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Monthly Archives: February 2017


Changes in Lease Accounting Standards for 2017

lease accounting standardsLease accounting standards previously allowed for “off balance sheet transactions,” which provided companies an ability to hide debt, expenses, and net losses.

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DO YOU HAVE LEASE AGREEMENTS?
Whether classified as operating or capital leases, all leases must now be recorded “on balance sheet.”

DID YOU KNOW: Last year the Financial Accounting Standards Board issued an improvement to lease accounting which requires companies to recognize and measure leases on the balance sheet. Another, in a long line of changes in lease accounting standards for 2017 aimed to provide increased financial statement transparency.

DID YOU KNOW: The best time to prepare for and implement these changes is in 2017 considering beginning of year classification requirements around the January 1, 2019 adoption date.

DID YOU KNOW: Implementation costs will be significant. Implementation of this standard likely requires the purchase of lease accounting software and the time of employees to effect the accounting change in the books and records of all companies.

CFGI has Big 4 experts to help corporate finance teams implement the new standard and CFGI has aligned with efficient lease accounting software companies.

About CFGI:

CFGI is a unique and highly specialized financial consulting firm that is strategically positioned to help companies through a range of routine and complex business scenarios including changes in lease accounting standards. As an extension of your corporate finance team, CFGI works alongside your internal staff, serving in a variety of roles from technical accounting advisor to M&A support to Controller or CFO – and delivering seamless support services.

Our key areas of expertise include:

• Private Equity Services
• CFO Services
• Consulting
• Interim Management
• Valuation
• Corporate Tax

For More Information on Changes in Lease Accounting Standards:

John M. Swirsding, CPA
Philadelphia Office Managing Director at CFGI
1500 Market Street
12th Floor – East Tower
Philadelphia, PA 19102
215-380-0607
www.cfgi.com

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Office Construction Completions to Peak In 2017

Steady growth in office-based employment over the last few years, and rising demand from big employers for a diminishing supply of newer high-quality office space in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – have combined to create a fertile environment for new office construction . . . and developers are ready to deliver.

This year will likely be the peak in the cycle for the delivery of new office projects, said the latest CoStar Portfolio Strategy forecast. The U.S. office vacancy rate has continued to steadily decline, moving from 10.7% in 2015 to 10.4% in 2016. Vacancies in the U.S. and Philadelphia commercial real estate markets are expected to hold fast at 10.3% in 2017 amid ongoing demand for existing space from tenants, said analysts presenting CoStar’s State of the U.S. Office Market Q4 2016 Review and Forecast presentation.

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

The hefty totals projected for this year involving U.S. and Philadelphia commercial real estate properties are the result of the large number of new office projects started in 2015. The 129 million square feet of new office space started in 2015 included such massive mixed-use developments as 30 and 55 Hudson Yards, and the $1.2 billion One Manhattan West office tower in New York City. An even larger total of 138 million square feet of new office space was under construction as of this past January 1.

Major construction that normally involves both national and Philadelphia commercial real estate listings is concentrated instead in a handful of large metros. New York City has seen a jump of 107% while Southern California, where construction has started to pick up substantially for the first time since the recession, is up 27% in two years’ time. Texas office construction is down 35% since 2015, largely due to the construction shutdown in Houston, where energy sector tenants have put large blocks of space on the sublet market.

The 138 million square feet under way is still significantly lower than the 2000-2001 period, when more than 200 million square feet in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – was under construction. This has allowed national office vacancies to remain well below long-term averages, the CoStar report noted.

Most large markets involved with U.S. and Philadelphia commercial real estate listings are seeing construction levels as a percentage of total office inventory well above their historical averages. In the San Jose market, for example, construction totaling 9% of total office inventory — 10 million square feet — is under way, compared with 1.4% nationally. While pre-leasing is quite strong, a potential concern could be rising levels of backfill space that may become available when companies move into their new quarters.

