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Monthly Archives: June 2016


Protect Your Assets Using Proper Corportate & LLC Form

corporate llc

A prime reason for incorporating or forming a corporate LLC (Limited Liability Company) is the limited liability that it offers its owners. The owners generally have no personal responsibility for the debts, obligations or liabilities beyond their initial investment in the business (as long as they didn’t sign for anything personal). But the limited liability may be lost if the shareholders/members don’t act like persons doing business in the proper corporate LLC form.

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Then creditors may enlist the help of attorneys and forensic accountants (that be us) to “pierce the corporate veil” and pin personal liability on the owners for what otherwise would be corporate/LLC debts and liabilities. The risk is often particularly acute for sole proprietorships and partnerships switching to the corporate LLC form.

They’re apt to ignore the change and the requirements of corporate or LLC operation (board meetings, shareholder meetings, notice of meetings, waiver notice, motions, resolutions, voting procedures, proxies, election of officers, fixing of compensation, etc.). They may treat the corporate LLC treasury as their own. At the very beginning of corporate or LLC operations, they may neglect to do such simple things as notifying creditors of the change, consistently using the “Inc.” or LLC designation on business letterhead, the business checking account, business licenses and the like, signing correspondence and documents as an officer/member, and so forth.

Failure to comply with one or more of these corporate requirements won’t necessarily be “fatal”. To play it safe, have your lawyer supply you with a list of essential “housekeeping” chores to preserve limited liability. Of course, liability exposure questions almost always turn on state law which is why we always advise clients to seek competent legal counsel for answers to all specific questions about the liability aspects of business and investment operations. In our line of work, an abiding principle is “One size doesn’t fit all”. Thus, we’d be happy to recommend one or more lawyers we’ve worked with seasoned in this arena.

FOR MORE INFORMATION:
Martin H. Abo, CPA/ABV/CVA/CFF is a principle of Abo and Company, LLC AND ITS AFFILIATE, Abo Cipolla Financial Forensics, LLC, Certified Public Accountants – Litigation and Forensic Accountants. With offices in Mount Laurel, NJ and Morrisville, PA, tips like the above can also be accessed by going to the firm’s website at www.aboandcompany.com

martin-abo-cpa

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CMBS Lenders Face Vexing Risk Retention Rules

new Jason stats graphic - June 2015New financial oversight regulations set to go into effect later this year will require lenders originating CMBS loans to retain a 5 percent segment of each CMBS deal for five years.

The new rules, going into effect Dec. 24, are raising concerns in a U.S. commercial real estate market – including Philly office space and Philly retail space – that continues to deal with a year-to-date 50 percent decline in overall issuance from last year. This issue is exacerbated by already tight spreads that linger from early 2016. So far this year, CMBS accounts for only 7 percent of the overall CRE lending market, down from 17 percent in 2015. At one point in 2006, CMBS accounted for nearly 50 percent of total CRE lending.

CMBS lenders suffered in the February 2016 rout of the global market – which also encompasses the U.S. and Philadelphia commercial real estate market – when prices declined and banks found that their recently originated loans earmarked for securitization were underwater. Oil-induced fears in high-yield debt markets forced hedge funds to unload positions, including subordinate CMBS debt, causing the price of securitized debt to plummet, Pacific Investment Management Co. (PIMCO) noted in a report this week.

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.

The February fallout in CMBS also impacted the private commercial property transaction market as well as U.S. and Philadelphia commercial real estate properties. As CMBS lenders increased rates on their debt quotes by 50 to 100 basis points, return-minded property buyers responded by cutting their bidding prices, resulting in a sharp drop in transaction volume in the first quarter that has carried over through the first half of 2016.

Hardest hit were non-core markets, where CMBS represents over 35 percent of the non-multifamily debt origination volume, PIMCO said, as many deals fell out of contract or re-priced downward by as much as 15 percent.

While spreads have tightened and the market for national and Philadelphia commercial real estate listings has snapped back in recent weeks, CMBS lenders and analysts are now focusing their concerns on the new risk retention regulations.

