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Monthly Archives: July 2016


U.S. Office Sector Sees Steady Growth of Second Quarter Leasing Momentum

new Jason stats graphic - June 2015The U.S. commercial real estate market – including Philly office space and Philly retail space – continued its steady momentum in the second quarter, recording 39.4 million square feet of net absorption in the first six months of 2016, nearly equaling the 40.2 million square feet absorbed during the record-setting first half of last year.

The U.S. and Philadelphia commercial real estate market vacancy rate ticked down another 15 basis points to 10.6% in the second quarter of 2016, well below the long-term historical vacancy rate of 11.3%. CoStar analysts expect the office vacancy rate to continue trending lower before bottoming out at around 10.2% in 2018, about the same as lowest point of the last real estate cycle.

“Basically, we expect to have two more years of occupancy recovery in the office market,” noted Walter Page, CoStar’s director of office research, who presented the Mid-Year 2016 Office Review and Forecast along with Hans Nordby, managing director for CoStar Portfolio Strategy and CoStar senior real estate economist Paul Leonard.

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.

Several markets including U.S. and Philadelphia commercial real estate properties showed marked improvement at mid-year, including ones that were previously struggling, such as Phoenix, which posted positive absorption of 3.4 million square feet.

In Seattle, which has enjoyed a particularly strong run, Amazon’s ongoing expansion helped drive 3.1 million square feet in net absorption. Even Washington DC saw a welcome return of strength in the second quarter after several years of flat demand growth. The D.C. office market absorbed a respectable 2.3 million square feet over the last four quarters.

“Finally, we’re starting to see some momentum in the D.C. marketplace, which should allow the vacancy numbers to start inching downward,” said Page.

There were several notable exceptions among national and Philadelphia commercial real estate listings. The energy sector slowdown and corporate relocations related to the completion of several pending build-to-suit projects played a role in Houston and Dallas, which recorded absorption declines of 2.4 million and 3.7 million square feet, respectively, since mid-year 2015. San Francisco, Raleigh, Boston and San Diego also logged declines due to a variety of factors.

But for the most part, the vast majority of office submarkets — 66% — saw their office vacancy decline in the second quarter, and more than half of the U.S. commercial real estate market – including Philly office space and Philly retail space – have a lower vacancy rate than during the previous market peak in 2006-2007.

In a theme seen in many markets across the country, the supply of available space in newer, higher-quality office buildings is becoming increasingly limited. With relatively little new development in the pipeline based on historical levels, only about 81 million square feet of space is available today in buildings constructed over the last 10 years.

That total is less than half the 167 million square feet of vacant newer space that was available in 2007 among U.S. and Philadelphia commercial real estate listings, according to CoStar’s analysis.

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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Do You Have Business Interruption Insurance?

Business Interruption InsuranceAre your business operations covered with business interruption insurance? If a fire causes your business facility to be temporarily unusable, what would you do next? Ideally, you would move to a temporary location while your permanent place of business is being repaired. Yet, traditional Property Insurance does not cover this move or a loss of income when a business must temporarily close.

With Business Interruption Insurance, also referred to as Business Income coverage, this setback can be
minimized by simply adding this coverage to your Property Insurance policy.

What is Included in a Business Interruption Insurance Policy?

The Following is Covered Under a Business Interruption Policy:

• Compensation for lost income if your business has to vacate its premises as a result of disasterrelated damage covered under a Property Insurance policy.

• Covers the profits that would have been earned based on previous financial records, had the disaster not occurred.

• Covers operating expenses, such as utilities, that must be paid even though business temporarily ceased.

• Covers expenses of operating in a temporary location while repairs to the permanent location are completed.

Considerations for Business Interruption Insurance

Here are some things to think about if you’re considering Business Interruption Insurance:

• Business Interruption Insurance cannot be purchased on its own; it must be added to a Property Insurance policy or included in a Business Owner’s Insurance policy.

