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Monthly Archives: April 2015


Philadelphia Retail Space Vacancy Rate Remains Steady in First Quarter

research-information-graphic-phlVacancies in the Philadelphia retail space market were basically unchanged in the first quarter 2015, according to a new market analysis from the CoStar Group.

The market for retail space in Philly ended the first quarter of 2015 with a vacancy rate of 6.0%, up only slightly from 5.8% in the fourth quarter 2014, according to CoStar’s First Quarter 2015 Market Report.

Net absorption for retail space in Philadelphia stood at negative 637,609 square feet, while vacant sublease space in the Philly retail space market rose by 48,894 square feet, the market analysis said.  Net absorption in the fourth quarter 2014 was negative 62,004 square feet, CoStar said.

Tenants moving into large blocks of retail space in Philly in the 2015 were:  Under Armor, moving into 16,348 square feet of retail space in Philadelphia at 1529 Walnut Street; AutoZone, moving into 15,874 square feet of Philly retail space at 200 S Best Avenue; and La-Z-Boy Furniture, moving into 14,800 square feet of Philadelphia retail space at 101 Ironlake Boulevard, CoStar reported.

CoStar said quoted rental rates for retail space in Philadelphia declined in the quarter, reaching $13.88 per square foot per year at the end of the first quarter.

Nineteen retail buildings delivered to the Philly retail space market in 2015’s first three months, bringing 138,704 square feet of new Philadelphia retail space to the market, the report noted, adding that an additional 696,250 square feet of retail space in Philly was still being built at the end of the quarter.

In comparison, the U.S. National Retail vacancy rate declined to 6.0% and net absorption stood at positive 15.41 million square feet in the first quarter of 2015, CoStar said.  Average rental rates nationally were up to $14.96 in the quarter.  Nationally, 604 retail buildings delivered in the quarter, for a total of nearly 13.3 million square feet.

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), Leor Hemo (leor.hemo@wolfcre.com) or Lee Fein (lee.fein@wolfcre.com) at Wolf Commercial Real Estate, a premier 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 Philadelphia 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 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 HONORED WITH 2014 COSTAR POWER BROKER AWARD

 

 WCRE HONORED WITH 2014 COSTAR POWER BROKER AWARD

Local Firm Selected by Commercial Real Estate’s Largest Research Organization

as One of the Top Leasing & Brokerage Firms in the Market

 WCRE CoStar Power Broker Press Release.PDF

April 15, 2015 – Marlton, NJ – Wolf Commercial Real Estate (WCRE) has been selected by CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of commercial real estate information, analytics and online marketplaces, to receive a CoStar Power Broker TM Award. This annual award recognizes the “best of the best” in commercial real estate brokerage by highlighting the firms and individual brokers who closed the highest transaction volumes in commercial property sales or leases in 2014 within their respective markets.

With the largest professional research organization serving the commercial real estate industry, CoStar is uniquely positioned to identify the top firms and brokers in each market throughout the U.S. and Toronto, Canada. All awards are based on transaction data maintained in CoStar’s commercial real estate database, the largest independently researched database of commercial real estate property information available online.

WCRE qualified as one of the top commercial brokerage firms in the Philadelphia region based on total leasing and sale transactions closed during the year. In order to be selected for this honor, WCRE’s overall transaction volumes were evaluated by CoStar against other commercial real estate brokerage firms active in its region, and subsequently ranked among the top firms in the market.

“As a firm that is less than four years old, it is a tremendous honor to be recognized by CoStar two years in a row. It shows that our approach to business and our commitment to the communities in which we work is a path to growth and success. We are grateful to have earned the trust of our invaluable clients, and pleased to be named in a group with other firms in our market whom we greatly respect,” said Jason Wolf, founder and managing principal of WCRE.

“CoStar is proud to honor the individual brokers and firms who perform at the industry’s highest level each year,” said CoStar Group founder and CEO Andrew C. Florance. “These industry leaders deserve to be recognized for their expertise, hard work and superior deal-making abilities. We extend our congratulations to this year’s winners on their exceptional sales and leasing success.”

