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Monthly Archives: November 2017


Proposed Modifications to Philadelphia Mixed Income Housing Bill

Philadelphia Mixed Income Housing BillThere have been some proposed modifications to the Philadelphia Mixed Income Housing Bill. On June 22, 2017, City Councilmember Maria Quiñones-Sanchez introduced a bill proposing to provide for new affordable housing requirements in Philadelphia in the commercial real estate context. The bill, as originally drafted, would amend the Housing Code to require residential developers to include affordable housing units in their new and redeveloped residential projects. In return, developers would be rewarded with height and floor-area ratio bonuses. Since its initial introduction in June, the bill has been recently modified by its sponsor as part of the Planning Commission review process, resulting in certain substantive changes to its original form. A November 27 public hearing revealed dissension against the bill from neighborhood groups, housing advocates and developers, resulting in Councilmember Quiñones-Sánchez putting a hold on the bill. Further amendments to rectify the differing viewpoints are to be expected, and another hearing as well as a vote has been scheduled for December 5, 2017.

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Background of the proposed modifications to the Philadelphia Mixed Income Housing Bill

Legislating affordable housing requirements in the commercial/residential real estate context is not a new trend in major cities nationwide. San Francisco and New York City, for example, have long had robust mixed income housing programs. Given Philadelphia’s high poverty rate, city officials view this bill as a way to provide increased affordable housing to its residents while still recognizing and meeting the needs of private developers.

Philadelphia Mixed Income Housing Bill NO. 170678

The bill directs private developers of new residential projects or substantially rehabilitated projects containing more than 10 units to set aside 10 percent of the units for affordable housing. The amended bill specifies, however, that its affordable housing requirements do not apply to student or subsidized housing. Under the original bill, the affordable units would have been available to prospective renters whose incomes were between 30 percent and 50 percent of the area median income (AMI) and to purchasers between 50 percent and 80 percent of the AMI, depending on the location of the units. Now, under the amended bill, the units would be available to prospective “low income” renters at or below 50 percent of the AMI and “moderate income” renters at or below 60 percent of the AMI. The amended bill would also make the units available to prospective “low income” purchasers at or below 70 percent of the AMI and “moderate income” purchasers at or below 80 percent of the AMI.

Originally, the bill applied to the entire city; as amended, however, the bill would only affect high-density zoning districts of RM-4, RMX-3, CMX-3, CMX-4 and CMX-5. These modifications result in both the affordable housing requirements and the incentives offered being inapplicable in zoning districts other than those listed above. The bill defines an affordable unit as one whose cost—whether rental or purchase—is 30 percent or less of the applicable maximum qualifying income level. These units were initially proposed to them should they opt to build affordable units. The amended bill grants substantial height and floor-area bonuses to developers who incorporate the affordable housing proposals, although the specifics of these bonuses may change in the next version of the bill. These developers will have enhanced development opportunities as a result of their assistance in providing homes to a wide range of Philadelphians.

The bill, if passed into law, would go into effect on July 1, 2018. Should it pass, the bill will not apply to construction pursuant to valid zoning permit applications that were filed prior to the effective date. Currently, a Rules Committee public meeting and the vote on the bill have been set for Tuesday, December 5, 2017.

Want More Information about the proposed modifications to the Philadelphia Mixed Income Housing Bill?

This Alert has been authored by Aaron R. Feinblatt, an associate in Duane Morris’ Real Estate Practice Group. If you have any questions about this Alert or otherwise, please contact Brad A. Molotsky at 856-874-4243.

brad-molosky

 

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Off-Price Department Stores Rethinking Locations

Off Price Department Stores

After being one of the few retail bright spots for several years coming out of the great recession, off-price department stores — such as Macy’s Backstage and Nordstrom Rack — appear to be reassessing their business models and making changes to their location strategies following several quarters of declining sales.

