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Monthly Archives: October 2013


PA VOTES AGAINST PROPERTY TAX REDUCTION

PA VOTES AGAINST PROPERTY TAX REDUCTION

Wolf Commercial Real Estate, a full-service Pennsylvania real estate brokerage firm that specializes in Philadelphia commercial real estate, is the right choice for property in Philadelphia and the Philadelphia metro area. There’s no better place to go to find office space, medical space, commercial parcels, or other commercial property.

In the latest news to come out of the Pennsylvania House of Representatives, the legislators have voted down an amendment that would have lowered the property taxes in PA. This amendment would have changed income streams for the state, away from school-funding property taxes, and towards higher income and sales taxes in the state.

When you need someone to help you find the property or commercial parcel that fits your needs exactly, come to Wolf Commercial Real Estate first! We’ll help you navigate the Pennsylvania and Philadelphia-area property tax situation, and help you get the best deal possible.

For more information about Philly real estate, about Philadelphia commercial real estate listings, or about commercial real estate elsewhere in the United States, please contact Jason Wolf (215-799-6900-office; 215-588-8800-cell; jason.wolf@wolfcre.com) or Leor Hemo (215-799-6900-office; 215-514-1750-cell; leor.hemo@wolfcre.com) at Wolf Commercial Real Estate, the premier Philadelphia commercial real estate brokerage firm.

About Us:

Wolf Commercial Real Estate is a Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate services, marketing commercial offices, medical properties, investment properties, industrial properties, land parcels and retail buildings for buyers, tenants, investors and sellers in the Greater Philadelphia area and beyond. Please visit our websites for information about our Philadelphia commercial real estate services for office space, retail space, medical space, investments, industrial space or land for sale or lease, or for information about other commercial real estate listings and commercial real estate services from Wolf Commercial Real Estate, the leading Philly commercial real estate broker.

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PA LOOKING TO LOWER PROPERTY TAXES

PA LOOKING TO LOWER PROPERTY TAXES

Wolf Commercial Real Estate, a full-service Pennsylvania real estate brokerage firm that specializes in Philadelphia commercial real estate, is the right choice for property in Philadelphia and the Philadelphia metro area. There’s no better place to go to find office space, medical space, commercial parcels, or other commercial property. 

Right now, the Pennsylvania House is debating a new bill that would help ease the burden of the state’s property taxes. And the property taxes in Pennsylvania are getting high—according to the Pittsburgh Post-Gazette, “Collection of real estate taxes has risen dramatically, growing from $5.43 billion in 1995-96 to $11.48 billion in 2011-12.” So this new bill could be a huge opportunity for PA businesses and real estate developers.

If you’re looking to buy commercial land in Pennsylvania, this new bill would only make it more attractive. But you’re going to want some expert help in choosing your parcels and navigating the labyrinthine paperwork. That’s why you need Wolf Commercial Real Estate to help you with all your Philadelphia-are and Pennsylvania office and commercial real estate needs.

For more information about PA office space, about other Pennsylvania commercial real estate listings, or about commercial real estate elsewhere in the United States, please contact Jason Wolf (215-799-6900-office; 215-588-8800-cell; jason.wolf@wolfcre.com) or Leor Hemo (215-799-6900-office; 215-514-1750-cell; leor.hemo@wolfcre.com) at Wolf Commercial Real Estate, the premier Philadelphia-area commercial real estate brokerage firm.

About Us

Wolf Commercial Real Estate is a Philadelphia-area commercial real estate broker that provides a full range of Pennsylvania commercial real estate services, marketing commercial offices, medical properties, investment properties, industrial properties, land parcels and retail buildings for buyers, sellers, tenants and investors.

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SOUTHERN NJ A HOTBED OF COMMERCIAL REAL ESTATE

SOUTHERN NJ A HOTBED OF COMMERCIAL REAL ESTATE

Wolf Commercial Real Estate, the premier New Jersey commercial real estate brokerage firm, is your top choice for commercial land, developed space, retail, commercial, industrial, and medical space in New Jersey. Through our office, we represent both buyers and sellers, and owners and tenants, for all their New Jersey space needs throughout the state, the region and the entire country. We offer best-in-class brokering for companies and individuals looking for office space and other commercial property.

