fbpx
Building Successful Relationships

Monthly Archives: March 2018


Playtime Is Over; Toys R Us Closes Its Remaining 735 Stores Nationwide

Beloved by kids and landlords, but largely shunned by consumers this past holiday shopping season, Toys R Us has officially announced it is winding down operations and closing 735 stores, encompassing an estimated 29.3 million square feet of mostly big-box retail space.

The Wayne, NJ-based toy retailer already had closed or had planned to close 8.5 million square feet of its brick-and-mortar stores as part of the Ch. 11 bankruptcy reorganization it initiated last September. This latest move by a major player in the commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – impacts nearly 33,000 employees.

It also wipes out about $1 billion in value of U.S. and Philadelphia commercial real estate properties, according to Toys R Us estimates of the difference in value of 791 occupied vs unoccupied stores. The appraised value of the stores unoccupied was listed at $1.55 billion. Toys R Us owns 273 of those stores and either leases or ground leases the other locations.

“I am very disappointed with the result, but we no longer have the financial support to continue the company’s U.S. operations,” said Dave Brandon, chairman and CEO of Toys R Us, in announcing an “orderly process to shutter” its U.S. operations.

This CoStar report on the Toys R Us closing and its effect on 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.

Despite the closing announcement, there still is a chance up to 200 U.S. stores among the firm’s national and Philadelphia commercial real estate listings could remain open. Toys R Us is negotiating a deal for its Canadian operations and the bidder is reported to be interested in a transaction that could combine up to 200 of the top performing U.S. stores with the retailer’s Canadian operations.

A spokesperson for Van Nuys, CA-based toymaker MGA Entertainment recently confirmed CEO Isaac Larian and affiliated investors have made a bid for the retailer’s Canada operations.

“If there is no Toys R Us, I don’t think there is a toy business,” Larian said in a statement. “Toys R Us Canada is a good business. They run it efficiently and have good leadership. At the right price, it makes economic sense.”

While discussions continue involving this major development in the U.S. commercial real estate market, including Philly office space, Philly retail space and Philly industrial space, Toys R Us is seeking court approval to implement the liquidation of inventory in all the U.S. stores, subject to a right to recall any stores included in the proposed Canadian transaction.

Although Toys R Us officials said they did not foresee this outcome dealing with its U.S. and Philadelphia commercial real estate listings when it initially filed for bankruptcy reorganization last fall, the timing of the bankruptcy heading into this past holiday shopping season appeared to contribute to a negative perception among shoppers regarding the retailer’s viability.

The retailer reported dramatically lower than expected holiday sales at its stores in its U.S. and Philadelphia commercial real estate properties, a factor on which the company had been counting to bolster support among its creditors, the company detailed in the bankruptcy court filing.

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.

Share

WCRE Honored with 2017 CoStar Power Broker Award

Local Firm Selected by Commercial Real Estate’s Largest Research Organization as One of the Top Leasing Firms in the Market

power broker awardWolf Commercial Real Estate (WCRE) has been selected by CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of commercial real estate information, analytics and online marketplaces, to receive a CoStar Power Broker Award. This annual award recognizes the “best of the best” in commercial real estate brokerage by highlighting the firms and individual brokers who closed the highest transaction volumes in commercial property sales or leases in 2017 within their respective markets.

Download Printable PDF >>>

With the largest independently researched database of commercial real estate property information available online, CoStar can easily identify the top firms and brokers in each market throughout the U.S. and Canada. All awards are based on transaction data maintained in CoStar’s commercial real estate database.
WCRE qualified as one of the top commercial brokerage firms in the Philadelphia region based on total leasing transactions closed during the year. WCRE is also proud to announce that Andrew Maristch was recognized by CoStar as one of the top Leasing Brokers in the Philadelphia region. In order to be selected for this honor, WCRE’s overall transaction volumes were evaluated by CoStar against other commercial real estate brokerage firms active in its region, and subsequently ranked among the top firms in the market.

“We are thrilled to have earned this recognition from CoStar for a fifth consecutive year. I am grateful to our entire team and to all our clients and associates. Congratulations to all the winners,” said Jason Wolf, managing principal of WCRE.

