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Monthly Archives: January 2013


WCRE APPOINTED EXCLUSIVE AGENT FOR 15 ROLAND AVENUE, MOUNT LAUREL, NJ

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15 Roland - Press Release

WCRE APPOINTED EXCLUSIVE AGENT FOR
15 ROLAND AVENUE, MOUNT LAUREL, NJ

January 28, 2013 – Voorhees, NJ – Wolf Commercial Real Estate (WCRE) is pleased to announce that it has been appointed exclusive agent by BFG Properties, LLC for the sale of 15 Roland Avenue, Mount Laurel, NJ.

This well located 7,900 square foot free standing office property is situated immediately off Fellowship and Church Road, with immediate access to Route 73, I-295, and Exit 4 of NJ Turnpike, providing convenient North/South access. Public transportation is also available along Church Road. This property is ideal for a headquarter occupant looking for a well fit-out office building and great location in Southern New Jersey.

The property is within close proximity to the Moorestown & Cherry Hill Malls, East Gate Shopping Center, and many hotels and restaurants. The asking price is $1,185,000. “We retained WCRE because their team is innovative, experienced, and works seamlessly alongside our team,” said J. David Scott of BFG Properties.

A marketing brochure is available upon request.

About WCRE

WCRE is a full-service commercial real estate brokerage and advisory firm specializing in office, retail, industrial and investment properties. We provide a complete range of real estate services to commercial property owners, companies, 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 @WCRE1, and on Facebook at Wolf
Commercial Real Estate, LLC.

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WCRE APPOINTED EXCLUSIVE LEASING AGENT FOR GROVE OFFICE PLAZA, 515 GROVE STREET, HADDON HEIGHTS, NJ

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515 Grove Street - Press Release

WCRE APPOINTED EXCLUSIVE LEASING AGENT FOR GROVE OFFICE PLAZA,
515 GROVE STREET, HADDON HEIGHTS, NJ

January 22, 2013 – Voorhees, NJ – Wolf Commercial Real Estate (WCRE) is pleased to announce that it has been appointed exclusive leasing agent for Grove Office Plaza, the well located mid-rise office building located at 515 Grove Street, Haddon Heights, New Jersey. This approximately 50,000 square foot three-story multi-tenanted office complex is situated immediately off Exit 29 of I-295, providing convenient North/South access. Public transportation is also available along the nearby Route 30 (the White Horse Pike).

“515 Grove Street is an affordable mid-rise office building in a desirable location with suites available for immediate possession,” said Leor Hemo, executive vice president, WCRE.

The asking lease price is $15.50 sf/ gross plus utilities and janitorial service. WCRE was retained to market the remaining vacant spaces ranging in size from 1,000-3,000 square feet. A marketing brochure is available upon request.

About WCRE

WCRE is a full-service commercial real estate brokerage and advisory firm specializing in office, retail, industrial and investment properties. We provide a complete range of real estate services to commercial property owners, companies, 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 @WCRE1, and on Facebook at Wolf
Commercial Real Estate, LLC.

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WCRE APPOINTED EXCLUSIVE AGENT FOR FOX FAMILY’S TWO OFFICE BUILDINGS IN CHERRY HILL, NEW JERSEY

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1409-and-2101-press-release

WCRE APPOINTED EXCLUSIVE AGENT FOR FOX FAMILY’STWO OFFICE BUILDINGS  IN CHERRY HILL, NEW JERSEY

January 17, 2013 – Voorhees, NJ – Wolf Commercial Real Estate is pleased to announce that it has been appointed exclusive leasing agent for the highly visible and well located office buildings at 1409 North Kings Highway and 2101 Route 70 East in Cherry Hill by the Fox Family, formerly affiliated with Prudential, Fox, and Roach Realty.

1409 N. Kings Highway: Ideal as a single user building, this three-story, elevator served office building is a great fit for any professional or medical user seeking ample parking, located along Cherry Hill’s premier office corridor on the corner of Kings Highway and Ormond Avenue. This highly visible property provides easy access and close proximity to Route 70 (within 1/2 mile), Route 73 and Route 38 as well as I-295 (less than 2 miles) and the NJ Turnpike. New HVAC systems and substantial renovations recently completed by owner.

2101 Route 70 East: Free standing, highly visible office building located on the corner of Route 70 and Split Rock Road in Cherry Hill with excellent exterior signage. The property provides convenient access to Route 73, I-295 and the NJ turnpike and is within close proximity to shopping, restaurants, lodging and medical facilities. The building is also available for sale for an owner occupant.

WCRE’s Jason Wolf & Leor Hemo were retained to market these two office buildings for sale or lease. A marketing brochure is available upon request.

About WCRE

WCRE is a full-service commercial real estate brokerage and advisory firm specializing in office, retail, industrial and investment properties. We provide a complete range of real estate services to commercial property owners, companies, 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 @WCRE1, and on Facebook at Wolf
Commercial Real Estate, LLC.