Have you heard the news about New Jersey? Do you have business interests or potential business in Southern New Jersey? There’s good news! Even though the third quarter is usually the slowest quarter of the year, there has been a reported 443,173 new square footage of new leases and renewals—which is a 48% gain year-over-year. And the new leases made up about 57 percent of the total transactions, which is a great sign for the commercial real estate market in Southern New Jersey.

Wolf Commercial Real Estate, the premier New Jersey commercial real estate brokerage firm, is your top choice for commercial land and developed space in New Jersey. There’s no better choice for real estate in New Jersey, including Southern New Jersey. We represent industrial space, medical space, office space, commercial parcels to develop, and more!

When you’re searching for just the right fit for your real estate, turn to Wolf Commercial Real Estate. We are focused on creating a partnership with our clients, so that you have a smooth transition from the very beginning of the relocation analysis process, all the way to your move-in date and beyond. We’re the real estate broker that will find you the exact space to suit your needs.

For more information about NJ office space, about other New Jersey commercial real estate listings, or about commercial real estate elsewhere in the United States, please contact Jason Wolf (856-857-6301; jason.wolf@wolfcre.com) or Leor Hemo (856-857-6302; leor.hemo@wolfcre.com) at Wolf Commercial Real Estate, the foremost South Jersey commercial real estate broker.

About Us
Wolf Commercial Real Estate is a South Jersey commercial real estate broker that provides a full range of Southern New Jersey commercial real estate services, marketing commercial offices, medical properties, investment properties, industrial properties, land parcels and retail buildings for buyers, sellers, tenants and investors.

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NJ GAINS ANOTHER BUSINESS FROM PA

NJ GAINS ANOTHER BUSINESS FROM PA 

Wolf Commercial Real Estate, a full-service New Jersey commercial real estate brokerage firm that specializes in South New Jersey commercial real estate, medical space, office space, and commercial parcels, is the right choice for property in NJ. We offer best-in-class brokering for companies and individuals looking for office space and other commercial property. We’re your top choice for commercial land and developed space in New Jersey.

Did you know that New Jersey is quickly becoming one of the best states in the country to headquarter a company in? Have you heard about new laws that make NJ more attractive to business? In just one new story, New Jersey won another victory with its business-friendly policies as another company headquarters moves across the Delaware River into the Garden State. 

BK Specialty Foods made the move from Philadelphia-area to a new South Jersey warehouse that’s 4 times the size—at a much more attractive price. “The  N.J. Economic Development Authority (NJEDA) also made it extremely easy and advantageous for BK to make the move with guidance on finding a new facility and also financing,” said the founder of the company.

If your business is headquartered in PA, NY, DE, or MD, you should think about New Jersey. It’s the perfect time to move to the Garden State—or to expand into a new location. Governor Christie has established economic incentives to move to the Garden State. And when you’re looking for the right fit for your real estate needs, remember that WolfCRE is the right choice for all your real estate needs for New Jersey office space, retail locations, land parcels, and industrial facilities. We’re the real estate that will find you the exact space to suit your needs.  

For more information about NJ office space, about other New Jersey commercial real estate listings, or about commercial real estate elsewhere in the United States, please contact Jason Wolf (856-857-6301; jason.wolf@wolfcre.com) or Leor Hemo (856-857-6302; leor.hemo@wolfcre.com) at Wolf Commercial Real Estate, the foremost South Jersey commercial real estate broker. 

About Us

Wolf Commercial Real Estate is a South Jersey commercial real estate broker that provides a full range of Southern New Jersey commercial real estate services, marketing commercial offices, medical properties, investment properties, industrial properties, land parcels and retail buildings for buyers, sellers, tenants and investors. 

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WCRE- THIRD QUARTER 2013 MARKET AND ECONOMIC CONDITIONS

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WCRE- THIRD QUARTER 2013 MARKET AND ECONOMIC CONDITIONS

By Adam B. Landau
Permit Capital Advisors, LLC

The technique of jawboning has been used by officials from a range of pulpits for many years, often but not always with the desired result as an outcome. Defined as “to try to influence or pressure through strong persuasion, especially to urge to comply voluntarily”, it has been an arrow in the quiver of presidents ranging from Hoover (who used it to successfully convince employers to keep wages high as prices fell during the Great Depression) to LBJ (who discovered its limitations when he tried to talk down inflation and avoid higher interest rates while simultaneously spending for a war). George W. Bush criticized outgoing president Bill Clinton for not attempting to lower oil prices by jawboning OPEC to increase supply.