“With such an active year in commercial real estate, CoStar is proud to honor the individual brokers and firms who perform at the industry’s highest level,” said CoStar Group founder and CEO Andrew C. Florance. “These industry leaders deserve to be recognized for their expertise, hard work and superior deal-making abilities. We extend our congratulations to this year’s winners on their exceptional sales and leasing success.”

The complete list of 2017 CoStar Power Broker Awards winners can be found at CoStarPowerBrokers.com.

About CoStar Group

CoStar Group, Inc. (NASDAQ: CSGP) is the leading provider of commercial real estate information, analytics and online marketplaces. Founded in 1987, CoStar conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of commercial real estate information. Our suite of online services enables clients to analyze, interpret and gain unmatched insight on commercial property values, market conditions and current availabilities. LoopNet is the most heavily trafficked commercial real estate marketplace online with more than 10 million registered members.

Apartments.com, ApartmentFinder.com, ApartmentHomeLiving.com, and Westside Rentals form the premier online apartment resource for renters seeking great apartment homes and provide property managers and owners a proven platform for marketing their properties. Through an exclusive partnership with Move, a subsidiary of News Corporation, Apartments.com is the exclusive provider of apartment community listings across Move’s family of websites, which include realtor.com®, doorsteps.com and move.com.  CoStar Group’s websites attracted an average of nearly 24 million unique monthly visitors in aggregate in 2016. Headquartered in Washington, DC, CoStar maintains offices throughout the U.S. and in Europe and Canada with a staff of over 3,000 worldwide, including the industry’s largest professional research organization. For more information, visit www.costargroup.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.phillyofficespace.com, www.phillyindustrialspace.com, www.phillymedicalspace.com and www.phillyretailspace.com.

Share

Respecting Privacy During CCTV Monitoring

Respecting Privacy During CCTV Monitoring

Respecting Privacy During CCTV Monitoring

Let’s look at ways to respect privacy during CCTV monitoring. Whether you’re managing a commercial or residential property, there will always be concerns about safety and security. While certain responsibilities may fall on your tenants, there is a good chance that there will be areas, such as parking lots, lobbies and similar public spaces, for which you will be responsible. For these situations, you may choose a closed circuit television (CCTV) system not only to catch crimes as they occur, but also to deter them from ever being attempted. However, if you use CCTV equipment, it is extremely important where you choose to install it, as ill-advised camera placement can potentially lead to costly invasion of privacy suits by your tenants or their guests.

Download: Respecting Privacy During CCTV Monitoring (pdf)

Expectation of Privacy During CCTV Monitoring

CCTV cameras are legal to use in public areas because they are just that—public areas. When an individual is in a public area where they can be clearly observed by those around them, they cannot have a reasonable expectation of privacy. However, in areas deemed to be personal spaces, individuals do have a right to expect a certain amount of privacy. Most commonly, private spaces are places like a person’s home or a rented hotel room in which, by law, an individual can expect a certain protection from unwanted intrusions. Since people can expect privacy in their own homes, where you position cameras is extremely important
when dealing with residential properties. This means that cameras should never be installed in living spaces; it also means that cameras installed in public spaces should not be able to monitor events going on inside a person’s residence. For example, this means that a camera placed in a parking lot should not be aimed into a tenant’s window. Even if the window is open, the tenant still has a reasonable expectation of privacy in their own home.

Problems can also arise at commercial properties when it comes to CCTV placement in private spaces that exist in public settings. Any use of CCTV equipment in a tenants’ rented space should be discussed with them during the leasing process. Even though they may be operating a public venture in the space, they still are entitled to a certain amount of privacy. Also, if you provide public restrooms at a facility, those who use them have a reasonable expectation of privacy, so cameras
should not be placed in these areas.

Notify Tenants During CCTV Monitoring

A good way to protect yourself from invasion of privacy claims is to establish procedures that lower the expected amount of privacy. Post signs notifying the use of security cameras on the premises. Many privacy cases involve a discrepancy between the amount of privacy an individual believes they were entitled to and how much they were actually provided with. Proper notification can make it clear as to what expectations they can have for their privacy upon entering an establishment.

