percent of the brand’s annual sales. Studies project online grocery spending related to U.S. and Philadelphia commercial real estate listings could grow during the 2016-2025 forecast period from 4.3 percent. Last year, online grocery sales were about $20.5 billion.

For more information about Philly office space, Philly retail space and Philly industrial space or other Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker that specializes in Philly office space, Philly retail space and Philly industrial space.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly office space, Philly retail space or Philly industrial space with the Philadelphia commercial properties that best meets their needs.

As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philly office space, Philly retail space or Philly industrial space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

Please visit our websites for a full listing of South Jersey and Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

Office and Industrial Sales Hold Steady as Overall CRE Sales Drift Lower

Investors continued to buy less commercial real estate in both the second quarter and the first half of 2017 compared to the same periods a year ago, a trend that started in 2016 as steady fundamentals that have resulted in generally robust occupancies and rental rate gains have boosted valuations across most property types.

However, CRE investment sales still are running about 10 percent above the historical sales volume average over the past 10 years, according to preliminary U.S. investment sales data collected by CoStar’s nationwide research team. In the second quarter, preliminary volume in the commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – fell to $106.7 billion compared with $129.2 billion in second-quarter 2016.

This CoStar report on national and Philadelphia commercial properties is being offered through Philadelphia commercial real estate broker Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm.

The lodging property sector saw the biggest decline in the first half of the year compared with hotel property sales in the same period in 2016, including a significant drop in the second quarter from year-prior totals. Retail and multifamily assets among U.S. and Philadelphia commercial real estate properties also posted sales volume declines of more than 20 percent in the first six-month period of 2017.

The drop-off in U.S. apartment transaction volume from previous peak levels in the U.S. and Philadelphia commercial real estate markets is consistent with slowing rent growth and the market’s perception of oversupply, particularly at the top of the multifamily market, noted CoStar research strategist John Affleck.

Therefore, even as buyers and sellers have continued to benefit from low interest rates, the trading volume among all types of commercial property led to the record-shattering pace of the last two years. With interest rates beginning to trend upward, the low-financing advantage enjoyed by property investors related to national and Philadelphia commercial real estate listings is expected to gradually diminish.

“Higher interest rates have investors reevaluating commercial real estate’s core appeal this cycle: a wide spread in a low-yield world,” Affleck added. “The maturity of the economic cycle and the new administration also raise uncertainty.”

While industrial sales volume in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – declined by double digits in the second quarter, the warehouse and light industrial market ended the first half of this year with the smallest decline among the major property types.

Conversely, office sales volume among U.S. and Philadelphia commercial real estate listings was roughly even in the second quarter of 2017 compared with the same period a year earlier, and was down only slightly in the first half compared to the first two quarters of last year and down by an even lower percentage for the trailing four-quarter period ending June 30, 2017.

For more information about Philly office space, Philly retail space and Philly industrial space or other Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker that specializes in Philly office space, Philly retail space and Philly industrial space.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly office space, Philly retail space or Philly industrial space with the Philadelphia commercial properties that best meets their needs.

As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philly office space, Philly retail space or Philly industrial space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

Please visit our websites for a full listing of South Jersey and Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

WCRE Second Quarter Report: Southern New Jersey Market Shows Strong Fundamentals

WCRE Second Quarter Report: Southern New Jersey Market Shows Strong Fundamentals, Appears Poised For Growth

July 7, 2017 – Marlton, NJ – Commercial real estate brokerage WCRE reported in its latest quarterly analysis that the Southern New Jersey market, which started off 2017 on a cautiously optimistic note, continued picking up steam through the second quarter.

“The overall mood of the market seems to be positive, riding a wave of steady moderate growth in the national economy, increasing expansion locally, and investor interest from outside the region” said Jason Wolf, founder and managing principal of WCRE. “Office occupancy needs increased during the quarter, and we have been seeing increased capital spending and construction hiring this year for the first time in years.”

There were approximately 395,155 square feet of new leases and renewals executed in the three counties surveyed (Burlington, Camden and Gloucester), which represents an increase of approximately 24 percent compared with the previous quarter, and a remarkable 58 percent increase over the second quarter last year. While leasing showed this notable rise, the sales market had a dip in volume during the second quarter, with some 554,590 square feet worth more than $46.1 million trading hands.

New leasing activity accounted for approximately 43.4 percent of all deals. Overall, gross leasing absorption for the quarter was in the range of approximately 85,000 square feet.

Download the Report (PDF) >>>

Other office market highlights from the report:

Overall vacancy in the market is now approximately 10.4 percent, which is a solid improvement over the previous quarter’s 11.05 percent.

