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Monthly Archives: August 2014


Philly Industrial Space Deliveries, Construction and Inventory

magnifying glassThe Philly industrial space market saw the completion of eight Philadelphia industrial buildings in during the second quarter of 2014, bringing 3,127,992 square feet of Philadelphia industrial space to the market, according to a new CoStar report.

In comparison, the first quarter 2014 saw three Philly industrial buildings equaling 214,056 square feet completed in the Philadelphia industrial space market, said CoStar’s Second Quarter 2014 Market Report. 

Among the second quarter’s most notable deliveries of Philadelphia industrial buildings were:  9645 West Hills Court, a 980,000-square-foot building, and 30 Martha Drive, a 906,919-square-foot facility building, the report stated.  Both of these newest Philly industrial buildings are 100% occupied, CoStar said.  An additional 8,276,767 square feet of industrial space in Philly was still under construction at quarter’s end the report noted.

Liberty at Shippensburg on Olde Scotland Road, a 1,700,000-square-foot project, and 3215 Commerce Center Drive, a 1,644,450-square-foot building, were the largest of the Philly industrial buildings remaining under construction at the end of the second quarter, according to the report.  Both of these Philadelphia industrial buildings have 100% of their space pre-leased, CoStar said.

Total inventory of industrial space in Philadelphia reached 1,021,212,845 square feet in 20,149 Philadelphia industrial buildings by quarter’s end, the market report said.  The Philadelphia flex space sector consisted of 84,692,787 square feet in 3,265 facilities, CoStar stated.  Owner-occupied Philly industrial buildings in the Philadelphia industrial space market numbered 2,617, encompassing 239,826,483 square feet of industrial space in Philly.

Compared to the second quarter 2014 results from the market for industrial space in Philadelphia, the national industrial market saw 229 projects completed in the second quarter 2014, representing 28.56 million square feet, according to Costar.  Another 119.7 million square feet of industrial space was still underway at quarter’s end.  The 2.1 million-square-foot 4500 S. Dobson Road facility delivered in the Phoenix market in the second quarter 2014, while the 1.8 million-square-foot D1X Mod 2 project remained in progress in the Portland market.  Total U.S. industrial inventory equaled 20.96 billion square feet in more than 618,000 buildings at the end of the second quarter.  More than 69,000 of these were owner-occupied Philadelphia industrial buildings.

For more information about industrial space in Philly, Philadelphia flex space or any Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) or Leor Hemo (leor.hemo@wolfcre.com) at Wolf Commercial Real Estate, a premier Philadelphia commercial real estate broker that specializes in industrial space in Philadelphia and Philadelphia flex space.

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

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker that specializes in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly industrial space with the Philadelphia commercial properties that best meets their needs.  As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philadelphia 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.

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Philly Office Space Deliveries, Construction And Inventory

magnifying glassThe Philly office space market saw seven new office buildings equaling 413,734 square feet deliver to the market for office space in Philly in the second quarter of 2014, according to a new CoStar Group market trend report.  This compares to four office buildings that delivered to the Philadelphia office space in the first quarter, totaling 121,952 square feet, the report said.

CoStar’s Second Quarter 2014 Market Report also noted that an additional 2,116,720 square feet of office space in Philadelphia remained under construction at the end of second quarter 2014.

Among 2014’s significant deliveries of office space in Philly were:  the 296,025-square-foot Two City Center that delivered in the second quarter and is now 40% occupied, and the 60,000-square-foot 1401 Roosevelt Avenue, which delivered in the first quarter and is fully occupied, CoStar reported.

Still under construction in the market for office space in Philadelphia at second quarter’s end were FMC Tower / Walnut Street Tower, an 830,000-square-foot facility with 68% of its space pre-leased and 3737 Market Street, a 340,000-square-foot project with 82% of its space pre-leased, the report stated.

At the end of the second quarter 2014,  there was 401,999,668 square feet of total Philly office space inventory in 20,835 buildings, the market report noted.  The Class-A office sector consisted of 955 facilities totaling 128,991,730 square feet of Philadelphia office space.  Owner-occupied buildings in the market for office space in Philly comprised 35,997,940 square feet of office space in Philadelphia in 942 projects, CoStar said.

Compared to Philadelphia office space trends in the second quarter, 11.38 million square feet of construction in 217 new buildings was completed in the U.S. national office market in the same quarter, according to the CoStar report.  Still underway at the end of the second quarter was another 101 million square feet of office space, the report stated.  The 80,000-square-foot 3905 NW 107th Avenue delivered to the South Florida market in the quarter, while the 354,845-square-foot 520 Newport Center Drive was still under construction in the Orange County market.  There was almost 10.42 billion square feet of total office inventory in more than 500,800 buildings at quarter’s end, of which 905 million square feet were in some 20,800 owner-occupied buildings, CoStar said.

