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Monthly Archives: November 2014


Third Quarter Philly Retail Space Deliveries, Construction and Inventory

magnifying glassFive new Philadelphia retail buildings delivered to the market for retail space in Philly in the third quarter 2014, adding 80,793 square feet to the Philadelphia retail space market, a new market trend report from the CoStar Group says.

During the past four quarters, Philly retail space  increased by 842,776 square feet, according to CoStar’s Third Quarter 2014 Market Report.  In addition, 389,251 square feet of retail space in Philadelphia remained under construction at the end of the third quarter 2014, the report added.

Included in the notable deliveries of Philadelphia retail buildings this year were:  4300 Broadway, a 59,840-square-foot facility in the Philadelphia retail space market that delivered in third quarter 2014 and is now 100 percent occupied, and 332 South Broad Street, a 45,000-square-foot facility in the Philly retail space market that delivered in first quarter and is now fully occupied, CoStar said.

Total inventory of retail space in Philadelphia at the end of the third quarter equaled 500,055,236  square feet in 41,234 Philadelphia retail buildings and 2,554 centers, according to the report.

In comparison to trends in the Philly retail space market, the U.S. retail market grew by 13.91 million square feet in 542 new buildings in the third quarter.  An additional 53.3 million square feet of retail space still was under construction at the end of the quarter, CoStar said.

Two significant retail buildings that delivered to the national market in the third quarter were a 58,200-square-foot facility at 837 Washington Street in the New York City market and the 148,000-square-foot Main Street N. Brunswick Costco in the Northern New Jersey market, the report noted.  Total U.S. retail inventory at the end of the third quarter equaled more than 12.54 billion square feet in nearly 1.1 million retail buildings, including 97,500 shopping centers.

For more information about retail 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 premier Philadelphia commercial real estate brokerage firm that specializes in Philadelphia retail 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 that specializes in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new 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 Philly retail space for lease or sale through our Philadelphia commercial real estate brokerage firm.

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National Office Space Vacancies Stable in Third Quarter

magnifying glassThe national office space vacancy rate, which includes the Philadelphia office space market, stood firm at 16.8 percent in the third quarter 2014, remaining unchanged for the entire year at a level that is only 80 basis points below the cyclical high the market experienced four years earlier, according to a new National Real Estate Investor article.  Since the third quarter 2013, the office space vacancies have dropped only 10 basis points with the only actual decline occurring in the fourth quarter 2013.

However, the article maintains, some qualifications are needed.  Office leasing in the third quarter showed some movement with net absorption amounting to about 8 million square feet.  While this level is not that high and actually falls below fourth quarter 2013 and first quarter 2014 levels, net absorption did more than double the infinitesimal total from the second quarter 2014 and exceeded the 5.8 million square feet of completions for the quarter, according to National Real Estate Investor.

With most new office construction projects requiring significant pre-leasing commitments before lenders will provide financing for development, construction and absorption remain closely linked to one another at this point in the recovery, the article reported.  These challenges on the national level also have an effect on construction projects in the Philly office space market.

Despite these qualifications, the article said the improvement rate in office fundamentals “has truly been glacial.”  Office vacancies were 430 basis points above the cyclical low of 12.5 percent, which was last seen in the third quarter 2007.  The article added that office leasing activity has not yet strengthened to the point that it can push down office vacancies.  That change will come only when payrolls swell.

While year-to-date job growth continues to improve, employers still have vacant offices in their existing space.  Once unused space has been occupied by new hires, companies will start looking for new space if business continues to pick up.

In the long term, this should result in declining office vacancies, according to National Real Estate Investor.  But whether the office national vacancy rate — including the rate for Philadelphia office space — will drop at a significantly faster rate is uncertain, particularly if the growth rate for the economy stays in the area of 2 percent.

In related news, the article also reported that asking and effective rents grew by 0.4 percent and 0.5 percent in the third quarter 2014.  This pace was slower than that of the prior two quarters, but nonetheless maintained the slow and steady improvement that has been seen in rents, which have increased for 16 consecutive quarters.  Greater acceleration in rents will likely not occur until the vacancy rate drops below 14 percent, thereby giving landlords the leverage to increase rents at a faster rate.

Despite the third quarters sluggish results, National Real Estate Investor said the economic outlook for year end 2014 is still optimistic.  Economic growth was between 3.5 percent and 4.6 percent in three of the past four quarters, with the weakness seen in the first quarter 2014 appearing to be an anomaly.  The rate of growth is that of an economy that “is finally showing some strength,” the article reported.  Monthly job gains, which have been consistently above 200,000 and averaging about 230,000, are strong enough to start pushing down office vacancies, the article reported.

