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Building Successful Relationships

Monthly Archives: September 2018


Market Value and Replacement Cost

Market Value and Replacement CostDo you know the market value and replacement cost of your commercial building? In today’s article we discuss market value and replacement cost and obtaining the best insurance policy.

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If you own commercial property, choosing a property insurance policy that fits your specific needs is important. A wide variety of policy options are available at different prices that cover an assortment of reimbursement options. Although there are policies that offer a large amount of financial coverage, depending on the type of property that will be insured, it may make more financial sense to pick a policy that still offers adequate coverage while having lower premiums. Commercial properties can be covered in a variety of ways, and a number of factors can determine whether your property’s value goes up or down each year. Knowing how much your property is worth, market value and replacement cost, and obtaining the insurance policy that both protects you and suits your financial needs is important. The following are descriptions of common types of policies and valuation, and the costs that they generally cover.

MARKET VALUE

Simply put, market value describes the estimated amount that a property would sell for on the date of valuation. Any land included in a commercial property is also a part of its market value. The term market value can be used interchangeably with open market value, fair market value or fair value. A number of factors are considered when a property’s market value is appraised, some of which cannot be influenced by the buyer, seller or appraiser. These include the location of the property, capitalization rates, rent growth rate, the general state of the real estate market and more. Market value is most often used when buying or selling a property. However, it may also be examined when determining the type of insurance policy to place on a property, or the amount of compensation in the case of a loss.

REPLACEMENT COST

Replacement or reconstruction cost is a type of insurance that covers the cost to replace or repair a building with materials of the same or comparable quality. For the purposes of coverage—and unlike market value—replacement cost policies do not include the value of any land and is determined based on the amount needed to hire contractors and purchase materials to repair a building or construct a replacement.

Functional replacement cost coverage can also be used to repair a partially damaged property with less expensive materials, such as replacing a wall with drywall instead of plaster. The main reason for using functional replacement cost coverage would be to save money with lower premiums, so it may be a good option for properties that use expensive materials that are not necessary to the function of the property or for buildings with intangible value that is not relevant to their commercial function.

WHICH TYPE OF COVERAGE BEST FITS YOUR NEEDS?
The value of any piece of commercial property changes constantly. Knowing your property’s value and obtaining the policy that best suits your needs will safeguard your current and future assets. Contact Hardenbergh Insurance Group today to appraise your property’s value and learn more about which type of policy is best for you.

For 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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New Jersey Bill Aims to Help Vacant Malls, Office Parks

New Jersey lawmakers are making a new legislative push to help rid the state of its vacant and half-empty malls and office complexes, properties that have fallen victim both to e-commerce and a new preference in corporate America for urban settings.

Under a bill that recently came out of committee in the state Legislature, “buildings used, or previously used, as a shopping mall, shopping plaza, or professional office park,” that have been vacant or partially vacant in the South Jersey retail space commercial real estate market with less than 50 percent occupancy for at least two years, can qualify to be designated as needing redevelopment.

This report involving South Jersey retail space commercial properties is being made through South Jersey commercial real estate broker Wolf Commercial Real Estate, a South Jersey commercial real estate brokerage firm.

Once a municipality in the South Jersey retail space commercial real estate market designates an area as needing redevelopment, that site becomes eligible for economic incentives from the town – including being able to make payments in lieu of taxes, or Pilot programs. The bill’s goal is to spark the repurposing of such underutilized and sometimes rundown properties by developers.

With the demise of many retail chains among all South Jersey commercial real estate properties – and the rise of online shopping – malls across the nation have struggled with vacancies and closings. New Jersey has been hit particularly hard by office-park vacancies, because of its large supply of suburban office stock at a time when the millennial workforce is favoring downtown workplaces.

“Without the help proffered by this bill, there is good chance that investors will just be unwilling to take on these complex redevelopment projects, and the malls will deteriorate, cease to provide revenue support for the towns in which they’re located and, not least, they will go from being a destination to unattractive and possibly dangerous, lightly occupied, vestiges of a time gone by,” said one industry spokesperson.

The bill, whose sponsors include State Assemblywoman Carol Murphy, a Democrat representing Legislative District 7, basically updates and expands the types of South Jersey commercial real estate listings that can qualify as being in areas in need of redevelopment.