The rules, adopted as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, arrive as the U.S. commercial real estate market – including Philly office space and Philly retail space – is beginning to grapple with a total of $86 billion of CMBS loans scheduled to mature between the current quarter and the fourth quarter of this year, and another $123 billion in CMBS loans scheduled to mature in 2017.

Across all lender types, a total of $353 billion in debt is maturing in 2016, with an additional $395 billion maturing in 2017 and more than $300 billion coming due between 2018 and 2020. With the refinancing rate for both U.S. and Philadelphia commercial real estate listings expected to decline 50 percent by next year, Morgan Stanley expects to accelerate loan liquidations to over 10 percent by 2017 for 2006- and 2007-vintage loans even as lending conditions are tightening.

A combination of these factors is resulting in a 19 percent decline in the average size of a conduit deal that priced in the first five months of 2016 compared with last year, to the lowest levels since 2010. While fewer loans are being originated, the velocity of deals brought to market has surprisingly increased, resulting in more conservative underwriting standards for 2016 vintage deals as compared with 2015 and 2014.

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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Breathless over Brexit: What will it mean for U.S. Commercial Real Estate?

Breathless over Brexit: What will it mean for U.S. Commercial Real Estate?

As the world markets reacted to last week’s decision by U.K. voters to leave the European Union, one of the many potential economic impacts is the effect on U.S. commercial real estate.

For the foreseeable future, the only thing certain is uncertainty – which traditionally drives investors to seek out stability.  U.S. commercial real estate will continue to be an attractive and stable investment for many sources of capital.  In fact, as the fallout from the Brexit vote was driving down markets last Friday, many REITs were actually trading higher.  Market volatility and the stronger dollar also mean that a long-anticipated increase in interest rates will likely be on hold until the dust settles, ensuring continued access to money at current levels.

The possible negative impacts on the commercial real estate industry are less certain.  The comparatively stronger dollar could mean an increased cost of capital for some foreign investors, particularly from Europe and the U.K., potentially reducing some sources of investment.  New trade barriers – real or anticipated – could also lead to diminished exports, adversely impacting export-dependent businesses and related asset classes.

Any negative effects may take some time to materialize, if at all, especially when considering that the process of withdrawal could take a number of years.  Overall, interest rates will remain low in the near term, and investors from Asia and the Middle East will continue to find U.S. real estate attractive.  Increased demand for investment properties could also open up new opportunities outside of high-profile areas such as New York.

Real estate aside, U.S. investors might take one small comfort in the Brexit fallout:  with the pound trading at 31-year lows, traveling to the U.K. has not been this cheap in decades.

If you are considering the sale or purchase of property as an investment vehicle, the professionals at WCRE can provide the right guidance and analysis to help generate the maximum return on your assets.

Please visit our website at www.wolfcre.com for a full listing of South Jersey and Philadelphia commercial properties for lease or sale through our New Jersey and Pennsylvania commercial real estate brokerage firm.

For More Information Contact:

transfer-taxesAnthony V. Mannino, Esq.

P: 215 799 6900

D: 215 799 6140

F: 856 283 3950

M: 215 470 6084

Email Me>>>

 

For More Information Contact:

johntJohn T. Mozzillo

P: 856 857 6300

D: 856 857 6304

F: 856 283 3950

M: 856 816 6973

Email Me>>>

 

 

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WCRE APPOINTED EXCLUSIVE AGENT TO SELL FORMER FRIENDS ACADEMY OF WESTAMPTON

WCRE APPOINTED EXCLUSIVE AGENT TO SELL FORMER FRIENDS ACADEMY OF WESTAMPTON

315 Brige
Press Release PDF

June 28, 2016 – Marlton, NJ – Wolf Commercial Real Estate (WCRE) is pleased to announce that it has been appointed exclusive agent to sell the former Friends Academy of Westampton, located at 315 West Bridge Street, Westampton, New Jersey.  The listing adds to WCRE’s growing number of assignments for the sale of educational and institutional properties in the region.