In an article written by Mark Heschmeyer for the real estate information firm CoStar, a recent rating agency survey showed several contributing factors for the recent sales declines in same-store performance.

  • Retailers rushed to open more off-price stores when demand was strong leading to the sector being “over-retailed” and prompting more competitive pricing and discounting within the sector.
  • Aggressive sales, promotions and coupons seem to have become a pervasive part of the full-line store strategy.
  • Rapid growth and convenience of e-commerce shopping is also taking its toll on off-price store sales, as it has with other bricks-and-mortar formats.

This report on the reason for recent sales declines in off-price outlets in relation to national and Philadelphia commercial properties is being offered through Philadelphia commercial real estate broker Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm.

“The internet has bred a smarter customer: she knows where to get the best price; she knows if a bag is made for the outlets — or is the real deal. Sometimes she cares, sometimes she doesn’t, but she does want a great experience, whether it is easy parking, unique stores she can’t find everywhere, or amazing dining,” said the head of one retail advisory firm. “She also wants a smart, educated and engaged store associate. If she can’t get that, she gives up and goes to another store, or shops online.”

How this all plays out in the commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – is still too early to tell, but it seems to be clear that retailers are reassessing their off-price business models as far as store locations are concerned, the study noted.

Macy’s recently announced a change in location strategy for its Macy’s Backstage concept with all the announced openings for new Backstage stores slated to be located within full-line Macy’s stores rather than as standalone stores among other U.S. and Philadelphia commercial real estate properties.

“We are pleased with the performance of our Backstage stores within our Macy’s stores and are excited by the potential of this concept. It is the only mall-based, off-price concept which we now are realizing gives us a competitive advantage,” Karen M. Hoguet, CFO of Macy’s told analysts during the company’s recent quarterly earnings conference call. “Details are still being developed, but we plan to expand it aggressively next year.”

Macy’s executives added that they planned to start experimenting by positioning Backstages in “larger doors” in the future, and were looking at different parts of the online stores where they could be placed throughout both U.S. and Philadelphia commercial real estate listings,

It’s a smart concept, said the retail advisory firm source. “Having Macy’s incorporate its off-price channel into its stores is smart, given that its off-price concept name doesn’t have a lot of brand equity. Their customer is used to the ubiquitous couponing in its stores, and many of its boxes are over-sized and could use a merchandising refresher.”

In contrast, Nordstrom is opting to increase the distance between its Nordstrom Rack locations throughout the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – and the retailer’s full-line offerings, according to the study’s results.

Approximately 42% of its off-price stores among national and Philadelphia commercial real estate listings are currently located within five miles of the nearest full-line Nordstrom store. That’s changing as only 17% of new Rack stores scheduled to open will be located that close to an existing Nordstrom.

While the change in distance between stores when considering all U.S. and Philadelphia commercial real estate listings, could be the result of available real estate, it could also signal that the retailer is trying to mitigate the potential for cannibalization and brand dilution.

“Having plans that were now in hindsight too aggressive caused our teams to have to pull back a little bit,” Blake Nordstrom, president of Nordstrom’s told analysts in a recent conference call. “We think that culminated a little bit in that downward trend that we saw in the third quarter.”

Nordstrom Rack remains a meaningful part of the business, he added.

“Overall, our total off-price business is $5 billion,” he said. “It’s a healthy business and we see lots of opportunities and we are encouraged by it.”

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) 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, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, property management services, and 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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Set the Stage for a Successful Commercial Move

Successful Commercial MoveLet’s set the stage for a Successful Commercial Move. Every move is challenging, but a commercial move 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. 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:

Download Complete Printable Article (PDF)>>>

Successful Commercial Move Step #1: Relocation Plan & 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

Successful Commercial Move Step #2: Physical Survey

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.

