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Monthly Archives: May 2017


Dearth of Properties Holding Back U.S. Industrial Sales Volumes

The U.S. industrial real estate market is seeing a shortage of bulk warehouse and logistic centers available for sale along with a shift in focus by industrial REITs from acquisition to development. The resultant flattening in yields will likely produce lower investment sales volumes this year throughout the commercial real estate market – including Philly office space, Philly retail space and Philly industrial space.

U.S. logistics and light industrial properties investment sales volumes fell 13 percent year-to-year in the first quarter of 2017, even though billions of dollars have been raised for real estate investment by global funds. Along with increased real estate allocations in the U.S. and Philadelphia commercial real estate markets by pension funds and other groups, buyers face fierce competition for the few available industrial portfolios and individual assets on the market, according to CoStar’s First-Quarter 2017 U.S. Industrial Market Review and Forecast.

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.

With the shortage of available industrial property on the market, pricing is at record highs across all tiers. “We’re definitely seeing a bit more caution out there” among investors, said Rene Circ, Director of Industrial Research for CoStar. “While we don’t expect investment sales volume to be higher than last year, we do expect there will continue to be far more buyers than sellers.”

Investors in U.S. and Philadelphia commercial real estate properties have become more disciplined during this cycle, and the duration of low interest rates has gradually adjusted the return expectations of industrial investors, Circ said. Rather than chasing riskier assets in riskier markets, investors appear to be accepting lower going-in yields.

“Appreciation and price growth are slowing and it’s going to be very difficult to get further gains from cap rate compression, especially at the top of the market,” Circ added, “but we will still see very significant embedded net operating income growth over the next couple of years.”

One reason for the deceleration in sales volume regarding both national and Philadelphia commercial real estate listings is a reallocation of capital by publicly traded industrial REITs such as Prologis (NYSE: PLD) and other investors from acquisition to development activity.

“The same money is still flowing; it’s just flowing in a different direction because development spreads right now are very attractive,” Circ said.

The industrial sub index of the CoStar Commercial Repeat Sale Index, bolstered by high occupancy and rent growth, logged the second-highest growth rate in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – at 2.3 percent during the first quarter, just behind retail, according to the most recent CCRSI release.

Comparing current average investor yields among U.S. and Philadelphia commercial real estate listings with forecasted rental rate growths, such markets as those in the Jacksonville, Tampa, and Orlando areas, along with Boston and Chicago, are among a shrinking pool that still present attractive buying opportunities for investors, Circ noted.

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 Lee Fein (lee.fein@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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How Drones and LiDAR Can Benefit Commercial Real Estate

Let’s explore using drones in commercial real estate applications. Drones have been around since the early 1900s when they were known as radio-controlled airplanes and during WWII were used for aerial photography. Through the years, that definition has changed numerous times, but make no mistake, today’s drones are no comparison to those early models. Technologically speaking, the correct terminology is Unmanned Aerial Vehicles, or UAVs. UAVs fall into two categories—commercial and recreational. With the increased development of affordable technology and availability—hobbyists have gone into a frenzy for sport and entertainment drones. However, when referring to commercial grade UAVs you’re looking at an entirely different animal and there are a lot of things to take into consideration before launching a geospatial eye in the sky. For starters, commercial UAVs must adhere to strict Federal Aviation Administration (FAA) guidelines and restrictions. They also need certified FAA Part 107 licensed pilots, trained ground crew, and an insurance policy in order to operate them.

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Using Professional Drones for Commercial Real Estate

Professional UAVs (drones) combined with a certified flight team to operate it is referred to as an Unmanned Aerial System (UAS). Commercial UAS has a multitude of functions depending upon what your use for them is. When outfitted with a Light Detection and Ranging (LiDAR) survey unit, a UAS can collect highly accurate 3D survey data for large land parcels, including mapping for transportation planning, traffic monitoring and assessments, utility mapping and asset identification and inventory, in hours rather than through conventional ground methods that could take days.