For more information about Philly office space, Philly retail space and Philly industrial space or other Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) or Christopher R. Henderson (chris.henderson@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker that specializes in Philly office space, Philly retail space and Philly industrial 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, Philly retail space or Philly industrial 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, Philly retail space or Philly industrial 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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Is it better to use a sprayer or a squeegee to apply sealcoating

Is it better to use a sprayer or a squeegee to apply sealcoating? The debate began as soon as the first mechanical sprayer was invented. There is no definitive answer — an experienced, conscientious sealcoating professional can obtain quality results using either method or a combination of the two methods. Each has its own advantages and potential drawbacks.

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How to Apply Sealcoating: Squeegee vs. Spray – Advantages and Disadvantages

apply-sealcoating• Squeegee applications typically produce a better bond between the pavement’s surface and the sealant. The pressure exerted by the squeegee forces the sealant into surface cracks and voids, creating a bond that is of higher quality while often yielding a smoother appearance.

• Sprayers provide better control of the amount of sealant used, making the application process more precise.

• Squeegee machines take a little longer than sprayers, but hand squeegees are the most timeconsuming.
On many jobs, it will take twice as long for workers to apply sealcoating by hand. Because weather conditions play a significant role in drying time, if the weather is cool, the crew may not have time to apply the second coat on the same day.

• Spray methods usually work better if the pavement is smooth and free from surface voids. As already noted, if there are voids, the sealant can be forced into them with a squeegee, but if there are no voids, the squeegee may glide too easily over the surface and leave too little sealant behind.

• Squeegees can leave behind too much sealant if the surface of the pavement is coarse. This can
lead to patches that take longer to cure as well as a finished surface that is less attractive.

Apply Sealcoating with a Combination Method

Many contractors find that they obtain better results if they apply the first coat by hand around buildings and sidewalks, use a squeegee machine or hand tools to apply the balance of the first coat and then use the spray method for the second coat. The squeegee method creates the superior bond, but it can leave slight imperfections such as tiny holes. These minor flaws can be eliminated when the spray method is used for the second coat.

Other Considerations When You Apply Sealcoating

Many problems reported for the different methods are due to an inexperienced operator or unethical contractor rather than the result of the method chosen. For example, a novice worker might leave behind noticeable lines when using a hand squeegee, a disreputable contractor might order the sealant to be thinned excessively or an inexperienced operator might set the spray rate too low. Your best bet is to find a reputable, experienced sealcoating professional and then trust his judgment on the best method or methods to use for your project.

For more information, contact:

Dave Sulkin VP of Sales and Marketing: American Asphalt Company, Inc.

Phone: (856) 456-2899 Ext #226

Fax: (856) 456-4398

www.americanasphaltcompany.com

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WCRE Welcomes New Vice President Tony Banks

Tony Banks will focus on expanding the Wolf Commercial Real Estate’s footprint in Philadelphia and the Philly suburbs

View Tony Banks Hiring Release in PDF

Wolf Commercial Real Estate (WCRE) is pleased to announce the hiring of Tony Banks, who joins the firm as a Vice President. Tony brings a unique combination of commercial real estate and high finance experience to WCRE. Banks brings nearly a decade of experience in commercial real estate, representing local and national retail tenants, landlords, community development groups, investors, and startups in the Philadelphia area. Prior to his work in real estate, he was a trading analyst on the floor of the Philadelphia Stock Exchange for more than ten years, where he worked with some of the more prominent firms on the NYSE.

Tony’s role at WCRE will include a focus on expanding the firm’s client base in Pennsylvania, especially in and around Philadelphia. He will also provide leadership in sales and leasing, tenant and landlord representation, investment sales, and multi-family dwellings. Banks was most recently an associate at Legend Properties, where he focused on sales and leasing, landlord and tenant representation, and investment sales.

Having recently marked its fifth anniversary, WCRE is now well established in Southern New Jersey, and leadership sees growth in the Pennsylvania markets as a natural next step. The firm has added two new key team members on the account service side every year since its founding.