Within the halls of the Federal Reserve, Alan Greenspan was never shy to jawbone. He did so in 1994 after a small rate hike when he told Congress that further increases were inevitable, hoping that the mere threat would restrain inflation. He famously did so in December of 1996 when he flexed his credit tightening muscles and discussed the dangers of “irrational exuberance” in the market, and then again in early 1997 when he testified before Congress and spoke of “excessive optimism (that) sows the seeds of its own reversal in the form of imbalances that tend to grow over time”.

Most recently, Ben Bernanke, with a number of assists from his colleagues at the Fed seems to have perpetrated an inadvertent jawbone gone awry. In the months following the June FOMC meeting where tapering was formally introduced, Fed officials provided visibility that they were likely to cut back the pace of the $85 billion per month bond purchases which had blown up the central bank’s balance sheet while having a myriad of direct and indirect effects. Presumably their rationale for doing so was to ease the investing public into the idea of a diminishing presence from the market’s most prolific buyer, and to keep rate movements muted when the time to act came. What happened instead was that the ongoing discussion of Fed tapering at public appearances caused 10-year interest rates to rise from 1.6% in May to 3.0% in early September. Mortgage rates trended higher in similar fashion, which in turn led to refinancing applications heading in the opposite direction. This was likely one of the factors that kept the Fed from actually tapering, perhaps causing them to miss an opportunity to do so at the point where it was most anticipated and thus least likely to create a significant disruption in global financial markets. After printing closeto $1 trillion over a twelve-month period, the Fed decided that the economy under a higher rate regime couldn’t withstand even a nominal reduction in bond buying.

So, QE continues unabated and the dust is left to settle amidst its intended and unintended consequences. Among the latter is a wealth effect that has continued to widen the gap between the wealthy and the non-wealthy in this country, as the top one percent have captured 95% of the wealth gains since the recovery from the recession began. In addition, incomes for the middle class have largely remained fl at while the wealthy have seen increases. Fortunately, the business sector is healthy and employment gains continue to be made. Unfortunately, our leaders in Washington are doing their best to unravel whatever positive momentum is being created.

Funding a new budget for our federal government has predictably become a game of political football, with the onset of the Affordable Care Act (or Obamacare) and an included tax on medical devices being the primary points of contention. While one could get vertigo trying to follow the bills and continuing resolutions that were buffeted back and forth between chambers of Congress, and that led to what is as of today officially a shutdown of the US government, the reality is that this isn’t the paramount threat to investors. There were 17 such shutdowns between 1976 and 1996 and most often the pullback in the market was short and shallow. Ultimately, the economic impact will depend upon the length of the closure. Macroeconomic Advisers has estimated that a shutdown of all non-essential federal services for a two week period would reduce Q4 GDP growth by 0.3 percentage points on an annualized basis. The number would jump to 0.7 percentage points if the closure were to last an entire month. Ironically, we won’t know the magnitude of the impact as quickly as we might otherwise since the shuttered government statistical agencies would delay releasing key data.

That’s what happens if the government temporarily shuts down. What happens if it stops paying its bills? The real fight in D.C. will likely be over the latter issue – the debt ceiling, which the Treasury says it will hit on October 17th. At that point the debt limit will need to be either extended or suspended, and for better or for worse, both options will presumably be on the table. While it is tempting to worry about one manufactured crisis at a time, in this case the two issues are so related politically and chronologically that they need to be considered in tandem. It’s hard to fathom, given the consequences, that the threat of a default will fester. But we’ve seen the damage that even a near-miss can cause.

A technical default on Treasuries would be disastrous. Beyond the obvious implications defaulted securities can’t be used in repurchase agreements, which are the lifeline of the debt market. After the debt-limit saga of 2011 and the fi scal cliff showdown coming into this year, there appears to be a presumption that some kind of last minute deal will be brokered. Collectively, policymakers are being viewed as the “boy who cried wolf”. On the positive side, beyond the tumult that we are currently facing there is good news at hand, as the fiscal drag from tighter policy should begin to fade – from 2% on the annual growth rate in the fi rst half of this year to 1% in the second half, to as low as 0.5% in 2014.