Successful Commercial Move Step #3: Budgeting

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 into the comprehensive move plan with an associated sub-budget.
• Timeline with confirmed project dates
• Benchmarks and target dates for vendor services
• Budget goals and savings opportunities

Successful Commercial Move Step #4: Finalize Move Plan

Your Logistics Coordinator should develop a final move plan that incorporates all aspects of planning, scheduling, and budgeting. The entire work process should afford you complete transparency throughout your relocation project, so you are an integral part of the move without doing any of the heavy lifting.

Successful Commercial Move Step #5: Project Move Team

Organization and coordination are the foundation to any successful move. Your on-site logistics team should provide real-time updates to you, and act as the liaison with the vendors needed to complete the project. To help you further narrow down your logistics management team options, get answers to these questions when you interview candidates…

Q1. DO YOU HAVE MOVE EXPERIENCE IN MY SPECIFIC INDUSTRY?

When interviewing relocation experts, you should determine whether this company has expertise within your specific industry.
Special handling and insight is required when moving delicate medical and IT equipment, expensive pianos, or irreplaceable art.
If your commercial relocation involves any unique capabilities and resources, don’t settle for anything less. Industries that have
special moving needs include laboratories and hospitals, hotels, restaurants and bars, and libraries and museums.

Q2. DO YOU STORE DOCUMENTS AND RECORDS?

A well-appointed commercial specialist should offer records storage and document management solutions, where records and files
can be kept safe and accessible.

Q3. DO YOU OFFER SHREDDING SERVICES?

A full-service commercial professional should offer shred-on-demand services, as well as weekly shredding programs where pick up
is included.

Q4. CAN YOU DISPOSE OF THE FURNITURE AND ELECTRONICS THAT THE OFFICE NO LONGER NEEDS?

A solid relocation expert should provide purge services, and remove old, unwanted items for you. You’ll want a sustainable recycling
partner to handle plastics, metals, wood, paper and e-waste accordingly.

Q5. ARE YOUR MOVING PRACTICES SUSTAINABLE?

A reputable commercial relocation expert should have many options for unwanted furniture and equipment that doesn’t involve a
landfill. From recycling to liquidation to donation, a commercial move should not hurt the earth.

Q6. 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.

FOR MORE INFORMATION, CONTACT:

ABOUT ARGOSY MANAGEMENT GROUP, LLC

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

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WCRE Helps Feed Neighbors With Annual Thanksgiving Food Drive

In its Fourth Year, WCRE’s Thanksgiving Food Drive Brings A Community Together

Wolf Commercial Real Estate (WCRE) wrapped up its fourth annual Thanksgiving Food Drive today by delivering 130 bags of food and $1,200 in supermarket gift cards to the Jewish Family and Children’s Service food pantry.

As in previous years, the firm spent the past several weeks collecting food and grocery store gift cards from friends, clients, and colleagues throughout the region. More than thirty area businesses contributed to the effort.

“Over the course of just a few years, WCRE has become an integral charitable partner in our efforts,” said Marla Meyers, MSW, executive director of Samost Jewish Family and Children’s Services of Southern New Jersey. “We thank Jason Wolf and the entire WCRE team for their generosity and leadership today and throughout the year.”

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The food drive is part of WCRE’s Community Commitment program, which also includes donating a portion of the proceeds from every transaction to one of several local charities. In September the firm hosted its second annual celebrity charity hockey game, in which local business leaders played alongside several former Philadelphia Flyers. That event raised more than $65,000 that was shared among several local charities.

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.phillyofficespace.com, www.phillyindustrialspace.com, www.phillymedicalspace.com and www.phillyretailspace.com.

# # #

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A Look at the Impact New Fed Activity Will Have on Real Estate Valuations

Numerous times over the past several years, rising Treasury yields have prompted commercial real estate investors to speculate how the end of historically low interest rates would influence property values. Invariably, the yields reversed course — even after the Federal Reserve Board of Governors (The Fed) began, in late 2015, to ‘tighten’ monetary policy — and allowed capitalization rate compression to continue.

