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Monthly Archives: May 2016


Growth in U.S. Property Prices Bounces Back

new Jason stats graphic - June 2015Commercial property price growth in the U.S. commercial real estate market – including Philly office space and Philly retail space – picked up in April after a slower than expected first quarter, according to the latest CoStar Commercial Repeat Sales Index (CCRSI) released this week.

The two major CCRSI indices analyzing the U.S. and Philadelphia commercial real estate market rebounded during the month as investors returned to the market and resumed sales activity after a pull-back at the beginning of the year. The value-weighted U.S. Composite Index increased 0.9% and the equal-weighted U.S. Composite Index grew 0.6% in April 2016.

This report on national and Philadelphia commercial properties was made through Philadelphia commercial real estate broker Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm.

Sales of U.S. and Philadelphia commercial real estate properties remain muted compared with last year, reflecting the slow start. Composite pair volume of $33.4 billion year-to-date through April 2016 was down 9.2% from the same period last year.

The sales of national and Philadelphia commercial real estate listings reflected the general economic slowdown seen in the first quarter as financial market volatility over global political concerns took a toll on the general economy at large. Due to the slow start to the year, CoStar analysts do not expect property price growth in the U.S. commercial real estate market to match the record pace of the last two years.

The investment-grade segment of the market – including Philly office space and Philly retail space – was hit particularly hard. Transaction volume was down 11.2% in the investment-grade segment and 4.1% in the general commercial segment in the first four months of 2016 from the same period in 2015.

However, liquidity measures indicate continued healthy investor sentiment for U.S. and Philadelphia commercial real estate listings, and the positive outlook for CRE fundamentals suggests the asset class should continue to attract investor interest.

The average time on the market for for-sale properties dropped 19.7% in the 12-month period ended in April 2016 and the sale-price-to-asking-price ratio narrowed by 2.9 percentage points in the 12-month period ended in April 2016 to 94.3%, the highest this ratio has been since August 2006 and further indication of positive investor sentiment.

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 broker that specializes in Philly office space and 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 with expertise 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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Changes to Commercial Title Insurance are Coming

Changes to commercial titleImportant changes to commercial title insurance are taking place this year. This article, by Annemarie Caruso, of Surety Title, explains many of these changes.

Download the article.

By Annemarie Caruso, Business Development, Surety Title Company, LLC May 27, 2016

There have been significant changes in 2016 for the American Land Title Association (ALTA) pertaining to minimum survey standards, as well as an approved rate increase for title insurance premiums in Pennsylvania.

The ALTA Survey Standards were first adopted in 1962 as an effort to have the land surveyors provide surveys that were consistent and contained the features required for underwriting purposes. The commercial real estate market refers to this survey as the ALTA/NSPS (previously the “ALTA/ACSM”) Land Title Survey, also known as the “ALTA Survey”. The ALTA Survey must meet minimum standards set forth by the American Land Title Association (ALTA) and the National Society of Professional Surveyors (NSPS), formally the American Congress of Surveying and Mapping (ACSM), in order to meet reliability requirements for insurance purposes.

An ALTA Survey depicts items not shown on a typical boundary survey. The ALTA Survey is a comprehensive boundary survey which includes, but is not limited to, all improvements, easements and matters of record that are disclosed by the Title Commitment to Issue Title Insurance. In certain circumstances, the title company may remove the standard survey exception, in its entirety, from the policy or take an exception to the policy addressing specific items as shown on the ALTA/NSPS Survey. This type of survey is preferred by parties engaged in commercial transactions as it provides nearly all the information required when acquiring, selling or lending in a transaction.

Changes To Commercial Title Insurance This Year

Effective Tuesday, February 23, 2016, the ALTA/NSPS adopted changes to the listing of items to be included in a standard survey, known as the “Table A Items”. The “check the box” items on Table A have been updated in some useful ways that will modify what appears on a typical survey.

