Tag Archives: Wolf Commercial Real Estate


Bala Cynwyd Office Market Appears to be on the Rebound

Bala Cynwyd’s office market, while not currently experiencing five percent rent growth, currently is experiencing its highest occupancy rate in 15 years – 92 percent – and has seen gradual tightening annually since 2010.

Coming out of the Great Recession, Bala Cynwyd struggled to compete for office tenants in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – with nearby suburbs like Conshohocken or Radnor, both of which offer prospective lessees a larger stock of newer or more recently renovated office properties.

However, a gradual progression of development and renovation projects in the national and Philadelphia commercial real estate markets has helped Bala Cynwyd reassert its competitive edge.

This report on U.S. 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 2007 opening of a 120,000 square foot Target across City Line Avenue from Bala Cynwyd added an additional anchor for retail traffic to the area’s national and Philadelphia commercial real estate properties. That new Target had helped support a range of popular restaurants along the periphery of the relatively new shopping center, including California Pizza Kitchen, Naf Naf Grill and Starbucks.

Since then, more than 750,000 square feet of office space comprising U.S. and Philadelphia commercial real estate listings has been renovated along the portion of City Line Ave., stretching from Interstate 76 to the Bala Regional Rail Station at Conshohocken Road. Lower Merion Township also approved new zoning ordinances to promote dense, mixed-use, and transit-friendly development, and Post Brothers renovated and up-scaled roughly 1,000 apartment units at Presidential City.

Office owners in this area of the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – are beginning to see the benefits of these upgrades as existing financial tenants such as Investedge and Allied Mortgage both chose to stay in Bala Cynywd and expand their office space within the submarket during 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 Opens Center City Philadelphia Office

New Exclusive Assignments and High Volume of Transactions Lead Growing Commercial Real Estate Firm to Expand into Philadelphia’s Central Business District

June 5, 2018 -Marlton, NJ – Wolf Commercial Real Estate (WCRE) is pleased to announce that it will be opening a new office at 1601 Market Street in Philadelphia. This will be the firm’s third office, in addition to its headquarters in Marlton, NJ and an office in King of Prussia that opened in 2014.

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“We’ve been serving numerous clients in and around Center City for a while now, so it makes sense to strengthen those relationships by opening an office here,” said Anthony Mannino, chief operating officer of WCRE. “This move will help create more opportunities for our professionals to network and collaborate with clients and partners, and to expand our commitment to community initiatives.”

Since its founding in 2012, WCRE has grown into a market leader in Southern New Jersey and southeastern Pennsylvania. The team has set a new standard in serving the needs of owners, tenants, and investors. The firm currently has more than 175 properties comprising 4.2 million square feet of office, retail, medical, industrial, flex and investment property in the region under exclusive watch.

Along with Mannino, WCRE’s Philadelphia team includes several well-known business leaders with deep roots in the city. Among them are Brian Propp, director of strategic relationships, Andrew Maristch, vice president corporate services & portfolios, Tony Banks, vice president, and Joseph Nassib, sales associate. Each brings a unique skill set, along with energy, passion, and the signature WCRE commitment to the community. Founding principal Jason Wolf, and Lee Fein, a senior vice president and industrial space specialist, will assist the Center City team from their respective bases in Southern NJ and King of Prussia.

Last year WCRE became affiliated with CORFAC International, a network of independently-owned, entrepreneurial commercial real estate firms with 78 offices worldwide. The move has helped elevate the firm and contributed to its latest expansion.

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 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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Banks Ease Lending Standards for CRE Loans

For the first time in nearly three years, U.S. banks report they have loosened their lending requirements for some types of commercial real estate loans.

The latest Federal Reserve survey of senior loan officers in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – found banks are easing standards and terms on commercial and industrial loans to large and middle-market firms, while leaving loan standards unchanged for small firms.

Meanwhile, banks working in the national and Philadelphia commercial real estate markets eased standards on nonfarm nonresidential loans and tightened standards on multifamily loans. Lending standards on construction and land development loans were left unchanged.

This report involving U.S. 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 survey of senior loan officers on the topic of bank lending practices in both the national and Philadelphia commercial real estate properties market included a special set of questions intended to give policy makers more insight on changes in bank lending policies and demand for commercial real estate loans over the past year. In their responses, banks reported they eased lending terms, including maximum loan size and the spread of loan rates over their cost of funds.

