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Monthly Archives: December 2015


Retailers, Investors Seek to Entice Shoppers with New Experiences

new Jason stats graphic - June 2015With consumer confidence and spending on the rise, retailers and retail investors hope to capture a greater portion of consumer dollars by offering shoppers “treasure hunt” experiences that deliver valuable merchandise at low prices and embrace the “shopping, dining and entertainment” concept, a new Costar news report says.

Retailers, malls and shopping centers can no longer rely on location alone to attract shoppers, the report said, but must court customers with bargains and the promise of a shopping experience that is fun, surprising and entertaining.

Stores that achieve this goal will have the strongest growth during the next year, while those that don’t will fall behind in 2016, the CoStar news report said.

Expect 2016 to bring “renewed focus on redevelopment of existing centers, expansion when possible and repositioning of shopping center properties and introduction of new retailers and formats by owners to create buzz and ambiance and better serve their trade areas,” according to the report.

Despite the improved economy, the report noted, many consumers remained committed bargain hunters, a trend that is reflected in the tenant mix in retail centers nationwide.  In fact, the off-price apparel and footwear market registered nearly $45 billion in revenue in 2015, a hike of more than 40% since 2009, the news report said.

Long-time value retailers such as T.J. Maxx and Ross Dress for Less are old pros at promoting the “treasure hunt’ strategy, incorporating a smattering of higher-end products into their merchandise mix to keep consumers coming back in hopes of snagging a real bargain.

But this retail sector is getting crowded as higher-end department stores and apparel retailers increasingly introduce their own value-concept establishments, including the highly successful Nordstrom Rack, as well as Saks OFF 5TH, Macy’s Backstage and the newcomers in this sector, J. Crew Mercantile and Find@Lord&Taylor.

Luxury Retail Market

Even as consumer demand for value-priced merchandise ramps up, luxury stores continue to attract a steady flow of shoppers. Look for high-end retailers in 2016 to focus more on “experiential” retail settings that aim to provide customers more reasons to linger and explore, primarily by offering more restaurants and entertainment venues, the report said.

Mall owner Simon Property Group, for example, has created luxury “wings” within malls that are anchored by high-end chain stores such as Neiman Marcus. Other mall owners have introduced sophisticated mobile apps that provide tech-savvy shoppers a virtual treasure map to find everything they need in the mall, or even within the mall’s individual stores, CoStar reported.

“Clearly, conventional retail has stepped up its game to compete with, and more importantly, complement online retail,” one expert said in the news report.

2016 Predictions

Demand for physical retail space in 2016 is expected to outpace the growing yet still modest level of new store construction and deliveries, the news report said.

“We’ll continue to see slow and steady upticks in national occupancy, driven by the expansion of the U.S. economy along with the continued low levels of new supply, with construction of retail space still at historical lows,” one retail research expert said.

But look for shopping centers delivered in 2016 to be smaller in size than in recent years, with the majority of anchors remaining on the sidelines and many retailers reducing their physical space needs, according to one retail broker, who predicted that restaurants (especially fast casual), grocery, fitness, fast fashion and discount apparel would see the strongest growth in 2016.

Necessity-based establishments — such as grocers, drug and fuel retailers, and value-oriented stores — will see more expansion in 2016 if the rental rates they can afford are available.  Many of these retailers are actively seeking to expand, but face difficulty finding store locations that fit their needs.  Others are hesitant about moving up to the rents that would support both new development and redevelopment, according to the news report.

Investors Look for Retail Value

Consumers won’t be the only ones looking for value in 2016.  It’s also a goal for investors seeking returns in the rush of new capital pouring into retail real estate, which is expected to hit $50 billion in investment sales transactions by year end 2015.

A greater portion of that investment money is expected to trickle down from malls and large shopping centers to smaller strip and neighborhood centers in 2016, CoStar predicts.