This scenario will encourage continued improvement in the market for national and Philly office space.  The article predicts slow rent growth of about 2.6 percent for the fourth quarter and then increases in 2015.  Vacancies should continue to migrate to lower levels in the final quarter of the year, but will remain “extremely sluggish” in 2015, the article 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), Leor Hemo (leor.hemo@wolfcre.com) or Lee Fein (lee.fein@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker that specializes in Philadelphia 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 office space in Philly, as well as 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 brokerage firm that specializes 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 office 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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U.S. Construction Buoyed by U.S. Commercial Real Estate Spending

magnifying glassU.S. construction spending was flat in September, but spending on office, hotel, retail and other U.S. commercial real estate projects provided positive results, a new U.S. Census Bureau report says.

Although overall nonresidential construction spending dropped to a preliminary $596 billion in September, down a seasonally adjusted 1% from August,  U.S. construction spending on a year-over-year basis was up 4.2%, the government said in its latest release on the value of U.S. construction put in place.

The biggest monthly gain was in hotel construction, which increased 4.7% in September over the previous month and was up 14.7% from the same time a year ago, according to the Census Bureau.  Office construction spending rose 2.4% in September, up 15.7% in the past year, the release said.  Commercial construction spending, which covers retail, wholesale and selected service projects, increased 1.3% for September and 12.3% for the year, the bureau said.

There were some areas in the U.S. commercial real estate market that dropped slightly or remained flat in September, the government said.  Health care construction spending was down 0.9% in September and down 7.5% for the year, according to the release.  Manufacturing also was down for the month (by 1.3%), but has benefited by growth in manufacturing and logistics facilities that pushed the manufacturing sector up a strong 16.4% since September 2013, according to the census release.

The biggest year-over-year construction spending gains were in new private multifamily projects, up 25.7% for the year, but down 1% in September, the bureau said.

For more information about Philly office space or other Philadelphia commercial properties, please contact Lee Fein (215-799-6900-office; 215-206-5580-cell; lee.fein@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker with extensive expertise 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 brokerage firm that specializes 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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Southern New Jersey Commercial Real Estate Transaction Round-Up

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Southern New Jersey Commercial Real Estate Transaction Round-Up

WCRE Announces 120,000 Square Feet of Recently Completed Sales and Lease Transactions

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November 5, 2014 – Marlton, NJ – In a further sign that the area’s CRE market is gaining steam, Wolf Commercial Real Estate (WCRE) announces several completed lease and sales transactions of note. These recently consummated deals are the result of new companies entering our market and the expansion of established businesses.

Sales

The WCRE team’s recent sales include highly visible retail sites in Medford and Cherry Hill, as well as a large prime office property in Westampton. Subject properties were:

 

  • The Medford Lakes Retail Center, a fully leased, multi-tenanted neighborhood strip center comprising 7,720 square feet. The center is located at 676-678 Stokes Road in Medford, NJ, in the Medford Business District.
  • 1612-1614 West Marlton Pike, Cherry Hill, NJ, in which WCRE represented the seller of this 13,000 square foot retail property. LL Assets, LLC acquired the space, and plans to reposition it as a renovated retail property. It is situated in the heart of Cherry Hill on a prime Route 70 corner, within close proximity to the Garden State Towne Center and the Cherry Hill Mall.
  • The fully occupied multi-tenant office and retail building at 226 Haddonfield Road, also in the heart of Cherry Hill’s retail corridor. WCRE exclusively represented the seller of this 21,500 square foot building, ARC Properties, Inc.
  • The 10,000 square foot office building at 695 Rancocas Road in Westampton, NJ, where WCRE represented seller PCA Holdings Corporation. The Boy Scouts of America bought this building to expand their adjacent campus. It is now one of the largest Boy Scouts headquarters in the country.

Earlier in the spring WCRE represented both the buyer and seller of Bethel Baptist Church’s Shining Lights Early Learning Center at 1721 Springdale Road in Cherry Hill, NJ. The Jewish Federation of Southern NJ purchased this unique 21,325 +/- square-foot school building situated on a parcel of 18+/- acres in order to expand its community outreach and services. As part of its community commitment, WCRE was proud to be the main sponsor of the new owner’s grand opening of the building on November 2.