The following are the Table A Items that have been significantly changed for an ALTA/NSPS Land Title Survey:

  • ITEM 6(a) and 6(b), ZONING INFORMATION TO BE PROVIDED BY CLIENT, NOT TITLE COMPANY
  • ITEM 8, SUBSTANTIAL FEATURES OBSERVED BY THE SURVEYOR
  • ITEM 9, PARKING AREAS
  • ITEM 11, LOCATION OF UTILITIES.
  • ITEM 13, NAMES OF ADJOINING OWNERS BASED ON CURRENT TAX RECORDS.
  • ITEM 18, DELINEATION OF WETLANDS
  • ITEM 18, NO NEED TO SHOW CERTAIN ENVIRONMENTAL AREAS) ON THE SURVEY.
  • ITEM 19, OFF-SITE EASEMENTS OR SERVITUDES
  • ITEM 20, PROFESSIONAL LIABILITY INSURANCE

(Note: Table items 1., 2., 3., 4., 5., 7., 10., 12., 14., 15., 16., and 17. Have no significant changes)

In addition to the ALTA/NSPS Survey requirements, there have been significant rate changes for Pennsylvania. Effective May 1, 2016, the Title Insurance Rating Bureau of Pennsylvania (TIRBOP) instituted an amended Manual of Title Insurance for the Commonwealth of Pennsylvania. All closings occurring on or after May 1, 2016, are subject to a 12% premium rate increase, which is reflected in the new Schedules of Rates in the manual. The new rate program is applicable to both Residential and Commercial sale and nonsale transactions. For example, the title insurance premium for $250,000 in coverage in a purchase transaction will increase from $1,650.00 to $1,880.00. The last increase in Pennsylvania Title Insurance rates was July 1 of 2012.

Although approved months ago, the industry had remained largely silent on publicizing the rate increase, not wanting to aggravate consumers with additional real estate settlement costs during an otherwise auspicious and opportunistic industry cycle. Regardless of the premium increase, title insurance remains a significant aspect of a property owner’s due diligence process. The title insurance owner’s policy protects property owners for the entire duration that the real estate is owned by the insured.

Note, TIRBOP has also made changes to several policy forms and endorsements as well as the closing protection letter.

For additional information on the changes to the ALTA/NSPS Land Title Survey standards or the TIRBOP rates and forms, please contact your Title Agency Representative at Surety Title Company, LLC.

For more information contact:
Annemarie Caruso writes about changes to commercial title insurance.

Annemarie Caruso
Business Development
acaruso@surety-title.com

Cell: 267-698-9390
Direct: 215-394-4321
Office: 856-988-8900
E-Fax: 856-857-6737

530 S. 2nd St., Suite 109
Philadelphia, PA 19147

11 Eves Drive, Suite 150
Marlton, NJ 08053

www.surety-title.com

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Pennsylvania’s New Medical Marijuana Law – Implications for Commercial Real Estate

This article explores the Implications of Pennsylvania’s medical marijuana for commercial real estate.

pennsylvania-medical-marijuanaOn April 17th, Pennsylvania joined 23 other states and the District of Columbia that have legalized some form of medicinal or recreational use of marijuana. Under the new law, specially-licensed physicians will be able to prescribe medical marijuana to patients who have qualifying medical conditions. Of significance to the commercial real estate industry, the product must be be grown, manufactured, and dispensed through highly regulated physical locations within Pennsylvania. The law raises many new and unique issues for those who plan to own or use property related to the marijuana industry.

Pennsylvania’s legalization permits use for medicinal purposes only. The patient must be under the ongoing care of a physician, and prescribing physicians must obtain a special license after completing a course. Patients and/or caregivers will also need an identification card from the state. Unlike some states where prescriptions are issued to walk-in patients on-site, in Pennsylvania the dispensary must be in a different office from the prescribing physician.

medical-marijuanaThe law divides industry participants into two categories: 1) grower/processors; and 2) dispensaries.   There will be up to 25 grower/processor licenses, and up to 50 dispensary licenses. Each dispensary licensee may operate up to three (3) dispensing locations, for a potential total of 150 dispensary sites throughout the state. There will be a thorough licensing process with significant financial qualifications and fees for application. The licensing and regulatory process will be overseen by the Pennsylvania Department of Health, which is expected to issue its initial regulations in November, 2016.

