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Monthly Archives: October 2014


Philadelphia Office Space Vacancies Stable in Third Quarter

magnifying glassVacancies for office space in Philadelphia were stable in the third quarter 2014, ending the quarter at 11% for the Philadelphia office space market, according to a new market trend report.

The vacancy rate for Philly office space was essentially unchanged from the rate reported in the second quarter 2014, according to the CoStar Group’s Third  Quarter 2014 Market Report.

Net absorption was reported at positive 131,961 square feet of office space in Philly in 2014’s third quarter, CoStar noted.  Comparatively, at the end of the second quarter, net absorption was positive 760,857 square feet of Philadelphia office space, the report said.

Vacant sublease space grew in the third quarter, closing at 1,388,566 square feet of office space in Philadelphia, CoStar said.

There have been several notable tenants that moved into large blocks of Philly office space in 2014, the report said.  Among the tenants were:  The Vanguard Group, moving into 204,000 square feet of office space in Philly at Great Valley Corp Center; The Harrisburg University of Science & Technology, taking 149,820 square feet of Philadelphia office space at Harrisburg University Academic Center; and Beneficial Mutual Bancorp, Inc. moving into 95,764 square feet of office space in Philadelphia at 1818 Beneficial Bank Place.

Philly office space rental rates ended the third quarter at $21.62, an increase over the second quarter, according to the market trend report.

The Philadelphia office space market saw two buildings with a combined total of 219,036 square feet of office space in Philly deliver to the Philly office space market in the third quarter, according to the report.  There was an additional 3,506,297 square feet of office space in Philadelphia still under construction at the end of the third quarter, CoStar said.

In comparison, the vacancy rate for the national office market stood at 11.2% at the end of the quarter, a decrease from the previous quarter, the report said.  Net absorption stood at positive 27.56 million square feet at third quarter’s end, CoStar noted.  Average national rental rates rose to $22.38 at the end of the quarter and 233 buildings encompassing almost 13.2 million square feet were delivered to the national market by quarter’s end, according to the report.

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

Wolf Commercial Real Estate is a Philadelphia commercial real estate broker 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 new Philadelphia office 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 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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Three Years of Growth Predicted for U.S. Commercial Real Estate Market

magnifying glassModerate economic growth will support steady strengthening in U.S. commercial real estate capital markets and fundamentals during the next three years, resulting in solid but unspectacular returns for U.S. real estate investors,  according to a report from the CoStar Group on the newest Urban Land Institute/EY Real Estate Consensus Forecast.

The forecast, which is based on a survey of 43 experts representing 32 of the nation’s top real estate investment, advisory and research firms, sees a slightly more rosy future for commercial property transaction volume and pricing, multifamily fundamentals and returns on institutional commercial real estate properties than did the April forecast.

The U.S. commercial real estate experts polled for the survey voiced apprehension regarding recent economic developments, including this week’s equities market selloff, the decline in oil prices and nervousness over global economic growth, CoStar said.  But the broader forecast for U.S. commercial real estate sectors overall was positive.

CoStar’s reported key findings from the forecast include:

— U.S. commercial property transaction volume is predicted to grow, but at a declining rate.  Volume will reach $445 by 2016, surpassing the second highest pre-recession annual volume reached in 2006.

— CMBS issuance will continue to grow, but at a more moderate rate, rising 43% by 2016, as compared to its nearly 80% increase in 2013.

— Look for returns of 11 percent on institutional real estate assets in 2014, moderating to 8.5% per year by 2016.

— U.S. commercial property prices are forecast to grow 10% this year, then slow to 6% in 2015 and 5% in 2016.

— Office, retail and industrial property vacancy rates will show a modest decline, but vacancy rates for apartments will rise.  Continued improvement in hotel occupancy rates are predicted.

— Rents for the four major U.S. commercial property types are predicted to rise.  Increases in 2014 will range from 2% growth rate for retail space to 4% for industrial space. Rents will jump by 4% for office space in 2016 and by 3% for all other property types.

