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Monthly Archives: November 2015


Loan Origination Surge Fueled by Retail, Office

new Jason stats graphic - June 2015Commercial and multifamily mortgage loan originations experienced a 12% jump year over year for the third quarter 2015 and a 3% increased over the second quarter of 2015, a new report says.

The overall hike in loan originations for commercial/multifamily lending volumes came primarily from loans for retail and office for the third quarter, according to the Mortgage Bankers Association.

By segment, year over year increases in the dollar volume of loans were 39% for retail properties, 17% for office properties, 11% for multifamily properties and 10% for industrial properties, the MBA said.  The dollar volume of loans dropped 9% for hotel properties and 30% for health care properties from the  third quarter 2014 to the third quarter 2015, according to the MBA.

The MBA’s commercial real estate research division said both commercial mortgage borrowing and lending continued to increase in the third quarter 2015 and that all but one major investor group and property type saw increases in year-to-date lending volumes, a trend that is forecast  to continue through the fourth quarter 2015.

Among investor types, commercial bank portfolio loans led the way, with a 93% spike in the dollar volume of loans originated year over year.   Life insurance company loans jumped 18% for the same period, while decreases were seen in the dollar volume of government-sponsored enterprises (GSEs – Fannie Mae and Freddie Mac) loans, down 3%, and commercial mortgage backed securities (CMBS) loan, down 8%.

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

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The Pros and Cons of LED Lighting

THE PROS & CONS OF LED LIGHTING (PDF)

By Ross Greenberg, IALD, LC LEED-AP O&M, President, ZLED Lighting 
LED Lighting has become highly popular for various reasons. They are useful, versatile and create white light, colored light, and so much more. But before opting to use these for lighting your facility, you must do a complete analysis of them in order to know why they are so different compared to other types of lighting. Once you know the pros and cons of LED lighting, you will be able to make the proper decision regarding the the kind of lighting that will best suit your facility.

Let’s explore the Pros and Cons of LED Lighting

The PROS of LED Lighting

Excellent color rendering-LEDs do not wash out colors like other light sources, such as fluorescents, making them perfect for displays and retail applications.

LEDs have a lot of power, which will provide white light illumination for wide areas.

LED lighting translates to significant savings in terms of lower energy bills. In addition to saving money, this also means you’re doing your part for the environment and contributing towards reducing greenhouse gas emission.

LEDs are more durable than any other kind of lamp. This means they last longer, resulting in less maintenance costs and a decrease in the amount of bulbs what would need replacing.

Making use of LEDs in your light fixtures means creating more direct, efficient illumination. This is due to the specific way in which LEDs produce light. They are able to emit light in specific directions and can easily be used as spot lights for very specific areas.

The diodes in LEDs are able to create efficient light without producing any heat.

LEDs do not contain mercury, unlike compact fluorescent lamps.

LEDs are ideal for use in applications that are subject to frequent on-off cycling, unlike fluorescent lamps that burn out more quickly when cycled frequently, or HID lamps that require a long time before restarting.

When used in applications where dimming is required, LEDs do not change their color tint when the current passing through them is lowered, unlike incandescent lamps, which turn yellow.

LED lights will fit in virtually any kind of light fixture.

The CONS of LED Lighting

Over time, some LEDs that have a poor design can begin to flicker, change color, become dim and might even provide uneven light. In order to avoid all these issues, you must always choose LEDs from a trusted supplier. High quality LED’s will be bright, provide proper light output for a long period of time and good color quality, as well as efficiency. They would provide instantaneous lighting and no flickering.

The biggest drawback of LED lighting is a higher purchase price, but their energy efficiency compensates for this cost is in a short period of time. LEDs must be supplied with the correct voltage and current at a constant flow. This requires some electronics expertise to design the electronic drivers.

LEDs can shift color due to age and temperature. Also, two different white LEDs will have two different color characteristics, which affect how the light is perceived.

LED performance largely depends on correctly engineering the fixture to manage the heat generated by the LED, which causes deterioration of the LED chip itself. Over-driving the LED, or not engineering the product to manage heat in high ambient temperatures, may result in overheating of the LED package eventually leading to device failure.