Murphy said she is very familiar with the issue of vacant malls in part because of what has happened within her own area, Burlington County. Earlier this year, Sears, the last retail tenant in the once-busy Burlington Center mall at 2501 Mount Holly Rd. in Burlington, New Jersey, shut its doors in the South Jersey retail space commercial real estate market, leaving a vacant shopping center in its wake.

“What used to be a thriving shopping center, a shopping mall, is now completely closed,” Murphy said. “So that’s sitting there and we’re trying to figure out what we’re going to do with that.”

Real estate firms dealing with South Jersey commercial real estate listings should be financially encouraged to look at existing, empty retail and office properties to redevelop “without having to take up more of our free land and space,” she said.

For more information about South Jersey retail space or other South Jersey commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) at Wolf Commercial Real Estate, a leading South Jersey commercial real estate broker that specializes in South Jersey retail space.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier South Jersey commercial real estate brokerage firm that provides a full range of South Jersey commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other South Jersey commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a South Jersey commercial real estate broker with expertise in South Jersey commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new South Jersey retail space with the South Jersey commercial properties that best meets their needs.

As experts in South Jersey commercial real estate listings and services, the team at our South Jersey commercial real estate brokerage firm provides ongoing detailed information about South Jersey commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for South Jersey retail space for sale or lease, Wolf Commercial Real Estate is the South Jersey 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 South Jersey commercial properties for lease or sale through our South Jersey commercial real estate brokerage firm.

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Third Annual WCRE Celebrity Charity Hockey Game Raises $60,000

The Third Annual WCRE Charity Hockey Game was another success, raising $60,000 to be shared by several charitable causes.

The game, which was played At the Flyers Skate Zone in Voorhees this past Saturday, is the brainchild of Philadelphia Flyer legend and WCRE director of strategic relationships Brian Propp. Blending community fun with sports fantasy camp, WCRE brought several Flyers Alumni fan favorites back to the ice for a game alongside thirty area business leaders. Over its three years, the WCRE Foundation has successfully raised $200,000 from its community fundraising efforts.

Joining The WCRE Foundation for this year’s event were former Flyers Brian Propp, Brad Marsh, Doug Crossman, Kjell Samuelsson, Andre Faust, Todd Fedoruk and Ray Allison. Philadelphia Sports Hall of Fame inductee Lou Nolan, public address announcer of the Philadelphia Flyers, served as emcee. This year Kerry Fraser served as referee. Fraser was a referee in the NHL for 30 seasons, including officiating 12 different Stanley Cup Finals series.

All proceeds from the event will be shared among the Alzheimer’s Association Delaware Valley Chapter, the American Cancer Society, CARES Institute at Rowan Medicine, the Jewish Federation of Southern New Jersey, Philadelphia Flyers Alumni Association supporting Ed Snider Youth Hockey, Samaritan Healthcare and Hospice and Susan G. Komen-Philadelphia.

Additionally, each of these organizations benefits from WCRE’s long-standing practice of donating a portion of its proceeds from transactions to an area charity. Learn more about this program at https://wolfcre.com/community-commitment/.

“This event gets better every year. We had more sponsors, more spectators, more raffle prizes, and most importantly, more money going to our charitable partners,” said Jason M. Wolf, managing principal of WCRE. “The WCRE team thanks our friends, neighbors, and business associates for their involvement in our efforts to improve the lives of others in the community.”

See a video recap of the game featuring comments from the participants, sponsors, and beneficiaries below:

Donations can still be made @ https://bit.ly/2zvGTXI

 

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 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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Big Retailers Shrink Stores to Boost Sales

Plans by fast-food chain Taco Bell to open 300 new small-format restaurants across the country in the next four years are the latest being undertaken by a slew of major national brands experimenting with smaller stores to cut real estate costs and cater to urban millennials.

Taco Bell, Nike, Target, and Nordstrom are just a handful of major brands looking to increase market share in the national and Philadelphia commercial real estate market – and, at the same time, wring out more dollars per square foot of space in expensive urban markets – by opening smaller brick-and-mortar stores.