With financial backers preferring larger shopping centers in previous cycles, sales of the smaller retail centers have represented a much lower percentage of total investment volume than in the past.  Malls and power centers represented about half of retail investment in recent years, a disproportionately high share compared to past cycles, CoStar said.

But that tide is about to turn as smart money looks to invest in smaller centers.  One result could be more large anchor or big box stores being revamped to hold multiple junior anchors, the news report noted.

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 premier Philadelphia commercial real estate brokerage firm 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 broker 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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Sale Leaseback Strategies for the New Year

Sale-Leaseback Strategies

Companies often have significant capital tied up in real estate holdings, even when they’re not in the business of owning real estate. For companies where real estate is not their primary business, a sale- leaseback can unlock the capital tied up in real estate for more productive purposes.

What does a sale leaseback involve?

A sale leaseback occurs when an owner/occupant of real estate sells the property to a third party, and simultaneously enters into a lease to continue occupying the premises. A typical sale-leaseback transaction involves a lease that is 7 to 15 years with triple net terms, meaning the tenant retains most expenses associated with operating and maintaining the property. The seller (now tenant) retains long-term control of the property, and the buyer (now landlord) obtains an investment with a reliable cash flow.

What’s in it for the seller/tenant?

A sale-leaseback can free up capital that he been tied up in owned real estate for investment in the tenant’s core business, or for more profitable investment vehicles. Companies that are in an expansion phase also find sale/leaseback a useful tool. A sale leaseback provides a greater return of cash than a mortgage, due to the typical loan-to-value restrictions of traditional real estate financing.

A sale-leaseback can be attractive for companies that have below-investment grade credit, although the overall creditworthiness of the tenant does affect the sale price. In certain circumstances, a sale-leaseback can also have positive effects on the tenant’s financial statements, creating a lower debt-to-equity ratio. There may also be tax advantages, depending on the terms of the lease and how it is classified.

What’s in it for the buyer/landlord?

Purchasers in a sale-leaseback transaction gain a reliable stream of income and the potential to capture appreciation of the real estate value. The long term nature and triple net terms of most sale-leaseback arrangements also mean that a buyer has a reduced risk of vacancy, as well as minimized operating and management expenses.

What kind of property is right for a sale-leaseback?

Office, retail, medical and industrial properties are all candidates for a sale-leaseback. In general, the more uses a property has, the more attractive it is as an investment vehicle; purpose-built properties are of slightly lesser value.

A company should consider a sale-leaseback in the context of its overall strategic goals. The cost of alternate capital, as well as the specific tax and accounting implications of the transaction, should also be examined.

WCRE’s commercial real estate experts can provide guidance and advice to owners considering a sale-leaseback transaction, as well as local or national opportunities for those seeking sale-leaseback property as an investment.

For More Information Contact:

Tony-ManninoAnthony V. Mannino, Esq.

P: 856 857 6300

D: 215 799 6140

F: 856 283 3950

M: 215 470 6084

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Commercial Real Estate Lenders Warned to Avoid Risky Practices

new Jason stats graphic - June 2015Federal banking agencies are urging commercial real estate lenders to maintain prudent risk-management practices, warning that they will intensify oversight of commercial real estate lending practices in 2016.

In a statement seen as a “stark warning” to commercial real estate lenders, the federal agencies noted that many commercial real estate asset and lending markets have experienced substantial growth, increased competitive pressures, escalating commercial real estate concentrations in banks, and a lessening of commercial real estate underwriting standards, according to a new report from the CoStar Group.

The agencies specifically called attention to the higher concentration levels of commercial real estate loans at many banks as a result of the reassuring trends in asset-quality metrics, CoStar said.

This has caused competitive pressures to rise and commercial real estate underwriting standards to lessen, including less-restrictive loan covenants, extended maturities, longer interest-only payment periods, and limited guarantor requirements, CoStar noted in the news report.

The agencies also noted concern about specific commercial real estate risk management practices at some institutions, including an increase in the number of underwriting policy exceptions and inadequate monitoring of market conditions to properly assess risks linked to the concentrations.