One major difference between Pennsylvania and many states is that leaf or bud marijuana will be prohibited, as will smoking or retail sales of edibles. The only types of medical marijuana initially permitted will be pills, oils, gels, creams, ointments, tinctures, liquid, and non-whole plant forms for administration through vaporization. Access to dry leaf marijuana will not be considered until at least May, 2018.

From a facilities perspective, the law requires that all growing and manufacturing activities take place at an indoor facility. On the retail end, dispensaries may not be located within 1,000 feet of a school or day care. Each type of use is also subject to local zoning requirements, and the land use classification of marijuana facilities is one which may generate confusion at the municipal level. Dispensaries also face the hurdle of community acceptance, although the prohibition on dry leaf sales and smoking could make that process somewhat easier.

The manufacture and sale of medical marijuana presents additional legal and practical issues for tenants and landlords. Much of that complication arises from the fact that the legality of the industry is treated differently under state and federal law. Because marijuana is still illegal under federal law, financial transactions cannot be processed through credit cards or the banking system. As a result, the medical marijuana industry is largely a cash business and security concerns are paramount in storing and transporting what are often huge sums of cash. Physical space must account for these concerns, as well as the security of the product itself. Also, landlords can likely expect to be paid in cash or money order.

Existing contractual provisions and insurance considerations are also a concern. In a multi-tenant property, having a marijuana-related use may violate conditions in other leases. Commercial loans generally prohibit a marijuana use, so a large majority of commercial space may be unavailable to the industry. When there is a marijuana-related use, insurance costs will generally be higher. Finally, while federal prosecutions of state-authorized marijuana businesses are extremely rare, forfeiture laws still place landlords at technical risk. Not surprisingly, industry rents per square foot are significantly higher than market rate – in some cases up to two or three times higher.

One final unknown is the likely demand for medical marijuana space. Medical marijuana has been legal in New Jersey since 2010, but distribution is still limited to five dispensing locations statewide. By contrast, more than one-third of all industrial space in Denver (where recreational use is also permitted) was occupied by marijuana industry growers between 2009 and 2014.

State legalization of marijuana is a trend that is likely to continue for the foreseeable future, and even the growing call for changes to federal law will not eliminate the need to exercise additional care. Anyone entering the industry needs to be aware of the many hurdles, costs, and opportunities presented to owners and tenants of real estate used for medical marijuana manufacture and distribution.

For more information about Philly or New Jersey office space, Philly or South Jersey retail space or other Philadelphia and Southern New Jersey commercial properties, please call 215-799-6900 or 856-857-6300 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 and South Jersey commercial real estate broker that specializes in Philadelphia and Southern New Jersey commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly and New Jersey office space or Philly and South Jersey retail space with the Philadelphia and Southern New Jersey commercial properties that best meets their needs.

As experts in Philadelphia and New Jersey commercial real estate listings and services, the team at our Philadelphia and South Jersey commercial real estate brokerage firm provides ongoing detailed information about Philadelphia and New Jersey commercial properties to our clients and prospects to help them achieve their real estate goals.

If you are looking for Philly or New Jersey office space or Philly or South Jersey retail space for sale or lease, Wolf Commercial Real Estate is the Philadelphia and Southern New Jersey 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.

For More Information Contact:

transfer-taxes Anthony V. Mannino, Esq.

P: 215 799 6900

D: 215 799 6140

F: 856 283 3950

M: 215 470 6084
anthony.mannino@wolfcre.com

 

 

 

 

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Purchasing Commercial Real Estate – How To Protect Your Financial Data

Purchasing Commercial Real EstateWhen it comes to purchasing commercial real estate, protecting your secure information is critical. The following aricle outlines some of the situations you must be aware of when purchasing commercial real estate.