• Policy limits should be sufficient enough to cover a large amount of time to rebuild the permanent business space. Generally the business must be closed for several days before coverage begins, and it does not pay for those days retroactively.

• Price of coverage depends on the risk of disaster to the premises. This may depend on the business location, nature of the business and how easily the business could function at an alternate location on a temporary basis.

What Is Extra Expense Insurance?

Extra Expense Insurance is also a viable inclusion to cover the amount needed to avoid having to shut down a business while the permanent location is being repaired. This coverage reimburses for expenses that arise on top of normal business expenses, but are not covered by Business Interruption Insurance. Depending on the disaster, Extra Expense Insurance may be sufficient enough to provide financial relief without having to utilize Business Interruption Insurance.

Insurance experts estimate that Business Interruption Insurance is one of the most, if not the most, valuable coverage available, yet business owners often overlook it. Since Property Insurance only covers the cost of physical loss or damage and contents of a business in the event of a disaster, Business Interruption coverage is invaluable in covering the loss of income while the permanent business location is being repaired. Consult Hardenbergh Insurance Group today to learn about all of our business continuity resources.

For more assistance in protecting your property and your business, contact Hardenbergh Insurance Group today.

brian-blaston-hardenbergBrian Blaston
Commercial Lines – Manager
Hardenbergh Insurance Group
phone: 856.489.9100 x 139
fax: 856.673.5955
www.hig.net

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WCRE Regional Investment Market Update

Those of you that have been tracking the Southern New Jersey commercial real estate leasing market are well aware that we are approaching our 3rd consecutive quarter of decreasing office leasing activity. There are a few factors directly responsible for this, none of which include the word Brexit. 

Even with the slow-down in leasing activity, a flurry of active investors are looking to South Jersey and greater Philadelphia for better returns.  We’ve recently seen one investor that was not previously active in this market purchase multiple assets from major REITS, making it one of the top 5 owners (by square footage) of Class A Office properties.  This previously New York-focused investor completed at least 8 South Jersey acquisitions in 18 months – and may not have satisfied their appetite for investment properties in this market just yet! 

The example of this single investor/owner highlights a broader trend.  The continued demand for income-producing assets in and around Philadelphia is driven by the easy access to cheap capital, combined with better returns of 150+ basis points being achieved in South Jersey, offering a much more favorable risk profile when compared to markets such as NYC.  Many REITS are also exiting suburban properties to redeploy cash, thereby opening up opportunities for new-to-market investors. 

Right now, everyone is focused on the impact that Brexit and the upcoming U.S. Presidential Election could have on the markets.  From an investment standpoint, the real focus should be on volatility and uncertainty within a specific asset class.  Investors want to be certain, right?  Always.  

While we don’t all have a crystal ball, investors can still pay attention to research-based analytics to identify the appropriate risk/return profile.  At Wolf Commercial Real Estate (WCRE), that is what we do, all day, every day.  The ease of access to capital at historically low interest rates is greater than any time in the past 10 years.  At the same time, there are greater opportunities to purchase quality properties in a stable market.  The returns have never been greater for commercial real estate assets in Southern New Jersey and Philadelphia.   

WCRE can help you take advantage of this unique set of market conditions.  Our investment team has years of experience with a variety of asset classes in the region.  They can help you find just the right property to create better certainty, increased returns, and greater diversification to your real estate investment portfolio. 

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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NEXT UP: GEN Z – Open Office Spaces

Today’s article is about open office space and how it’s becoming more refined. It’s written by D2 Groups.

Download a printable PDF of the article.

By D2 Groups

open office In light of recent discussions about open office spaces, the future looks bright. Critics argue that distractions inherent in the concept of open office prevent the very efficiency that it’s meant to foster. Not only is the A&D industry working furiously to address concerns with privacy and distraction in the open office, but the newest members of the workforce are seeking a different spatial layout. Welcome Generation Z— they’re the most diverse, tech-savvy, and highly educated generation to date. The chaos you’ve been hearing about from open office critics won’t suit Gen Z as it does the Millennials. Gen Z seeks a more purposeful workplace experience; they want to be solving problems and engaging in meaningful work as soon as they get into the office.