The agencies reinforced existing guidelines for commercial real estate risk management, urging  institutions to preserve underwriting discipline and perform risk-management practices “to identify, measure, monitor, and manage the risks arising from CRE lending,” according to the news report.   The agencies also advised lenders to adhere to risk-management practices and maintain capital that is appropriate to the level and nature of their commercial real estate concentration risk, CoStar reported.

In 2016, the banking agencies said they would review commercial real estate lending activities, paying particular attention to banks that have undergone recent significant growth in commercial real estate lending, or institutions whose lending strategies include plans to substantially increase commercial real estate lending activities.  Institutions that operate in markets or loan segments with increasing growth or risk fundamentals also will come under closer scrutiny, according to the CoStar news report.

The statement noted that banks found to have deficient commercial real estate risk management practices and capital strategies may be required to “develop a plan to identify, measure, monitor, and manage CRE concentrations, to reduce risk tolerances in their commercial real estate underwriting standards or to raise additional capital to mitigate the risk associated with their CRE strategies or exposures,” CoStar  reported.

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 leading 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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Lease Security Deposits in New Jersey

Lease Security Deposits in New Jersey (PDF)

By Stacy L. Asbell, Esquire Hyland Levin LLP December 18, 2015
Generally, a lease security deposits in New Jersey are a landlord’s security for the tenant’s performance of its obligations under the lease. In the event the tenant does not uphold the tenant’s responsibilities under the lease, the security deposit can be a remedy for the landlord. In New Jersey, there are strict rules for the collection, retention and return of security deposits held by landlords in connection with residential leases. Unlike residential leases, security deposits in commercial leases are a matter of negotiation between the parties.

Commercial Security Deposits in New Jersey

The amount of the security deposit in commercial leases can be influenced by many factors including the amount of rent being paid by the tenant, the amount of up-front investment to be made by the landlord and the financial strength of the tenant and any guarantors. The parties should consider the following in reviewing the security deposit in a lease:

• Will the landlord be obligated to keep the security deposit in a separate account? Practically, most commercial landlords want flexibility to comingle the security deposit with other accounts.

• Will the security deposit be maintained in an interest bearing account and will the tenant be entitled to the interest? Commercial landlords take the position that the tenant is not entitled to the interest on thesecurity deposit if it is maintained in an interest bearing account.

• What is the security deposit intended to protect? Commercial landlords want the right to use the security deposit to secure any and all tenant obligations under the lease. Alternatives include restricting the use of the security deposit to secure only monetary terms, like rent or damage to the leased premises. Tenants should be wary that broader coverage of all claims by the security deposit will permit a commercial landlord to use the remedy as a means of “self-help.”

• Will the application of the security deposit to a tenant default cure the default? In negotiating the security deposit, commercial tenants may want to include provisions that the application of the security deposit will be considered the landlord’s election to cure the tenant default and therefore, the landlord is then prohibited from terminating the lease or evicting the tenant.

• Will the tenant be required to replenish the security deposit in the event the Landlord applies all or a portion of the security deposit to a breach? Consistent with the application of the security deposit to cure a breach, commercial landlords will require the tenant to immediately replace the funds previously applied. This can result in multiple breaches under the lease in the event the tenant defaults and then fails to replenish the deposit.

• What will be the form of the security deposit? Most security deposits will be in the form of cash security or a letter of credit. While letters of credit can be adequate security, the landlord will want to consider: (i) what bank is issuing the letter of credit and its creditworthiness; (ii) whether the letter of credit is irrevocable; (iii) whether a partial draw on the letter may be made; (iv) the term of the letter of credit, which should extend for a period beyond the lease expiration; and (v) what documentation and acts are required by the bank to release the money to the landlord. Letters of credit also have an added benefit as they are not considered part of the tenant’s estate in the event the tenant declares bankruptcy. This means that, unlike the cash security deposit, the letter of credit is not subject to restrictions of the bankruptcy automatic stay.