Almost all banks that responded they had eased their credit policies cited more aggressive competition from other banks or nonbank lenders as the reason. A significant percentage of banks dealing in U.S. and Philadelphia commercial real estate listings also mentioned increased tolerance for risk and more favorable or less uncertain outlooks for property prices, for vacancy rates or other fundamentals, and for capitalization rates on properties for easing these credit policies over the past year.

A modest number of domestic banks in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – indicated weaker demand for loans across the three main commercial real estate categories, citing a reduced number of property acquisitions or new developments, rising interest rates, and shifts of customer borrowing to other bank or nonbank sources.

Reports of reduced loan demand involving national and Philadelphia commercial real estate listings coincided with the latest Lending Momentum Index, which tracks the pace of U.S. commercial loan closings. The index fell by 8.8 percent between December 2017 and March 2018.

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.

Casinos Hit Jackpot as Court Allows Legalization of Sports Betting

In a boost not to just Atlantic City but to betting venues across the country, the Supreme Court this week overturned a 1992 federal law that had prohibited most states from authorizing sports betting.

The court said the federal law violated constitutional principles limiting the federal government from controlling state policy involving this specific portion of the U.S. commercial real estate market – which includes South Jersey retail space. It unconstitutionally required states to prohibit sports betting under their own laws.

This report on trends in the U.S. and South Jersey commercial properties market is being made through South Jersey commercial real estate broker Wolf Commercial Real Estate, a South Jersey commercial real estate brokerage firm.

Atlantic City, which has seen five of more than a dozen casino/hotels closed over the last five years, will see two of them re-open next month under new ownership and management. The new operators were placing their bets in part on New Jersey winning its case at the Supreme Court, which would be a positive move for both the national and South Jersey commercial real estate markets.

The floodgates now are officially open for other states to allow sports betting as well, said Daniel Wallach, a gaming and sports law lawyer with the law firm of Becker & Poliakoff in Fort Lauderdale, as consensus is that this Supreme Court decision is significant for both national and South Jersey commercial real estate properties.

With states now authorized to legalize sports betting, Wallach predicts there will be a flurry of state legislation related to U.S. and South Jersey commercial real estate listings in hopes of raising revenue from the activity.

New Jersey racetracks and casinos – both key parts of the U.S. commercial real estate market, including South Jersey retail space – already have mobilized and could be taking bets before the end of the summer, Wallach said. Other states will not be far behind as Pennsylvania, Connecticut, West Virginia, and Mississippi have already passed bills, and an additional 14 states have introduced bills.

The U.S. Supreme Court heard oral arguments last December in a case brought by the state of New Jersey arguing for the right to allow sports betting in the state.

The decision was a setback for professional and collegiate sports leagues and organizations, including the National Collegiate Athletic Association, the National Football League, Major League Baseball and National Basketball Association that supported the ban on sports betting, contending the ban is necessary to protect the integrity of their games.

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

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

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

As experts in South Jersey commercial real estate listings and services, the team at our South Jersey commercial real estate brokerage firm provides ongoing detailed information about South Jersey commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for South Jersey retail space for sale or lease, Wolf Commercial Real Estate is the South Jersey 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 South Jersey commercial properties for lease or sale through our South Jersey commercial real estate brokerage firm.

WCRE Instrumental in Bringing Kingsway Learning Center & Services to Voorhees, New Jersey Via Multi-Phase Project

Kingsway Lerning CenterMay 17, 2018 – Marlton, NJ – WCRE is proud to have played a key role in helping the Kingsway Learning Center & Services consolidate its Moorestown and Haddonfield campuses into a new site in Voorhees. The school leased the 73,000 square foot building at 1000 Voorhees Drive with plans to relocate its pre-school, elementary, and secondary programs for its 175 students to a single site starting with the 2018-2019 school year.

Previously WCRE exclusively represented the buyer of 1000 Voorhees Drive during its acquisition of the property. Then the firm’s educational and institutional client services group secured Kingsway as the tenant. Both phases of this transaction add to WCRE’s growing number of assignments of educational and institutional properties in the Philadelphia and Southern New Jersey region. This highly specialized sector is an area of strength and growth for WCRE.

“The Kingsway team is very pleased with the way WCRE handled this project, and we’re grateful for their help in establishing our new home, “said Phil Rodriguez, Chief Operating Officer at Kingsway.