The open office isn’t going away any time soon. As the post-Millennial generation is entering the workforce, only subtle changes to your workplace design are coming with them. The last time the workforce welcomed a new generation, walls came down and collaboration became the new focus of space. Expect newer designs to incorporate slight changes that accommodate a greater need for focus and organized cooperation in the already existing open office. Remember—Millennials will still comprise a substantial portion of the workforce.

More Refinement for the Open Office Space

The open office will become more refined. Gen Z looks for easily navigable office environments; instead of multi-purpose spaces that double as collaboration and personal spaces as seen in the open offices of today, spaces will become more defined. The office of the future will incorporate adjacent spaces for different purposes. Open workstations, for instance, might be on one side of circulation space, while meeting tables and casual seating areas could provide collaboration settings in a space opposite to, yet designated from, those same private workstations. Different adjacencies and designated spaces will enumerate the opportunities for acoustical solutions and visual privacies that open office critics seek today.

open officeIn addition, technology no longer requires that you’re tethered to a desk at all times, so movement throughout the workplace has become the norm for both Millennials and Gen Z. One of the primary shifts you’ll see from office spaces for Gen Y to those for Gen Z has to do with secondary spaces. Millennials leave their desks and personal work to go to a coffee shop or some other collaboration space in the office where they can work with others. Collaboration will be the norm as Gen Z enters the workforce, so they’ll conversely retreat to personal spaces. Whereas huddle and collaboration rooms provide desired workspaces for Millennials, private focus rooms and quiet spaces will reprieve Generation Z. The variety of spaces incorporated into office design for Gen Z reflects the same spaces for the open office dissenters of today.

Ultimately, the entrance of Generation Z into the workforce will change the open workspaces to which people have grown accustomed. Change is good, though—it provides an opportunity to address the aural and visual concerns of the existing concept of open office.

FOR MORE INFORMATION CONTACT:

jessica-honakerJessica Honaker
Director of Business Development
D2 Groups

jhonaker@d2groups.com

 

 

 

richard-scottRichard Scott
Marketing Coordinator
D2 Groups

RScott@d2interiorsinc.com

 

 

 

d2-logo

D2

D2 Interiors, Inc • D2 Branding, LLC • D2CA Architects, LLC
t: 610.238.0330 f: 610.238.0299
2540 Renaissance Blvd, Ste 100
King of Prussia, PA 19406

http://www.d2groups.com/

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WCRE FACILITATES SALE OF MAJOR CLASS “A” INVESTMENT PROPERTY IN WESTMONT, NEW JERSEY

 

WCRE FACILITATES SALE OF MAJOR CLASS “A” INVESTMENT PROPERTY IN WESTMONT, NJ

222 Haddon Avenue

222 Haddon Avenue Press Release PDF

July 21, 2016 – Marlton, NJ – WCRE is proud to have successfully represented FMP Haddon, LLC in its acquisition of 222 Haddon Avenue in Westmont, New Jersey. The new ownership group purchased this three story 27,000 SF multi-tenanted mid-rise office building from Lawland Associates, LLC. Chris Henderson, Senior Associate at WCRE exclusively represented the buyer in this transaction.

This well located office building provides the new ownership with a quality asset in a premier location that provides immediate access to the PATCO high speed line and is within close proximity to Philadelphia and the Cherry Hill business district. The walkable surrounding neighborhood is home to numerous amenities, including banks, restaurants, and retailers.

“Our buyer was seeking a long-term income producing property with quality tenants. A deal of this size may be a good indicator that Southern New Jersey is an attractive market for institutional-level investors, and a sign that lenders are still bullish on stabilized assets in quality markets,” said WCRE’s Henderson.