315 West Bridge Street consists of more than 28,000 square feet in four buildings on an 11-acre site.  The former school complex has a campus-like atmosphere with classrooms, offices, and full-sized basketball courts, in addition to conference space and a library.  The complex was initially constructed in 2004, and has ample room for expansion.

David Jones, Board Member and Clerk for Friends Academy of Westampton said, “We were searching for experienced commercial real estate firms who were knowledgeable about local demographics and school properties.  WCRE stood out because of their extensive experience working with schools and a breadth of knowledge of the local real estate market.  They also understood our values and showed sensitivity concerning our position and desires.”

WCRE’s sales team of Chris Henderson and Leor Hemo said, “WCRE is proud to partner with Friends Academy as our latest relationship in Southern New Jersey.  We look forward to applying our WCRE 360 marketing approach to find a new user for this highly-desirable property.”

A marketing brochure is available upon request. 

About WCRE

WCRE is a full-service commercial real estate brokerage and advisory firm specializing in office, retail, medical, industrial and investment properties in Southern New Jersey and the Philadelphia region. We provide a complete range of real estate services to commercial property owners, companies, banks, commercial loan servicers, and investors seeking the highest quality of service, proven expertise, and a total commitment to client-focused relationships. Through our intensive focus on our clients’ business goals, our commitment to the community, and our highly personal approach to client service, WCRE is creating a new culture and a higher standard. We go well beyond helping with property transactions and serve as a strategic partner invested in your long term growth and success.

Learn more about WCRE online at www.wolfcre.com, on Twitter & Instagram @WCRE1, and on Facebook at Wolf Commercial Real Estate, LLC. Visit our blog pages at ww.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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Federal Income Tax Treatment of Real Estate Sales

tax treatment of real estate

When it comes to the federal income tax treatment of real estate sales it is very important how you treat your real estate gains and losses. If you are a real estate owner or developer, you may be under the impression that your profits and losses from the sale of property must be treated as ordinary income or losses, and that you are therefore subject to federal income tax rates that can be as high as 39.6%. However, it is possible that profits you have received from the sale of property may instead be treated as capital gains, which are generally taxed at a maximum rate of only 20% for noncorporate taxpayers.

Under Section 1221(a)(1) of the Internal Revenue Code (the “Code”), income or losses from the sale of property “held primarily for sale to customers in the ordinary course of a taxpayer’s trade or business” are treated as ordinary. Any income or losses from the sale of property outside this classification are treated as capital gains or losses.

Determining whether the sale of property qualifies as the sale of a capital asset first requires an analysis of whether the property was held “primarily” for sale. This is not necessarily as straightforward as it may seem, since property can be used for more than one purpose. In addition, taxpayers may change their purpose for holding property during their term of ownership. For example, you may own an apartment building that you later decide to convert to condominiums; or, you may own and rent several properties and later decide to sell a handful of them over a period of a few years. How do these decisions affect the federal income tax treatment of real estate sales and reporting your gains and losses?

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Case law surrounding the federal tax treatment of real estate sales

The U.S. Supreme Court provided some guidance in its decision in Malat v. Ridell, 383 U.S. 569 (1966). There, the taxpayer was a member of a joint venture that purchased real estate to develop and operate an apartment complex. When the joint venture members had trouble obtaining financing, a portion of the property was subdivided and sold, and the profit from the sales was reported and taxed as ordinary income. The members continued to have difficulties developing the remaining parcels, and the taxpayer sold his interest in the joint venture and treated his profit from that sale as a capital gain. The IRS contended that the property was held by the taxpayer “primarily for sale to customers in the ordinary course of his trade or business,” and that, therefore, the profits should be taxed as ordinary income.