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JANUARY 2013 MARKET AND ECONOMIC CONDITIONS

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January 2013 Market and Economic Conditions
By Adam B. Landau Permit Capital Advisors, LLC

As we look back on 2012 and ahead to 2013, we must take note of the resiliency to this point that both the economy and markets have demonstrated in the face of ongoing, and increasing, political dysfunction. Today we are saddled with many of the same global issues and concerns that we had at this time last year, though some have moved in a more positive direction than anticipated (European debt crisis), some have continued to confound observers (US fiscal stance), and others have been on a natural glide path to resolution (soft landing in China).

One thing investors and consumers have demonstrated is that they, more so perhaps than their elected leaders, have the ability to recalibrate their practices and decision-making when provided with a degree of clarity about future conditions. In the US, there is not much fiscal clarity to speak of, even with the patchwork solution offered up by Congress at year-end, though we do have an (over) abundance of transparency coming from the Federal Reserve. In hindsight, the fiscal cliff may very well prove to be nothing more than a red herring, as the failure to seize the opportunity to produce a credible deficit reduction plan simply forces a pivot to the next political crisis, whether it takes the form of debate over the debt ceiling, continuing resolution, or sequestration. Failure to answer the bell on any of those issues will be as punishing as the recessionary impact of a sudden and dramatic fiscal contraction that we faced with the fiscal cliff.

Impact on the economy to this point has been somewhat masked, as it appears that 2-3% growth has been pulled forward from the first half of 2013 into the second half of 2012, on the back of an increase in unsustainable government expenditures. These outlays leave government spending at roughly 24% of GDP, relative to an historical average of closer to 15%. At the same time tax revenue as a percentage of GDP sits at 18% relative to an historical average of closer to 20%. Both of these figures must move back towards those averages if a resolution is to have any lasting substance.

The reality of just how difficult of a task that appears to be in the present political climate has caused CEO sentiment to plunge and capital expenditures to weaken. Business expending is extremely important because spending on plants and equipment tends to have a high multiplier effect on labor and the economy. On the other hand, the consumer has maintained a degree of resiliency, thanks largely to an uptick in housing and an accommodating Fed. The extent to which those two variables intertwine cannot be overstated. The Fed recently announced a continuation and expansion of quantitative easing, to the tune of purchases of an additional $45 billion a month of Treasury securities, on top of the ongoing commitment to buy $40 billion a month of mortgage-backed securities, for an annual addition of $1 trillion to the Fed balance sheet in 2013, making it $4 trillion overall. Perhaps more newsworthy was the announcement of official markers relating to employment and inflation that would be instrumental to policy decisions going forward.

Our two questions are: was this level of detail necessary given the clear signs that the Fed has provided to this point in their handling of monetary policy since the Great Recession? Could the level of transparency actually cause more confusion and distortions amongst those it is intended to assist? It has been clear for some time that presented with evidence of adverse financial and/or economic conditions, the Fed is willing to prop up the economy using any tools at its disposal. This clarity comes from both official and unofficial Fed rhetoric, as well as an understanding of inflationary conditions across the G7. Fed efforts to prevent massive negative shocks to the economy have been guided by the belief that aggressive monetary easing is more likely to help prevent deflation than it is to unleash inflation. Of course, these attempts to utilize monetary policy to prevent a punishing recession only delay difficult fiscal actions until a later date,riskinganevendeeper recession down the road. Developed nations around the world are largely in their current straits because of a persistent tendency to delay dealing with financial imbalances.

The unemployment metric selected is a fairly straight-forward application of the Evans rule, named after Chicago Fed President Charles Evans, and involves a pledge to keep rates low until the unemployment rate drops below 6.5%, provided certain inflationary conditions. The inflation component of the guidance is murkier – as stated, the gauge for inflationary compliance for low rates to be maintained qualifies that the indicator must be below 2.5%. The metric selected is core PCE, which can be very different, and heading in different directions, than headline CPI. Further creating potential ambiguity is the caveat that as well, longer-run inflation expectations must remain “well anchored”. How “well anchored” is defined, and whose expectations are relevant is an unanswered source of potential market confusion. The Fed motivation for this strategy likely lies squarely on an effort to ensure continuedrepairtothebadlydamagedhousing market.

It would appear that the Fed’s explicit targets are designed to keep rates low for quite some time. This stems in part from Ben Bernanke’s recognition that many homeowners who purchased 2/1 and 3/1 adjustable rate loans have still not been able to refinance them because they are among the 22% of US homeowners who are suffering from negative equity. Those homeowners have low payments right now, so they are spending. If rates rise too quickly, one of the primary backstops supporting the economy goes away. To quantify the situation, the housing price index is still 15.37% below the level it was at in September 2007, which is when the last adjustable rate loans of that nature were being written. Further, Fannie Mae has $19.23 billion of adjustable rate loans on its balance sheets, or 7.05% of their total single family loan portfolio. It will take a few more years of low rates for that total to decrease to a point where a spike in defaults and/or foreclosures would have a manageable effect on the housing market.