This report involving U.S. 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 decision reflects a rapidly evolving retail environment in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – that is forcing retailers nationwide to reevaluate their real estate footprints. That scramble for space offers property owners and developers new opportunities to reconfigure properties and reshape their tenant mix.

“It’s not much different from what a lot of office users are doing right now,” said one industry expert. “Everyone is trying to be smarter with their space and realize the savings that comes from that.”

Sales at small-format stores among all national and Philadelphia commercial real estate properties outgrew those at larger stores by almost 400 percent in 2016 and now constitute more than a $1 trillion market, according to a 2018 report by Koupon Media. It added that 51 percent of millennials – those between the ages of 22 and 37 — say a store’s location is the top factor in a purchase decision.

In other words, the success of small-format stores also relies on convenience.

That’s a driver behind fast-food purveyor Taco Bell’s plan to open – in the next five years – 125 mostly small-format restaurants in New York City, instead of utilizing any other available U.S. and Philadelphia commercial real estate listings. The company said it was under-developed in New York and wanted to tap into the city’s thriving urban market.

The Irvine, California-based company’s small-format restaurants — called Urban In-Line and Cantina — are tailored for “highly walkable areas” and have no drive-through windows. The smallest are just 1,200 square feet. The company plans to open 1,000 new restaurants across the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – in the next four years. Thirty percent will be smaller-format concepts.

Many companies opening smaller stores are using technology to capture customer data and personalize the shopping experience.

Nike this year unveiled Nike Live in Los Angeles, a small-format, 4,600-square-foot store that coincides with the release of the Nike app designed to gather customer information and which allows shoppers to reserve items online, scan barcodes for product information, and book personal appointments with in-store experts.

Nordstrom last year launched Nordstrom Local, a 3,000-square-foot store in Los Angeles’ tony Melrose neighborhood with no inventory. Shoppers can pick up items there and even order a drink. It plans to open more.

Target is opening small format stores with an average store size of 50,000 square feet, compared to 170,000 square feet in its larger store, by utilizing both national and Philadelphia commercial real estate listings in urban areas across the country.

The small-store trend “shows no signs of slowing, which will inevitably lead to continued growth of small format in 2018 and beyond,” the Koupon report said.

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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Economic Incentives Influence Commercial Real Estate Decisions

Economic Incentives Influence Commercial Real Estate DecisionsLet’s explore Economic Incentives in commercial real estate. Businesses move to new locations for a variety of reasons including but not limited to the need for more space, facility modernization, access to a better skilled and available workforce, less costly operating costs, and business-friendly environments. As businesses consider relocation, many states across the U.S. offer economic incentives to attract and retain business investment. Economic incentives such as job creation grants and tax credits, training grants, property tax abatements, sales and use tax exemptions, and energy-efficiency programs are tools used by state and local governments to offset the initial capital investment of a businesses’ investment in a new facility as well as the ongoing costs for operating a facility.

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New Jersey and Pennsylvania compete for corporate real estate projects with other regions of the U.S. and in some cases, countries. While the economies of New Jersey and Pennsylvania are diverse with a choice of urban and rural areas, decades-old buildings and greenfield sites, mature infrastructures and workforces, and strong education systems, other states are as attractive and offer lower costs to do business. Thus, the need for incentives.

In New Jersey, the Grow New Jersey Incentive Program (“Grow NJ”) provides a base incentive to all companies with a need to relocate and are either new to the state or threatening to leave. Additional bonuses may be awarded based on the type of industry, location, amount of capital investment, number of jobs, and median wage of jobs.

The incentive may be for a term of up to 10 years with a 15-year commitment to remain at the project location. The Grow NJ incentive is a sellable state tax credit of up to $15,000 per job, per year for the ten-year term. This incentive will sunset on June 30, 2019. Governor Phil Murphy is expected to install new incentives that will focus on increasing innovation and technology advancement in New Jersey.

Other incentives in New Jersey include the Urban Enterprise Zone (“UEZ”), which provides sales tax exemption and hiring tax credits in 27 designated municipalities, job training grants, and energy efficiency rebates.