The Federal District Court and the Court of Appeals agreed with the IRS position, but the U.S. Supreme Court disagreed. The Supreme Court held that purpose of Section 1221 of the Code is to distinguish between “profits and losses arising from the everyday operation of a business” and “the realization of appreciation in value accrued over a substantial period of time”, and that, based on this purpose, the word “primarily” as used in Section 1221 means “of first importance” or “principally”. The case was remanded to the District Court to decide the case using the legal standard articulated by the Supreme Court. The District Court found that the properties were not held primarily for sale to customers in the ordinary course of a trade or business, and that the taxpayer (and the other members of the joint venture) could report their profits as capital gains. See Malat v. Riddell, 275 F. Supp. 358 (1966).

While the U.S. Supreme Court’s decision in Malat v. Riddell is helpful in applying Section 1221, it is important to note that holding property primarily for sale “is by itself insufficient to disqualify the taxpayer from capital gains privileges”. See U.S. v. Winthrop, 417 F.2d 905 at 911 (5th Cir. 1969). The Courts have identified three main questions to consider when determining whether an asset is a “capital asset” under the Code:

1. Was the taxpayer engaged in a trade or business, and if so, what business?
2. Was the taxpayer holding the property primarily for sale in that business?
3. Were the sales contemplated by the taxpayer “ordinary” in the course of that business?

Suburban Realty Co. v. U.S., 615 F.2d 171 at 178 (5th Cir.), cert. denied, 449 U.S. 920 (1980).
In addition, the Courts have articulated and applied a series of factors to determine whether a sale occurred in the ordinary course of a trade or business:

1. What is the nature and purpose of the acquisition of the property and the duration of the ownership?
2. What is the extent and nature of a taxpayer’s efforts to sell the property?
3. What is the number, extent, continuity, and substantiality of the sales?
4. What is the extent of subdividing, developing, and advertising to increase sales?
5. Was a business office used for the sale of the property?
6. What is the character and degree of supervision or control exercised by the taxpayer over a representative selling the property?
7. How much time and effort did the taxpayer habitually devote to the sales?

See U.S. v. Winthrop, 417 F.2d 905 at 910 (citing Smith v. Dunn, 224 F.2d 353, 356 (5th Cir. 1955)); See
also Byram v. U.S., 705 F.2d 1418, 1424 (5th Cir. 1983).

In applying these factors, Courts have emphasized that no single factor should be determinative in deciding the federal tax treatment of real estate sales; instead, each case must be evaluated on its own facts. Biedenharn Realty Co., Inc. v. U.S., 526 F.2d 409 (5th Cir. 1976), cert. denied, 429 U.S. 819 (1976).

Based on the foregoing, if you are a real estate owner or developer, and you are making decisions regarding your property, the tax treatment of real estate gains and losses will depend on an analysis of your individual facts and circumstances under Section 1221 of the Code and related Court opinions and IRS decisions. Thus, it is important to consult with your tax advisor to review your sales activities, as it could positively impact your federal income tax liability.

The United States Treasury Department issues Circular 230, which governs all practitioners before the Internal Revenue Service. Circular 230 requires a legend to be placed on certain written communications that are not otherwise comprehensive tax opinions. To ensure compliance with Treasury Department Circular 230, we are required to inform you that this document is not intended or written to be used, and cannot be used for the purpose of avoiding penalties that the Internal Revenue Service might seek to impose on you.

Have more questions about the federal tax treatment of real estate sales?

Contact:

stephen-geria
Stephen M. Geria, Esquire, LL.M.

Hyland Levin LLP, Attorneys at Law
6000 Sagemore Drive, Suite 6301
Marlton, NJ 08053

Phone: 856.355.2900

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WCRE ADDS SENIOR ASSOCIATE AND DIRECTOR OF INVESTMENT SALES

WCRE ADDS SENIOR ASSOCIATE AND DIRECTOR OF INVESTMENT SALES

John Mozzillo to serve expanding roster of clients at regional commercial real estate firm

Mozzillo Headshot

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June 22, 2016 – Marlton, NJ – Wolf Commercial Real Estate (WCRE) is pleased to announce the hiring of John Mozzillo, who will serve as Senior Associate and Director of Investment Sales.  Mozzillo brings more than a decade of management and leadership experience to complement the skilled team at WCRE. John joins WCRE to help lead the growth of its Investment Services and Brokerage platform.