Some larger tasks, such as surveying and mapping large acreages or roadways may be performed in a few hours/days’ time as opposed to using only conventional boots on-the-ground work flow processes that, when used alone, uses more staff and could turn into weeks. The secret to large parcel survey is that the UAS can be set to scan a predetermined flight path and fly autonomously. Because the UAS is operated from a remote station on the ground, this method takes people out of the equation, hence, out of harm’s way. Safety is always
a benefit, and when it takes less time it costs less money.

LiDAR is so versatile it can integrate highly accurate survey data collected from multiple sources on the ground (static), from a vehicle (mobile) and from the air (UAV) to produce a unified and measurable client deliverable.

Using Drones for Site Survey

An example of why this is advantageous would be if you bought a large property with an existing building on it with intent to completely redevelop the parcel that included renovating and updating the building. The first thing you’d likely do is have topographic and boundary surveys performed. While static survey can be performed from the ground, UAS can be used to map existing assets, and collect measurement data from the building top and exterior. When using cameras and videos, hi-rise inspections can be made to pinpoint areas in need of attention so the overall condition of the building can be assessed, enabling stakeholders to make timely decisions. Since operating UAS remotely from the ground, it eliminates the need to employ someone to physically navigate scaffolding or ladders which again equates to better safety.

As for the existing building, while you may be able to put a time stamp on the year it was built, getting your hands on the original drawings, or the often elusive or non-existent as-built drawings, may be much more difficult or impossible to obtain. Using a combination of UAS and LiDAR can help you quickly and accurately reproduce the existing building interior and exterior layouts and condition. It is also an asset in adaptive reuse projects, for example in helping to match floor and ceiling heights between old and new structures. Another example is in historical building restorations as laser scanning can be performed to replicate significant missing pieces of a building’s exterior.

UAS can continue to be employed throughout the entire construction process for help in determining site drainage and earthmoving requirements, volumetrics (stockpile measurement), material and quantity monitoring, provide reports through site surveillance and monitoring of the overall construction progress.

Using Drones for Site Investigation

UAS can also be used for initial site investigation. Due to its relatively small size and increased maneuverability,
a UAS can easily access places that conventional airplanes and helicopters cannot. One of the biggest advantages of using UAS as opposed to former means of aerial photography, is that UAS is static in the sky.

When outfitted with a high resolution scanner, a UAS can hover-in-place to provide measurement or video inspection exploring places that may otherwise be limited or hazardous for field crews to access like between high tension wires, telecom towers, windmill tower blades or building tops. Pretty much, UAS is a tool to get a sensor, camera or LiDAR in the right location. For environmental sites, when fitted with various sensors, a UAS
can provide data that detects light, energy, heat, toxins—even vegetation health. UAS can be sent ahead of the investigative team into a variety of settings, such as a mine, with sensors that detect toxic leaks that can protect
the team. Today’s UAV (drones) technology has so many potential uses that if a sensor for detecting something hasn’t been released to the public yet, it is probably already in development.

Using Drones for Site Monitoring

UAS is fast becoming an additional service offered by construction equipment providers that rent heavy machinery such as lifts, bulldozers, and scaffolding for large construction projects. Having a UAS can also help to safely monitor and assess situational conditions caused by the environment including flooding, sink holes, landslides, earthquakes, hurricanes and tornadoes that may affect your properties.

But the question remains; is it cost effective and the best use of technology to invest in my own UAS? That answer is up to the individual. Either way, it is important to reach out to a professional UAS service provider who
can steer you in the right direction as to developing your own in-house service or who can perform these tasks for you.

Using a mix of conventional ground survey and geospatial methods is still appropriate, promotes safety, saves time and is cost effective translating into a better bottom line for your project. Integrating a professional grade UAS into your work flow process can be an extremely versatile tool in assisting commercial developers.

Technology is creating a whole new era in how we do business and it’s not likely to stop here!