Average rents for Class A & B product continue to show strong support in the range of $10.00-$14.50/sf NNN or $20.00-$24.50/sf gross for the deals completed during the quarter. This is essentially unchanged from the previous two quarters.

Vacancy in Camden County improved dramatically, standing at 11.7 percent for the second quarter, down from 13.3 percent in the first quarter.

WCRE has expanded into southeastern Pennsylvania, and the firm’s quarterly reports now include a section on transactions, rates, and news from Philadelphia and the suburbs. Highlights from the second quarter in Pennsylvania include:

The Philadelphia industrial market remains very healthy, and the outlook is positive. Vacancy rates for flex and industrial properties in Philadelphia are well below the regional and national averages, and the expectation is that supply will continue to meet demand.

Philadelphia’s office market continues to gain strength across the board, with far lower vacancy rates than regional and national averages for both Class A and Class B properties in the Central Business Districts and around the suburbs. Conditions are in place that seem to bode well for continued growth, including increasing employment and new construction.

The Philadelphia retail sector has not been immune to the systemic challenges facing retail businesses everywhere. Namely, the massive shift to online retailing and away from brick-and-mortar. Still, there were some positive signs amid the spate of announced store closings. Community shopping centers remain an area of strength in the market, with vacancy rates nearly half the national average. 

WCRE also reported on the Southern New Jersey retail market, noting that e-commerce sales were high and moving higher still, while brick-and-mortar retail sales were growing at a modest two percent. Overall retail sales were 3.9 percent higher this year compared to 2016. Highlights from the retail section of the report include:

Retail vacancy in Camden County stood at 9.4 percent, with average rents in the range of $11.33/sf NNN.

Retail vacancy in Burlington County stood at 10.5 percent, with average rents in the range of $13.35/sf NNN.

Retail vacancy in Gloucester County stood at 7.1 percent, with average rents in the range of $13.78/sf NNN.

The full report is available upon request.

About WCRE/CORFAC International

WCRE/CORFAC International is a full-service commercial real estate brokerage and advisory firm specializing in office, retail, medical, industrial and investment properties in Southern New Jersey and the Philadelphia region. We provide a complete range of real estate services to commercial property owners, companies, banks, commercial loan servicers, and investors seeking the highest quality of service, proven expertise, and a total commitment to client-focused relationships. Through our intensive focus on our clients’ business goals, our commitment to the community, and our highly personal approach to client service, WCRE is creating a new culture and a higher standard. We go well beyond helping with property transactions and serve as a strategic partner invested in your long term growth and success.

Learn more about WCRE online at www.wolfcre.com, on Twitter & Instagram @WCRE1, and on Facebook at Wolf Commercial Real Estate, LLC. Visit our blog pages at www.southjerseyofficespace.com, www.southjerseyindustrialspace.com, www.southjerseymedicalspace.com, www.southjerseyretailspace.com, www.phillyofficespace.com, www.phillyindustrialspace.com, www.phillymedicalspace.com and www.phillyretailspace.com.

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Separate Construction Outlooks Predict Good Times Ahead for Commercial Developers

Industry reports released recently, including a new index launched by the U.S. Chamber of Commerce and materials supplier USG Corp., reveal a strong expected performance by the U.S. commercial construction industry, along with optimism among contractors that new projects will be added throughout next year.

An overwhelming majority of respondents, 96%, surveyed for the new USG + U.S. Chamber of Commerce Commercial Construction Index (CCI) is confident that revenues in the commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – will increase or remain stable this year.

This CoStar report on national and Philadelphia commercial properties is being offered through Philadelphia commercial real estate broker Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm.

The CCI, a quarterly index designed to gauge the outlook and sentiments specifically for the commercial construction industry regarding U.S. and Philadelphia commercial real estate properties, sprang from a partnership between the Chamber, USG and Dodge Data & Analytics, “was born out of a need to understand the issues that affect commercial construction,” said Jennifer Scanlon, USG president and chief executive officer.

About 40% of contractors surveyed for the CCI expect an increase in revenue this year with 3% expecting a decrease. The index measures such specific indicators in the U.S. and Philadelphia commercial real estate markets as construction work backlogs, new business pipelines, revenue projections, workforce issues, and access to construction financing.

Several mixed-use megaprojects involving national and Philadelphia commercial real estate listings are moving toward vertical construction in urban metros across the U.S., including the planned $1.6 billion expansion of Penn Station in Manhattan; The Eleventh, a $1.25 billion project on a full block at Manhattan’s High Line; and the $1 billion redevelopment of Chicago’s Union Station, just to name a few.

In a separate report, the Associated Builders and Contractors (ABC) Construction Backlog Indicator (CBI) reported construction backlogs in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – increased to nine months during the first quarter, up 8.1% from the fourth quarter of 2016 and up 4% on an n annual basis.