“Our team has been evolving according to our deliberate strategy to ensure we are able to anticipate and meet the specific needs of our clients and community,” said Jason Wolf, founder and managing principal of WCRE. “Tony has a terrific track record as a real estate professional and a knowledge of finance that will enable us to educate and serve clients in new ways.”

WCRE is highly dedicated to community service, and seeks new team members who share this value. Banks is an excellent fit in this regard, as he is active in several local community and professional groups. He is on the board of the Chestnut Hill Youth Sports Club, and is a member of the Watertower Recreation Center Advisory Council, among others.

“I’ve admired WCRE’s commitment to building strong communities and relationships and its leadership in innovation for a long time,” said Banks. “I’m truly excited to join such a dynamic team and look forward to all we will accomplish together.”

About Wolf Commercial Real Estate

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

Learn more about WCRE online at www.wolfcre.com, on Twitter & Instagram @WCRE1, and on Facebook at Wolf Commercial Real Estate, LLC. Visit our blog pages at www.southjerseyofficespace.com, www.southjerseyindustrialspace.com, www.southjerseymedicalspace.com, www.southjerseyretailspace.com, www.phillyofficespace.com, www.phillyindustrialspace.com , www.phillymedicalspace.com and www.phillyretailspace.com.

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Setting The Stage for a Commercial Relocation

commercial-relocationEvery move is challenging, but a commercial relocation has so many moving parts to it that it can seem like an overwhelming task. You have two options: coordinate the project yourself, or look to outsource it. If your relocation needs to be a seamless transition that doesn’t impact your day-to-day business, then the most expedient solution is to partner with a commercial move expert who has a field-tested logistics management program in place.

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So what is a logistics management program? It’s a 5-step protocol that relocation experts use to keep a project on budget and on time. Before you hire a company, interview several candidates, and see which ones will approach your move with these proven parameters:

STEP #1: Commercial Relocation Plans and Objectives

Your Logistics Coordinator should develop a project overview and outline that encapsulates all the details
involved in your relocation, including:
• Projected timeframe
• Goals and budget
• Space evaluation
• Asset inventory/furniture analysis
• Space planning
• Contents move plan and asset liquidation
• Computer/phone/data migration

STEP #2: Physical Survey before Commercial Relocation

An on-site logistics team should survey both the origin and destination locations in order to provide a
comprehensive detailed work overview. It’s important to identify property/building management requirements and specifications so that decommissioning at the current office space complies with the guidelines, and any build-outs required at the new office space are completed prior to move day. A physical survey is especially important when relocating stock from several different locations — office, store, or warehouse. Each venue requires an entirely different logistical approach, so don’t assume just giving the logistics team the square footage total is enough information. Nothing takes the place of an actual boots-on-the-ground survey.

STEP #3: Budgeting for a Commercial Relocation

Your Logistics Coordinator should create a detailed budget that breaks down the move into individual line items. Any vendor services needed should be sent out for comparative bid. Final recommendations should slot that doesn’t involve a landfill. From recycling to liquidation to donation, a commercial move should not hurt the earth.

Can you coordinate office and residential relocation for the entire company?

For a commercial relocation that involves a great distance, look for a logistics management team that can handle all the relocation needs of both company and employees alike. Why? A comprehensive move plan that can coordinate the office relocation along with the employees’ residential moves will transfer everything at the same time to maximize efficiency and minimize downtime.

A commercial relocation is a major step for any business. Make it your business to hire the best full-service professional for the job.

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.

FOR MORE INFORMATION, CONTACT:

Shawn O’Neil at 609-744-4112 or
Paul Sipera at 609-760-8312

visit www.argosymg.com

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WCRE Appointed Exclusive Agent For 436,800 Square Foot Southern New Jersey Medical Office Portfolio

WCRE Appointed Exclusive Agent For 436,800 Square Foot Southern New Jersey Medical Office Portfolio

Wolf Commercial Real Estate (WCRE) is pleased to announce that it has been appointed exclusive agent by Welltower, Inc. for its Southern New Jersey medical office portfolio comprising approximately 436,800 square feet located in Moorestown and Washington Township, New Jersey. The leasing team of John Mozzillo, Chris Henderson, and Jason Wolf will be overseeing the project.