WCRE’s Vice President & Principal, Chris Henderson noted the complexity involved in matching the parties according to their needs. “This showcases our ability to work with multiple parties to structure a long-term investment and development transaction that will provide excellent outcomes for everyone involved,” Henderson said.

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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 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.

 

Shopping Center Closures Near 100 Million Square Feet

Retailers are focusing on their top-performing locations and shedding marginal stores with announced closures so far in 2018 totaling nearly 100 million square feet as demand for mall and shopping center space by retailers fell to its lowest level in six years in the first quarter.

This U.S. commercial real estate market balancing act, which includes Philly office space, Philly retail space and Philly industrial space, was reflected in the first quarter 2018 U.S. retail vacancy rate, which at 4.6 percent was unchanged from the fourth quarter of 2017 and just a tenth of a percentage point lower than a year ago.

Net absorption of retail space throughout the national and Philadelphia commercial real estate markets, fell to 11 million square feet, the lowest quarter for mall and shopping center demand since 2012, according to data presented in CoStar’s First-Quarter 2018 State of the U.S. Retail Market report.

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

“As the national retail vacancy rate has begun to flatten, the pace of the recovery has slowed. In fact, we can call an end to the recovery,” said Ryan McCullough, senior managing consultant for CoStar Portfolio Strategy, who co-presented the report with Director of Research Suzanne Mulvee.

While retailer demand for store space has slowed in the national and Philadelphia commercial real estate properties markets, it has not stopped, contrary to perceptions in the broader market fueled by headlines of closures and bankruptcies of big-box tenants like Kmart and Toys R Us.

Expansions by restaurants, grocery stores and other food-focused retail tenants, as well as health-care and other service providers and smaller local shopping center tenants throughout myriad U.S. and Philadelphia commercial real estate listings, continues to drive leasing and net demand growth for the retail sector, McCullough said.

The retail property segment of the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – is performing differently in different parts of the country. In recovering housing markets and other high-growth Sunbelt metros, retail vacancy has continued to decline and post strong leasing momentum.

The net in-migration throughout the national and Philadelphia commercial real estate listings has produced the kind of population, job and income growth that creates ready-made consumers and drives retail spending, the report 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) 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.

Casino Firms Roll the Dice Again on Atlantic City

Placing their bets on a slowly rebounding local economy — and the prospects for legalized sports gambling in the state of New Jersey soon — investors are planning to re-open two shuttered casinos in Atlantic City this summer.

Hard Rock International and an affiliate of Integrated Properties in Denver, both major players in the U.S. commercial real estate market – which includes South Jersey retail space, are moving forward with plans to open new casinos along the famed Boardwalk after acquiring the closed properties at rock-bottom pricing. The openings are not without risk as they will compete for gaming revenue that still is nowhere near what it was 10 years ago at the city’s peak.

This report on trends in the U.S. and South Jersey commercial properties market is being made through South Jersey commercial real estate broker Wolf Commercial Real Estate, a South Jersey commercial real estate brokerage firm.

Competition for gaming dollars already is heating up. Casinos in Atlantic City have been dropping their hotel room prices to those you might see along a lonely stretch of an interstate highway (rooms from $44 a night), which is about 30 percent lower than previously offered lows. Guests also are being enticed with increased spa and dining credits, free drinks while gambling and up to $400 in online poker deposits.

Despite the increased competition, including some coming from the national and South Jersey commercial real estate market, owners of existing casinos in Atlantic City said they hope the addition of new attractions helps bring in more traffic.

“We view the openings as a net positive for Atlantic City,” said John Payne, president and chief operating officer of VICI Properties, which owns the real estate under two other Atlantic City casinos. “As real estate owners, we view what’s occurring in the market through a different lens than operators. We expect our assets to benefit from the increased traffic. Altogether, these openings help further build out and bring more positive attention to Atlantic City.”

More gambling and more visitors – many with connections to national and South Jersey commercial real estate properties – mean enhanced property values for real estate owners, Payne said.

“Our two Atlantic City properties — Caesars Atlantic City and Bally’s Atlantic City — are located on the Boardwalk in proximity to The Hard Rock,” Payne said. “We expect The Hard Rock will be very proactive about driving new business to the Boardwalk area, and its unique focus on entertainment will be a key differentiator in the marketplace.”