 

Leases

WCRE has recently executed several leases, continuing its track record of building successful relationships across a wide variety of industries, including banking, government contractors, building and construction, and professional services. Tenant representation highlights include:

 

  • Representing The Federal Savings Bank in the leasing of their new 2,700 square foot office at 1000 Lincoln Drive East, Marlton, NJ, a privately held building. The Federal Savings Bank is a veteran-owned, federally chartered bank with a focus on educating its customers about the mortgage process and providing opportunity for home ownership.
  • Guiding On-Demand Mail Services (ODMS) in the leasing of a 16,000 square foot mail processing and distribution center at 450 Veterans Drive in Burlington, NJ. The privately held building will provide the company with an opportunity to the Midwestern-based company to expand its growing business to the East Coast. ODMS offers Domestic and International postal optimization solutions to mailers nationwide as part of the United States Postal Service’s Work Share Program.
  • Helping Valinote Foster Associates, LLC to find and lease a new 5,400 square-foot office and showroom at 7219 Browning Road, Pennsauken, NJ.
  • Exclusive representation of Lemnos, LLC in its leasing of 4,435 square feet of Class A office space within 401 South Kings Highway, Cherry Hill, NJ to Good Life Financial Group, LLC.
  • Representing LSOP NJ, LLC (a related entity of Somerset Properties) in the exclusive leasing and marketing of 10,000 square feet of office space at 2000 Crawford Place, Mt. Laurel, NJ to Virtua Health, Inc. The subject property is located in the Horizon Corporate Center.
  • Exclusive representation of South Jersey Medical Center in leasing a 2,538 square-foot medical office space located at 1401 Route 70 in Cherry Hill, NJ to Aria Health Orthopaedic.
  • Successfully leasing 5,882 square feet of medical office space within 808 Market Street, Camden, NJ to the Southern New Jersey Perinatal Cooperative. Under WCRE’s exclusive representation, this building is now 90% leased, with only two available suites remaining.

WCRE also recently announced the opening of a new Pennsylvania office located in King of Prussia and the expansion of its industrial sales and leasing practice.

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.southjerseymedicalspace.com, and www.southjerseyretailspace.com, www.phillyofficespace.com, www.phillyretailspaces.com, and www.phillyindustrialspace.com.

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Philadelphia Industrial Space Vacancy Rate Drops

magnifying glassThe Philadelphia industrial space vacancy rate dropped to 8.3% in the third quarter 2014, according to the newest trend report from the CoStar Group.

The third quarter vacancy rate for industrial space in Philly was down from the 8.6% rate that stood at the end of both the first and second quarters 2014.  CoStar’s Third Quarter 2014 Market Report said net absorption in the third quarter was positive 3,482,534 square feet of Philly industrial space, compared to positive 3,536,167 square feet in the second quarter.  Vacant sublease space in the market for industrial space in Philadelphia was 942,647 square feet at quarter’s end, a decline over the second quarter, CoStar said.

Among the tenants moving into large blocks of Philly industrial space in the third quarter were:  Wal-Mart Distribution, moving into 1,200,000 square feet of Philadelphia industrial space at 2785 Commerce Center Boulevard; Ocean Spray, moving into 980,000 square feet of industrial space in Philly at West Hills Business Center – Building A, and Kane Warehousing, Inc., moving into 955,935 square feet of industrial space in Philadelphia at Distribution Center 6 in the Stauffer Industrial Park.

Rental rates for industrial space in Philly were unchanged from the second quarter, holding at $4.49 at the end of the third quarter, the report said.

Four buildings delivered to the Philly industrial space market in the third quarter, adding 906,337 square feet of industrial space in Philadelphia to the market.  Another 12,035,258 square feet of industrial space in Philly remained under construction at quarter’s end.

In comparison to the Philadelphia industrial space market, the U.S. National Industrial vacancy rate decreased, ending the quarter at 7.5% , the CoStar report noted.  Net absorption was positive 64.71 million square feet.  Average rental rates in the U.S. market rose to $5.47 in the third quarter.  A total of 206 industrial buildings representing nearly 28.6 million square feet delivered to the U.S. market in the quarter, the report said.

For more information about Philly industrial space or any Philadelphia commercial properties, please contact 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 brokerage firm with expertise in Philadelphia commercial real estate listings and services.

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, provides unparalleled expertise in matching companies and individuals seeking new industrial space in Philly 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 industrial space in Philadelphia  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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