Also make sure you notify tenants of the extent of your CCTV monitoring before they sign the lease. Accurately disclosing this information upfront reduces the risk of liability. Since they entered into the lease with a full understanding of the extent of your CCTV use, it will be harder for them to raise objection to it at a later date.

Create a Policy Detailing Rights to Privacy During CCTV Monitoring

Establishing a CCTV policy can also help. The policy should outline the provisions for camera placement and proper camera use. By instituting a policy for CCTV use, camera operators will know what practices are acceptable and which could increase the risk for litigation.

Learn More About Respecting Privacy During CCTV Monitoring

 

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

Share

Pre-Purchaser Administrative Consent Orders

Pre-Purchaser Administrative Consent OrdersThe NJDEP recently approved the use of Pre-Purchaser Administrative Consent Orders (ACOs). This tool allows a buyer with no connection to the Person Responsible for Conducting the Remediation (PRCR) to purchase a Site that is in Direct Oversight (DO) with modifications to the DO requirements. Under DO, remediation timeframes are tied to the Site, not to the PRCR. However, ARRCS (N.J.A.C. 7:26C-14.4) allows NJDEP to adjust certain direct oversight requirements. The new Pre-Purchaser ACO allows for the following adjustments:

  • A Remediation Cost Review must still be certified by an LSRP and a Remedial Funding Source must be
    established for the full remediation cost; however the 1% annual surcharge is waived.
  • The entire contaminated Site must still be remediated, but the PRCR selects the remedy and remediation
    proceeds without prior NJDEP approval.
  • Annual Remediation Fees replace DO costs.
  • The Feasibility Study is waived.
  • Submittals are reviewed by the Bureau of Inspection & Review.
  • A new Remedial Investigation Timeframe will be established, but no extensions will be available.

Download “Pre-Purchaser Administrative Consent Orders” (PDF)

Three to four months prior to a proposed property transaction, the prospective purchaser must submit a letter to
NJDEP providing basic identifying information on the Site and certifying that they have no prior connection to the
Site or current PRCR.

The Pre-Purchaser ACO must be executed with NJDEP prior to the transfer of ownership (not necessarily the date
the Deed is recorded). If a deal does not go through, the Pre-Purchaser Agreement is cancelled with no obligation from the purchaser.

The NJDEP hopes to make this a collaborative effort that fosters property transactions while bringing contaminated Sites, that have languished for years in DO, into compliance.

Want More Information on Pre-Purchaser Administrative Consent Orders?

Advanced GeoServices Corp. was founded in 1992 as a specialty environmental engineering firm serving private sector clients. Effective February 1, 2018, we have joined Montrose Environmental, with over 40 offices across the country. For additional information please feel free to contact Rick Shoyer at (856) 354-2273, or Chris Valligny at (610) 840-9100.

 

Share

Issues of Declining Occupancy, Rising Rent Spread to Top Properties

Even the best-performing and most well-located U.S. malls and shopping centers are beginning to feel the pinch of flat-lining rent growth and a vacancy uptick as e-commerce continues to take market share from brick-and-mortar retailers, and the retail sector enters the late stages of the real estate cycle.

Despite a relatively strong finish for retailers in the final three months of 2017, buoyed by improved consumer spending and an expanding economy, demand for U.S. retail property in the commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – was generally lackluster for the year, according to market highlights presented by CoStar managing consultant Ryan McCullough and director of U.S. research Suzanne Mulvee in the Fourth Quarter 2017 State of the U.S. Retail Market.

This CoStar report on 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.

“All told, we are seeing some signs of a slowdown in the retail market,” said McCullough, noting that retail absorption totaled about 69 million square feet for 2017, down about 30 percent from 2016 and 2015 levels, with developers expecting to deliver roughly 80 million square feet of new retail space in 2018 as demand from retail tenants begins to soften. “Given the slowdown in demand and some uptick in supply, we might anticipate the national retail vacancy rate, which went flat in 2017, to start to rise modestly in 2018,” McCullough said.

Reflecting the slow investment sales volume observed by CoStar analysts across all commercial property types, retail investment involving U.S. and Philadelphia commercial real estate properties fell to just below $20 billion in the fourth quarter, its lowest level since mid-2014. In addition to a diminished appetite among cautious buyers, many sellers also are pulling properties off the market after failing to achieve pricing that meets their expectations, McCullough said.