TD Bank and Brown & Connery, LLP are key tenants in the building. Building on their successful relationship, the new ownership has retained WCRE to assist in the marketing and leasing of the remaining vacant suites, which range in size from 4,000-8,000 square feet. 

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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Post-Brexit Foreign Investor Flight Could Boost U.S. Office Sales

new Jason stats graphic - June 2015The U.S. commercial real estate market – including Philly office space and Philly retail space – continued to record strong demand midyear as measured in both occupancy and rent growth, and analysts even found optimism in the slowing trend in investment sales activity seen year-to-date.

Office net absorption rebounded from a slow first quarter, matching year-earlier levels, and vacancies continue to fall to a cyclical low in the second quarter of 2016. Although easing slightly this year, office rent growth ended the quarter with a strong 4% increase, according to Walter Page, director of U.S. Research, Office for CoStar.

First-half office sales were down 20% from the same period last year, largely reflecting the smaller pools of buyers for marketed properties in the U.S. and Philadelphia commercial real estate market and diminished investor appetite for higher-risk assets, Page said.

“While the 10-year Treasury rate has hit a record low, our view is that cap rates for real estate in general are likely to remain fairly flat,” said Page, who will elaborate on office market trends in CoStar’s Midyear 2016 Office Market Review and Forecast presentation on July 21.

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.

Evidence is beginning to emerge of an uptick in foreign buyers seeking the security and economic stability of U.S. and Philadelphia commercial real estate properties and markets, including the warehouse market, as a result of the Brexit. And some of those international bidders and buyers are popping up in markets outside the Washington D.C./New York City/San Francisco triangle, such as downtown Chicago and Austin.

In one instance, a number of foreign bidders were reported to have put in offers for 1K Fulton, a 10-story, 531,190-square-foot Class A office building that serves as Google’s Midwest headquarters in Chicago.

There is also mounting evidence that events in Europe and around the world are making national and Philadelphia commercial real estate listings more appealing to investors interested in pursuing similar defensive strategies.

While a decrease in office sales in the U.S. commercial real estate market – including Philly office space and Philly retail space – was expected this year following 2015’s breakneck pace, steady debt and equity flows and improving asset performance have continued to generate steady sales activity, and investors continue to see upside potential in office properties, which are the only major property type that has yet to reach pre-recession peak pricing levels.

Average office pricing for both U.S. and Philadelphia commercial real estate listings have risen nominally from a year ago, while the average cap rate was essentially unchanged in the low-7% range. Office investors saw a slight rise in first-year returns in primary markets, contributing to a narrower spread between cap rates in tertiary markets.

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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Transitioning to an Open Office Environment – The Nitty Gritty of the Open Office

open office environmentTransitioning to an open office environment can be difficult at times for companies that are used to private offices and workstations with high panels.

Some employees are energized by the change, which brings a flatter hierarchy and the chance to collaborate more easily. And, the new layout often brings in more natural light and good views to
all employees, not just those who have claimed an office on the perimeter.

But, there are downsides to transitioning to an open office environment as well. Introverts often complain about them. Susan Cain, famous for both her book and TED talk on the power of introverts, has some suggestions on how the introverts among us can deal with this office revolution.

Whether you are an introvert or an extrovert, you may find yourself challenged by some of the new
rules that the open office demands. Knoll has a short paper on how to develop an open office etiquette
policy that will benefit everyone.

Etiquette for transitioning to an open office environment:

(1) Keep sound in mind: with the noise around you, it might feel more natural to speak loudly. Guard
against this.

(2) Keep privacy in mind: most likely, your open office was designed with small conference and meeting
areas, or even phone booths. Use them when a conversation should remain private.

(3) Keep clutter in mind: since everything on your desk is more visible, straighten up at the end of the
day, and be sure to file away anything that is confidential.

(4) Keep odors in mind: be careful about heating up strong-smelling lunches and eating them at your
desk. Use the lunchroom or cafeteria for the leftover salmon or garlic chicken from the night before.