Download the full article here.

Regardless if you are purchasing, selling, renting, leasing, or building a commercial property, a wealth of information about you is shared with multiple vendors throughout the transaction. Realtors, Titling Agencies, Real Estate Attorneys, CPAs, and Banks all provide important services when dealing with a real-estate transaction. No one is going to take the security of your data as serious as you, unless it is demanded by compliance requirements OR YOU.

It is time that we, as consumers, start to demand at least the most basic of security controls from the vendors that we work with, especially when purchasing commercial real estate. After all, the effects of carelessness end up effecting us the most. The rest of this article will dive into a few of these recent cyber scams related to real estate and what we can do to protect ourselves.

SITUATION #1
One of the latest scams in recent months starts when the scammer hacks into a busy real estate agent’s email account. The scammer starts watching emails go back and forth waiting for a big sale that is about to close. As closing day nears, the scammer registers a new email address similar to the agents. (i.e. “Josephine Smith” <jsmith@prudental.com> instead of “Josephine Smith” <jsmith@prudential.com> or jkweilin@yahoo.com instead of jkwellin@yahoo.com.) They then email escrow from this email address acting as the listing agent and tell escrow where to wire the funds for the sale. Usually the deed transferring the title has already been completed and escrow closed before the sellers start wondering where their wire transfer is a few days later.

SITUATION #2
People are constantly attached to their cell phones now-a-days. With limited data plans many people will connect to the free Wi-Fi networks at your favorite Starbucks or Dunkin Doughnuts. If you’ve every connected to one of these before you may realize the next time that you go back it automatically connects. That is because the network has been saved in your device and your device is constantly looking for these networks so that when it finds one it automatically connects. The problem is that a scammer with a $15 transmitting device can “read” the known networks on your devices and the recreate a fake network with the same name, then just like that your device connects and the scammer has access.

SITUATION #3
There have been alerts about particular strands of malware that targets settlement software. The malware is called ZeuS Bot and Zero Access Rootkit, which attacks settlement software and issues checks and moves funds into fictitious files. There have been cases of potential loss exceeding $300,000 per incident.

SITUATION #4
The Consumer Financial Protection Bureau (CFPB) made an advancement in protecting consumer’s information last October. CFPB Compliance is one of the largest safeguards protecting consumer data privacy and it requires title agents and other professionals who handle housing transactions to maintain compliance or else face steep financial penalties. The two most important aspects of maintaining compliance is the security and privacy of NP (non-public information) and TILA-RESPA (Truth in Lending Act and Real Estate Settlement Procedures Act). As of October 2015, all financial data transferred via email must be encrypted. (i.e. HUD documents) Unfortunately, 7 months later I have still seen a lack of compliance to this requirement.

How To Protect Yourself When Purchasing Commercial Real Estate

Doing your due diligence ahead of time when picking entities to help you with your real-estate transaction will not only keep your private information safe. It will ensure that you are working with the leaders in the industry. Those that care about your personal information and understand not only the legal requirements but also the ethical requirements. Which, by-the-way, tend to be the vendors that have mature processes and practices in place to ensure maximum uptime of their services making sure that your transaction goes as smooth as possible. So, here are some tips of what to look for. These apply to everyone involved. Banks, Real-estate Agents, Title Agencies, CPAs, and Attorneys. You’re only as secure as the weakest link.

1) Do not do business with a real-estate agent that uses their personal email addresses from places like yahoo, Gmail, or Aol. This is the sign of “smoke” before a “fire”. Using personal email addresses show a lack of appropriate security controls and structure within the organization. They are often more easily hacked due to the lack of organizational control without the mechanisms to monitor for unauthorized access. Sending personal information about yourself to a free email account can expose you to a slew of security concerns.

2) Do they have a security awareness training? This is vitally important these days since most “breaches” are not technical in nature. They are done by the manipulation of the ignorance of a human.