The unknown for Caesars and the other casino operators is what happens with New Jersey’s bid to legalize sports betting. The U.S. Supreme Court heard oral arguments last December in a case brought by the state of New Jersey arguing for the right to allow sports betting in the state. The Supreme Court has yet to issue a ruling in this case that has major implications for several firms dealing in U.S. and South Jersey commercial real estate listings.

“We think [sports betting] will benefit our casinos in New Jersey,” Eric Hession, chief financial officer of Caesars, said. “We know for example that here in Las Vegas, some of our top days are the Super Bowl and NCAA [Final Four] weekend and some other sporting event days. People will want to go to Atlantic City on weekends to watch football and bet in our sports books, which will become potentially larger components of the property.”

The first new casino scheduled to open will be the Hard Rock Hotel & Casino opening June 28. The property was taken over out of bankruptcy by affiliates of Carl Icahn’s Icahn Enterprises. The Seminole Tribe of Florida, which owns the Hard Rock chain, bought the property a year ago for $300 million.

Last month, Icahn cashed in his other Atlantic City casino, after agreeing to sell its majority-owned subsidiary, Tropicana Entertainment Inc. and its seven casinos, for a total price of $1.85 billion. That deal amounts to a sale price of $370,520 per hotel room Tropicana owns. Icahn paid what amounted to $106,270 per room for the 1,882-room Tropicana Casino & Resort in Atlantic City when he gained control of it in 2009.

The other hotel-casino property slated to open in Atlantic City this year is the 1,399-room Ocean Resort Casino at 500 Boardwalk. Denver-based AC Ocean Walk acquired the former Revel Casino for $200 million this past January. The property once carried a $3 billion valuation. Hyatt Hotels Corp. is partnering with AC Ocean Walk, an affiliate of Integrated Properties, in the venture.

At 60 stories, it is the tallest structure in Atlantic City and stands out in the U.S. commercial real estate market – including South Jersey retail space. The expansive 6.4 million-square-foot resort is to feature a 138,000-square-foot casino, 160,000 square feet of indoor meeting and convention space, another 90,000 square feet of flexible outdoor special event space, five swimming pools and a 32,000-square-foot fitness center.

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

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

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

As experts in South Jersey commercial real estate listings and services, the team at our South Jersey commercial real estate brokerage firm provides ongoing detailed information about South Jersey commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for South Jersey retail space for sale or lease, Wolf Commercial Real Estate is the South Jersey 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 South Jersey commercial properties for lease or sale through our South Jersey commercial real estate brokerage firm.

CRE Loan Prices Compress as Lending Competition Increases

Despite record liquidity, demand for commercial real estate loans softened in recent months, leaving eager lenders chasing fewer borrowers. As a result, competition among lenders has ratcheted up noticeably with loan prices compressing.

In fact, deal pricing and structures in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – have gotten so competitive that many of the nation’s banks, including its 25 largest cumulatively, are starting to back off from commercial real estate lending.

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

Federal Reserve data earlier this year first revealed the trends among banks, which held up through the entire quarter. Now in the past week, bank executives in the national and Philadelphia commercial real estate market have started providing color and analysis to the data in their first quarter earnings conference calls.

First the numbers. The total amount of commercial real estate loans on bank books related to national and Philadelphia commercial real estate properties increased $26.4 billion to $2.1 trillion through the first quarter from year-end, according to Federal Reserve data.

However, real estate loan exposure concerning U.S. and Philadelphia commercial real estate listings pulled back at the nation’s 25 largest banks, dropping off about 1 percent on an annualized basis. Those 25 banks account for 33 percent of commercial real estate bank loans outstanding.

Meanwhile, the rest of the nation’s domestic banks doing business in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – continued to grow their loan portfolios by 7 percent on annualized basis.

The appreciation that has occurred in property values has contributed to a lower level of inventory available in the market. Deal volume is also down as investors are taking a more cautious stance in the current environment.

Some banks report a majority of their first quarter commercial real estate loan production consisted of refinancing; with interest rates beginning to climb, some bankers expect refinancing volume could slow down.

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.