One sign of the softening market conditions is a moderate rise in vacancies and flat-lining of rental rate growth in recent quarters at the country’s top located and most productive Class A malls, urban luxury centers and shopping centers. Nationwide, U.S. and Philadelphia commercial real estate properties have consistently logged the highest location quality scores, as ranked by CoStar’s proprietary formula measuring the combined effects of demographics, density of surrounding commercial property and market competition on individual retail centers.

While retailers are readily absorbing some new supply that’s flowing into the national and Philadelphia commercial real estate listings market – especially spaces of 20,000 square feet and below – larger boxes in certain centers ranked in the top 10th percentiles of location quality are in many cases taking longer to lease up, reflecting broader weakness among U.S. power center tenants.

Meanwhile, at the opposite end of the quality spectrum, the number of “zombie” power centers with vacancy rates of 40 percent or more has increased 60 percent since 2016 due to a spike in store closures by Kmart, Toys R Us and other big-box retailers and grocers.

The closures and bankruptcy filings being seen in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – are mounting weekly and likely will not abate any time soon. Toys R Us plans to close another 200 stores and lay off corporate personnel, in addition to the 170 previously announced store closures The Wall Street Journal reported recently. Also, Northeast supermarket chain Tops Markets LLC reports it has filed for Chapter 11 bankruptcy protection.

While total retail space per capita has decreased by about 5 percent since 2009, the amount of anchored space per capita among U.S. and Philadelphia commercial real estate listings increased by the same amount during that period amid competition from big-box chains that have added food and groceries to compete with grocery chains.

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.

Share

Expected Interest Rate Increases This Year Remain Top CRE Concern

Rising interest rates remain the top concern for commercial real estate executives this year, with 80 percent of respondents in a sentiment survey by a Chicago law firm expecting law firm expecting multiple rate increases amid clear expectations that the anticipated increases would begin to weigh on commercial property markets in 2018.

For the second straight year, an overwhelming 98 percent of executives in the commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – surveyed by the law firm Seyfarth Shaw predicted at least one increase this year, with 37 percent projecting three rate hikes by the Federal Reserve over the next 12 months, up from just 14 percent a year ago.

This CoStar report on 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.

“As the real estate industry embraces the tax cuts, low unemployment, and stock market success, industry insiders expect today’s economic factors to force the hand of the new Federal Reserve chair and, consequently, shape their 2018 investment strategies,” Seyfarth Shaw attorneys Christa Dommers and Ronald Gart said in revealing this year’s top concerns of property executives in the third annual Real Estate Market Sentiment Survey.

“Respondents clearly believe that multiple interest rate increases will start to have a material adverse impact on the commercial real estate market,” Gart and Dommers said.

Federal Reserve Chairman Jerome Powell, in his first extensive public comments since taking over for Janet Yellen earlier this month, recently told a Congressional committee the economy encompassing U.S. and Philadelphia commercial real estate properties is stronger than at the beginning of the year, and the central bank plans to raise rates gradually.

“My personal outlook for the economy has strengthened since December,” Powell told the House Financial Services Committee under questioning about whether the Federal Open Market Committee might boost its number of projected increases from three to four next month when the FOMC formally updates its outlook.

“After easing substantially during 2017, financial conditions in the United States have reversed some of that easing,” Powell told the committee. “At this point, we do not see these developments as weighing heavily on the outlook for economic activity, the labor market and inflation. Indeed, the economic outlook remains strong.”

Analysts following U.S. and Philadelphia commercial real estate markets attributed part of the recent sharp decline in the Dow Jones Industrial Average to Powell’s optimistic comments. Over the past week or so, the DJIA has shed nearly 1,200 points, falling more than 4.5 percent, including a more than 500-point decline in response to government plans to impose tariffs on steel and aluminum imports.

About 63 percent of the 157 executives dealing in both national and Philadelphia commercial real estate listings, the strongest surveyed by Seyfarth Shaw, believe the U.S. CRE industry can absorb an interest rate increase of between 0.5 percent and 1.5 percent. About 15 percent believe real estate markets can only handle an increase of up to half a percentage point, roughly equal to the number of respondents who said the industry could withstand from roughly 1.5 percent to 2 percent in increases.