The complete list of 2014 CoStar Power Broker Awards winners can be found at CoStarPowerBrokers.com.

About CoStar Group, Inc.

CoStar Group, Inc. (NASDAQ: CSGP) is the leading provider of commercial real estate information, analytics and online marketplaces. Founded in 1987, CoStar conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of commercial real estate information. Our suite of online services enables clients to analyze, interpret and gain unmatched insight on commercial property values, market conditions and current availabilities. Through LoopNet, the Company operates the most heavily trafficked commercial real estate marketplace online with more than 9 million registered members. Apartments.com is a premier online apartment resource for renters that matches apartment seekers with great apartment homes and provides property managers and owners a proven platform for marketing their properties. CoStar operates websites that have over 19 million unique monthly visitors in aggregate during January 2015. Headquartered in Washington, DC, CoStar maintains offices throughout the U.S., in Europe and in Toronto, Canada with a staff of over 2,400 worldwide, including the industry’s largest professional research organization. For more information, visit www.costargroup.com. 

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

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WCRE FIRST QUARTER REPORT: 2015 STARTED OFF STRONG

Q1 2015 Press Release.PDF

WCRE FIRST QUARTER REPORT: 2015 STARTED OFF STRONG

The Southern NJ CRE Market is Buoyed by Institutional Shifts in Healthcare, Major Corporate HQ Relocations, and REIT Repositioning

April 13, 2015 – Marlton, NJ – Commercial real estate brokerage WCRE reported in its latest quarterly analysis that 2015 has continued the momentum seen during the fourth quarter of 2014. The firm noted that some challenges remain, but that the market has been lifted by a busy quarter among major healthcare institutions, investors, and large tenants.

“The moves we’ve seen this quarter signal significant business expansion and job growth,” said Jason Wolf, founder and managing principal of WCRE. “This has helped to boost commercial real estate confidence and lending conditions, leading to a more optimistic atmosphere that is expected to continue throughout 2015.”

The quarterly report details big moves announced and/or anticipated by major players, including Virtua’s planned 62,000 SF office relocation later in the fall and the sales of two of Brandywine Realty Trust’s trophy assets to out of market investors. The two buildings, Libertyview and 1000 Atrium Way, total 221,405 square feet, and sold for an average of approximately $134/sf.

According to WCRE, the first quarter posted approximately 472,154 of new leases and renewals executed. This is a 7% increase in executed transactions over the 441,141 square feet that closed during the first quarter a year ago. New tenant leases consisted of approximately 186,427 square feet and renewals and expansions made up approximately 285,727 square feet. New leasing activity represented approximately 39.5% of all deals for the first quarter. Overall, gross absorption for Q1 is in the range of approximately 255,161 square feet. In addition to the consummated deals, there is a pipeline of approximately 450,000 square feet of significant pending lease deals expected to close in the near term.

Other office market highlights from the report:

  • GROW NJ continues to draw interested companies to the state, with ten projects approved for $84.6 million in funding in January and February alone.
  • Overall vacancy in the market continues to drop, and is now down to approximately 13.6 percent, an improvement over the previous quarter.
  • 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 for the deals completed during the first quarter. Rents have remained stable.

  • All of the major private owners and REITS showed moderate leasing and prospect activity for the quarter – with Burlington County vacancies tightening up, many larger vacancy opportunities are also shifting towards Camden County, which is not controlled by these ownership entities.

WCRE also reported on the local retail market, noting that consumer confidence reached its highest monthly level since the start of the recession. The firm believes this level will further improve as the year moves on. Highlights from the retail section of the report include:

  • Overall retail vacancy in the tri-county area is hovering around 10.5%, which is up slightly from the previous quarter, but is still encouraging compared to recent years.
  • Class A retail product rental rates continue to show strong support in the range of $30.00-$40.00/sf NNN, as rents have remained stable.

  • Much of the demand for space locally is from national chains, which are experiencing growth. Smaller and locally-based retailers are still struggling comparatively.

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

 

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