The Dangers of Asbestos Inhalation

Let’s look at the dangers of asbestos inhalation. Even though most uses of asbestos have been banned, it can still be found in a variety of products, such as building materials. Employees can be exposed to this hazardous material in residential and nonresidential buildings, and during renovations and demolitions of properties. The inhalation of asbestos fibers can cause serious damage to the lungs and other organs that may not appear until years after exposure. Asbestos fibers associated with these health risks are too small to be seen with the naked eye, and smokers are at a higher risk for developing asbestos-related diseases if exposed.

The Occupational Safety and Health Administration (OSHA) has standards to protect employees from exposure to asbestos in the workplace, as well as permissible exposure limits and exposure monitoring. OSHA regulations also exist for controlled zones and regulated areas that are designed to protect employees where certain work with asbestos is performed.

Avoid Asbestos Inhalation

The following tips are safety reminders for those who work near or with asbestos-containing materials:

• Never enter a controlled zone that the company has designated as a regulated area where asbestos work is being performed.
• If you are not wearing appropriate respiratory protection, do not enter an asbestos regulated area.
• Do not eat, smoke, drink, chew gum or apply cosmetics in an asbestos regulated area.
• Read and obey all warning signs displayed in asbestos regulated areas.
• When working with asbestos, keep the material wet and vacuum the dust using a HEPA vacuum. Immediately collect and close all waste in bags designed to hold asbestos.

Protect Yourself from Asbestos Inhalation

• Always wear required protective clothing such as coveralls or similar full-body clothing, head coverings, gloves and foot coverings when working with asbestos. Face shields, goggles and other protective equipment are also necessary.
• Make sure you receive proper training and medical clearance if your work requires use of a respirator for asbestos protection. Use the correct type of respirator for the level of exposure. If you are present during the removal of asbestos, you must wear at least a half-face respirator with N-, R- or P-100 (HEPA) cartridges. OSHA also requires the use of a respirator in some cases when performing roofing and flooring work. Talk to your supervisor regarding whether you have sufficient protection.
• Follow all required hygiene and decontamination practices after working with asbestos.
• Leave your work clothes and shoes at work and wash them at work if they are not disposable. Family members of employees exposed to asbestos can get sick from asbestos taken home on an employee’s clothing or shoes. If required, shower at work after working with asbestos.

For More information on Protecting Yourself from Asbestos Inhalation

Brian Blaston, Partner
Hardenbergh Insurance Group

phone: 856.489.9100 x 139
fax: 856.673.5955

email: brianb@hig.net

Outlet Center CRE Market Will Weather Nine West Closures

The recent Chapter 11 bankruptcy reorganization filing of shoe and apparel wholesaler Nine West Holdings Inc. focused the retail spotlight on the outlet center segment of the commercial real estate industry.

Despite the bad news that Nine West is closing all 70 of its stores in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space, the good news is that leasing demand for outlet store space has been outpacing availabilities.

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

Privately held Nine West’s filing seeks to restructure about $1.6 billion in debt, much of it racked up in the national and Philadelphia commercial real estate markets when private equity firm Sycamore Partners Management acquired the company and affiliated brands in the 2014 for $2.2 billion.

While 80 percent of Nine West’s sales come from wholesale operations based in numerous national and Philadelphia commercial real estate properties, it also operates 70 brick-and-mortar retail stores – all of which it has now closed and is asking the court to cancel the leases on those locations. Sixty-seven of those locations were in outlet centers.

The store closures hit two publicly traded retail landlords hardest. Simon Property Group will lose 35 stores. Simon owns and operates a portfolio of 91 centers through Simon Premium Outlets and Tanger Factory Outlet Centers will see 19 stores currently among U.S. and Philadelphia commercial real estate listings closed out of its portfolio of 44 upscale outlet shopping centers.

The stores typically ranged about 3,000 square feet in size on average, which means about 105,000 square feet of newly vacant space for Simon and 57,000 square feet for Tanger.

That is a bigger chunk of the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space –comparatively for Tanger. During 2017, Tanger recaptured 201,000 square feet within its portfolio. The 2017 amount is nearly double the amount it took back a year earlier. Overall occupancy declined from 98 percent in 2016 to 97 percent last year.

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.