For more information about Philly office space, Philly retail space or other Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com), Leor Hemo (leor.hemo@wolfcre.com) or Lee Fein (215-799-6900-office; 215-206-5580-cell; lee.fein@wolfcre.com) at Wolf Commercial Real Estate, a premier 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 with extensive expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly office space or new Philly retail 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 or Philly retail 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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U.S. Office Space Market at Highest Level Since 2008 Recession

magnifying glassSpurred by job growth, rising rental rates and falling office vacancies, developers in several major markets have begun to break ground on new office projects, pushing U.S. office space construction to its highest level since 2008, according to a new report.

Approximately 86 million square feet of higher-end office properties larger than 50,000 square feet were under construction in 2014, an increase of 25.7%, an analysis of CoStar Analytics data shows.  This compares to 68.5 million square feet in 2013.  It is the highest level the industry has seen since year-end 2008, when 105.7 million square feet of new U.S. office space was under construction, the report said.

The analysis also noted that the total square footage of new office construction for 2014 is expected to increase further as CoStar learns about additional new projects breaking ground this year.

CoStar anticipates 44.5 million square feet of office space to be delivered by December 31, 2014, up 22% from last year.  As of September 30, new office construction starts totaled 42.6 million square feet, exceeding 2013’s total starts and providing ample new product into early 2017.

Analysts believe that recent robust leasing activity will alleviate any concerns about the potential for oversupply in the U.S. office space market.  Of the U.S. office space currently under construction, only 45 percent remains available for lease.  Major blocs of space already have been committed to by tech, creative and energy companies, such as such as Salesforce.com, Comcast, ConocoPhillips, Google, State Farm and LinkedIn.

Based on this year’s trends, CoStar predicts U.S. office tenants will take 77 million square feet of space by year’s end, up 77% from last year, and another 90 million square feet in 2015 and 2016.

With far less supply than demand, office vacancy rates are expected to decline until 2017, CoStar said.  A projected low office vacancy rate of about 11% should be reached in 2016 with continued national job growth and the disappearance of shadow space.

For more information about Philly office space or other Philadelphia commercial properties, ice space or other 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 brokerage firm that specializes in Philly office space.

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

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with extensive expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly office 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 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 EXPANDS INTO NEW MARKETS AND CAPABILITIES

Press Release

WCRE EXPANDS INTO NEW MARKETS AND CAPABILITIES
Firm Renowned for Southern New Jersey Success Announces a King of Prussia Office to be Headed by Industrial CRE Leader Lee Fein

October 9, 2014 – Marlton, NJ – 

Building on the success they’ve had since forming in Southern New Jersey in 2012, WCRE today announces the opening of its second office, which will bring the firm’s professionalism, energy, and community commitment – as well as its signature WCRE 360 marketing platform – to the Philadelphia region and the Lehigh Valley. In less than three years the WCRE team has built the company into a commercial real estate market leader in Southern New Jersey that has set a new standard in serving the needs of owners, tenants, and investors. The firm currently has more than three million square feet of office, retail, medical, industrial, flex and investment property in Southern New Jersey under exclusive watch. Now the rapidly growing team of ten is ready to expand even further.

WCRE’s new Philadelphia regional office will also bring a new specialty, as the firm will add an industrial sales and leasing practice to its office, retail, medical, and investment offerings. Both the new office and the new industrial practice will be led by newly hired senior vice president Lee Fein, most recently of Colliers International.

Lee Fein is an award-winning commercial real estate professional who brings more than 30 years of corporate real estate experience and industrial expertise to WCRE. He has worked with many notable regional, national, and world wide firms, and has an extensive knowledge of the CRE markets in the western suburbs, the Lehigh Valley, Northeastern and Central Pennsylvania, and Southern New Jersey. A former Warrington Township Bucks County Supervisor and Planning Committee member, Fein is deeply rooted to his sales territories. He is a licensed real estate broker in Pennsylvania and New Jersey.

“Lee has exactly the right mix of expertise, experience, and values to help lead WCRE’s expansion into the Philadelphia region,” said WCRE founder Jason Wolf. “We are expanding into Pennsylvania and into the industrial arena to provide the marketplace with the same passion and focus as we have built in New Jersey.”

The market has taken notice of the firm’s approach. Since opening its doors as an unknown brand in January 2012, WCRE has created a unique branding platform that has caught the attention of major entrepreneurial and institutional owners and businesses in the region. It’s clear that WCRE has the track record that will propel the firm to success in Pennsylvania.