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

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

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker that specializes in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new office space in Philadelphia with the Philadelphia commercial properties that best meets their needs.  As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philadelphia office 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.

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AUGUST 2014 MARKET AND ECONOMIC CONDITIONS

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AUGUST 2014
MARKET AND ECONOMIC CONDITIONS
By Adam B. Landau
Permit Capital Advisors, LLC

There is near unanimous consent amongst the investment managers and pundits we trust that markets around the world and across the asset class spectrum, are at best fairly valued and at worst overvalued in a way that looks and feels like 1999 or 2007. However, it is important to remember that valuations, while an important long-term guidepost for market decisions, are historically a poor guidepost for timing those decisions in the short- term. This recognition leaves our efforts focused on idiosyncratic value creation (opportunities that are less correlated, or even negatively correlated, to what is occurring within “the market”), setting appropriate expectations (for ourselves and our clients), and remembering Warren Buffet’s advice about investor psychology. It was in Berkshire Hathaway’s 1986 Chairman’s Letter that he suggested that it is wise to “be greedy only when others are fearful.”

Investors who could be considered fearful today appear to be in a minority, at least based upon the depressed level of the VIX index (a measure of market volatility often referred to as the “fear index”). Although there may be a distinction to draw between investment behavior borne of confidence and that which is borne out of a perceived lack of better options. The latter is a nod to the now-familiar notion that the Federal Reserve’s all-out assault on deflation has driven yields lower, multiples higher, and made pricing signals less relevant than would otherwise be the case. This would suggest that visibility about the Fed’s timeline is as important as any indicator, including valuations, with respect to sea changes in market direction and sentiment.

The PCE (Personal Consumption Expenditure) Index, the Fed’s preferred measuring stick for price stability, ticked up from 1.1% in March, to 1.6% in April, to 1.8% in May, and now sits within sight of the Fed’s long-term target of 2%. At the same time the Unemployment Rate has trended down to 6.2% today (and it would be lower if the Participation Rate hadn’t finally started to move up), although the Fed’s long-term target here seems to be a moving one. At first glance, this would appear to presage an end to both Quantitative Easing (QE) and the Zero Interest Rate Policy (ZIRP). Yet communications from the Fed have made it clear that while QE is on the way out, ZIRP is here to stay for a while. (The one consistent and vocal dissenter on this front has been Philly Fed President Charles Plosser). The focus, for now, is squarely on wage growth, which has been tepid for the duration of this recovery. The future evidence provided by Average Hourly Earnings would appear to now serve as the proverbial “canary in the coal mine”.

Investing against this tenuous backdrop calls for a diligence in rebalancing, with one eye on strategic targets and the other on macroeconomic and monetary forces. The economy is entering its “late-expansion” stage, which means that at some point soon the market should begin to discount the higher future inflation we’re starting to see. This phase of the cycle generally corresponds to outperformance of economically sensitive sectors such as industrials, materials, energy, and real estate.

Today, we are at an unusually attractive mid- cycle point for real estate, where well positioned commercial real estate assets are experiencing levels of demand and occupancy that are shifting pricing power to the landlord, making the economics quite favorable across all property types. At the same time the lasting impact of the last financial/ economic correction has left sufficient scars to delay the normal pace of new commercial real estate supply. The result is strengthening valuations of commercial real estate assets and the potential for private commercial real estate values to move even higher over the next few years. As long as U.S. economic growth remains above 2%, combined with the current level of job growth and favorable demographics, occupancy and rents will push higher across all property segments. Property values, as a result, will also likely move higher even if “cap rates” do not decline.

The recovery cycle has finally begun to lift office occupancy in the U.S. against very limited new supply. This is occurring even with moderate employment growth, shrinking office space demand from traditional financial institutions and a trend towards less space per employee. New drivers of demand are technology/media and energy based users. Retail real estate occupancies are rising into the low 90’s and rents are lifting driven by growth retailers creating “omni-channel” strategies combined with demand to “show the brand” in targeted markets. While the fuss over “online” retail vs real estate continues, it has not stopped rising demand for well-located commercial retail real estate space in higher density markets. Furthermore supply additions in these markets are limited and available retail per capita is actually declining for the first time in decades.

We do not expect overall economic growth in the U.S. to accelerate to a new higher level but the characteristics of the demand drivers should remain in place for several years. Furthermore higher interest rates, at least within 100 basis points from current 10-Year Treasury levels (2.5%), will have very little actual impact on the attractive real estate economics described above. Longer term commercial real estate cycles (post a recovery period) are primarily driven by economic demand forcing occupancy higher while supply of new commercial real estate lags the recovery. This is a very gradual process as real estate economics do not change direction quickly. If this assessment of new commercial real estate development opportunities is correct, it will take several years for new supply to reach levels that impact commercial real estate cash flows and values. This does not imply that supply is not coming as conditions are favorable for a commercial real estate construction cycle to commence.