Installment Sale of Commercial Real Estate Properties

Installment Sale of Commercial Real EstateLet’s explore using an installment sale to evenly distribute tax liabilities stemming from a commercial real estate transaction. Do you own a property that has appreciated considerably and that you want to sell? Are you concerned about incurring a large capital gains tax liability or worse – ordinary income recapture? One option is to structure the sale as an installment sale. Here the buyer pays the cost of the property plus interest in regular installments, perhaps for 5 years, enabling the seller to reflect the gain for tax purposes over the entire payment period. Alas, the installment sales method can’t be used for the following:

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• Sale of inventory. The regular sale of inventory of personal property doesn’t qualify as an installment sale even if you receive a payment after the year of sale.

• Dealer sales. Sales of personal property by a person who regularly sells or otherwise disposes of the same type of personal property on the installment plan aren’t installment sales. This rule also applies to real property held for sale to customers in the ordinary course of a trade or business.

• Stock or securities. You can’t use the installment method to report gain from the sale of stock or securities traded on an established securities market. You must report the entire gain on the sale in the year in which the trade date falls.

Items to note about installment sale transactions:

• Installment obligation. The buyer’s obligation to make future payments to you can be in the form of a deed
of trust, note, land contract, mortgage, or other evidence of the buyer’s debt to you.

• If a sale qualifies as an installment sale, the gain must be reported under the installment method unless you
elect out of using the installment method.

• Sale at a loss. If your sale results in a loss, you can’t use the installment method. If the loss is on an installment sale of business or investment property, you can deduct it only in the tax year of sale.

• Unstated interest. If your sale calls for payments in a later year and the sales contract provides for little or no interest, you may have to figure unstated interest, even if you have a loss.

Sellers who decide on this strategy are cautioned, however, that an installment sale carries more risk than an outright sale of the property. Here are some areas of concern this CPA believes the seller must review in depth with his/her seasoned attorney (and if you need one you can call us at Abo and Company or my buds at WCRE): Carefully assess the creditworthiness of the buyer and possibly obtain personal guarantees if the purchaser is a business; Evaluate the future income producing capability of the property to make sure it provides sufficient
cashflow to enable the buyer to make the payments; Use an interest rate competitive with current market rates so as not to squash the deal; and Obtain a significant enough down payment, perhaps at least 20%, to have a cushion if buyer default occurs, and to cover the expenses if foreclosure becomes necessary. Business property transactions are often complex, and the services of knowledgeable professionals can be vital in developing strategies that make it possible to bring a contemplated transaction to a successful conclusion.

FOR MORE INFORMATION:

Martin H. Abo, CPA/ABV/CVA/CFF is a principle of Abo and Company, LLC and its affiliate, Abo Cipolla Financial Forensics, LLC, Certified Public Accountants – Litigation and Forensic Accountants. With offices in Mount Laurel, NJ and Morrisville, PA, tips like the above can also be accessed by going to the firm’s website at www.aboandcompany.com.

WCRE 2018 FIRST QUARTER REPORT

SOUTHERN NEW JERSEY & PHILLY CRE MARKETS SEE MODERATE GAINS AMID TAX REFORM OPTIMISM AND FINANCIAL MARKET SHAKINESS

April 10, 2018 – Marlton, NJ – Commercial real estate brokerage WCRE reported in its latest quarterly analysis that the Southern New Jersey market is in largely good shape, with moderate gains in leasing activity and strong fundamentals. The firm believes the market may be poised to take off as benefits of the new tax law begin to reverberate in personal and corporate checkbooks.

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“Our market appears to have picked up steam, with a healthy pace of business growth and continuing new investment,” said Jason Wolf, founder and managing principal of WCRE. “Despite corrections ending a long winning streak in the financial markets, the benefits of the new tax law should shore up commercial real estate, especially industrial and office demand.”

There were approximately 272,550 square feet of new leases and renewals executed in the three counties surveyed (Burlington, Camden and Gloucester), which was a gain of 23 percent over the previous quarter. Leasing picked up, and the sales market stayed active, with about 1.63 million square feet on the market or under agreement and an additional 320,691 square feet trading hands. The sales figure is a 36 percent increase over the previous quarter.

New leasing activity accounted for approximately 77.2% percent of all deals. Overall, net absorption for the quarter was in the range of approximately 105,250 square feet. Both of these figures represent large increases over the fourth quarter.