Commercial real estate is another beneficiary of the manipulated interest rate landscape. Opportunistic and value-add properties across a variety of sectors are sitting out there in targeted markets with significant economic benefit waiting to be created through favorable investment conditions, for both stabilized properties as well as those that are neglected and underperforming. Working with professionals who have experience and expertise in identifying, purchasing, and managing such properties provides a distinct advantage in today’s marketplace.

About Adam Landau

Adam Landau is Chief Executive Officer and Chief Investment Officer of Permit Capital Advisors, LLC.

He has 15 years of experience evaluating investment managers, developing asset allocation strategies, and coordinating the process by which the two disciplines are merged.

Visit http://www.permitcapital.com to see how Adam and Permit Capital Advisors, LLC can grow your wealth.

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REPORT: NEITHER HURRICANE, NOR ELECTION, NOR FISCAL CLIFF CAN STAY THE SOUTH JERSEY COMMERCIAL REAL ESTATE MARKET FROM ITS SLOW, STEADY CLIMB

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REPORT: NEITHER HURRICANE, NOR ELECTION, NOR FISCAL CLIFF CAN STAY THE SOUTH JERSEY COMMERCIAL REAL ESTATE MARKET FROM ITS SLOW, STEADY CLIMB

Uncertainty Caused by Natural Disaster and the News Led to Overall Cautiousness, but There are Some Reasons for Optimism, WCRE Finds

January 7, 2012 – Voorhees, NJ – Despite the headlines, the local commercial real estate market exceeded several of its third quarter benchmarks, WCRE said in its latest quarterly analysis. While the third quarter was marked by caution, the report found that in the fourth quarter the market proved its resiliency.

“Though Hurricane Sandy, the election, and the threat of the temporarily-resolved fiscal cliff exerted pressure on businesses, investors, and consumers, there were signs of accelerated growth and reasons for optimism amid the overall climate of cautiousness,” said Jason Wolf, founder and principal of WCRE.

According to WCRE, the fourth quarter showed a significant uptick in both new deal activity and expansion. Several deals of significant size were completed, and properties in prime locations performed better than the overall market vacancy rate. There were approximately 389,000 sf of notable deals executed in the market, a nearly 25% increase over the third quarter. This includes new lease and expansion transactions of approximately 235,000 sf. Notably, expansions and new deals outpaced lease renewals this quarter.

The report also noted that New Jersey’s unemployment rate improved to 9.6% – coming down from a 35- year-high notched during the previous quarter – and that there are many new real estate deals nearing completion. Other office market highlights from the report:

  • Average rents for Class A & B product remained at the improved level they reached earlier this year, continuing to show strong support in the range of $11-$14.00/sf NNN with an overall market average of $11.00/sf NNN for the deals completed during the fourth quarter.
  • New deals and expansion transactions of 235,000 sf for the fourth quarter was more than double the third quarter mark of 106,000 sf.
  • Moorestown, Marlton and Mount Laurel (3M) continue to show strength, while a large share of the region’s vacancies remain in Voorhees, Pennsauken, and the west side of Cherry Hill. Burlington County continued to maintain a significantly lower vacancy rate than Camden County.
  • Tenants continue to take advantage of low rental rates and are securing long-term lease commitments. The pattern of this flight to quality – upgrading to better locations and spaces – is expected to continue, especially among larger firms.
  • All of the new major owners and REITS are showing a significant increase in deal activity and occupancy – both renewals and new deals – and are all cautiously optimistic.
Retail market highlights from the report include:

  • Moorestown has issued its first ever liquor licenses, and PREIT acquired them in order to bring four new high end restaurants to the Moorestown Mall.
  • Overall retail space vacancy is still hovering in the 17-18% range, but the market has stabilized, and prime retail locations have very little vacancy.
  • Average rents for Class A retail product continue to show strong support in the range of $30- $40.00/sf NNN. Class B product shows support in the range of $15-$23/sf NNN.
  • The Haddonfield Road corridor, Route 70, and Route 73 are the prime destinations for retailers.

The report also anticipated challenges in 2013, with at least 250,000 sf of additional vacancy expected to return to the market as Lockheed-Martin, Catalent Pharma, and others follow through on plans to downsize. But Wolf said that even this development could be positive, because large blocks of quality space in excess of 30,000 sf have become scarce.

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, industrial and investment properties. We provide a complete range of real estate services to commercial property owners, companies, 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 @WCRE1, and on Facebook at Wolf
Commercial Real Estate, LLC.

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