While there is little room for error in Washington, many of the other chief worries that the market faced heading into the third quarter have subsided, leaving sentiment markedly improved. The Russia plan helped to at least temporarily defuse the situation in Syria, Larry Summers withdrew his name from consideration as Fed Chairman, Iran responded favorably to a letter sent to President Hassan Rouhani from President Obama, and of course, tapering was eschewed for the moment. This systematic destruction of the market’s “wall of worry” would seem to be a good thing, and volatility has dropped materially in the past month as have expectations of future volatility. Another measure of the market’s bullish inclination is the falling CBOE Equity Put/ Call ratio. These are positive indicators, but they tell a story that has already been written. That is, the 20% gain in the S&P 500 year to date. They similarly leave less room for market moving surprises to the upside.

When thinking about the opportunities for investment going forward, the discussion of variables that are likely to have a meaningful impact has to include an analysis of what happens to stocks and bonds if the rate environment in the future is volatile to the upside. It is not a question that is likely to be a hypothetical one. Everything from demographics, to foreign investor appetite, to the idea of a zero-bound on interest rates suggest that we are facing a scenario of not if, but when, interest rates are going to move meaningfully higher. The demographic issue we are facing as a country and the impact it will have on our budget defi cit has been well documented, and largely comes down to reform of entitlement programs. To put some numbers around the generational landscape, today each American who is 65 or older is supported by a workforce of 4.4 people between the ages of 18 and 64. This “dependency ratio” will fall to 2.7 by the year 2038. The non-partisan Congressional Budget Offi ce issued a report several weeks back that had its most optimistic forecast for debt to GDPat 100% by that year, from an already high 73% today. The base case forecast projects federal debt to grow to 190% of the nation’s economic impact by 2038 – worse than Greece, with its 27% unemployment and occasional riots in the streets. Foreign appetite for US Treasuries is already shriveling, and purchases over the last 12 months have declined to $104 billion from $503 billion a year earlier.

In a world in which risk appetite is returning and yield investors need to be wary of the likelihood of market losses in traditional fixed income options, the role of real estate in a portfolio takes on paramount importance. We appear to be in the nascent stages of a recovery that has shown us an increase in confidence amongst area businesses coinciding with a pickup in leasing activity and falling vacancy rates. If unemployment continues to trend lower and states and municipalities continue to create programs designed to incentivize investment in the sector, we can also expect to see pricing power return to the market. Given the mix of risks in the public market, investor desire for cash flow, and a turn on the horizon in commercial real estate, now would appear to be the time to initiate or increase portfolio exposure.

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, 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 @WCRE1, and on Facebook at Wolf Commercial Real Estate, LLC. Visit our blog pages at www.southjerseyofficespace.com , www.southjerseyindustrialspace.com and www.southjerseyretailspace.com.

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GREAT RETAIL SPACE AVAILABLE IN MARLTON NJ

GREAT RETAIL SPACE AVAILABLE IN MARLTON NJ

Wolf Commercial Real Estate, a full-service New Jersey commercial real estate brokerage firm that specializes in South New Jersey commercial real estate, medical space, office space, and commercial parcels, is the right choice for property in NJ. We offer best-in-class brokering for companies and individuals looking for office space and other commercial property. We’re your top choice for commercial land and developed space in New Jersey.

If you’re looking for great retail space in New Jersey, there’s a great opportunity just waiting for you. Do you need a good location? Check. Do you need affordable rates? Check. Do you need an attractive exterior? Definitely a check. A new retail location has opened up in Marlton, NJ, not far from Cherry Hill and conveniently located close to Philadelphia. And the location is even undergoing renovations! The exterior of the shopping center will soon feature a corner tower and new signage for all retail locations.

This retail location in 08053 is flexible and expandable. With units ranging in size from 1,425 to 3,600 square feet, you can find the right fit for your business. And the owners can even accommodate something bigger—up to 19,000 square feet! It’s perfect for your expanding retail operation.