Investors, however, are once again pondering the question amid the Fed’s announcement earlier this month it would begin to unwind its nearly $4.5 trillion balance sheet. The Fed also indicated it expected a steady rise in the federal funds rate in the coming years affecting the nationwide commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – including a possible hike of 25 basis points in December that would take the benchmark rate to a range of 1.25 percent to 1.5 percent.

The actions are expected to move real interest rates involving U.S. and Philadelphia commercial real estate properties into positive territory, representing a “significant shift” from the negative rate environment that has fueled the recovery, according to an industry economic commentary issued in September.

This report on upcoming Fed action in relation to the valuation of national and Philadelphia commercial properties is being offered through Philadelphia commercial real estate broker Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm.

Real estate observers suggest while the Fed remains methodical and transparent, interest rates in the U.S. and Philadelphia commercial real estate markets will likely inch up in an orderly fashion and won’t shock the market into a credit freeze. Additionally, waves of real estate equity and debt searching for yield should continue to fuel the low cap rate environment, albeit in a choppier fashion, they add.

“If I’m a buyer and I know my return on a piece of real estate is lower than it was a year ago, but there are no better investment alternatives, what am I going to do?” was the question posed by one leading real estate finance expert.

Given the lack of an alternative, this individual added, “Eventually, I’m probably going to go into the marketplace and participate.”

Even contrarians admit it’s tough to envision what could derail the market. Even so, one such noted naysayer said his firm is more frequently turning down investment opportunities involving national and Philadelphia commercial real estate listings after assessing the property’s performance under stressed interest and cap rate scenarios.

“It’s really hard to see how this party ends,” he said. “Investors look into the future and try to see how property values will drop from 20 percent to 30 percent, but at this point nobody sees disruption. I certainly don’t see it, and I’d like to. We do better in those environments.”

While real estate experts say they don’t necessarily welcome higher interest rates throughout the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – they acknowledge the Fed needs to tighten and unwind so it has tools to use in the next recession. With that in mind, the Fed’s timing is particularly critical.

This is because the current eight-year growth in the value of U.S. and Philadelphia commercial real estate listings is less than a year away from becoming the second-longest positive cycle in the post-World War II era, a distinction that is weighing on the psyche of investors.

“The Fed is going to have to be a little bit careful about pushing too hard on interest rates relative to the underlying growth of the economy,” one expert said. “I don’t know when the next recession is coming, but I’m willing to bet we’re closer to it than we are to the previous recession.”

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) 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, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, property management services, and 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 to Encourage Office Creativity

Encourage Office CreativityLet’s look at ways to encourage office creativity. Most people think that working hard is the most effective way of working. However, that is not always the case. A great way to accomplish everything on your to-do list is to do smart work instead of hard work. To encourage office creativity and welcome various thoughts from different channels at the work place, there needs to be a collaborative working environment. Here is a list of activities that will help you achieve maximum levels of creativity within your office.

Download Printable PDF>>>

1. Arrange for some games that encourage a team-building attitude to encourage office creativity

You should plan a small game for your employees and schedule it once every few weeks. Introduce such games that are to be played between teams. This will help you to educate your staff about the importance and benefits of team work.

2. Entertain employee suggestions to encourage office creativity

You should dedicate an area where employees can come and share their creative thoughts or suggestions. You can hang a notice board in a corner so that the employees may write their thoughts on paper and pin it on the notice board or you can place a suggestion box where employees can raise their concerns without revealing their identity. Make sure that you value their suggestions and reward them for creative ideas.

A notice board is preferable, as the content on the board can be seen by other employees as well and it provides a platform to interact. Employees can pin up suggestions as well as any challenges they are facing while accomplishing any given task. This way they will get input from others to get problems solved. This improves collaboration and teamwork.

If you have a huge office with thousands of employees, you can replace notice boards with digital
collaborative platforms.

3. Encourage brainstorming to encourage office creativity

Brainstorming sessions are the best way to get the creative ideas flowing. Try to make every employee a part of the brainstorming sessions where everyone should be given freedom to express their thoughts.