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Welltower (NYSE:HCN), a real estate investment trust (REIT), owns more than 1,400 properties in major, high-growth markets in the United States, Canada and the United Kingdom, consisting of senior housing and post-acute communities and outpatient medical properties. With headquarters in Toledo, Ohio, the company currently has almost $30 billion in assets under management both inside the US and abroad.

“The healthcare sector has been one of the key drivers of growth in our market in recent years,” said Jason Wolf, founding principal of WCRE. “We are excited about this opportunity to market top tier medical office space for a high profile owner.”

Property Highlights

Virtua Health & Wellness Center, 401 Young Avenue, Moorestown, New Jersey

Built in 2012, this strategically located class “A” medical center is in the heart of Moorestown. The Health & Wellness Center consists of 181,236 SF, on three floors, and includes primary care, cardiology, radiology, urgent care, a fitness center, spa, and child care center. There are only two suites currently available measuring 3,940 and 4,709 rentable square feet.

Virtua Health & Wellness Center, 239 Hurfville-Cross Keys Road, Sewell, New Jersey

Virtua Health & Wellness Center in Washington Township is a 255,570 SF is a total health destination. Community members can exercise, relax with a massage, eat a heart-healthy meal, see their doctors, and undergo tests or procedures all in a single visit, without ever leaving the center.
The Health & Wellness Center offers a complete mix of services including but not limited to: Primary Care, Cardiology, Radiology, Surgery, Obstetrics and Gynecology, Urgent Care, and Lab Services. With a focus on preventing illness and maintaining good health, the Center is also a place to come to rejuvenate the well-being of body and mind with services like a fitness center and a spa. Currently, there are suites available ranging from 1,000 SF-14,000 SF.

“WCRE is an ideal partner, and their mix of professionalism, marketing vision, and connectedness to this market gives me confidence they will do very well representing our medical space portfolio in Southern New Jersey,” said Ryan Lewis, director of leasing for Florida and East Regions at Welltower.

About Wolf Commercial Real Estate

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

Learn more about WCRE online at www.wolfcre.com, on Twitter & Instagram @WCRE1, and on Facebook at Wolf Commercial Real Estate, LLC. Visit our blog pages at www.southjerseyofficespace.com, www.southjerseyindustrialspace.com, www.southjerseymedicalspace.com, www.southjerseyretailspace.com, www.moorestownofficespace.com, www.moorestownmedicalspace.com, www.phillyofficespace.com, www.phillyindustrialspace.com, www.phillymedicalspace.com and www.phillyretailspace.com.

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Office Design Trends for 2017

office design trends

Lets explore office design trends for 2017. With the developing workforce becoming more mobile, it’s important to make your working place inspiring and fun to be inside of. With large organizations like Google, Linkedin, Facebook, and Snapchat, the modern workplace is always a topic of conversation that we see when initially designing our client’s space. Even with the popular modern style that our clients want, it’s important to make sure that your team can work more effectively and efficiently.

As a result of this, 2017 could be the year that will begin a revolution in workplace design. Here’s why:

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Office Design Trends in Interchangable Layouts

In today’s world, technology is rapidly changing to keep pace with the dynamic work environment. It is of utmost importance that the workplace is customizable and changes according to the task being done. Work Stations should be easily able to adapt to the changing work conditions and it the most important aspect which will be considered for designing office space in 2017. To design a workplace which works efficiently in future, you need to take some radical and unique decisions while choosing your office furniture.

Office Design Trends for Supporting Future Growth

For developing flexible layouts, you need to have furniture which will serve the demands of the new and changing workforce. You need to make smart choices which will help you to support an employee friendly, well-designed, and at the same time flexible workplace.

Office Design Trends for Integrated Technoology

You need to design your workplace so that can integrate with technology seamlessly. There is also the need to transform the workplace according to the modern trends such as cloud computing and wireless charging.