The U.S. federal funds rate now stands at 1.5 percent. Three more hikes would take it to 2.25 percent.

However, a newly released CBRE survey of the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – suggests that investors aren’t as concerned about rising interest rates as they are about a potential worldwide “economic shock” that could undermine occupier demand.

“Despite the possibility of escalating interest rates, the majority of investors intend to acquire assets in the Americas,” said Brian McAuliffe, president of institutional properties in CBRE’s Capital Markets group. “Risk tolerance is expected to remain unchanged but investors’ search for yield and asset diversification is pushing them toward value-add assets, secondary markets and alternatives [assets] in 2018.”

The CBRE Americas Investor Intentions Survey revealed that respondents involved with U.S. and Philadelphia commercial real estate listings were more positive going into 2018 than last year due to several factors, including the long economic expansion, new U.S. tax cuts and favorable regulatory changes. The largest share (45 percent) of respondents plan to increase acquisitions in the Americas over last year, a reversal of the downward or flat trend of the prior two surveys.

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.

Share

Accelerated Depreciation of Commercial Property

Accelerated Depreciation of Commercial PropertyLet’s look at how accelerated depreciation of commercial property can help your business. As a commercial property owner, how would you like to receive cash flow from tax savings of 7%-10% of your building cost within the first five years of ownership? That’s $70K-$100K for each $1M in building costs!

Download Printable Article (PDF) >>>

Accelerated Depreciation of Commercial Property – It’s YOUR Money!

Cost Segregation is an IRS-approved application by which commercial property owners can accelerate depreciation and reduce the amount of taxes owed. This savings generates cash flow that owners often use to reinvest in the business, purchase more property, apply to their principle payment or spend on themselves.
But we at STRYDE take it one step further with our “Engineered” Cost Segregation. Our engineers break down
your building into the smallest of components, e.g. carpeting, plumbing, & light fixtures, etc. to maximize your
depreciation. Engineered Cost Segregation is the answer.

Engineered Cost Segregation for Accelerated Depreciation of Commercial Property

The study accelerates the depreciation of your building/renovation components into faster depreciation categories such as 5-,7-and 15-year rather than conventional 27.5-and 39-year schedules. Five-and 7-year items might include decorative building elements and electrical for dedicated computer equipment. Fifteen-year items might include site utilities, landscaping and paving. This engineered cost segregation study results in a much higher depreciation expense and significantly reduced taxable income for the property owner. Best of all, the IRS ruling states cost segregation can be applied to all categories of buildings purchased or built since 1986, including renovations, and there is no need to amend your tax returns. This provides for the results to be easily applied to your tax return.

“I’m Already Doing That.”

It is true that a fair number of CPA’s may apply some of the benefits of Cost Segregation but an Engineered Cost
Segregation Study is the only way to truly maximize your benefits and get all of the depreciation and money your
entitled to. Our goal is to support your CPA or tax advisor with the most accurate cost segregation study results so you can realize maximum savings and increased cash flow. Our service utilizes a performance based method that is affordable for your commercial property application.

Do You Qualify for Accelerated Depreciation of Commercial Property

Even though 90% of all commercial properties do qualify for this benefit, there are a few rather broad minimum
requirements. They are: any building that was purchased or built within the last 20 years of $500,000 or more, OR,
has renovations within the last 20 years of $250,000 or more, AND, has paid federal taxes with in the last 3 years,
or plans to this year. There is also a “catch Up” method, in fact, 75% of our projects are older buildings.

FIND OUT WHY YOUR COMMERCIAL REAL ESTATE DEPRECIATION COULD BE WORTH 40% LESS IN 2019

For over 16 years, STRYDE has been delivering quality, affordable, engineer-based cost segregation studies to a wide range of individuals and businesses. Our team of experts can help easily apply the results to your current financials with your CPA or financial professional to assure successful results. In addition, our national coverage and expertise allows us to work with customers and properties across the United States.