• Will any portion of the security deposit be released during the term of the lease? Some tenants are able to negotiate “good boy” provisions allowing a portion or all of the security to be released if all payments to the landlord are made on time for a set period. For example, if all rent payments are timely made for two years, half of the security deposit may be returned to tenant.

Residential Security Deposits in New Jersey

Unlike commercial leases, the security deposit in a residential lease is governed by the Security Deposit Law, NJSA §46:8-19 et seq. The Security Deposit Law applies to the rental of all premises used for dwelling purposes pursuant to a lease, contract or license except owner occupied premises with not more than two rental units. Unlike commercial leases, where the security deposit provisions are negotiated, residential landlord are limited by the Security Deposit Law to the following:

• The landlord may not collect more than 1½ times the monthly rent as security.

• If the residential Landlord is receiving deposit money from ten (10) or more units, the landlord must invest the money in an insured money market or deposit the money in a variable rate account at a state or federally chartered bank. Residential landlords receiving deposits for less than ten (10) rental units are required to deposit the money in a state or federally chartered bank in an account bearing interest on
time or savings deposits. Landlords of seasonal rentals (rentals for a term of 125 days or less by a person with a permanent place of residence elsewhere) are not required to comply with the Security Deposit Law investment requirements.

• Interest on the deposit belongs to the tenant.

• Residential landlords are not permitted to commingle the deposit money with other accounts.

• Residential landlords are required to give each tenant a statement notifying the tenant of the location of the security deposit within 30 days of receipt of the deposit. In the event the landlord fails to notify the tenant of the location of the deposit, the tenant may require that the security deposit plus 7% interest per year be applied toward any rent due and owing as a penalty.

• Residential landlords are required to return the tenant’s security deposit within 30 days after termination of the lease along with the tenant’s portion of the interest.

Security deposits are typically assigned in the event of the sale of the leased property. The new owner should be responsible to each tenant for the full amount of the tenant’s deposit, and in the residential setting, the new owner will be responsible whether the new owner is the assigned the security deposit or not at closing. Residential landlords need to be careful to comply with these rules at lease commencement and on an ongoing basis.

Security Deposits in New JerseyStacy L. Asbell, Esquire: Hyland Levin LLP
www.hylandlevin.com

Practice Areas:
– Transactional Real Estate and Finance
– Real Estate Leasing
– Estate Planning
– Estate Administration
– Property Taxation

 

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Winter HVAC Tips

Weather the Winter with These HVAC Tips (PDF)

BY ED HUTCHINSON, PRESIDENT, HUTCHINSON MECHANICAL SERVICES
Hutchinson Mechanical Services, a leading mechanical services contractor serving the Tri-State Region’s commercial customers, offers HVAC tips to help add life to your systems, keep you comfortable this winter and improve your bottom line.

1. KEEP YOUR THERMOSTAT UNDER 70° F
Set your thermostat at 68°during the day and at 60° at night. You can save approximately 3% on heating costs for every degree under 70. There are a variety of web and cloud based comfort control systems available today to ensure that these settings are maintained, and employees will not have to worry or remember to adjust the settings when they leave the office.

2. CLEAN OR REPLACE FILTERS EVERY MONTH
A dirty filter restricts airflow and makes the system work harder than necessary. By cleaning or replacing filters regularly, you’ll improve efficiency and ensure a more comfortable environment.

3. ESTABLISH A PREVENTATIVE MAINTENANCE PROGRAM FOR YOUR HVAC EQUIPMENT AND SYSTEMS.
Routine cleaning can have a significant impact on energy efficiency, according to the Federal Energy Management Program (FEMP)’s O&M Center of Excellence.
• Change or clean all air filters, preferably every month.
• Repair leaks in piping, air duct s, coils, fittings and at the unit( s).
• Replace defective equipment insulation, ducting and piping.
• Install/upgrade HVAC controls to include new energy management systems technologies.