“For the first time in the series’ history, every category, firm size, industry and region registered quarterly growth in the CBI,” said ABC Chief Economist Anirban Basu commenting on the report intended to serve as a leading construction spending indicator. “Among the big winners were firms in the western U.S. and those with annual revenues between $30 million and $50 million. This was a terrific report.”

Basu cautioned that some contractors working on projects involving U.S. and Philadelphia commercial real estate listings registered concern for conditions in 2019 and 2020, citing the already lengthy duration of the economic recovery; evidence of saturation in some CRE markets; cuts in public spending; and tightening monetary conditions.

For more information about Philly office space, Philly retail space and Philly industrial space or other Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker that specializes in Philly office space, Philly retail space and Philly industrial space.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly office space, Philly retail space or Philly industrial space with the Philadelphia commercial properties that best meets their needs.

As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philly office space, Philly retail space or Philly industrial space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

Please visit our websites for a full listing of South Jersey and Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

Retail Mall Vacancies Are No Longer Just a Class C Issue

Store closures have been the talk of the retail industry over the first five months of the year, with Sears-Kmart, JCPenney and Macy’s announcing more than 64 million square feet of combined closures since the start of 2017 and at least 10 leading in-line retailers filing for bankruptcy court reorganization or auction.

While most retail property in the commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – continues to perform well, the spate of department store closings has been largely confined to retailers’ under-performing locations, with the impact on centers that can least afford to lose them.

However, the vacancy rate also ticked up for malls in some of the strongest locations in the country, according to a recent survey by the CoStar Group research firm. The study also showed vacancy increases in power centers and specialty centers of U.S. and Philadelphia commercial real estate properties.  As a result, first-quarter retail vacancies have started to increase in certain retail segments for the first time in five years.

This CoStar report on national and Philadelphia commercial properties is being offered through Philadelphia commercial real estate broker Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm.

“It is not just the C malls that are suffering,” said Ryan McCullough, managing consultant at CoStar Group, “as the bulk of mall closures are in B malls, to the tune of 17 million square feet. While these store closings have been generalized as Class C mall problems, our research indicates this is not necessarily a fair representation.

“Furthermore,’ he added, “about half of this combined square footage will impact non-mall properties, including power centers, community centers, and downtown storefronts.”

The latest financial results also show malls typically classified as B properties being the first in the U.S. and Philadelphia commercial real estate markets to be experiencing declines in net operating incomes.

CoStar Group analyzed net operating income (NOI) results on more than 2,400 commercial mortgage-backed securities (CMBS)-related loans with an outstanding loan balance of $38.6 billion. In a good sign for the overall retail property segment involving national and Philadelphia commercial real estate listings, those results show the most recent NOI is up about 0.16 percentage points from the last full year reported NOI.

However, one segment of the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – saw a decline in NOI: Retail properties with outstanding loan balances of $50 million to $100 million saw NOI decline by 0.05 percentage points.

The NOI analysis of CMBS-related loans among the U.S. and Philadelphia commercial real estate listings also found about 42 percent of properties had an improved debt service coverage ratio (DSCR), or the amount of money left to cover required monthly debt and principal repayments. These retail properties posted strong DSCRs, improving their ratios by about 25 percent. Only about 4 percent of these properties were in the $50 million to $100 million loan balance category.

For more information about Philly office space, Philly retail space and Philly industrial space or other Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker that specializes in Philly office space, Philly retail space and Philly industrial space.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly office space, Philly retail space or Philly industrial space with the Philadelphia commercial properties that best meets their needs.

As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philly office space, Philly retail space or Philly industrial space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

Please visit our websites for a full listing of South Jersey and Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

Dearth of Properties Holding Back U.S. Industrial Sales Volumes

The U.S. industrial real estate market is seeing a shortage of bulk warehouse and logistic centers available for sale along with a shift in focus by industrial REITs from acquisition to development. The resultant flattening in yields will likely produce lower investment sales volumes this year throughout the commercial real estate market – including Philly office space, Philly retail space and Philly industrial space.

U.S. logistics and light industrial properties investment sales volumes fell 13 percent year-to-year in the first quarter of 2017, even though billions of dollars have been raised for real estate investment by global funds. Along with increased real estate allocations in the U.S. and Philadelphia commercial real estate markets by pension funds and other groups, buyers face fierce competition for the few available industrial portfolios and individual assets on the market, according to CoStar’s First-Quarter 2017 U.S. Industrial Market Review and Forecast.

This report on national and Philadelphia commercial properties is being made through Philadelphia commercial real estate broker Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm.