As Senior Associate & Director of Investment Sales, John will specialize in providing best-in-class acquisition, disposition and re-capitalization services to institutional and private clients, developers, lenders and special servicers. He will also be responsible for the sale and leasing of office, healthcare, retail and industrial properties throughout Southern New Jersey and the Greater Philadelphia region, as well as various advisory and consultative services.

John Mozzillo was most recently an associate at JLL, where he provided a variety of real estate services to investors, landlords and tenants, including leasing and investment analysis. He previously served in leadership and sales roles for a technology start up and in the corporate services sector, working closely with both Fortune 1000 corporations and privately held companies.

“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. “John brings a valuable background as an entrepreneur, leader, and real estate professional that will allow WCRE to serve its clients in new ways.”

In addition to his professional accomplishments, Mozzillo exemplifies WCRE’s core values, especially commitment to the community.   He currently serves as a member of AQUA Corps, a regional non-profit that creates positive change in individuals from vulnerable populations and in the lives of volunteers who assist them

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 ww.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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Restrained Office Job Growth Impacting Investor Strategies

new Jason stats graphic - June 2015Federal Reserve Chairwoman Janet Yellin recently referenced less-than-stellar payroll growth in May and a slower-than-expected pace of improvement in the labor market overall as well as “diminished” job gains as primary reasons for the Fed’s decision to again put off raising interest rates.

Despite muted levels of construction, continuing rent growth and vacancies in the U.S. commercial real estate market still drifting downward and a pick-up in overall economic activity, investor sentiment indicates a widening belief that the office market – including Philly office space and Philly retail space – may have reached its peak, or is expected to continue slow but steady improvement and not a spike in leasing activity as previously hoped.

For some risk-adverse property investors, this is the point where they begin assuming a defensive position to protect and preserve the value of their holdings the U.S. and Philadelphia commercial real estate market, rather than buying vacancy in hopes of rolling up to market rents.

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.

More building owners are focusing on shoring up tenant lease renewals in high-construction markets where vacancies have plummeted and rents have substantially increased, such as U.S. and Philadelphia commercial real estate properties and those in San Francisco, New York City and Chicago, noted Paul Leonard, real estate economist with CoStar Portfolio Strategy. In some cases, owners are again throwing in free rent and other concessions.

“Landlords should consider locking in existing tenants at today’s relatively high rates,” Leonard said in a recent client note. “Attention should especially be given to assets in tech-heavy markets on the West Coast, where the gap between embedded rents and market rents is greatest and where lease terms are some of the shortest, and assets in large-tenant markets like New York and Washington, D.C., where the lease terms are longer than average, but the probability of renewal is poor.”

With vacancy and availability spreads in both national and Philadelphia commercial real estate listings widening and landlords starting to offer concessions, it would be prudent for landlords to underwrite softer rent growth and less aggressive renewal terms, despite historically low vacancies, said CoStar Portfolio Strategy economist Donald Hall.

“After all, local landlords know their slice of the market better than anyone, so it makes sense to heed their warnings,” he added.

One executive at a real estate investment firm that deploys capital for private families and foreign investors, predicts that pension funds will be the first to adopt a defensive position on acquisitions of higher-vacancy or value-added U.S. and Philadelphia commercial real estate listings, followed by insurance companies.

For investors still targeting value-add properties, CoStar’s “recession scenario” economic modeling found that pivoting to locations that show less downside risk in the event of a recession may help preserve value during a typical three- to five-year investment holding period.

Such segments of the U.S. commercial real estate market – including Philly office space and Philly retail space – include those that have seen limited new construction and stronger demographic growth. Those include several former housing bust markets in the South, according to Walter Page, director of research, office for CoStar.