The Commonwealth of Pennsylvania has a diverse menu of incentive programs. A statutory job creation tax credit of $1,000 per job created is available and may increase if the Governor’s Action Team is involved in the incentive negotiation. Businesses must create 25 new jobs or increase employment by 20 percent. Another job creation incentive is the Pennsylvania First Program, which provides cash grants to support capital investment and job creation. While an effective program, Pennsylvania First is tied to the state budget and funding is often limited.

Keystone Innovation Zone (“KIZ”) Tax Credits are available in geographic zones to support innovation for emerging technologies. Businesses must locate in a zone, be operating for less than eight years, and locate in a KIZ targeted industry. The annual pool for KIZ tax credits is $15 million statewide.

Keystone Opportunity Zones (“KOZ”) targets abandoned, unused, or underutilized properties for revitalization. KOZ is a partnership of state and local governments to reduce tax burdens via abatements, tax credits, deductions, and exemptions of state and local taxes.

Pennsylvania also has a job training program called WEDnetPA. The program provides qualified employer resources to train new and existing workers who reside in the Commonwealth. Training grants are available up to $450 annually per employee for Essential Skills Training and up to $850 annually per employee for Advanced Technology Training.

Businesses are limited to training grants two years in a row or three years out of the last five years. The Local Economic Revitalization Tax Assistance (“LERTA”) Program provides a graduated abatement of real estate taxes for companies making improvements to property within the LERTA district. LERTA provides an abatement on the
difference between property assessment before improvements and the assessment after the completion of improvements. The LERTA is available over a period of five to ten years.

Additional incentives resources, including financing programs, are available and are based on the unique characteristics of each project and its contribution to the state and local economy.

 

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PHILADELPHIA HOCKEY LEGENDS RETURN TO THE ICE FOR CELEBRITY CHARITY GAME

WCRE brings popular Flyers Alumni back for 3rd Annual exhibition game in support of several local causes

September 18, 2018 – Marlton, NJ – Several former Philadelphia Flyers will play alongside area business leaders in the third annual Wolf Commercial Real Estate (WCRE) Celebrity Charity Hockey Event. All proceeds from the event will be shared among six area charities: The Rowan Medicine CARES Institute, the Alzheimer’s Association of the Delaware Valley, the American Cancer Society, Susan G. Komen-Philadelphia, the Jewish Federation of Southern New Jersey and Samaritan Healthcare & Hospice. A portion of the proceeds will also go to Flyers Alumni Association to support Ed Snider Youth Hockey. In its first two years this game has raised more than $115,000.

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WHO: Philadelphia Hockey Legends Doug Crossman, Kjell Samuelsson, Brad Marsh, Andre Faust, Todd Fedoruk, and Brian Propp (who is also Director of Strategic Relationships at WCRE). Lou Nolan, the legendary public address announcer of the Philadelphia Flyers, Kerry Fraser, record-setting NHL referee, and more than 30 local business leaders and 85 sponsors.

WHAT: See six former Flyers back on the ice, playing alongside our friends and sponsors. The game will be followed by dinner and an auction to raise even more money for these great organizations.

WHEN:

  • Saturday, September 22, 2018
  • Game begins at 5:00 P.M.
  • Dinner and auction at 7:30 P.M.

WHERE: The hockey game will be at the Flyers Voorhees Skate Zone, 601 Laurel Oak Road, Voorhees, New Jersey
Dinner and auction will be at Victory Bar & Grill, 795 Route 73, Berlin, NJ

WHY: WCRE is passionately committed to the health, well-being, and success of the people of this region. We work closely with all of the charitable organizations who will benefit from this game as part of our Community Commitment initiative, and encourage our associates and clients to do the same. The firm donates a portion of the proceeds from each transaction to a charity of our client’s choice. Learn more about our Community Commitment at https://wolfcre.com/community-commitment/.

LEARN MORE: Visit our ticket link for more information http://bit.ly/2xmglWx. (Members of the media covering the event do not need a ticket.)

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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How to Fill Empty Mall Space? Incubate Your Own Tenants

Mall operators are taking a page from the playbook of their office counterparts and setting up retail incubators in some of the space left vacant by departed department and apparel store retailers.

Offering retail and technology startups a shared space to test their concepts before actual shoppers, the new retail incubators working in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – are providing mall operators with an opportunity to find tenants with the potential for growth – and a diverse variety of new retailers giving shoppers a new reason to visit the mall.