Over the course of the 16 years we’ve been doing engineered Cost Segregation, we’ve had zero dismissed deductions and zero push-back, where the IRS says, “we’ll allow that deduction, but only this much ”

Our background allows us to provide not only the best possible results, but also strictly adheres to all IRS guidelines and provides our clients with all of the verifying documents and Audit defense.

HOW TO GET STARTED

Follow the IRS recommendation for application: Get an Engineered Cost Segregation Study. It’s easy:

  1. Call your local STRYDE affiliate for a no-cost preliminary property analysis to illustrate your potential savings.
  2. Engage STRYDE to begin your cost segregation study. The process is usually completed in four to six weeks, after which we provide the cost segregation study to you and your CPA.
  3. Your personal CPA will apply the results to your tax return and you will realize your tax savings dollars. This is your money!
  4. The NEW Tax Law provides a unique opportunity that you must act on during 2018 in order to fully capitalize on this change.

bill cooper

Share

Largest U.S. Banks Shrinking Commercial Real Estate Loan Balances

The nation’s 25 largest banks, which collectively control more than $11 trillion in assets, reduced their exposure to commercial real estate loans across the board last month, reflecting an ongoing change in the CRE finance markets, and a softening in loan demand.

The amounts on the largest banks’ books for construction and development, multifamily and nonresidential loans in the nation’s commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – all were down at the end of January compared to year end, according to weekly Federal Reserve Bank data. This was the first time all three have dropped in the same month since the Federal Reserve started tracking the individual categories in January 2015.

This CoStar report on real estate loan balances is being offered through Philadelphia commercial real estate broker Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm.

Leading the decline was a $2.7 billion drop in nonfarm, nonresidential loans, resulting in an annualized decline of more than 7.5 percent. This is fifth-consecutive month the category has shrunk, the seventh time in the last eight months, and the largest-ever month-to-month decline. Over the last eight months, the amount of nonresidential commercial loans involving the U.S. and Philadelphia commercial real estate markets has dropped by $7.6 billion.

In their fourth-quarter earnings conference calls over the last few weeks, several of the nation’s largest banks working with national and Philadelphia commercial real estate listings reported that some CRE deal activity was being pushed further into 2018, a resurgent CMBS market and competition from smaller banks as well as life insurers also were taking away business.

Some of the decline in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – can be attributed to pipelines being a little softer going into the year following year-end deal activity, said John Turner, president and head of Regions Financial Corp. (NYSE: RF) Corporate Banking Group. But he added, Regions has also intentionally been shrinking and de-risking its investor real estate book.

Weekly Federal Reserve numbers tracking loans on U.S. and Philadelphia commercial real estate listings also show construction and development loans have dropped by $700 million in January from year-end, also an annualized decline of more than 7.5 percent.

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.

Share

The Future of Solar in New Jersey

The Future of Solar in New JerseyThe future of solar in New Jersey is looking very bright. The state solar program has been generating investments. We’re taking a look at the future of solar in New Jersey.

Download Printable PDF >>>

By: Keith Peltzman, President of Independence Solar

The New Jersey state solar program stimulates approximately $1 billion of investment annually. This level of investment is supported by the trading of SRECs (Solar Renewable Energy Certificates) mandated by the state RPS (Renewable Portfolio Standard). Although this mechanism has driven a stable level of investment over the last 10 years, there is always an underpinning of a potential crash in SREC prices due to oversupply – as occurred briefly in 2012.

In order to protect against future volatility in the SREC market, the solar industry in NJ is working on two new state programs to ensure the stability of the solar markets for the next 15 years:

1. Transition Program (2018-2021)
2. Long-Term Successor Program (2021-2033)

The Future of Solar in New Jersey

1. TRANSITION PROGRAM (2018-2021)

The transition program is structured to ensure that the SREC remains stable over the next three years while a longer-term successor program is enacted. This transitional program (Senate Bill S-592) has not yet passed, but key provisions include:

  • Increasing the solar requirement from 3.5% to 5.3% (2021) to ensure stable SREC values
  • Reducing the lifetime of an SREC from 15 years to 10 years
  • Phasing-out SRECs for projects after June 2021
  • Reducing the maximum ceiling price of SRECs
  • Requiring a deposit of $40/kW upon SREC application to help the state maintain market balance