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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Work Areas that Help Employees Reach Peak Productivity

employee-work-areasThis article explores the type of work areas that aid employees in reaching maximum efficiency and peak productivity in the office workplace. It was written for Wolf Commercial Real Estate by the good people at COFCO Office Furniture.

If you’ve been wondering how to help employees work to maximum efficiency and peak productivity these insights about what employees really want at work will help. New studies find that your employees have a pretty good idea of what the work environment that supports productivity looks like versus one that doesn’t. Add to that their work preferences and mix in a little cutting edge design making use of user friendly technology and your employees will vote for your office as the ideal work place.

Why is this important?

Attracting and retaining top quality skilled employees is high on the list of ‘must haves’ for organizations wanting to develop a significant edge over competitors. An organization that provides a supportive work environment that helps employees achieve their professional goals translates into loyalty and high level productivity.

Here are a few ways progressive organizations are making their offices appealing:

Responsiveness to individual needs: Office buildings are beginning to make use of artificial intelligence to monitor as well as respond to individual employee needs. For example, personalized climate control and lighting in an individual’s work station.

Practical layouts with central social hubs: Recognizing that the younger generations place a high level of importance on social interaction and collaboration by integrating social hubs and serious work areas.

edge-work-areaTHE EDGE IN AMSTERDAM:
A perfect example of this new concept working seamlessly is ‘The Edge’ in Amsterdam. It is said that this is the greenest, smartest building in the world and we have to admit that its capabilities are impressive. Here’s what it offers: Indoor climate mirrors outdoor climate as it mimics natural air currents throughout the building for your personal comfort. Too hot or too cold? Not to worry… once you reach your workstation, the building’s artificial intelligence adjusts the temperature and light to suit you.

• Natural light is always 23 feet or closer to where you work.

• The smart roof provides efficient acoustic control where indoor and outdoor noise is muted

• Smart customization is as close as your phone: People working at The Edge have an app on their
smart phone. This app tells the building what kind of work space will be needed when the person
arrives in the morning. The building’s A.I. will determine where the person needs a sitting or a standing desk, whether they’ll require a meeting room or private space for focused work.

• The building immediately readies what the person needs based on their schedule. The industry term for this is ‘hot desking’ or ‘unassigned work space’. In line with the most up to date office design philosophy, employees do not have a single work station at which they work every day, they simply move to the station best suited to the task at the time. The result is fluidity as people move between stations to access the facilities or people they need at that moment.

• It’s not all about the work though. When it’s time for a coffee break, the on campus coffee bar’s intelligent espresso equipment remembers exactly how you like your coffee. It’s like having your own personal barista. Who couldn’t get used to that?

zurich-work-areasTHE ZURICH INSURANCE COMPANY:
This organization did some impressive research before designing their new H.Q. in Schaumburg, Illinois. Not only did they work with a large number of their own employees in an on site focus group, but also with outside experts.

Here’s what they found:
• Employees preferred areas dedicated to social interaction rather than having them interspersed between serious working areas. They wanted these social hubs screened off from work areas so that ambient noise and food aromas wouldn’t disturb people working nearby. They felt that having social areas featuring casual furniture including sofas and tables with chairs, interfered with their ability to get work done.

• Employees also wanted privacy for focused work or private conference calls and meetings.
• Natural light access was a big request.
• Height adjustable work surfaces were in high demand.

The conclusions from this research is not all that surprising. It confirms the current thinking that the ideal office will incorporate a hybrid of privacy and open plan factors where employees have some autonomy over where, when and how they work.

When considering a new office design, it makes sense to take these findings into account. If you have any doubts about what your employees will find most desirable, it’s always a good idea to create a focus group or forum setting in which to propose and ask for ideas before settling on your final design. This way you’ll get maximum buy-in from employees and have a greater chance of achieving your productivity and loyalty goals.