3) Is there written policies and procedures in place to safeguard their client’s personal information. Having written policies shows that the company has done their due diligence by at least discussing the risk of taking your personal information on a laptop to the Starbucks for free Wi-Fi. What happens if the laptop is in a vehicle and is stolen? Does their written policy say to take laptops home they must have hard drive encryption? I know it sounds to technical to understand or implement, but here’s a little secret. “IT’S NOT ANYMORE” It just takes the adoption of the powers to be. (Sometimes the most difficult of obstacles)

4) Is there a shred policy? At one point your documents are going to be printed. Where do they go after you’re done?

5) Do they store client files in a locking file cabinet? Janitorial staff often comes by on nights and weekends when no one is there. A simple cell phone camera clicks and no one knows the difference. Not even a finger print left behind.

6) Do they use public or shared Wi-Fi? Ask then in casual conversation about password policies. You can make a simple remark like “It’s such a pain, my company makes me change my passwords every six months. Does yours?” BTW, six months is WAY too long to change passwords ESPECIALLY when dealing with financial data.

7) Don’t ever let them fool you by saying “We don’t store that information hear onsite. It’s all stored there so you have nothing to worry.” If they have access to it, that means that anyone that has access to them has access to it!!

8) Ask the agency if what their state’s “security breach notification law” is. Every state has one and they SHOULD know what it is.

9) If you see any agent accessing your personal information on a thumb drive, at MINIMUM, ask for a copy of their organizational wide policy. If they don’t have one you may want them to review the American Land Title Association (ALTA) guidelines surrounding nonpublic information (NPI) stating that “The use of removable data devices, like thumb drives, should be either prohibited outright or strictly controlled via an organization-wide policy.”

10) Ask them to send you a “test” encrypted email. If they cannot do so easily, then that means any backend operations involving YOUR personal information isn’t encrypted in compliance with government regulations.

Following these steps will help when purchasing commercial real estate.

For more information contact:


David J. Humphreys, MS, Security+, CISSP
humphreys CTO & Principal Security Consultant
phone: 856.316.4144 x103
Email: david@avasek.com

 

 

 

comberKevin Comber, ITIL, CBCP
VP of Business Resiliency
phone: 856.316.4144 x102
email: kevin@avasek.com

 

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Shopping Center Demand Holds Steady Despite Flattening Sales

new Jason stats graphic - June 2015The U.S. commercial real estate market recorded 11 million square feet of net absorption in the first quarter of 2016, causing the nation’s average vacancy rate for office space – including Philly office space and Philly retail space – to tick down to 6 percent, the lowest quarterly level since the Great Recession.

Despite a new wave of store closings and weaker-than-expected retail sales in the U.S. and Philadelphia commercial real estate market in the first quarter, solid U.S. job growth and wage gains suggest that retail demand should rebound over the remainder of 2016, said Suzanne Mulvee, CoStar Portfolio Strategy director of U.S. research, retail.

Mulvee made her comments in CoStar’s first-quarter State of the U.S. Retail Market Review and Forecast – a report on the health of national and Philadelphia commercial properties was made available through Philadelphia commercial real estate broker Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm.

A similarly weak first quarter for national and Philadelphia commercial real estate listings occurred in 2015, followed by accelerated activity in the second half of the year. However, as Mulvee noted, the stable vacancy rate involving the U.S commercial real estate market, including Philly office space and Philly retail space, belies a challenging environment for some retailers as an increasing number of store chains look to ‘right-size’ their real estate holdings.

The first quarter, typically the season for closures of underperforming stores, saw the largest level of closures since 2010, with retailers operating national and Philadelphia commercial properties as diverse as Wal-Mart, Macy’s, American Eagle, Aeropostale and Kohl’s opting to close hundreds of brick-and-mortar locations, while a number of chains, including Sports Authority, filed for bankruptcy protection.

With the second quarter now well under way, the ominous rumbling of weak financial results and the specter of store shuttering continues, with retail analysts receiving several pieces of bad news this week involving U.S. and Philadelphia commercial real estate listings.