LED retrofit technology is becoming more and more popular as a relatively straightforward and simple solution for energy savings. LED fixtures cost more to purchase than traditional light sources, but there are many factors that contribute to the effective and economic performance of LEDs, so a range of payback scenarios exits. But a lower wattage luminaire significantly reduces the payback period. Before making any decisions to make the change, make sure you ask all of the pertinent questions that are relative to your facility’s needs. You owe it to yourself and your company to talk with a lighting professional to ensure that you are making all the right decisions.

NOTE:
Most companies look at changing over to LED Lighting and decide not to do it because of the initial cost BUT REMEMBER ONE THING…… You will still be paying the higher energy costs to the Utility company so why not put the energy savings back into your pocket.

For more information, contact:

ross-greenbergRoss Greenberg, IALD, LC LEED-AP O&M,
President, ZLED Lighting
1536 N. Kings Highway
Cherry Hill, NJ 08034

P. 800.679.9243
www.Zled-Lighting.com

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Second Annual Thanksgiving Food Drive Exceeds Expectations

WCRE team members donate more than 70 bags of groceries to the Jewish Family and Children’s Service food pantry. (PDF)

wcre-thanksgiving-food-driveNovember 25, 2015 – Marlton, NJ – Wolf Commercial Real Estate (WCRE) wrapped up its second annual Thanksgiving Food Drive today, bringing more than 70 bags of food and hundreds of dollars in supermarket gift cards to the Jewish Family and Children’s Service food pantry. The Marlton-based firm collected food from friends, clients, and colleagues throughout the past several weeks.

The food drive is part of WCRE’s Community Commitment program, which also includes donating a portion of the proceeds from every transaction to one of several local charities. Clients can also choose to direct the donation to a charity of their choosing.

“Our team is truly committed to helping people in this community during the holiday season and throughout the year,” said Jason Wolf, managing principal of the firm. “We are grateful for the support of all who donated to this drive, and will aim even higher next year.”

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 & Instagram @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.southjerseyretailspace.com, www.phillyofficespace.com, www.phillyindustrialspace.com , www.phillymedicalspace.com and www.phillyretailspace.com.

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Office to Lead 2016 Commercial Construction

new Jason stats graphic - June 2015Office, shopping center, warehouse and hotel construction is expected to jump 11% in 2016, an increase from the 4% improvement projected for 2015, with office development reclaiming its historical role as the leader in the commercial building recovery, a new report says.

At the same time, multifamily construction dollar volume is anticipated to rise 7% on a 5% increase in built units to 480,000, according to the newly released 2016 Dodge Construction Outlook.  That level of gain would be at a slower pace than 2015’s growth, but it is still a gain as continuing development is extended by low vacancies, rising rents and the demand for apartments from millennials, the report released by Dodge Data & Analytics said.

But the growth in commercial building will again be led by the segment’s historical driver — office development — with an assist in private development and demand from technology and finance firms.

Residential, including single-family homes, and nonresidential U.S. construction starts are forecast to rise by 6% in 2016 to $712 billion on the heels of a 9% increase in 2014 and an estimated 13% jump by the end of this year — the strongest annual gain so far in the current expansion, Dodge Data & Analytics said.

The 2015 hike can be largely traced to the heavy industrial projects at the start of the year, including several massive liquefied natural gas terminals in the Gulf Coast region and new power plants, the company noted.

Continued strength in multifamily construction is behind the strong performance in total residential building, which rose 18% in 2015. Single-family is again registering growth after a no-growth year in 2014.  Total nonresidential building slowed in 2015 after jumping 24% the year before, and is now forecast to be flat to slightly down as a result of a sharp pullback for new manufacturing plant starts and a slight drop-off in momentum by the commercial and institutional building segments, according to Dodge.

Other 2016 forecasts provided by Dodge were:

  • Institutional building will increase 9%, up from a 6% rise in 2015.  Specifically, the educational facilities category is benefiting from the passage of recent school construction bond measures that are spurring increases in K-12 school construction.
  • Manufacturing plant construction spending will drop off by another 1% on the heels of 2015’s 28% plunge caused primarily by the decrease in large petrochemical plant starts.
  • Public works is projected to be in 2015, but the new multiyear federal transportation bill anticipated to pass Congress by the first half of 2016 should spur growth in late 2016 and into 2017.