At Wolf Commercial Real Estate, we are focused on creating a partnership with our clients, so that you have a smooth transition from the very beginning of the location search, all the way to your move date and beyond. There’s no better office for retail real estate in the Garden State.

For more information about NJ office space, about other New Jersey commercial real estate listings, or about commercial real estate elsewhere in the United States, please contact Jason Wolf (856-857-6301; jason.wolf@wolfcre.com) or Leor Hemo (856-857-6302; leor.hemo@wolfcre.com) at Wolf Commercial Real Estate, the foremost South Jersey commercial real estate broker.

About Us

Wolf Commercial Real Estate is a South Jersey commercial real estate broker that provides a full range of Southern New Jersey commercial real estate services, marketing commercial offices, medical properties, investment properties, industrial properties, land parcels and retail buildings for buyers, sellers, tenants and investors.  

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WCRE THIRD QUARTER REPORT: SOUTHERN NEW JERSEY MARKET BEGINS PICKING UP STEAM

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WCRE THIRD QUARTER REPORT: SOUTHERN NEW JERSEY MARKET

BEGINS PICKING UP STEAM

Area Bucks Traditional Summer Slow-Down, Spurred by Growth and Policy Moves

 

October 2, 2013 – Voorhees, NJ – Aided by increased confidence among area businesses, and further boosted by positive financial news, the commercial real estate market in Southern New Jersey exceeded expectations in the third quarter, according to a new report by Wolf Commercial Real Estate (WCRE). During what has traditionally been the slowest quarter of the year, the firm identified approximately 443,173 sf of new leases and renewals executed – a gain of nearly 48% compared to the third quarter of 2012. New leasing activity accounted for approximately 57% of the total transactions, a sign that the regional CRE market is truly in recovery mode.

“Instead of a summer slow-down we found many signs that optimism and confidence have returned,” said Jason Wolf, founder and principal of WCRE. “There were several large lease transactions, slight improvement in the state’s unemployment rate, repositioning projects commenced or have been announced, and near the end of the quarter, a new state law was signed that is expected to retain and attract many new businesses to the South Jersey region.”

The new law is the Economic Opportunity Act of 2013, which created Grow New Jersey (GrowNJ) and the Economic Redevelopment and Growth Program (ERG). These programs are designed to incentivize growth and investment by large and small companies across several industries.

WCRE reported encouraging news even in areas that had been vulnerable, particularly Camden County. Vacancy rates continued to fall slowly, coming in at 17% for the region, with Camden County at 21% and Burlington stronger at 13%. “This market is still challenged by a surplus of vacant space, but we have seen steady progress in positive absorption for several consecutive quarters, and the conditions are in place to potentially speed up the pace,” Wolf said.

WCRE’s research includes snapshots of the office and retail markets and details on the major deals being consummated or planned.

Office market highlights from the report:

  • Total leasing activity for the quarter comprised 443,173 sf of new leases and renewals executed.
  • New lease and expansion deal activity comprised approximately 252,631 square feet. This is a 37% increase over Q2 figures.
  • Positive absorption for the second quarter was in the range of 148,000+/-sf of new deals and/or expansions.
  • Average rents for Class A & B product were up by 5% over the previous quarter. Rents continue to show strong support in the range of $11.00-$14.00/sf NNN or $21.00-$24.00/sf gross, with an overall market average showing strong support in the $11.60/sf NNN or $21.60/sf gross for the deals completed during the third quarter.
  • The unemployment rate in New Jersey ticked down from 8.6 percent at the end of Q2 to 8.5 percent at the end of Q3. It has dropped steadily over the past year, and is now at the lowest point since March 2009. Figures continue to improve, but the state rate remains above the national rate of 7.3%.

Retail market highlights from the report include:

  • Area retail businesses and landlords did experience the expected summer slow-down in the form of slower growth, but growth remained positive.
  • Overall retail space vacancy has continued to drop. It hovered around 10.5% for the quarter, compared to 15% in the previous quarter.
  • Average rents for upscale lifestyle centers continue to show strong support in the range of $30-$40.00/sf NNN, and average rents for neighborhood and strip shopping centers remain in the range of $15-$23/sf NNN.

The full report, including details about several key deals, 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, 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. Visit our blog pages at www.southjerseyofficespace.com and www.southjerseyretailspace.com.

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