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

permitcapital

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WCRE DELIVERS 10,000 SF VIRTUA LEASE EXPANSION FOR SOMERSET PROPERTIES AT 2000 CRAWFORD PLACE, MT. LAUREL, NJ

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WCRE DELIVERS 10,000 SF VIRTUA LEASE EXPANSION FOR SOMERSET PROPERTIES AT 2000 CRAWFORD PLACE, MT. LAUREL, NJ 

2000crawfordplace

August 12, 2014 – Marlton, NJ – WCRE is proud to have successfully represented LSOP NJ, LLC, a related entity of Somerset Properties, in securing a new 10,000-square-foot lease expansion for Virtua Health, Inc. at 2000 Crawford Place, Mount Laurel, NJ. The newly leased space is located within the Horizon Corporate Center. With this expansion, Virtual increases its occupancy at this premier office park to 28,650 square feet, and the single story, multi-tenant building is now 88 percent occupied, with only two suites remaining for lease.

The Horizon Corporate Center is located near a commercial hub, with many restaurants and shopping centers nearby, including Greentree Square Shopping Center and the Moorestown Mall. Its location provides easy access from Routes 73 and 70, as well as I-295 and the New Jersey Turnpike. Siemens, 7-Eleven, Burns and Roe, and The Mentor Network are among the current tenants. 

“It has been exciting to watch Virtua’s growth in South Jersey and within the Horizon Corporate Center, and we are thrilled that WCRE and NGKF were able to fulfill their expansion needs,” said Jennifer Wierman, director of leasing at Somerset Properties. “We are very pleased with the result of this total team effort.” 

Christina Del Duca, vice president at WCRE, led the leasing and marketing team, which included Leor Hemo, executive vice president, and the firm’s principal, Jason Wolf. Jeff Tertel, executive managing director of Newmark Grubb Knight Frank, represented the tenant.

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 atwww.wolfcre.com,on Twitter @WCRE1, and on Facebook at Wolf

Commercial Real Estate, LLC. Visit our blog pages at www.southjerseyofficespace.com, www.southjerseymedicalspace.com, www.marltonofficespace.com, and www.marltonmedicalspace.com

About Somerset Properties

Somerset Properties is a full-service commercial real estate company that owns and operates a wide range of property types. Since 1996 Somerset has been creating value for investors with its entrepreneurial approach to acquiring, managing, leasing, and developing commercial properties. Learn more about Somerset Properties at www.somprop.com

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Vacancy Rate For Retail Space In Philadelphia Stable

magnifying glassThe vacancy rate for retail space in Philadelphia was essentially stable in the second quarter 2014, according to a new report from the CoStar Group.

The vacancy rate for Philly retail space stood 5.9% at quarter’s end, compared to a 6.0% Philadelphia retail space vacancy rate in the first quarter, CoStar said.  The second quarter also saw net absorption at positive 551,992 square feet in the market for retail space in Philly, as compared to the first quarter’s positive 979,455 square feet.  The Philadelphia retail space market also saw vacant sublease space decline by 20,121 square feet for the quarter, according to CoStar’s Second Quarter 2014 Market Report.

The second quarter 2014 was marked by several tenants moving into large blocks of retail space in Philadelphia, including:  ShopRite, moving into 90,000 square feet of Philly retail space at 1817 Mount Holly Road; Giant Food, moving into 66,472 square feet of retail space in Philly at 852 East Main Street; and Acme, moving into 58,785 square feet of Philadelphia retail space at 21-31 West Ridge Pike.

Quoted rental rates for retail space in Philly rose from the first quarter levels, standing at $14.05 per square foot per year at the end of the second quarter, the report noted.

Eight retail buildings with 66,506 square feet of Philly retail space were delivered to the market in the second quarter, according to CoStar.  An additional 203,783 square feet of Philadelphia retail space remained under construction at second quarter’s end, the report said.

In comparison, the U.S. National Retail vacancy rate dropped in the second quarter to 6.4%, while net absorption reached positive 23.39 million square feet, CoStar said.  The national market also saw average rental rates increase to $14.81.  CoStar said 522 buildings totaling more than 10.8 million square feet delivered to the retail market in the second quarter.

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

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

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker that specializes in Philadelphia commercial real estate listings and services, provides unparalleled expertise in matching companies and individuals seeking retail space in Philadelphia 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 retail space in Philly 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.

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WCRE COMPLETES THREE NEW LEASES AT ENDURANCE REAL ESTATE GROUP’S COLWICK BUSINESS CENTER IN CHERRY HILL, NJ

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WCRE COMPLETES THREE NEW LEASES AT ENDURANCE REAL ESTATE GROUP’S COLWICK BUSINESS CENTER IN CHERRY HILL, NJ

newleases

August 5, 2014 – Marlton, NJ – Wolf Commercial Real Estate (WCRE) is pleased to announce that it has consummated three lease transactions bringing new tenants to the Colwick Business Center in Cherry Hill. Colwick Business Center is a complex featuring three single story office buildings owned and managed by an affiliate entity of Endurance Real Estate Group, LLC. 