For more information about Philly office 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 leading Philadelphia commercial real estate broker that specializes in Philadelphia office space.

Wolf Commercial Real Estate is a Philadelphia commercial real estate brokerage firm that specializes in Philly office space, providing 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 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, including Philadelphia office space, 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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Commercial Mortgage Backed Securities (CMBS)

Commercial Mortgage Backed Securities (CMBS): Then and Now (PDF)

by Tim Deegan, Director, Capital Markets, Llenrock Group 
commercial-mortgage-backed-securitiesCommercial Mortgage Backed Securities or CMBS may not be the most glamorous side of commercial real estate, but it’s arguably one of the most influential factors in deal activity. Since 2008-09, the commercial real estate industry has seen a lot of controversy and handwringing around the subject of CMBS, the conduit-based asset-backed securities that played such a pivotal role in pre-recession deals. To be sure, the global economic crisis dried up lending across market and asset type, whether we’re talking about securitized debt or balance sheet lending. But the reasons for bearishness in the capital markets, both at the time and in subsequent years, aren’t simply the volatility of the global economy and poor real estate fundamentals.

During the recession and early recovery, three issues have emerged to complicate CMBS lending–and real estate deal-making in general.

These issues are:
• Pre-recession 5-, 7-, and 10- year Commercial Mortgage Backed Securities debt coming due in the colder post-recession market has made refinancing difficult for some, though in 2015 this dynamic is working itself out for both borrowers and lenders thanks to improved fundamentals.

• Bond-rating and the agencies responsible for this practice have taken a lot of heat for their role in the real estate downturn with critics citing conflicts of interest and institutional pressures as particular challenges to accurate ratings.

• Finally, and this is what we’re talking about today, underwriters and policymakers alike have recognized the need for greater diligence and more strict underwriting to protect both the investors who buy these bonds and the borrowers themselves.

While we have seen cap rates decrease substantially and deal activity increase in the last few years, the conditions of the market today and the mindset of potential buyers do not match the same conditions we saw a decade ago.

Before the downturn, speculators would borrow with the hopes that rising market values would outpace costs. What could possibly go wrong?

A lot of things, it turns out. Still feeling the sting of the financial crisis and its spate of defaults, today’s buyers tend to be more conservative. But as 2015 shapes up to be the biggest year for CMBS issuance since the downturn, underwriting standards are reportedly relaxing to a great extent.

How do we avoid reverting to the sloppy underwriting that contributed to the real estate crisis and its defaults?

Our friends from the SEC have some thoughts on the subject.

Last year, the Securities and Exchange Commission issued provisions calling for significant changes in securities issuance and reporting requirements. The goal of these changes was to restore faith to investors and accountability from CMBS lenders. The intent of circulating Regulation AB was to add additional safeguards beyond reliance on private ratings.

Among these provisions is the requirement that the lending institution’s CEO signs a certification that he or she has reviewed the prospectus and is familiar with the securitized asset, material transaction document and structure. Ultimately, this will urge executives to more closely scrutinize their lending and CMBS issuance.

Since the SEC’s Reg AB updates are only a year old, the jury is still out on whether or not this will curb CMBS lending or limit this lending option to only “slam-dunk” property deals.

While CMBS may be a desirable and modestly affordable capital source for many deals, this market is far from the capital free-for-all of yesteryear. As you work to fundraise your next acquisition, development, or refinancing, bear in mind that CMBS is just one of many options available in today’s capital markets, and it isn’t always appropriate for every deal.

Llenrock Group is a real estate capital advisory firm in Center City, Philadelphia. We feature a talented team of advisors with decades of experience negotiating, structuring, and securing commercial real estate.

For more information, contact:

tim-deegan
Tim Deegan

Director, Capital Markets
Llenrock Group
P 215.501.7017
www.llenrock.com

 

 

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Surge in Architect Billings Portends Well for U.S. Commercial Real Estate Development

new Jason stats graphic - June 2015A surge in architecture billings predicts strong growth for U.S. Commercial Real Estate  development in 2016, a new index says.