If you’d like a little help with this, please don’t hesitate to give COFCO a call!

cofco-office-furniture

 

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Office, Hotel CMBS Delinquencies Could Soon Rise

new Jason stats graphic - June 2015It’s not unusual for ratings agencies to interpret any hint of a downturn in the U.S. commercial real estate market – including Philly office space and Philly retail space – as a possible long-term trend. So it should come as little surprise that several ratings firms are warning investors to prepare for the long run of improvement in CMBS delinquency and payoff numbers to possibly be ending.

CMBS delinquencies in the U.S. and Philadelphia commercial real estate market rose for the first time in 10 months with further fluctuations on the horizon, according to the latest results from Fitch Ratings. At the same time, Morningstar is noting that the payoff rate of loans coming to maturity is starting to decline and could be headed lower. Although it remains unclear whether the recent metrics reflect the softness from the global investor pullback during the first part of the year, or something more.

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.

By Fitch Ratings’ numbers, loan delinquencies in U.S. and Philadelphia commercial real estate properties rose two basis points in April to 2.92% from 2.9% a month earlier. While relatively small, the increase still marks the first increase in its index since June of last year. New delinquencies of $494 million exceeded resolutions of $353 million.

Delinquencies involving the office and hotel segments of national and Philadelphia commercial real estate listings were the only two property types to see an increase, with office going to 4.16% from 4.08% and hotels to 3.59% from 3.2%.

Fitch expects the CMBS delinquency rate in the U.S. commercial real estate market to fluctuate during the year but still remain below 3% by year end, largely resulting from potential delinquencies of larger balance loan transfers to special servicing.

In contrast, resolution activity nationally last month – including Philly office space and Philly retail space – was mainly where the average loan balance was roughly $7 million.

Morningstar Credit Ratings also noted that specially serviced exposure rose $1.36 billion to $28.35 billion across 1,688 loans related to U.S. and Philadelphia commercial real estate listings. The study indicated this is a trend Morningstar believes portends future volatility.

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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Does Your Business Need a Move Management Company?

move-management-companyThis article was provided to Wolf Commercial Real Estate by Argosy Management Group, an office relocation and move management company based in New Jersey.

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Today companies are so focused on moving into their new space they rarely look at their old or existing space and all the costs associated with it. Moving an office can be a huge undertaking, and management often despises the thought of relocation due to the disruption and disorganization that often follows. In order to move an office successfully without unnecessary disruption to the daily flow of business, business owners and management should consider hiring a move management company.

Too often companies don’t have the manpower to dedicate to manage their office relocation. And they often don’t have the time to evaluate the benefits of a move management company. Move management companies are professionals who specialize in office relocation and expansion – and these experts know how to make the process flow smoothly. They understand the process of moving in great detail, and they are able to organize the process effectively, and manage details, budgets, timelines, and people.

Selecting a move management company

Selecting a move management company that’s right for you is critical for an office relocation and/or expanding business. You’ll want to select a company who has expertise in relocation and project management, outstanding planning services, and highly-skilled team members to meet the client’s ever changing needs. These experts will work with the client to determine what the office already has in place and what is needed in the new location. They will also implement the plans for specific designs and layout within your new office and set up the layout for your new location with relative ease. They will also handle all of the incidentals that often get put off or forgotten until after the move is complete.

Benefits of Hiring a Move Management Company

• Industry experts who can work with architecture/design firms and construction companies when needed
• Project planners who manage everything for you
• Time savings by avoiding unnecessary delays
• Cost savings
• Flexibility
• Employee satisfaction and productivity

Keep Your Bottom Line in Mind
Before you decide to tackle your relocation, keep in mind your bottom line. This is the most important reason why you would want to hire a professional move management expert. You will save time and money in the long run which is always good for business.

About Argosy Management Group
Argosy Management Group (AMG) is a leader in office relocation and logistics project/move management. AMG services companies throughout the U.S. and worldwide. AMG delivers a wide range of comprehensive services: move management and transition planning, space planning and furniture needs, office and industrial relocation and liquidation, storage solutions and asset management, furniture disassembly and installation, and I.T./data center relocation.

visit www.argosymg.com

argosy-management-group

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