2. LONG-TERM SUCCESSOR PROGRAM (2021-2033)

Solar stakeholders in NJ are exploring options for a long-term successor program to replace the existing RPS/SREC mechanism. The goal would be to continue to stimulate long-term investment in solar energy with a stable incentive, while minimizing the impact to NJ residents and businesses. Most of these options are already being implemented by other states – such as MA, NY, CA, CT. Over the next two years, NJ can observe how these state programs perform and can adopt successful aspects of each program. Some options that are currently being considered include:

  • SREC II (5-year SREC with segment factoring/adders)
  • Tariff (fixed payment by segments for 20 years)
  • Block Grant (capacity based payments)
  • Reverse-Auctions (project bids on their incentive)

The long-term successor program will have a significant impact on the viability of a solar energy economy in the state of NJ. The niches for solar energy development may differ significantly from today. For example, there may be greater opportunity for larger utility-scale projects on farmland and landfills, for shared community solar projects on ancillary land or for pairing solar with battery storage. If you are considering solar in New Jersey, please connect with an experienced solar partner like Independence Solar who can help navigate the future of solar energy in New Jersey.

Keith Peltzman

Keith Peltzman
President & Founder
1008 Astoria Boulevard
Suite E
Cherry Hill, NJ 08003
856.393.1250

 

About Us

Independence SolarKeith Peltzman is president and founder of Independence Solar with offices in Cherry Hill, NJ and Boston, MA.

Independence Solar is a turnkey installer of commercial solar energy. Since 2007, the team has developed and built over $200 million of solar projects, including the largest rooftop solar array (9 MW) in North America at the Gloucester Marine Terminal in NJ. Independence Solar forges long-term partnerships to maximize returns on our customers’ solar energy investments.

Share

WCRE Rapidly Expands Exclusive Agency Relationships In PA & NJ

New Assignments Bring Additional 113,000 Square Feet Under Firm’s Control

March 1, 2018 – Marlton, NJ – Wolf Commercial Real Estate (WCRE) is pleased to announce that it has been appointed exclusive agent for 13 new projects in the Southern New Jersey and Philadelphia region.

WCRE continues to raise the bar with an aggressive marketing and branding strategy and has increased its South Jersey and Philly presence. WCRE will assume marketing, leasing and sale responsibilities for an additional 13 properties totaling approximately 113,000 SF.

The team at WCRE now oversees over 175 properties throughout the PA/NJ market encompassing over 4.2M square feet of office, retail, industrial, healthcare and investment real estate.  

“We see endless possibility in the properties our clients have entrusted to WCRE, and we are excited to connect new prospects with these assets.” said WCRE managing principal Jason Wolf.

The New Projects awarded to WCRE during the first two months of 2018 are as follows:

  • 1140 White Horse Road, Voorhees, NJ (25,000 SF Retail Building)
  • 1030 Auburn Road, Woolwich, NJ (4.2 Acres)
  • 601 Route 130 North, West Collingswood, NJ (2,113 SF Commercial Building on .35 Acres)
  • 605 Route 130 North, West Collingswood, NJ (1,200 SF Commercial Building on .27 Acres)
  • 513 Centennial Drive, Voorhees, NJ (6,700 SF Office Building on 1.31 Acres)
  • 1504 Blackwood Clementon Road, Blackwood, NJ (3,000 SF Office Building on .34 acres)
  • 297 Easton Road, Horsham, PA (.62 Acres)
  • 146 East Evesham Road, Cherry Hill, NJ (.92 Acres)
  • 133-136 Route 73, Voorhees, NJ (25,000 SF Medical Office on 2.85 acres)
  • 816 North Black Horse Pike, Gloucester Township, NJ (1.39 Acres)
  • 162 West Cohawkin Road, East Greenwich, NJ (25,000 SF Retail Property on 2.5 Acres)
  • 55-59 High Street, Mount Holly, NJ (13,000 SF Office Building on .12 acres)
  • 735 Bethlehem Pike, Montgomeryville, PA (3,234 SF Retail Building on .39 acres)
  • 700 W Browning Road, Collingswood, NJ (8,250 SF Retail Building)

A marketing brochure for each of these properties is available upon request.

Download Printable PDF >>> 

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

Share

Share

Share