The Architecture Billings Index (ABI), which is compiled by the American Institute of Architects (AIA), increased from 49.1 in August to 53.7 in September after experiencing a small drop the month before.  The index has expanded in six of the past nine months of 2015.

The ABI, which is a key indicator for U.S. Commercial Real Estate construction, presents a picture of billable design work roughly nine to 12 months before funds are actually spent on construction.

Another index, the new projects inquiry index, decreased somewhat from 61.8 in August to 61 in September.

The regional ABI remained the weakest in the Northeast at 43.7, while the most robust expansion was experienced in the South and the Midwest, standing at 54.5 and 54.2, respectively. The ABI for the West region was 51.7 in September.

Almost every market and every commercial property type saw increasing construction deliveries and starts in 2015, lately in the retail real estate sector.  The optimistic ABI index is a strong indicator that this hastening pace of development will continue well into 2016.

Fitch Rating also issued a report in October showing that the first eight months of 2015 experienced robust activity for U.S. private nonresidential construction, with the rate of construction spending anticipated to continue strongly through 2016.

From January through August, private nonresidential construction spending jumped 12.1% in over the same period a year prior.  That achievement came on the heels of an 11.3% improvement in 2014.

Manufacturing, office and lodging properties saw the healthiest levels of construction spending.  Fitch predicts the sector will increase by 8.5% in 2015 and 7% in 2016.   Public construction spending for projects such as highway and street construction also grew in 2015, up 5.8% during the first eight months of the year.

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 (lee.fein@wolfcre.com) at Wolf Commercial Real Estate, a premier Philadelphia commercial real estate brokerage firm with expertise in Philly office space and Philly 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 Philly office space or 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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Common Law Considerations in Environmental Contamination Cases

Common Law Considerations in Environmental Contamination Cases (PDF)

by Julie LaVan, Esq. & Michael Kondrla, Esq., LaVan Law 
Whether at the federal, state, or local level, environmental statutes provide commercial property owners significant opportunity to seek and often times, recover costs associated with the remediation of impacted environmental media. But, when aggrieved parties seek non-cleanup costs associated with contamination, they turn to the common law and most often, the theories of nuisance and trespass. While these theories are applied in a variety of legal contexts, they are an undeniably important piece in
the legal strategy of property owners dealing with environmental contamination.

The New Jersey Supreme Court recently heard a case in which the common law theories of nuisance and trespass were put to test in the environmental context. Although the case pitted residential property owners against their neighbors and insurers, the circumstance of migrating environmental contamination onto adjacent properties is nothing new to commercial property owners.

In Ross v. Lowitz, plaintiff homeowners alleged their residence was damaged by the migration of heating oil from an underground storage tank (UST). The plaintiffs brought suit against neighboring homeowners alleging, among other causes of action, private nuisance and trespass. The plaintiffs also sued the defendants’ insurance company, asserting, in addition to claims of nuisance and trespass, that they were third party beneficiaries under the policies.

The factual background in this case is important. In 2003, defendants entered into a contract to sell their Red Bank home and duly engaged an environmental consultant to inspect the property’s UST. The inspection discovered a leak in the UST, whereby home heating oil spread to both plaintiffs’ and defendants’ properties. Defendants notified their insurance providers of same and remediated the contamination on their property. Plaintiffs, who purchased their home in 2004, contended they were unaware their property was contaminated by the migrated heating oil until a prospective sale fell through in 2007. At that time, the Rosses requested defendants’ insurance companies to remediate their property and pay associated expenses. According to the plaintiffs however, the insurers failed to respond to such requests, and a lawsuit was filed in 2008. Thereafter, the defendants’ insurers agreed to remediate plaintiffs’ property and in August 2010, the NJ Department of Environmental Protection (NJDEP) issued a “No Further Action” Letter.