  • On Tuesday, a U.S. District Judge granted the Federal Trade Commission’s request to block the proposed $6.3 billion merger of Staples, Inc. and Office Depot.
  • On Wednesday, Macy’s Inc. reported a worse-than-expected 7.4% sales decline in the first quarter, continuing a run of rough quarters for the department store chain.
  • On Thursday, Gap Inc. also reported weak sales and Kohl’s Corp. reported its first sales decline in six quarters, in a retail environment described by Kohl’s CEO Kevin Mansell and several other retail executives this week as challenging.

Despite the raft of store closings, retailer appetite for well-located space remains sharp. However, an increasing shortage of the most productive shopping center space, and limited new construction, is weighing on demand. As a result, retail vacancy may soon start to rise in New York City, San Francisco, Boston and other large metros.

Large retailers as a group have posted record profits and sales on a trailing four-quarter basis. However, net sales have plateaued over the last year and CoStar expects slowing sales growth to limit physical expansion for both high-end and discount chains. Median comparable-store sales growth was down to about 1 percent in early 2016, the lowest of the cycle, from a high of more than 3.5 percent in 2012.

“These numbers in aggregate indicate that public retailers will be pulling back on their expansion plans,” said Ryan McCullough, senior real estate economist for CoStar Portfolio Strategy. “The second implication of that is that the retail recovery has matured. We’re beyond the point where we’re talking about pent-up demand for retail and are now looking at underlying fundamentals driving retail sales growth.”

“There could be plenty of growth left, but calling it a recovery from this point forward may not be entirely accurate,” McCullough added.

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 broker that specializes in Philly office space and 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 with expertise 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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Lenders Tighten CRE Borrowing Standards

new Jason stats graphic - June 2015Bank and CMBS loan originators in the U.S. commercial real-estate market tightened their lending standards for all types of commercial real estate loans – including Philly office space and Philly retail space – during the first quarter, a marked reversal for national and Philadelphia commercial real estate listings from the previous few years.

According to the latest Federal Reserve Senior Loan Officer Opinion Survey released this week, a significant number of banks serving the U.S. and Philadelphia commercial real estate market reported tightening standards for construction and land development loans and for loans secured by multi-family properties. The report on national and Philadelphia commercial properties was made available through Philadelphia commercial real estate broker Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm.

Additionally, a moderate number of banks servicing the U.S. commercial real estate market reported tightening standards for loans secured by office, industrial, retail and hotel properties. Also, while lenders were tightening their underwriting standards in all market categories – including Philly office space and Philly retail space – demands for several types of CRE loans continued to grow.

In particular, the Fed’s survey of senior loan officers in the commercial real estate market found a moderate net fraction of U.S. banks reported increasing maximum loan size but tightening of their loan-to-value ratios for U.S. and for Philadelphia commercial properties. Another modest net fraction reported tightening debt-service coverage ratios. Survey respondents indicated that other loan terms remained basically unchanged, on net, over the past year.

The Fed also asked bank loan officers about their responses to conditions in the CMBS markets over the past six months. A moderate net fraction of banks reported moderately increasing the volume of origination of CRE loans in relation to U.S.and Philadelphia commercial real estate listings, while a significant fraction reported moderately decreasing the volume of CRE loan securitization.

When asked about the anticipated large amount of CRE loans originated in 2006 and currently held in CMBS that will need to be refinanced over the next six months, a moderate net fraction of banks noted they expect standards for these refinancings to be somewhat tighter than standards they expect to apply to other CRE loans.

The results of the survey, “were both important and largely inconclusive in most ways,” said Christina Zausner, vice president, industry and policy analysis at CRE Finance Council. “After the Fed’s warning to the market on Dec. 18, 2015, it is interesting to see that the survey results largely suggested that CRE bank lenders are reacting to a changing environment in a moderate fashion – many holding, some taking new cards and some folding.”

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 broker that specializes in Philly office space and 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 with expertise 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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