Rhett N. Chiliberti, P.E.

Geographic Discipline Leader
Maser Consulting P.A.
1500 JFk Blvd – Suite 222
Philadelphia, PA 19102
P: 215.861.9021 ext: 5101
C: 215.915.0534
www.maserconsulting.com

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Unprecedented Chinese Investment in U.S. CRE Raises Concern

As investors from China continue to make substantial purchases in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – concern is rising in Washington D.C. over the potential implications this deluge might be having on national security.

To ensure these issues are being fully considered, Senate Banking Committee Ranking Member Sherrod Brown, D-OH, together with Sen. Ron Wyden, D-OR, ranking member on the Senate Finance Committee, and Sen. Claire McCaskill, D-MO., ranking member on the Homeland Security and Government Affairs Committee, requested the Government Accountability Office investigate how the Committee on Foreign Investment in the United States (CFIUS) examines real estate transactions involving foreign investors in the U.S. and Philadelphia commercial real estate markets.

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 request by those three senators calls for the GAO to assess whether CFIUS is adequately equipped to identify, evaluate and, when appropriate, mitigate, national security risks arising from the “rising tide” of foreign investment in U.S. and Philadelphia commercial real estate properties.

In their letter, the senators note additional national security considerations may exist because several senior administration officials, including the president, retain ownership of significant real estate holdings and maintain multiple residences that could be the subject of foreign acquisitions in the future.

“Foreign investors are pouring more and more money into the U.S. real estate market, and yet the trail behind these transactions is often shrouded in secrecy,” Sen. Wyden said in addressing these issues among both national and Philadelphia commercial real estate listings. “It is critical we have a better understanding of how U.S. agencies identify and address national security threats that may arise about foreign real estate investments.”

“We know real estate deals are one of the favored ways to launder illicit finances,” Sen. Brown said in relation to these same investments in U.S. and Philadelphia commercial real estate listings. “We don’t, however, know if our oversight agencies have the resources and tools they need to vet Russian, Chinese, and other foreign investments in U.S. real estate for potential threats to our nation’s security.”

The senators’ request follows a significant increase in foreign investment in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space. Total Chinese direct investment in U.S. real estate and hospitality is nearly $30 billion, accounting for more than 27 percent of total Chinese investment since 1990, according to a recent report from the National Committee on U.S.-China Relations, an organization that promotes constructive U.S.-China relations founded in 1966.

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 Lee Fein (lee.fein@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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Additional Coverage for Green Buildings Owners & Tenants

coverage for green buildingsLet’s explore insurance coverages for green buildings. So, you’ve decided to go green by buying or renting a LEED-certified building for your business. In addition to a reputational boost for taking strides to help the environment, you will likely also be saving on heating and electricity costs. The next step is to look at your insurance policies and make sure your investment is protected, and that you are covered for the perils associated with green properties and buildings.

Because going green is a still a relatively new phenomenon, your commercial general liability (CGL) policy probably does not specifically address these risks or indicate whether or not they are covered. It is always best to take a close look at your policy to determine if your plans to go green cause any changes. Learn about additional coverage options for green buyers or renters here.

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Upgrading to green buildings

Maybe you want to go green but are not ready or able to fully convert yet. One option that is becoming more common is green upgrade property coverages. These policy additions would allow you to upgrade to a green-certified level in the event of a physical property loss. Update-to-green coverage benefits you because your building has the potential to be even more efficient after a loss, and it puts you at a lower risk of filing construction defect claims in the future because of the rigorous and careful LEED certification process.

Breach of Warrantee/Breach of Contract for Green Buildings

Though a typical CGL policy will cover you for bodily injury, property damage liability and personal injury, breach of warranty and breach of contract are generally excluded. However, when you are a tenant in or an owner of a green-certified building, these are two or the most important kinds of coverages to have. One of the most common claims against property owners or managers is that after construction or years down the road, the green building is not living up to promised standards. The building may not qualify for the LEED certification level promised, or savings on energy may not be as high as marketing and advertising materials guaranteed. You will need additional coverage beyond your CGL policy to protect yourself in this case.