Office Design Trends for Development

In the recent times, modern architects and designers alike have promoted induced well-being as an integral part of the workplace design. As the health and increased productivity of the employees is of utmost importance, this sort of design will aid in the holistic development of the workforce at your office. Such innovations in workplace design make sure that the productivity of your staff is very high. 

Office Design Trends to Bring In the Outdoors

You need to create a workplace which brings in all the benefits of the outdoor environment into your place of work. Every office worker spends more than eight hours a day inside the four walls of your office. Hence, you need to bring the benefits of the natural environment into the workplace so that the employees do not feel cut off from the outside world. One such innovation is be living walls which add a part of nature to your workplace as a result of which there is increased air purity, freshness, and cleanliness in the office space.

Work-Based Office Design Trends

This technique combines two vital factors – The need for more privacy sometimes and improved collaboration during other times together in the same space. Some work places have open offices which promote teamwork among workers and at the same time maintains their privacy. For this reason, pods which are small, brightly colored cubicles have been introduced which help in removing background noise and prevent others from disturbing you.

For more information about Boomerang Office Furniture:

Josh Smargiassi: Principal
Boomerang, Inc.
6950 Sherman Lane
Pennsauken, NJ 08110
P. 856.582.0100
F. 856.582.0104
www.boomerangofficefurniture.com

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Kaiserman Company Appoints WCRE as Exclusive Agent

KAISERMAN COMPANY APPOINTS WCRE AS EXCLUSIVE AGENT FOR 237,000 SQUARE FOOT SOUTHERN NEW JERSEY RETAIL & OFFICE PORTFOLIO

Wolf Commercial Real Estate (WCRE) is pleased to announce that it has been appointed exclusive agent by Kaiserman Company, Inc. for their Southern New Jersey office and retail holdings comprising approximately 237,000 square feet. The leasing team of Jason Wolf and Leor Hemo will be overseeing the project for Kaiserman.

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Kaiserman has been acquiring, developing, and managing real estate for more than 90 years. The privately-owned company believes in holding properties for the long term. It is headquartered in Center City, Philadelphia, and currently owns and manages more than 2.5 million square feet of premier office, commercial, and residential properties in the Delaware Valley.

“The Kaiserman Company has a nearly century-long legacy of excellence in property ownership and management in this region, and WCRE is excited to have the opportunity to represent their Southern New Jersey holdings,” said Jason Wolf, founding principal of WCRE.

Property Highlights

Kevon Office Center, Pennsauken, New Jersey

kaisermanThis well located 100,000 square-foot, four-story office building, located at 2500 McClellan Boulevard in Pennsauken NJ, has suites available from 1,596-7,632 rentable square feet.

“This property is in an excellent location, five minutes from Philadelphia via the Ben Franklin Bridge, and just a short walk away from Cooper River Park,” said Leor Hemo, executive vice president, WCRE. “It is situated near a wide array of shopping centers, restaurants, convenience stores, and service establishments, providing for an ideal office environment.” The property sits immediately off Route 70, providing convenient access to Routes 38, 70 & I-295.

Kevon Office Center is an Energy Star-certified building that offers a beautiful grand entrance, a three-story sunlit glass atrium lobby area, employee picnic area, and a beautifully landscaped exterior. This well-managed building also provides on-site maintenance personnel, an on-site café and newly renovated common areas.

The asking lease price is $17.50/sf Full Service. A marketing brochure is available upon request.

Barclay Farm Shopping Center, Cherry Hill, New Jersey

kaiserman2The Barclay Farm Shopping Center is an 83,000 square foot retail property conveniently located on the well-traveled Route 70 in affluent Cherry Hill, New Jersey, close to Kings Highway, I-295 and the New Jersey Turnpike.

A limited number of retail units are currently available in this attractive complex. Current tenants include a wide range of national and locally owned retail, service, and food establishments, including Manhattan Bagel, The UPS Store, M&T Bank, The Cherry Grill, Asian Food Markets, and Jacobs Music Company.