With the shortage of available industrial property on the market, pricing is at record highs across all tiers. “We’re definitely seeing a bit more caution out there” among investors, said Rene Circ, Director of Industrial Research for CoStar. “While we don’t expect investment sales volume to be higher than last year, we do expect there will continue to be far more buyers than sellers.”

Investors in U.S. and Philadelphia commercial real estate properties have become more disciplined during this cycle, and the duration of low interest rates has gradually adjusted the return expectations of industrial investors, Circ said. Rather than chasing riskier assets in riskier markets, investors appear to be accepting lower going-in yields.

“Appreciation and price growth are slowing and it’s going to be very difficult to get further gains from cap rate compression, especially at the top of the market,” Circ added, “but we will still see very significant embedded net operating income growth over the next couple of years.”

One reason for the deceleration in sales volume regarding both national and Philadelphia commercial real estate listings is a reallocation of capital by publicly traded industrial REITs such as Prologis (NYSE: PLD) and other investors from acquisition to development activity.

“The same money is still flowing; it’s just flowing in a different direction because development spreads right now are very attractive,” Circ said.

The industrial sub index of the CoStar Commercial Repeat Sale Index, bolstered by high occupancy and rent growth, logged the second-highest growth rate in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – at 2.3 percent during the first quarter, just behind retail, according to the most recent CCRSI release.

Comparing current average investor yields among U.S. and Philadelphia commercial real estate listings with forecasted rental rate growths, such markets as those in the Jacksonville, Tampa, and Orlando areas, along with Boston and Chicago, are among a shrinking pool that still present attractive buying opportunities for investors, Circ noted.

For more information about Philly office space, Philly retail space and Philly industrial space or other Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) or Lee Fein (lee.fein@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker that specializes in Philly office space, Philly retail space and Philly industrial space.

Wolf Commercial Real Estate is a Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly office space, Philly retail space or Philly industrial space with the Philadelphia commercial properties that best meets their needs.

As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philly office space, Philly retail space or Philly industrial space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

Please visit our websites for a full listing of South Jersey and Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

Unprecedented Chinese Investment in U.S. CRE Raises Concern

As investors from China continue to make substantial purchases in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – concern is rising in Washington D.C. over the potential implications this deluge might be having on national security.

To ensure these issues are being fully considered, Senate Banking Committee Ranking Member Sherrod Brown, D-OH, together with Sen. Ron Wyden, D-OR, ranking member on the Senate Finance Committee, and Sen. Claire McCaskill, D-MO., ranking member on the Homeland Security and Government Affairs Committee, requested the Government Accountability Office investigate how the Committee on Foreign Investment in the United States (CFIUS) examines real estate transactions involving foreign investors in the U.S. and Philadelphia commercial real estate markets.

This report on national and Philadelphia commercial properties is being made through Philadelphia commercial real estate broker Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm.

The request by those three senators calls for the GAO to assess whether CFIUS is adequately equipped to identify, evaluate and, when appropriate, mitigate, national security risks arising from the “rising tide” of foreign investment in U.S. and Philadelphia commercial real estate properties.

In their letter, the senators note additional national security considerations may exist because several senior administration officials, including the president, retain ownership of significant real estate holdings and maintain multiple residences that could be the subject of foreign acquisitions in the future.

“Foreign investors are pouring more and more money into the U.S. real estate market, and yet the trail behind these transactions is often shrouded in secrecy,” Sen. Wyden said in addressing these issues among both national and Philadelphia commercial real estate listings. “It is critical we have a better understanding of how U.S. agencies identify and address national security threats that may arise about foreign real estate investments.”

“We know real estate deals are one of the favored ways to launder illicit finances,” Sen. Brown said in relation to these same investments in U.S. and Philadelphia commercial real estate listings. “We don’t, however, know if our oversight agencies have the resources and tools they need to vet Russian, Chinese, and other foreign investments in U.S. real estate for potential threats to our nation’s security.”

The senators’ request follows a significant increase in foreign investment in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space. Total Chinese direct investment in U.S. real estate and hospitality is nearly $30 billion, accounting for more than 27 percent of total Chinese investment since 1990, according to a recent report from the National Committee on U.S.-China Relations, an organization that promotes constructive U.S.-China relations founded in 1966.

For more information about Philly office space, Philly retail space and Philly industrial space or other Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) or Lee Fein (lee.fein@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker that specializes in Philly office space, Philly retail space and Philly industrial space.

Wolf Commercial Real Estate is a Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly office space, Philly retail space or Philly industrial space with the Philadelphia commercial properties that best meets their needs.

As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philly office space, Philly retail space or Philly industrial space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

Please visit our websites for a full listing of South Jersey and Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.