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

This November, several small, startup retail and e-commerce companies familiar with the national and Philadelphia commercial real estate market plan to occupy 11,000 square feet of vacant space in a retail incubation space at New Jersey’s Cherry Hill Mall near anchor tenant Nordstrom.

Earlier this year, one of the many national and Philadelphia commercial real estate properties – this one a 15,000-square-foot innovation center known as “Cowork at the Mall” – opened in a former Sports Authority store at Chicago’s Water Tower Place.

In addition, one of the nation’s largest mall operators dealing with a massive number of underexposed U.S. and Philadelphia commercial real estate listings is in the early stages of developing a retail incubation program for many of its properties.

Beyond just space, incubators offer fledgling new retailers throughout the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – access to experienced operators, coaching, and networking opportunities to help them get their companies off the ground.

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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Tenant Improvements and Betterments

Tenant Improvements and BettermentsLet’s explore how Tenant Improvements and Betterments impact insurance. Suppose that a landlord leases a storefront to a retailer that makes improvements to the facility by adding features to help sell its products. During the lease, a fire breaks out and damages the building, including the features added by the retailer to improve the space. When the insurance claims are made, the following questions arise:

• Who did the improvements belong to?
• Who is responsible for paying the damages?

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Defining Tenant Improvements and Betterments

While legal definitions vary, improvements and betterments are anything that a tenant attaches to the landlord’s real estate that becomes a permanent part of that real estate. Under most leases, such improvements become the property of the landlord and tenants are responsible for repairing or replacing the improvements in the event of loss. However, property policies can be customized to determine whether tenants’ improvements and betterments are covered under the building category or under the contents category.

A Landlord’s View of Tenant Improvements

When a tenant makes substantial improvements and betterments to a building, it adds to the building’s value. In order to realize this added value, the landlord needs to clearly establish who is responsible for damages to that property to avoid insurance complications. In doing so, the landlord typically has to make one of the following decisions:

1. Increase the limits of the property insurance policy to account for this extra value.

2. Add a clause to the rental contract stating that the tenant is responsible for damages to improvements and betterments.

In the absence of one of the aforementioned decisions, the landlord may face penalties in the event that he or she has to make an insurance claim. For example, if a tenant makes $100,000 worth of improvements and betterments to a property that was initially worth $500,000, and a fire destroys the entire building, the insurance adjuster will value the property at $600,000 when processing the claim. But, since most landlords’ property policies consider improvements and betterments as covered property, the landlord may be charged an underinsured penalty if the building’s policy hasn’t been increased to reflect the amount of the improvements
and betterments.

A landlord who does not wish to insure for the values of the improvements and betterments should specifically exclude them.

A Tenant’s View of Tenant Improvements

If the lease requires the landlord to repair or replace tenants’ improvements and betterments that become damaged, the tenant does not need to insure them. In contrast, if the lease does not require the landlord to repair or replace tenants’ improvements and betterments, tenants need to make sure they are covered under their own property policy.

 

Tenant Improvements – Considerations When Entering a Lease

When entering into a new lease or renewal, it is critical for both landlords and tenants to carefully review the terms of the lease to ensure that it adequately delegates the responsibility for insuring tenant improvements and betterments. It is also important to make sure that each party’s insurance policy is adequate enough to properly protect the scope of the tenant improvements agreed upon in the lease. When reviewing the lease, both the landlords and tenants should discuss the following questions:

• Who owns the improvements?
• Who is responsible to replace the improvements if damaged?
• Which insurance policy covers the improvements—the landlord’s or the tenant’s?
• Is the policy adequate?

Insuring Tenant Improvements and Betterments

Tenant Improvements and betterments are not difficult to insure, as a building’s insurance forms automatically cover them. However, many landlords expect their tenants to insure any improvements and betterments that are
made, and some landlords refuse to increase the value of their building policies to reflect the new value of such changes. Therefore, it is important to understand the insurance ramifications of tenants’ improvements and betterments. Hardenbergh Insurance Group can help you identify your exposures and make appropriate recommendations.

For more information on Tenant Improvements and Betterments

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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Is Open Floor Office Design Good for Business?