This highly visible retail location also offers pad sites available fronting along Route 70, a large parking lot, wide sidewalks, highly visible signage, and is within close proximity to many high-traffic retailers. Additionally, the façade and lighting are scheduled to be updated in 2017.

The asking lease price is $16.00/sf NNN. A marketing brochure is available upon request.

Barclay Pavilion, Cherry Hill, New Jersey

kaiserman3The Barclay Pavilion is a 54,000 square foot mid-rise office building offering office units of various sizes for lease. This well-located property is ideal for professionals and health care providers. The office space available for lease is wrapped around a tranquil center courtyard. The Pavilion is conveniently located adjacent to the restaurants and shops of the Barclay Farm Shopping Center. The Pavilion, supported by ample parking, is conveniently located on well-traveled Route 70 in affluent Cherry Hill, New Jersey close to Kings Highway, I-295 and the New Jersey Turnpike. A 10,000-plus square foot pad site is also available for build-to-suit leasing.

The asking lease price is $14.50/sf full service. A marketing brochure is available upon request.

About Kaiserman Company

Kaiserman Company is a full-service commercial real estate company that owns and operates a wide range of property types. Kaiserman Company strives to own, operate and manage the most carbon-responsible properties possible, yielding the greatest value for owners, tenants, and investors, while maintaining safe, comfortable, and innovative places to live and work. Kaiserman aims to provide best-in-class service, attract a skilled and ambitious workforce, and serve as a model for green operations, positive tenant relations, and efficient management. Learn more about Kaiserman Company at www.kaiserman.com

About WCRE

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

Learn more about WCRE online at www.wolfcre.com, on Twitter & Instagram @WCRE1, and on Facebook at Wolf Commercial Real Estate, LLC. Visit our blog pages at www.southjerseyofficespace.com, www.southjerseyindustrialspace.com, www.southjerseymedicalspace.com, www.southjerseyretailspace.com, www.cherryhillretailspace.com, www.cherryhillofficespace.com, www.phillyofficespace.com, www.phillyindustrialspace.com, www.phillymedicalspace.com and www.phillyretailspace.com.

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Major CRE Construction Activity Expected to Moderate Following Strong 2016

Construction starts are expected to trend lower this year following a 2016 that is shaping up to be both a post-recession peak and an inflection point for development across all major property types in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space.

The Associated Builders and Contractors (ABC) forecasts a slowdown of growth in the 2017 commercial and industrial construction industry segments of the U.S. and Philadelphia commercial real estate markets due to rising commodity prices and potential further interest rate increases this year.

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 consumer-led recovery, however, still is expected to support modest construction spending and employment in relation to U.S. and Philadelphia commercial real estate properties. The economy continues to expand amid a weak global economy and — despite risks — nonresidential spending should expand 3.5 percent in 2017, said ABC Chief Economist Anirban Basu.

“For more than two years, the Federal Reserve has been able to focus heavily on stimulating economic growth and moving the nation toward full employment,” Basu said. “However, as commodity prices including energy prices firm up and labor costs march higher, the Fed will need to be more concerned about rising inflation expectations going forward.”

Both anecdotally and by CRE forecasts issued by The CoStar Group, 2016 appears to be the peak year for total construction activity involving national and Philadelphia commercial real estate listings, as well as an inflection point.

Despite being at levels that remain well below those of the previous cycles, construction in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – has slowed in recent quarters. However, both the warehouse/distribution and apartment sectors have out-performed, generating construction activity well above prior cyclical highs.

For example, condo projects among U.S. and Philadelphia commercial real estate listings shrunk to a paltry 3 percent of total multifamily construction by 2013, when just 4,300 units were completed, compared to 50,000 units, or 30 percent of all multifamily construction, completed in 2007. New condo construction remained hard to finance as of the third quarter of 2016.

For more information about Philly office space, Philly retail space and Philly industrial space or other Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) or Leor Hemo (leor.hemo@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker that specializes in Philly office space, Philly retail space and Philly industrial 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, Philly retail space or Philly industrial 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, Philly retail space or Philly industrial 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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