Despite the remediation of their property to NJDEP standards, the defendants sought damages for an alleged loss of use of their home and a diminution in their property’s value, undoubtedly spurred by the cancelled contract for sale in 2007. At the trial court level, the defendants moved for summary judgement, and the court dismissed the nuisance and trespass claims against the Lowitzes and their insurers. The appellate division and Supreme Court affirmed same. In so doing, the Supreme Court clarified the elements to maintain successful common law nuisance and trespass causes of action.
Fundamentally, the theory of a private nuisance derives from a party’s “unreasonable interference with the use and enjoyment” of another’s property. To prevail on such a theory, the interference or invasion of private use and enjoyment of land must be either: intentional and unreasonable; or unintentional and negligent, or the result of an abnormally dangerous activity. The Court, in considering these factors, noted that the storage of heating oil in an UST is not an abnormally dangerous activity, nor were
defendants in any way negligent to support a private nuisance claim.

A defendant is liable in trespass if there is an intentional entry onto the land of another, regardless of harm. Likewise, a defendant is liable for trespass if, through recklessness or negligence, or as a result of an abnormally dangerous activity, enters onto another’s land, and said entry causes harm. The Court again found that the defendant homeowners were not at fault; in fact, they acted reasonably in inspecting the UST, contacting their insurance providers, and remediating the property. Simply put, the
defendants’ conduct showed no signs of an intentional tort, recklessness, and/or negligence.

In regard to the Rosses’ claim they were intended third party beneficiaries of the insurance contracts between defendants and their insurers, the Court found no evidence the plaintiffs were intended beneficiaries when the agreements were contemplated and entered into. The Court further reasoned that migration of oil from the Lowitzes’ property to plaintiffs’ residence in no way “retroactively confer[s] third-party beneficiary status on plaintiffs.”

While this case centers on residential property contamination, the common law foundations of private nuisance and trespass established herein are readily applicable to the commercial sector. The mere presence of contaminants on your, or another’s, property is not enough to support claims of nuisance and trespass in light of this decision. Instead, to maintain successful nuisance and trespass causes of action in this context, one must show an unreasonable intent to cause, or fault or negligence in causing, environmental contamination.

As a commercial property owner, it is important to explore both the statutory and common law causes of action when dealing with environmental contamination. While federal and state environmental laws provide the aggrieved vehicles to recoup cleanup costs, they do not necessarily aid claims of diminution in property value. In a dynamic commercial real estate market, where environmental contamination can compromise a deal, commercial owners should remain conscious of the legal options available to them and contact attorneys versed in the environmental and real estate practices.

For more information, please contact:

julie-lavanJulie LaVan, Esq.
New Jersey Office
11 E. Main Street
Second Floor
Moorestown, New Jersey 08057
(o) 856-235-4079
(f) 856-235-4018

michael-kondrlaMichael Kondrla, Esq.
Philadelphia Office
1515 Market Street – Suite 1200
Philadelphia, PA 19102
(P) 215-854-6398
(f) 215-596-0216

 

 

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WCRE Appointed Exclusive Agent for Three Southern New Jersey Shopping Centers

WCRE was recently Appointed Exclusive Agent for Three Southern New Jersey Shopping Centers for Urban Edge Properties, CGI Companies and The Jemstone Group. (View PDF)

southern-new-jersey-shopping-centers2

November 11, 2015 – Marlton, NJ – The retail practice at Wolf Commercial Real Estate (WCRE) is experiencing growth and expansion along with the firm’s other areas of focus. WCRE is pleased to announce it has been appointed exclusive agent to market three shopping centers for lease in Southern New Jersey. Urban Edge Properties has engaged the firm to market Plaza 42 in Turnersville, which is anchored by Kohls, Ashley Homestore, and Sears Home Appliance Showroom. The Jemstone Group, LLC, has hired WCRE to market available space within Circle Plaza in Egg Harbor Township, which is anchored by TJ Maxx. Also CGI Companies has selected WCRE as exclusive leasing agent for its Fries Mill Shopping Center in Turnersville, a 14,800 square foot retail center.

“We are excited to see our retail presence growing at WCRE. Under the leadership of executive vice president Leor Hemo and our team, I am confident we will be very successful in the marketing of our clients’ shopping centers,” said Jason Wolf, managing principal of WCRE.