4. PREVENT FROZEN PIPES
• Insulate pipes.
• Seal air leaks to keep the cold out.
• Shut off and drain water from pipes leading to outside irrigation. Before winter hits, disconnect garden hoses and, if possible, use an indoor valve to shut off and drain water from pipes leading to outside irrigation.
• Trickle water. Hot or cold water will help keep your pipes from freezing. Let warm
water drip overnight from a faucet on an outside wall.

5. CLEAN HEATING DUCTS
Heating ducts should be cleaned periodically to allow efficient heating and provide fresh, clean air. A routine inspection will ensure there are no punctures, dents or disconnected parts. Damaged ducts can raise your heating bills by blowing wasted warm air. Also check to make sure the ducts are properly insulated.

6. TAKE ADVANTAGE OF ENERGY EFFICIENT PROGRAMS
Hutchinson is a Participating Contractor in New Jersey’s most successful Clean Energy Program – Direct Install. Direct Install currently pays up to 70 percent of the cost of energy efficiency upgrades for businesses and local governments. Through the program, Hutchinson provides prospective customers with a FREE energy assessment to identify eligible equipment, including lighting upgrades, HVAC, refrigeration, motors, natural gas equipment and variable frequency drives.

7. REPLACE INEFFICIENT, OUTDATED OR EXCESSIVE LIGHTING WITHIN YOUR BUILDING
Regardless of the season, replace existing light bulbs with compact fluorescents and LED’s which produce three to four times as much light per watt as incandescent bulbs.

For More HVAC Tips, Contact Hutchinson to schedule an energy assessment appointment.

ed-hutchinson
Ed Hutchinson, President

Hutchinson Mechanical Services
(888) 777-4501
www.hutchbiz.com

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Philadelphia Retail Space Takes Center Stage in Market East Rebirth

From the time of the 19th century shambles and horse-drawn trolleys, Philadelphia’s East Market Street has been a center of commerce and transportation in the City. This corridor of retail space in Philadelphia has certainly seen its ups and downs. Even with the opening of the Gallery in 1977, the consolidation and demise of Philadelphia’s great department stores left a void of high-end Philadelphia retail space, and when it was filled again at the turn of the century it was Rittenhouse Row (and more recently, west Chestnut Street) that took the place of Philadelphia’s go-to shopping corridor.

Market East Rebirth revised 12-7-15The next few years will see Market East move toward regaining its status as “Philadelphia’s Main Street,” as more than 1.6 million square feet of new and renovated Philly retail space is expected to come on line.

Retailer Century 21 led the way in 2014 with its 100,000-square-foot store at 8th & Market, its first location outside New York City. The pending PREIT/Macerich renovation of The Gallery as a premium outlet center has received the most attention as current vendors and retailers are relocated for the multi-year remake. An overlooked aspect of this Philadelphia commercial real estate project is that it will break down the monolithic walls of The Gallery – literally – to create more active Philadelphia retail space uses at street level that will make Market Street more inviting to foot traffic than it has been in the nearly 40 years since The Gallery was built.

On the south side of the street, National Real Estate is in the midst of constructing a 775,000 square foot mixed-use development consisting of 322 residential units, as well as Philly commercial properties that include office space, hospitality, parking and retail. National’s Philadelphia commercial real estate development will also open up the block to provide greater pedestrian access to Chestnut Street, where Brickstone Realty is developing several Philadelphia commercial properties, the most notable being 112 apartment units and 95,000 square feet of retail on the 1100 block of Chestnut.