4. Treat all your employees equally to encourage office creativity

A workplace is full of people with different backgrounds and thoughts. Everyone must be treated equally, and there should not be any bias to any particular group of employees. Plan a few informal get-togethers’ where all the employees gather and spend few hours together irrespective of their designation in the workplace. It is an awesome sight to see the director talking to a trainee and getting to know about him/her; an accounts person talking to a technical person and sharing thoughts; and many more such interactions. This is the sign of a great work culture within an organization.

Creativity is directly linked to the flow of ideas. The better the flow of ideas, the more creative your team will be. Creative resources are the assets of an organization and the creative atmosphere results in the best quality output. Give it a try today and let us know how successful your working environment
is.

 

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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Protect Your Property with Ordinance and Law Insurance

Ordinance and Law InsuranceDo you own an older building or is your building subject to significant building code changes, if it needed to be rebuilt? If so, then you may need Building Ordinance and Law insurance.

Most insurance policies are written to allow a building owner to rebuild to the condition it was in prior to the loss. If an ordinance requires more, such as being brought up to code if it sustains more than 50 percent damage to the entire structure, an owner could be facing significant ou tof-pocket expenses, which may range from slight modifications (installing hard-wired smoke detectors) to vastly more complicated and expensive modifications (installing fire sprinklers). To combat the cost of these projects, building owners can purchase Ordinance and Law Insurance. This protects an owner or association against losses resulting from the enforcement of new laws or ordinances, or changes to existing laws.

Download Printable Article >>>

Ordinance and Law Insurance also protects against losses after a disaster. It serves to cover the following losses:

  • Covers losses for rebuilding a portion of a structure when part of it is damaged from a fire.
  • Covers losses when new building codes require that a partially damaged structure be torn down
    and rebuilt, versus repaired after a loss.
  • Covers losses when associations must install improvements that were not part of an existing
    structure before a disaster.

Ordinance and Law Insurance Coverage Details:

  • Demolition Coverage: If the undamaged portion of a structure must be demolished to rebuild the
    entire structure to comply with building codes, this coverage pays for the cost to demolish the
    undamaged part of the structure.
  • Loss of Value: If the undamaged portion of a structure was not technically “damaged” based on
    the verbiage in a typical fire protection policy, then this coverage pays for the loss to rebuild the
    undamaged part of the building.
  • Increased Cost of Construction: Coverage pays for increased expenses for getting a building up to
    code, or to repair a damaged building that currently met building codes prior to a loss.

Ordinance and Law Insurance is Common Sense

Ordinance and Law Insurance is excluded from a typical Property Insurance policy but can be added as an endorsement for a reasonable premium. It is common sense that owners of older structures with greater exposures should purchase this policy to cover “losses” for repairs. To determine if you need this coverage, review your policy and contact Hardenbergh Insurance Group to discuss your exposures. We’re always here to help!

ordinance and law insuranceFor more information, contact:

Brian Blaston
Partner
Hardenbergh Insurance Group
phone: 856.489.9100 x 139
fax: 856.673.5955
email: brianb@hig.net
www.hig.net

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CRE Investors Make Fewer Big Deals, But Raise More Money

The amount of uncalled or undrawn real estate investment capital, or “dry powder,” has grown to staggering levels. This increase has come at a time when the investment climate remains decidedly mixed, with top-quality assets in core markets commanding high valuations after a sustained up-cycle. As a result, investors are increasingly searching elsewhere for properties that offer potentially higher yields.

The effects are showing up in deal volume. The total dollar volume for real estate sales of $100 million or more in the commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – was 19.5 percent lower in the first half of 2017 compared to the same period in 2016. However, the deal volume for properties at prices of $100 million or less was just 2.3 percent lower, according to CoStar COMPs data.