Property Highlights:

Plaza 42- 5851 Route 42, Turnersville, NJ:

Plaza 42 is an approximately 207,723 +/- sf shopping center located in Turnersville along Route 42. It is anchored by Kohls, Ashley Homestore, PetSmart, Dollar Tree, and Sears Home Appliance Showroom. Vacancies range from 1,119 sf to 8,000 +/- sf, allowing for tremendous variation and potential. The center is easily accessible from I-295 and the Atlantic City Expressway. Information is available upon request.

About Urban Edge Properties
Urban Edge Properties is a real estate investment trust (REIT) that acquires, develops, owns, manages, and improves shopping centers in and on the edge of urban communities. Its owned portfolio comprises 14.9 million square feet across 83 properties, and it manages an additional five million square feet for other owners. Urban Edge’s core assets are concentrated in the Washington, DC to Boston corridor, and it has a presence in Puerto Rico and California. To learn more about Urban Edge Properties, please visit www.uedge.com.

Circle Plaza- 6716 Black Horse Pike, Egg Harbor Township, NJ:

This 59,788 +/- sf neighborhood center is centrally located off of the Black Horse Pike in Egg Harbor Township, NJ. The shopping center enjoys prime accessibility as well as visibility, with four points of ingress and egress due to entrances off both the Black Horse Pike and Washington Avenue. It is also conveniently located off Exit 37 of the Garden State Parkway. Anchored by TJ Maxx, the Circle Plaza includes tenants such as Payless, Rent-a-Center and many others. WCRE has been retained to market 2,653 square feet for lease within the shopping center. Information is available upon request.

About The Jemstone Group
The Jemstone Group, LLC, is a commercial real estate company that focuses on the management, investment, acquisition and development of retail shopping centers in the Northeast. To learn more about The Jemstone Group, please visit www.thejemstonegroup.com.

Fries Mill Shopping Center – 245 Fried Mill Road, Turnersville, NJ:

This 14,800 +/- sf privately owned highly visible retail center is located at a signalized intersection within a high income residential area and surrounded by medical/professional offices. The property is located within close proximity to Kennedy & Virtua hospitals and offers between 1,600 and 7,000 sf of contiguous space (divisible) with a drive-thru on the end-cap. WCRE has been retained to market the remaining vacant spaces, all of which are available for immediate occupancy. Information is available upon request.

About CGI Companies
CGI Companies is a real estate development, leasing, and management firm headquartered in Brookline, Massachusetts. The firm currently operates several commercial properties, including shopping centers and office buildings, in four different states: Massachusetts, New Jersey, Pennsylvania, and North Carolina. To learn more about CGI Companies, please visit www.cgi-prop.com.

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 & Instagram @WCRE1, and on Facebook at Wolf Commercial Real Estate, LLC. Visit our blog pages at www.turnsersvilleretailspace.com, www.phillyofficespace.com, www.phillyretailspace.com, www.phillymedicalspace.com, www.southjerseyofficespace.com, www.southjerseyindustrialspace.com, www.southjerseymedicalspace.com, www.southjerseyland.com, and www.southjerseyretailspace.com.

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Demand for U.S. Office Space Hits Pre-Recession Peak

new Jason stats graphic - June 2015Demand for U.S. office space hit pre-recession peak as Net absorption of U.S. office space hit its second-highest quarterly total since 2006, registering 29 million square feet in the third quarter 2015 as demand for U.S. office space from expanding companies roughly doubled the new office supply brought to the market, according to a new office market report from CoStar.

CoStar’s State of the U.S. Office Market Third Quarter 2015 Review and Forecast also reported that the first three quarters of 2015 saw 68 million square feet of net office absorption, compared to an average of 30 million square feet during the same three quarters of 2005 through 2007, the period considered the peak of the last office boom.  At the same time, the U.S. office vacancy rate’s gradual decline continued, dropping to 11% in third-quarter 2015, down another 20 basis points from midyear and a 60 basis point decrease from the third quarter a year ago, the report said.

Another key finding from the report noted that a full 65% of U.S. office submarkets experienced a drop in office vacancies in third-quarter 2015, and 52% of U.S. submarkets have office vacancies that are lower than they were during the 2006-07 peak, with most metros posting string rent growth.