Just in case you’re a visual person, or you need some great eye-catching statistics to back you up
when you take these ideas to management or employees, you can take a look at an infographic our
friends at Boomerang shared.

Remember, success in the open office often just depends on employees having an awareness of
everyone around them.

FOR MORE INFORMATION CONTACT:

josh-smargiassi

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WCRE SECOND QUARTER REPORT: SOUTHERN NEW JERSEY OFFICE LEASING TAKES A NOTICEABLE DIP, BUT INVESTMENT AND SALES REMAIN STRONG

Retailers Lose Ground to Online Stores while the Industrial market has stayed strong

DOWNLOAD Q2 2016 COMMENTARY PRESS RELEASE AS PDF

July 11, 2016 – Marlton, NJ –  Commercial real estate brokerage WCRE reported in its latest quarterly analysis that the slow-down in commercial leasing activity in Southern New Jersey that began late last year may have been the beginning of a trend. Office leasing totals were down significantly compared to the same period last year, and were lower than the already slower first quarter. Mixed with this bad news were positive signs in the continued high level of activity in the investment and sales market, and an uptick in leasing in Cherry Hill and Voorhees. Overall, caution and uncertainty seem to be guiding factors.

“Several unknowns began influencing the markets during the second quarter – from the possible impact of the Brexit vote to the coming U.S. presidential election,” said Jason Wolf, founder and managing principal of WCRE. “Businesses are trying to figure out how their plans may be impacted by the uncertainties, but we still believe the overall outlook is still strong.”

There were approximately 252,121 square feet of new leases and renewals executed in the three counties surveyed (Burlington, Camden and Gloucester), which represents a drop of +/- 23 percent compared with the first quarter of the year. The quarter saw an increase in prospecting, with about 250,000 SF of lease deals in the pipeline and expected to close in the near term. Still, the trend of positive absorption continued – and improved over the previous quarter – making up approximately 206,000 square feet of total activity. Vacancy rates posted slight increases, but several large assets changed hands as owners repositioned and new investors entered our market.

Other office market highlights from the report:

  • Overall vacancy in the market is now approximately 11.85%.
  • Average rents for Class A & B product continue to show strong support in the range of $10.00-$14.00/sf NNN or $20.00-$24.00/sf gross for the deals completed during the quarter. This is essentially unchanged from the previous two quarters.
  • All of the major private owners and REITS showed moderate leasing and prospect activity for the quarter – with Burlington County vacancies tightening up, many larger vacancy opportunities are also shifting towards Camden County, which is not controlled by these ownership entities.
  • New Jersey’s unemployment rate moved higher for the first time in more than a year, coming in at 4.9 percent. Like the national economic recovery, the New Jersey recovery appears to be experiencing a slight pause.

WCRE has expanded into southeastern Pennsylvania, and the firm’s quarterly reports now include a section on transactions, rates, and news from Philadelphia and the suburbs.  Highlights from the second quarter in Pennsylvania include:

  • Although not as pronounced as other “gateway markets”, the Philadelphia CBD office market is attracting attention from international institutional investors. Notable investments include the Korean Investment Fund’s acquisition of Cira Square at 2970 Market Street for $354 million from Brandywine Realty Trust  and 1700 Market Street from Shorenstein Properties for $195 million. Other transactions in progress are commanding all-time-low capitalization rates from some Middle East equity investors.
  • Beyond the CBD, the suburban market has been extremely active, including Saint Gobain’s Headquarters facility, which sold for $123 million at a sub-6% capitalization rate. Additionally, Liberty Property Trust announced a plan to redevelop in the City of Camden, which includes a master plan involving 1.75 million SF of office, parking garages, hotel, and apartments.
  • There has been a flurry of favorable retail activity in the regional market in 2016. Some major projects include PREIT’s sale of three core CBD retail properties to Post Brothers for $45 million at a sub-4% capitalization rate, RIOCan REIT’s announcement to sell 49 retail properties located throughout the Northeast, with many in the Philadelphia region, for $1.9 billion. In addition to these core assets, there is significant development of net leased properties, including Wawa/Sheetz/Royal Farms convenience stores, as well as a variety of other retailers. Finally, retail is filling in many of the ground floor spaces of multi-use properties and commanding some of the all-time highest rental rates seen thus far.
  • The industrial market is still experiencing strong activity, with increases in pricing and rental rates. One of the most significant transactions of the second quarter was the Target E-Commerce Distribution Center in York, PA, which fetched $60 million or $76/SF. While the appetite for core Class A assets continues to be strong, pricing for multi-tenanted flex assets is demonstrating great appeal and marketability.