Meanwhile according to Preqin, a leading source of information for the alternative assets industry, investors in U.S. and Philadelphia commercial real estate properties are finding it increasingly challenging to find attractive opportunities for allocating that raised capital, according to Oliver Senchal, head of real estate products for Preqin.

This report on the disruption of new capital flowing into existing investment funds in relation to national and Philadelphia commercial properties is being offered through Philadelphia commercial real estate broker Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm.

“This [trend] places pressure on less-stablished fund managers, who are facing greater competition for the remainder of investor commitments and will have to find ways to stand out from one another to attract capital,” Preqin’s Senchal added.

Even as the volume of big real estate deals drops in the U.S. and Philadelphia commercial real estate markets, CRE continues to attract more institutional capital allocations. In fact, 2017 represents an important milestone in this regard, according to Cornell University’s fifth annual Institutional Real Estate Allocations Monitor survey.

The survey revealed that for the first time, global institutional investors’ average target allocation involving national and Philadelphia commercial real estate listings surpassed the 10 percent threshold.

Over the past five years, institutional portfolios throughout the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – have increased their exposure from 8.5 percent to 9.1 percent invested. This implies that real estate portfolios have increased by approximately $0.5 trillion in total value, through a combination of capital appreciation and new investments.

Although real estate has enjoyed a steady uptick in target allocations, the report reveals the pace of target allocations is moderating among U.S. and Philadelphia commercial real estate listings. Approximately 22 percent of institutional investors surveyed indicated they expect to increase their target allocations over the next 12 months, down from 30 percent in 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) 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, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, property management services, and 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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Commercial Open Floor Plans: the Architectural Pandora’s Box

commercial open floor plansOpen Floor Plans: No issue generates more discussion in our industry than the architectural Pandora’s box: commercial open floor plans. In cities like Philadelphia, the workforce now skews younger; millennials tend to favor collaborative work environments. An open floor plan doesn’t intimidate them—they’re used to team cultures from their college years onward. However, wide-open spaces aren’t necessarily productive ones for an older generation that cherishes the privacy of four solid walls and a door. Per a 2017 Forbes Coaches’ Council blog post, the pros and cons of an open floor plan are subjectively debatable.

Download Printable Article >>>

open floor plans can simultaneously:

• Disrupt deep work
• Offer a 360-degree viewpoint
• Drain introverts
• Foster inclusion and communication

An approach to open floor plans coincides with a crucial point in the article: it depends on your culture and line of  work. If your company encourages constant collaboration as part of the workflow process, a hybrid open floor plan is a good idea. That’s because: you’ll still need secure spaces for confidential meetings. (We’ve NEVER seen a completely open floor plan!)

Industries most conducive to modified open floor plans include:

• Creative-design or engineering firms
• Light-industrial production and staff assembly
• Product engineering and fabrication
• Small offices with tight spaces
• Technology start-ups

The practical benefits of an open floor plans:

1. Reduced wall, door, and partition costs
2. Lighting can be an open grid
3. Day lighting can flood the space better
4. Both fire suppression and HVAC design are easier
5. More people can occupy less dense floor plans.

Whether you’re a light-industrial manufacturer in need of collaborative design-fabrication space or a business suffocating from “we’re all walls” syndrome, A corporate or industrial architectural firm can reformulate the ideal layout. To discuss opening up your workplace, please contact us at either 856-547-6414 or lee@oneanchor.com. Anchor Point Architecture, Inc.

About Anchor Point Architecture, Inc.

Our clients, CEO’s, Facility Managers and Investors are Building projects in the Industrial Fabrication, Corporate office and Real Estate Development Project Sectors. They find value in early Budgets, Planning approval assistance and Design that improves Branding and Employee increased productivity.

 

Eliseo “Lee”: DiPrinzio, RA, PP
Senior Partner
Anchor Point Architecture, Inc.
Audubon, NJ – Princeton – Philadelphia
856-547-6414
Lee@OneAnchor.com
www.OneAnchor.com

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