Similarly, problems with tax credits and incentives will require breach of warrantee or breach of contract coverage. If a developer or owner tells you, the prospective buyer or tenant, that they will be able to get a certain number of carbon credits and later cannot deliver, you will need proper coverage to retain the promised return on investment. The amount of necessary coverage will depend on how energy efficient the building is or strives to be. 

Coverage for Non-Performance Investigations of green buildings

If a problem ever arises with your green buildings, you will need to find out who is at fault—the design professional, developer, owner or contractor. Doing so will require extensive testing of the building and its systems to figure out why it is performing under the promised standard. As CGL policies are crafted now, the cost of this investigation may not be covered. CGL policies usually require an occurrence or event—a specific incident where damages happened—to respond. In most green buildings cases, there is no damage to the structure, it just does not perform as efficiently or effectively as the contract specifies.

Therefore, you should consider adding extra protection to your policy that would pay for the cost of finding the at-fault party, which can get extremely expensive if it requires looking into design and construction elements.

New coverages emerging for green buildings

Green buildings are still making their way into the insurance world. There are still grey areas, and insurers are debating whether green buildings add extra perils or reduce risks overall. Some carriers are even beginning to offer discounts for those businesses who decide to become more environmentally responsible. When in doubt about what aspects of your investment  in green buildings are covered, turn to Hardenbergh Insurance Group for guidance. Call (856) 489-9100 today to make us part of your initiative to go green.

Brian Blaston, Partner
Hardenbergh Insurance Group
phone: 856.489.9100 x 139
fax: 856.673.5955
web: www.hig.net

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Improve ROI by Utilizing Office Space

utilizing office spaceHow can you increase the return on your investment by utilizing office space? When a business makes an investment, they expect to see a return on that investment. So it is important, that when making design decisions that you first establish the outcomes that you expect and that the interiors solution provider that you are working with knows how to use design to achieve those outcomes to help you
reach your corporate goals.

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Utilizing Office Space for Employee Engagement

Each year, actively disengaged employees cost U.S. companies between $450-$550 billion in lost productivity. Making sure that employees are engaged in the job that they do, will have a big impact on your business. Not only will it make a work more meaningful for your employees, but it will employees will have a sense of purpose.

Incorporating flexibility and adaptability into an office creates a balance within the space. By using adaptable desks, lounges, phone areas and touchdown spaces, workspaces should contain different types of spaces within one space for employees to engage in collaboration or focused work. Designing your space to reflect your company’s core values will consistently support employee engagement.

Utilizing Office Space for Retention and Recruitment

As employee engagement increases, so does retention rate. In fact, recent studies have found that strategic office design has a huge impact on the overall satisfaction of employees. By incorporating design features such as an natural lighting, adjustable and multi-use furniture and a variety of workspaces to supplement an open floor plan increases employee retention.

As far as recruitment goes, by 2020, 40% of the workforce will be millennials, and the new workforce wants to feel connected and engaged in the work that they do. In addition to the other design features mentioned, top talent is looking for flexibility when choosing a job, so why not allow for easy access to technology in your space. By having a state-of-the-art design in the workspace, not only will it optimize efficiency and productivity, but it will attract the best talent to your company.

Utilizing Office Space to the Max Per Square Foot

In order to maximize spatial efficiency, will keeps cost down and increase profit. So designing your workspace
to be flexible and adaptable leaves room for your business to grow and change as needed. For example, current
seating trends such as hoteling, benching and hot desking decrease the amount of square footage needed per
employee which will allow room in your workspace other needed areas like touchdown spaces, quiet areas,
collaborative spaces or meeting rooms.

Most businesses are pretty conservative when it comes to design spending, but when you strategically plan design investment to achieve certain outcomes, not only will you see a big return, but you will maximize productivity, increase competitiveness and achieve your corporate goals.