Although rents have remained relatively stable, occupancy rates for retail space in Philly have dramatically increased over the last 10 years. With Greater Center City now home to more than 183,000 people, and a record number of upcoming bookings at the nearby Convention Center, demand for retail space in Philadelphia should remain strong for the foreseeable future.

mannino spFor more information about Philly retail space or other Philadelphia commercial properties, please call 215-799-6900 to speak with Anthony V. Mannino, Esq., Vice President-Corporate Strategies, at Wolf Commercial Real Estate, a leading 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 Philly commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking retail space in Philly with the Philly commercial properties that best meet their needs.  As experts in Philadelphia commercial real estate listings, including retail space in Philadelphia, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about retail space in Philly and other Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for 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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Bank Growth Spurred by Commercial Real Estate Lending

new Jason stats graphic - June 2015Commercial real estate lending provided the strongest impetus for bank growth in the third quarter 2015, according to a CoStar News report.

Commercial real estate loans and securities contributed $46.5 billion to the growth in FDIC-insured banks and savings and loans in the third quarter 2015 from mid-year to $15.89 trillion, CoStar said in the report.

CoStar noted that the largest gains in commercial real estate lending came from nonfarm nonresidential real estate loans, which were up $23.8 billion, or 2% for the quarter.  Multifamily residential real estate loans increased $13.9 billion, or 4.4%, and real estate construction and development loans were up $10.3 billion, or 4%, the report said.

Despite the positive quarterly results, FDIC chairman Martin J. Gruenberg urged banks to pay attention to signs of growing interest-rate risk and credit risk, noting that the industry was in the “phase of the credit cycle when lending decisions are made that could lead to future losses.”

“Timely attention by banks to address these growing risks will benefit banks and contribute to the sustainability of the current economic expansion.” Gruenberg said.

Investment securities at banks rose by $25.9 billion, or 0.8%, with most of the growth coming from an increase in mortgage-backed securities, which rose $31.2 billion, or 1.7%, CoStar said in the report.

Total commercial real estate loans at all commercial banks and savings institutions now stands at $1.8 trillion, in comparison to a total of $1.63 trillion in commercial real estate loans at the mid-year 2007 peak of the commercial real estate market, according to the report.

Delinquent commercial real estate loans total dropped for the 21st consecutive quarter.  Total delinquent commercial real estate loan balances stood at $20.96 billion, down 6.6% , the news report said.

Total dollar volume of foreclosed commercial real estate properties held by banks was $9.45 billion at third quarter 2015 end, a decline of 10% from the second quarter, CoStar said, noting that 55% of the $9.45 billion was on construction and development properties.

Aggregate net income for FDIC-insured institutions stood at $40.4 billion at the end of September 2015, a drop from the $43 billion reported at the end of June 2015, CoStar said.

Nearly 60 percent (58.9%) of the 6,270 insured institutions reporting third quarter financial results noted year-over-year growth in quarterly earnings, slightly less than in the previous quarter.

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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Commercial Property Fire Coverage

Commercial Property Fire Coverage (PDF)

By Brian Blaston, Hardenbergh Insurance Group
A fire in your workplace can be extremely costly; in addition to the costs associated with fixing the damages, there is also a good chance that your day-to-day business activities will be interrupted during the repairs. To avoid potential expenses related to workplace fires, it is important that you have adequate commercial property fire coverage, which is included as part of most property insurance policies for commercial buildings. However, it is important that you understand your policy to make sure it provides all the commercial property coverage you need and that you aren’t paying too much for premiums.

TYPES OF COVERAGE

There are two primary factors that come into play when dealing with fire protection. Make sure your coverage incorporates them both to make sure you won’t be left holding the bill.

COMMERCIAL PROPERTY: This is the portion of your policy covers the building itself and the equipment in it. When there is a loss to physical assets caused by a fire, this is what pays for replacement and repair costs.

COMMERCIAL CASUALTY: In the aftermath of a fire, there may be a time period where you may not be able to conduct business, often due to a damaged workspace. This part of your policy will cover any loss of revenue during the recovery period of a fire. Coverages will offer different levels of protection based on your policy. Review your situation to ensure that the amount of coverage is comparable to your potential risks.

FIRE SPRINKLER SYSTEM CREDIT

You can greatly reduce your premiums for commercial property fire coverage by installing a sprinkler alarm system. With some insurance providers offering 10 to 60 percent discounts, these systems can quickly pay for themselves. However, to get your full credit, you have to make sure that your system is reviewed regularly.