WCRE also reported on the Southern New Jersey retail market, noting mixed results there, as well. Highlights from the retail section of the report include:

  • Overall retail sales and spending dropped during the second quarter, after an already underwhelming performance in the first quarter.
  • Retail vacancy in Camden County stood at 10.5 percent, with average rents in the range of $11.89/sf NNN.
  • Retail vacancy in Burlington County stood at 14.8 percent, with average rents in the range of $12.21/sf NNN.
  • Retail vacancy in Gloucester County stood at 6.4 percent, with average rents in the range of $12.00/sf NNN.

The full report is available upon request. 

About WCRE

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

Learn more about WCRE online at www.wolfcre.com, on Twitter & 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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Selling a Commercial Property When Subject to an ISRA Investigation or Remediation

ISRA Remediation

New Jersey’s Industrial Site Remediation Act: ISRA, requires owners of certain industrial facilities to investigate and remediate their property prior to a sale and transfer when the business ceases operation or is sold. See N.J.A.C. 7:26B-1 et seq. But, what if the owner of the industrial property needs to sell the property prior to remediation and/or approval of the remediation by the New Jersey Department of Environmental Protection (the “NJDEP”)? The good news for New Jersey industrial property owners is that they may have a course of action to keep their property sale on track.

Effective November 3, 2009, the New Jersey Legislature passed the Site Remediation Reform Act (“SRRA”) and created an avenue for transactions of properties subject to ISRA investigation or remediation to close. See N.J.A.C. 58-10C-1 et seq. The property owner will want to enlist a Licensed Site Remediation Professional (“LSRP”) to assist in the investigative process, oversee the remediation and maintain an open line of communication with the NJDEP. The LSRP will likely perform a Preliminary Assessment of the site, determining the remediation work to be performed and an estimate of the associated remediation costs.

To comply with NJDEP regulations, the property owner (or his hired professionals) needs to complete and submit a Remediation Certification Form prior to closing. N.J.A.C. 7:26B-4.3. Along with the Remediation Certification Form, the owner is required to establish a means for paying for this ISRA remediation. To accomplish the means for payment, the NJDEP requires that a Remediation Funding Source accompany the Remediation Certification Form. N.J.A.C. 7:26C-5. There are several options for the Remediation Funding Source, including a trust naming the NJDEP as beneficiary, a line or letter of credit, and others. There are two ways to determine the amount of the Remediation Funding Source: (1) provide a detailed estimate of the cost of the remediation prepared by and certified by an LSRP, or (2) if a Preliminary Assessment has not been completed, the NJDEP will accept the following surrogate amounts until 30 days after the completion of the PA: (a) $100,000.00 minimum acceptable surrogate amount for properties where no contaminant information is known, (b) $250,000.00 minimum acceptable surrogate amount where there is known ground water contamination on the site.

This is just a general outline of the process for selling a property subject to ISRA remediation or investigation. The most critical step for any property owner confronting the sale of such a property is to put together a competent team of professionals which should include, at minimum, a commercial realtor, a real estate attorney and a LSRP.

Contact LeVan Law for More Information on ISRA Regulations

levan-law

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