Bellia President, Anthony Bellia understands and values the importance of helping clients succeed by providing a seamless experience when furnishing commercial interiors. Bellia Workspace Solutions is a family owned and run business with over 40 years of experience and service to the community. Their clients’ visions and goals are the motivation for probing into the culture, style and nature within workspaces. It is his mission to help companies within the Tri-state area be more magnetic to remain strong and continue to grow by attracting top talent, building spaces that provide flexibility in the future, and creating branded environments that support the company message.

Anthony Bellia

 

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WCRE Appointed Exclusive Agent for Lions Gate Land Site in Voorhees

lions gate

Lions Gate, Voorhees, NJ

Wolf Commercial Real Estate (WCRE) is pleased to announce that it has been retained by SJF CCRC, Inc., trading as Lions Gate, an affiliate of Jewish Federation of Southern New Jersey, as exclusive agent for the future development of 801 Haddonfield-Berlin Road, Voorhees, NJ. The assignment includes exclusive listing and advisory duties for the site, which is adjacent to the Lions Gate Continuing Care Retirement Community, and is currently home to Golf Land.

The development parcel is located directly across from both Eagle Plaza and The Ritz retail centers and within walking distance of the newly constructed Patient First Urgent Care. The triangle shaped +/-12.348 Acre parcel sits on heavily trafficked Haddonfield-Berlin Road and includes more than 1,000 feet of frontage. This site benefits from superior demographics, prominent visibility, and ease of access via a traffic light and turning lanes from either direction.

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Lions Gate is considering all options, including a ground lease or a joint venture with a developer. “For us, this is about community. We will work to ensure that the entity that lands on this site will be a great addition to the neighborhood and a partner to Lions Gate,” said Jason Wolf, founding principal of WCRE.

This assignment adds to WCRE’s growing number of partnerships with institutional and healthcare clients in Philadelphia and Southern New Jersey. It is the firm’s second engagement with the Jewish Federation, having facilitated its 2014 purchase of the building now known as the Annex, a 21,325 square-foot school building situated on 18+/- acres on Springdale Road in Cherry Hill.

“We look forward to working with an organization whose values align so closely with ours,” said Susan Love, CEO of Lions Gate.

WCRE’s Anthony Mannino, Esq., Vice President of Corporate Strategies said, “WCRE is proud to partner with Lions Gate as our latest institutional relationship in Southern New Jersey. We look forward to applying our WCRE 360 marketing approach to find the right user for this highly-desirable property.”

WCRE’s institutional specialist team of Chris Henderson, Anthony Mannino, John Mozzillo and Jason Wolf will be working closely together with Lions Gate on this property initiative.

A marketing brochure is available upon request.

Learn more about Wolf Commercial Real Estate at www.wolfcre.com and Lions Gate at www.lionsgateccrc.org.

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 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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WCRE Proudly Joins CORFAC International

CORFAC InternationalWCRE is pleased to announce it has joined CORFAC International, a network of independently-owned, entrepreneurial commercial real estate firms with 78 collaborative offices worldwide.  Under the new arrangement, the five-year-old local firm will rebrand as WCRE/CORFAC International.

Though it bears a new name, the firm remains a full-service commercial real estate brokerage and advisory firm specializing in office, retail, medical, industrial and investment properties. It provides a complete range of real estate services to commercial landlords, tenants, investors, developers, banks, commercial loan servicers and companies.

Download WCRE Printable Press Release in PDF>>>>

Download CORFAC International Printable Press Release in PDF>>>>

“Our alliance with CORFAC International provides a global network of resources and knowledge that will greatly benefit our clients,” said Jason Wolf, Managing Principal of WCRE. “We’ll be able to add those resources to our tradition of individualized service and cutting-edge marketing techniques.”