According to the Insurance Services Office (ISO), many organizations receive partial to no credit on their fire insurance expenses for having a fire sprinkler system in place. This is because the facility and the sprinkler system have not been properly inspected in order to provide full credit. At the request of your insurance company, ISO can inspect your facility and develop an accurate credit on your fire insurance, which will reduce your overhead costs and increase your bottom line.

FIRE SPRINKLER EVALUATION PROCESS

The ISO fire sprinkler evaluation process consists of a review of the following areas:
• The system design is based on the requirements of occupancy
• Adequate water supply
• System installation and components
• System test
• An inspection of building areas without sprinklers
• Building conditions that could affect sprinkler operation

NECESSARY TESTING AND CERTIFICATIONS

The following must be reviewed or completed before you receive an ISO credit:
• Main drain test
• Copy of the Underground and Overhead Piping Hydraulic Test Certificate
• Dry pipe trip test results (applicable to systems with dry pipe valves only)
• Fire pump performance test results (systems with fire pumps only)
• System design criteria evaluation through a review of the sprinkler plans, hydraulic calculations or hydraulic data plaque information.

COUNT ON THE EXPERTS

When it comes to getting the appropriate commercial property fire coverage at a reasonable price, Hardenbergh Insurance Group is here for you. Learn more about fire risk mitigation and how you can receive full credit for your fire sprinkler system by contacting us at (856) 489-9100.

For more information, contact:

commercial-property-fire-coverageBrian Blaston
Commercial Lines – Manager
Hardenbergh Insurance Group
phone: 856.489.9100 x 139
fax: 856.673.5955
www.hig.net

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Wolf Commercial Real Estate Adds VP of Corporate Services and Portfolios

Ever-Growing Area Firm Hires Drew Maristch to Expand Portfolio Management and Corporate Services in the Philadelphia Region. (View PDF)

drew-maristchWolf Commercial Real Estate (WCRE) is pleased to announce the hiring of Andrew “Drew” Maristch III, who will serve as Vice President of Corporate Services and Portfolios. Maristch brings nearly 15 years of corporate and commercial real estate experience to the firm, including more than a decade of corporate representation and tenant advisory experience. He will be a key leader tasked with expanding WCRE’s presence in the Southeastern Pennsylvania office market, and his negotiation skills, national network, creativity, and extensive understanding of respective rights and obligations of landlords and tenants will be prized assets to WCRE’s clients.

Drew Maristch’s most recent position was Director of Leasing and Corporate Operations at alphabroder, where for 12 years he managed a diverse four million square foot national real estate portfolio consisting of warehouse, call center, corporate office, and retail space, for the billion-dollar enterprise. Serving as the sole leader of the real estate department, he led site selection, space planning, contract negotiation, relocation, expansion, subleasing, and property management. Maristch will continue to manage this same portfolio as part of the duties of his new position.

“Each new member of our team strengthens our ability to meet specific needs and build even more successful relationships with our clients and community,” said Jason Wolf, founder and managing principal of WCRE. “Drew brings a unique skill set that will allow WCRE to serve clients in new ways, and capture new landlord representation opportunities in southeastern Pennsylvania and in other markets.”

Maristch is WCRE’s second hire of the fourth quarter. Recently Anthony Mannino, Esq., a former longtime chief of staff in Harrisburg, joined the firm in the newly created position of Vice President of Corporate Strategies. The pair join Lee Fein and Brian Propp in focusing on WCRE’s growth in Pennsylvania.

In addition to his professional accomplishments, Maristch exemplifies WCRE’s core values, especially commitment to the community. He has organized and promoted several charity ice hockey events to benefit Alzheimer’s Association Delaware Valley Chapter and has served on the organization’s development committee. Currently he is active on the Citizen’s Council for Cherry Hill Township.

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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