The report also highlighted one significant difference from previous office market cycles: the average vacancy rate for high-quality 4- and 5-Star U.S. office space constructed since 2008 has remained flat, even though the 42 million square feet of new office supply delivered to the market in the first three quarters of 2015 is nearly 40% above the same period in 2005-2007, CoStar said.

“We’re at a rare point.  Vacancy in new space has flat-lined since about 2013. What’s interesting about that is the supply pipeline has not caused the rate to spike up nationally, unlike other market cycles,” said Walter Page, CoStar Group, Inc. director of U.S. research, office.  “Office tenants clearly want this new space and are willing to pay for it because obviously, they’re leasing it up.”

Demand for 4-and 5-Star U.S. office space increased by 2.5% between third-quarter 2014 and third-quarter 2015.  That rate compares with just 1.4% in the overall national office market and is nearly three times the demand growth rate achieved for 1-, 2- and 3-Star properties.

Analysts noted that even with an uptick in rental rates, total occupancy costs as a percentage of company profits stayed at their all-time low, with companies continuing the trend to place more workers into fewer square feet, thereby allowing companies to lease higher-quality space.

For more information about Philly office 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 leading Philadelphia commercial real estate broker that specializes in Philadelphia office space.

Wolf Commercial Real Estate is a Philadelphia commercial real estate brokerage firm that specializes in Philly office space, providing 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 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, including Philadelphia office space, 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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Purchase and Development of Wetlands Property

Purchase and Development of Wetlands Property (PDF)

By Dan Caldwell, Principal, Stout & Caldwell Engineers, LLC – November 6, 2015

new-jersey-wetlandsHistorically, wetlands were viewed as useless areas of land that were filled or used for refuse disposal. However, freshwater and coastal wetlands play a vital role in the functioning ecosystem providing a unique habitat for many species of flora and fauna, and also providing other important functions including enhancing water quality by removing nutrients and serving as storage for floodwaters.

To protect its integrity, wetlands are regulated at the Federal and State levels, and increasingly by many county and municipal agencies. The potential impact of wetlands upon a particular property’s value and development potential needs to be considered in all real estate transactions or development projects.

In general, specific to property purchase and development, wetlands should be looked at by employing
a three step process:

STEP 1 – IDENTIFICATION
Using the methodology established by the US Army Corps of Engineers, the presence, absence and/or limits of wetlands are identified and established. This is done through an extensive investigation of soils, vegetation and hydrologic indicators used in identification of wetlands. This investigation should be completed by a qualified individual with the proper training, familiarity and expertise employing proper
techniques to accurately evaluate a particular property specific to the presence of wetlands.

STEP 2 – VERIFICATION
Once areas of wetlands have been identified on a property, their limits (boundaries) should be verified by the respective overseeing governmental agency. Dependent upon a particular wetlands resource value, function, configuration and watershed affiliation, the extent to which particular wetlands area will be regulated can be established. In addition, as part of the verification process, establishment of upland transition areas (wetland buffers) are also made. Wetland buffers are also strictly regulated as
important parts to a functioning ecosystem and further protect the adjoining wetlands from adjacent
development activities.

STEP 3 – MANAGEMENT
The identification of wetlands on a particular property does not negate property value or prevent development. Rather the presence of wetlands is something which needs to be managed as part of the development process. A development design must take into account the areas of wetlands and their associated buffers. Wetlands and wetland buffers can further be managed through various
permitting options which may allow certain activities to occur within wetlands and wetland buffers. Early identification however is the key to the proper management of wetlands. This approach prevents the potential need for expensive project redesign and schedule delays.

Stout and Caldwell Engineers, LLC has the experience, technical expertise and familiarity with the
regulatory environment to successfully address wetland related issues and its potential impact upon your property or proposed project. We provide consultation for homeowners, developers, and prospective land buyers for simple and complex projects.

dan-caldwell


Dan Caldwell, Principal – Stout & Caldwell Engineers, LLC
705 US Route 130 South
PO Box 2290
Cinnaminson, NJ 08077

Phone
856-786-2202
Fax 856-786-3050
www.stoutcaldwell.com

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