Wolf founded WCRE in early 2012 after 17 years of steady growth and success at a top national commercial real estate firm. Driven by a visionary team with a wide variety of expertise, WCRE quickly took its place among the market leaders.

“We’re happy to add WCRE to the CORFAC family,” said Ray Lyons, CORFAC International president and broker with Thomas L. Johnson Realty/CORFAC International in Toronto. “Their insights and expertise in the Philadelphia region will bring even stronger service to all of our clients.”

Founded in 1989, CORFAC International’s member firms provide a full range of brokerage services across the globe. “It is an honor to have Wolf Commercial Real Estate join the CORFAC family as our newest member firm,” said Jonathan Salk, Executive Director of CORFAC International.

“WCRE is well recognized and respected as the top independent commercial real estate company in the Philadelphia and South Jersey region. Their strong full-service team with years of experience locally, regionally and nationally will be a fantastic addition to our CORFAC network,” Salk added.

“CORFAC is an excellent fit for our regional and national practices in office, retail, healthcare, and industrial properties,” said Anthony Mannino, vice president for corporate strategies at WCRE.

Learn more about Wolf Commercial Real Estate at www.wolfcre.com and CORFAC International at www.corfac.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 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.

About CORFAC International

Established in 1989, CORFAC International (CORFAC) is comprised of privately held entrepreneurial firms with expertise in office, industrial and retail brokerage, tenant and landlord representation, investment sales, multifamily, self-storage, acquisitions and dispositions, property management and corporate services. Founded in 1989, CORFAC has 48 firms in the U.S., four in Canada and 26 in international markets, including Colombia, France, Germany, Ireland, Israel, Italy, Mexico, Romania, Russia, South Africa, South Korea, Switzerland and the United Kingdom. CORFAC firms completed more than 11,000 lease and sales transactions totaling 550 million square feet of space valued in excess of $8.5 billion in 2015. Learn more at www.corfac.com or on Twitter at @CORFACIntl.

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Title Insurance In Commercial Real Estate

title insuranceWhat is the importance of title insurance in commercial real estate? Purchasing a commercial property for some can be both daunting and exciting. It is important to note that purchasing title insurance for any commercial transaction is imperative, and finding out that title is “clean or “clear,” will ease some of those overwhelming thoughts.

Clear Title is defined as title without any kind lien or encumbrances from creditors or other parties and poses no question as to who is the legal owner. Commercial Real Estate involves high risks for the buyer, seller and the lender who have a vested interest in the overall transaction. Although viewed as a mere formality in the residential transaction process, it is an integral part of both the due diligence phase and the closing process due to the typical high acquisition cost of commercial real estate.

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Title Insurance, by definition, “is an insurance policy that covers the loss of ownership in property due to legal defects.” What defines those defects?

1. Undisclosed heirs
2. Illegal Deeds
3. Forgery
4. Errors in public records
5. Liens and encumbrances that have not been properly removed
6. Unknown easements
7. Survey Issues

In the title search process, most of these defects should be uncovered and corrected. However, on the outside chance something is missed, such as a prior lien, your policy is in place to cover you.

All lenders require a buyer to get title insurance if they are taking out a mortgage. More specifically, they are looking for a lenders title insurance policy, which only protects their interest. An owner’s policy can also be purchased, and this protects the owner and their heirs for as long as they have interest in the property. If the property is being bought for cash, it is up to the buyer whether or not to obtain a policy. However protection when purchasing any asset is key and the cost far outweighs the potential loss.

A new buyer or the most experienced one can learn more about the process of title insurance from a real estate attorney or title company that specializes in commercial transactions. Most title companies either work in conjunction with an attorney to provide settlement on the deal or with the purchaser directly.

Purchasing title insurance is just one of the items necessary in the due diligence process prior to purchasing a property. Whether you are purchasing your first commercial property or your tenth, having a seasoned real estate attorney and title company as part of your team will set you up for a successful closing.

FOR MORE INFORMATION:

rms title insurance

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