Other office market highlights from the report:

  • Overall vacancy in the market is now approximately 11.2 percent, which is more than a full point higher than the previous quarter. This may be attributed to large blocks of space returning to the market.
  • 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 improved steadily last year, but jumped nearly a point to 12.5 percent for the quarter.
    Burlington County vacancy was at 9.9 percent, which was also higher than the fourth 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 first quarter in Pennsylvania include:

  • Philadelphia’s office market saw a decrease in vacancy in the Central Business District during 2017 and Q1 2018, as demand for office space continues to be strong. Still, we see increasing employment and new construction, both of which bode well for continued strength.
  • Comcast’s second office tower, the Comcast Innovation and Technology Center, is a 59-story (1,121 feet), LEED Platinum certified skyscraper developed by Liberty Property Trust. The development, positioned in the heart of the CBD, will also include a Four Seasons Hotel. The project is estimated to cost $1.2 billion, is expected to be the tallest building in the United States outside of New York and Chicago, and will be the largest private development project in the history of Pennsylvania. Net of the hotel, the property is planned for 1,336,682 SF of office space. Comcast has signed a 20-year lease for 98% of the building, with the remainder available for lease. However, Comcast may fill the remaining space themselves.
  • The project is estimated to cost $1.2 billion, is expected to be the tallest building in the United States outside of New York and Chicago and will be the largest private development project in the history of Pennsylvania. Net of the hotel, the property is planned for 1,336,682 SF of office space. Comcast has signed a 20-year lease for 98% of the building, with the remaining available for lease. However, like with the Comcast Center original headquarters, they potentially may fill the remaining space themselves.
  • At 2400 Market Street, the new Aramark Headquarters is utilizing the former Philadelphia Market Design Center and will comprise the entirety of floors 5-9 on a long-term lease. Thus, the expansion (new inventory) is effectively 100% pre-leased. Estimated delivery is early 2018.
  • The Philadelphia Planning Commission has approved zoning changes to an area west of 30th Street Station, where Brandywine Realty Trust and Drexel University plan their Schuylkill Yards redevelopment project, a 14-acre district of labs, offices, residences and shopping. There is not a definitive timeline for the project. According to Brandywine, the master plan will comprise a total buildout of 2.8 million square feet of office, 1.6 million SF of residential, 247,000 SF hotel, 1 million SF of lab, and 132,000 SF of retail space. This reflects the bulk of proposed inventory in the Center City submarket.
  • Developer Oliver Tyrone Pulver Corp. is proposing a 38-story office tower on a long-empty lot east of City Hall at 1301 Market Street. It will comprise 841,750 SF upon completion if developed once a lead tenant is secured. The tower would tentatively open in 2020.
  • Demand for multi-family product is demonstrating significant growth, with nearly 2,800 units recently completed, 1,250 units under construction, and 3,200 units proposed in the PA suburbs. Within the Center City market, there are 2,200 units under construction with an additional 6,300 units proposed. Market participants are questioning whether these units will continue to be absorbed. Many high-end apartment complexes are facing concessions and compression in rental rates.
  • Quarter-over-quarter, industrial vacancy in Southeastern Pennsylvania was flat at 6.8%. The market’s largest yearly occupancy gains were recorded in Bucks County, where positive absorption totaled 709,530 square feet, and Delaware County, where 233,633 square feet was absorbed. The year’s largest moves were Almo and Amazon occupying 300,000 and 104,000 square feet of warehouse space along Cabot Boulevard in Bucks County in the second quarter.
  • Philadelphia County recorded 169,134 square feet in negative yearly absorption. The increased demand for warehouse and distribution space from e-commerce firms has focused on larger scale properties and newer buildings, both of which are in low supply. E-commerce and logistics warehouses may require anywhere between a few hundred thousand square feet to over 1 million square feet, but the tightness of Philadelphia’s industrial market means that many companies are starting to look outside the city to fulfill their space needs.

WCRE also reports on the Southern New Jersey and Philadelphia retail market.

The first quarter saw a continuation of the unfortunate trend of legacy brands such as Toys R Us and Sears closing stores and/or filing for bankruptcy protection. However, there was good development news in the region, with several healthcare, entertainment, and retail projects receiving approval. Other highlights from the retail section of the report include:

  • Retail vacancy in Camden County stood at 8.4 percent, with average rents in the range of $13.75/sf NNN.
  • Retail vacancy in Burlington County stood at 10.4 percent, with average rents in the range of $14.24/sf NNN.
  • Retail vacancy in Gloucester County stood at 7.0 percent, with average rents in the range of $14.83/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 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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