WCRE’s team of Leor Hemo and Jason Wolf exclusively represented Endurance in the marketing and leasing of these properties, working collaboratively with each tenant’s broker.  

7,994 square feet of office space to South Jersey Behavioral Health Resources, Inc. Scott Martin of Markeim Chalmers represented the tenant.

2,600 square feet to MorphoTrust Usa, Inc. Julie Kronfeld of NAI Mertz represented the tenant.

12,604 square feet to QMA, Inc. Dan McGovern of CBRE represented the tenant.

These new tenants will join The Philadelphia Inquirer, The Internal Revenue Service, and Urban Engineers, among others. Available remaining suites range in size from 15,025 to 51,853 square feet (divisible). The largest contiguous block of vacant space at 55 Haddonfield Road, is one of a very few premier vacancies over 50,000 SF in the area. 

Endurance acquired Colwick Business Center last summer and made a major investment in improvements, recently completing exterior upgrades and securing NJ Transit bus service through the office park. Among many desirable attributes, this premier office complex features highly efficient suite layouts, private 24/7 access to each tenant suite, no loss factor, and ample parking. Ownership has committed to making substantial base building improvements and restored Colwick to its Class “A” campus environment and prestige. 

“In the competitive Camden County leasing environment, we are excited to have executed on our business plan by absorbing 23,000 sf of office space in less than 12 months. We are pleased with the level of deal momentum and are optimistic about our pending activity,” said Benjamin Cohen, president of Endurance Real Estate Group.

Colwick Business Center is located just west of the Cherry Hill Mall on a stretch of Haddonfield Road that has recently undergone a massive redevelopment renaissance. The area features affluent residential communities, retail centers, hotels, and other amenities attractive to office tenants. The mall has experienced a complete overhaul in the last few years with the opening of Nordstrom and many other high end retail stores and restaurants such as The Capital Grille. There is currently a Super Wawa under construction in the immediate vicinity, which will further expand the retail corridor. Additionally, The Garden State Towne Center, home to Wegman’s, Best Buy, Home Depot, Dick’s Sporting Goods, and other high-end retailers, is conveniently located a short distance away.

A marketing brochure and tenant information package is available upon request.

About WCRE

WCRE is a full-service commercial real estate brokerage and advisory firm specializing in office, medical, retail, 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, www.southjerseyindustrialspace.com, www.southjerseymedicalspace.com, www.southjerseyland.com,  and www.southjerseyretailspace.com.

About Endurance Real Estate Group

Endurance Real Estate Group is a diversified regional real estate company that focuses upon the creation, development and management of quality real estate projects in the Mid-Atlantic States for both our tenants and investors. 

Endurance’s mission is to provide its investors with the maximum, risk-adjusted returns available and our tenants with the best customer service and property management in the industry.

Endurance Real Estate Group, LLC was co-founded by Benjamin Cohen and William White in 2002. The company is located in Bala Cynwyd, Pennsylvania (near Philadelphia) and concentrates its investment and development activities in Philadelphia and the Mid-Atlantic area.

To learn more about Endurance Real Estate Group, LLC, please visit their website at

www.endurance-re.com

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AMAZING VOORHEES NJ MEDICAL SPACE AVAILABLE IMMEDIATELY

AMAZING VOORHEES NJ MEDICAL SPACE AVAILABLE IMMEDIATELY

Wolf Commercial Real Estate, the #1 New Jersey commercial real estate brokerage firm, is your top choice for commercial land and medical, industrial, and office 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.

Is your medical company looking to expand? Do you need more medical space in southern New Jersey? If your business is looking for a new location for a doctor’s office, pharmacy, or any other kind space for a medical practice, then you’re in luck! Right now there’s an amazing New Jersey medical space available in Voorhees New Jersey. It’s located in a beautifully manicured medical office building, offering 1617 sq. ft. of prime medical space in Voorhees New Jersey.

This New Jersey medical space is located at 2401 Evesham Road in Voorhees NJ, and its available for immediate occupancy. The location couldn’t be better! It’s next door to the Delaware Valley Urology Voorhees Campus and right across the street from the Health and Wellness Campus of Virtua Health System. This southern New Jersey medical space offers easy access to Route 70, Route 73, and I-295. This NJ medical space is a bargain at $18 SF/NNN. Call today!

For more information about NJ medical 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 Southern New Jersey and Philadelphia-are commercial real estate broker that provides a full range of 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. Please visit our websites for information about our NJ 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 Jersey commercial real estate broker.

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