Leor Hemo, executive vice president of WCRE, who, like Jason Wolf has an extensive Pennsylvania network, sees a great deal of potential that the firm will now be able to leverage. “Many of our clients have needs on both sides of the river, and while we will remain as committed as ever to our Southern New Jersey home, this new office is a natural progression of the growth of our business that will allow us to be an even better service provider,” he said.

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 @WCRE1, and on Facebook at Wolf

Commercial Real Estate, LLC. Visit our Philadelphia blog pages at www.phillyofficespace.com,  www.phillyindustrialspace.com, www.phillyretailspaces.com, and www.phillymedicalspace.com.

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WCRE THIRD QUARTER REPORT: BUSINESS EXPANSION, NEW PROPERTY OWNERSHIP FUEL SOUTHERN NEW JERSEY COMMERCIAL REAL ESTATE MARKET

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WCRE THIRD QUARTER REPORT: BUSINESS EXPANSION, NEW PROPERTY OWNERSHIP FUEL SOUTHERN NEW JERSEY COMMERCIAL REAL ESTATE MARKET

October 6, 2014 – Marlton, NJ – Continuing a trend first noted during the second quarter, the Southern New Jersey commercial real estate market appears to be shifting from recovery to growth, according to the latest analysis by Wolf Commercial Real Estate (WCRE). The firm’s third quarter market report finds mostly positive trends during the third quarter. The CRE market continued building upon positive trends seen in the previous quarters, with increases in new leases and renewals, as well as further positive absorption of vacant properties.

There were approximately 398,778 square feet of new office leases and renewals executed in Burlington, Camden, and Gloucester Counties during the second quarter, including several large spaces, ranging in size from 6,000 to nearly 37,000 square feet. Expansions and new deals continued to pick up steam this quarter, representing 54 percent of all transactions, an uptick from the 52 percent represented in the second quarter. Positive absorption for the quarter was approximately 137,366 sf, an increase of more than 20 percent from the second quarter. Finally, there are approximately 530,000 square feet of pending deals expected to close by the end of the year or early 2015. While this is quite a large figure, four major pending transactions account for about 300,000 square feet.

“The market’s fundamentals continue to strengthen, and it seems like the economy has found its footing after a prolonged period of recovery,” said Jason Wolf, founder and principal of WCRE. “We’re still a long way off from pre-recession levels, but hiring is up, office employment is up, and businesses are showing signs of expansion, all of which bodes well for the commercial real estate market.”

The report noted that the prime 3M locations within Burlington County continue to outpace the rest of the region, and that the tightening of those areas is causing demand to shift toward vacancies in Camden County. This is a trend that has been underway all year.

Other office market highlights from the report:

The vacancy rate for the third quarter stood at 14.2 percent.

Average rents for Class A & B product continue to show strong support in the range of $10.00-$14.00/sf NNN or $21.00-$24.00/sf gross, with an overall market average showing strong support in the $10.00-$12.00/sf NNN or $20.00-$22.00/sf gross. This is essentially unchanged from the previous quarter.

New lease activity for Q3 is in the range of approximately 215,794 square feet of new deals and approximately 182,984 square feet of renewals and/or expansions. Both figures represent increases over the previous quarter.

In the report’s only bit of concern, all of the major private owners and REITS reported a noticeable slowdown in prospect activity for the quarter, though this may have been attributable to the expected summer slowdown.

WCRE also reported on the local retail market, where Southern New Jersey seems to have bounced back from a slow spring. Highlights from the retail section of the report include:

Retail sales figures for the region were buoyed by an increase in tourism, which helped maintain slight growth.

Overall retail vacancy in the tri-county area is at 15.1 percent, which is down about half a point from the second quarter. This is a particularly good sign, as vacancy had been ticking up for the first half of the year.

Class A retail product rental rates continue to show strong support in the range of $30.00-$40.00/sf NNN, which is essentially unchanged from the previous several quarters.

Class B product shows support in the range of $15.00-$25.00/sf NNN, which is also unchanged.

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 @WCRE1, and on Facebook at Wolf

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

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