Open Floor Office DesignIt’s tempting to consider open floor office design for your new headquarters, but is open floor office design good for business? Open floor offices advertise their collaborative environment and cheap rent, but is this true? Most likely not. You’ll come to find that the privacy of cubicles will be sought after, once the thrill of an open floor office wears off. Productivity will suffer, and so will your company work ethic.

Cubicles may not be as visually appealing, but they serve their purpose in keeping your business running smoothly. Open floor offices may have negative effects on your business that you’ve never thought of but should consider. If you’re currently renting open floor offices, a few of these points may feel a bit familiar. If
you haven’t hit “PAY” yet, read this before you are making your final decision.

Download Printable Article (PDF) >>>

 

Open Floor Office Design Problem #1 – HIGH PERFORMANCE EMPLOYEES NEED QUIET SPACES

It is no surprise that open floor spaces are loud. When there is chatter all around you, it’s hard to focus on your work at hand. There could be someone on a call, or a group of coworkers discussing their next business strategy, and maybe even a disagreement that’s within earshot. To you, this is just noise. You must reset your brain multiple times to zone back into your project in front of you.

Open Floor Office Design Problem #2 – JOB SATISFACTION OR NOT SO MUCH?

A study investigated the correlation between office type and employee job satisfaction. It revealed that those who worked alone in cellular offices and those who worked in a room shared with one other colleague experienced a positive work experience. However, as the number of co-workers increase in a room, job satisfaction decreased. Sure, you’ll save money on an open floor office, but you’ll pay for it in the long run with the costs associated with job satisfaction going down. It’s more cost effective to consider the impact an office type will have on employees rather than solely focusing on the short-term financial benefits.

Open Floor Office Design Problem #3 – LACK OF INTERACTION

Unfortunately, face-to-face interaction decreases in open floor offices, the opposite effect of what an open layout is going for. Communication through emailing and instant messaging increased and productivity declined. Because everyone is constantly surrounded by people, there was no longer the privacy that cubicles
provided. Online interactions increased as a result. Some may even go as far as to avoid more interaction with team members. Having so many people around you
can be overstimulating. You’ll see earbuds in and coworkers making the effort to avoid as much contact with others as possible.

Open Floor Office Design Problem #4 – VISUALLY DISTRACTING

When you’re in such close proximity to so many other team members, it’s visually distracting. In open floor offices, you’re surrounded by people that may not necessarily be in your department or even your company. Not only is their presence distracting, but their projects can also disrupt your work ethic. You could be bombarded with questions about what you do and how you do it, something you wouldn’t have to worry about if you were in a cubicle.

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WCRE EXPANDS REGIONAL TEAM WITH TRIO OF NEW HIRES

WCRE EXPANDS REGIONAL TEAM WITH TRIO OF NEW HIRES

Team Members to Serve Philadelphia and Southern New Jersey Markets; Support Company Marketing

September 5, 2018 – Marlton, NJ – Wolf Commercial Real Estate (WCRE) is pleased to announce the hiring of three new members of our firm serving our southeastern Pennsylvania and Southern New Jersey teams.

April Loomis has joined the WCRE team as a Senior Sales Associate focusing on the Southern New Jersey market.  Loomis brings over 25 years of professional experience with major corporations in the region, having recently served as a Contracts Manager at Lockheed Martin and Comcast Corporation.   She has been licensed as a New Jersey Salesperson since 2012.  April is also active in the local community and has numerous civic and professional affiliations.  She is a member of the National Contract Management Association, the Gloucester County Board of Realtors, and the Witches of East Greenwich Charity Organization.  She serves as Vice President of the Villages of Whiskey Mill Homeowners Association and is a New Jersey State Bar certified Paralegal.

Mitchell Russell has joined WCRE team as the firm’s newest sales associate in Pennsylvania.  Russell will generate and service new business in the office and industrial sectors for clients in Philadelphia and its suburbs.  Russell is a recent Duke University graduate, where he was a member of the Duke University lacrosse team and a proud four-time ACC honor roll member.  As a senior this past year, Mitch helped lead the 2018 Blue Devils to the national championship game.

Nora Farghaly has joined WCRE as a Marketing Coordinator and Administrative Assistant.  Farghaly will bring new ideas to WCRE’s best-in-class marketing team and enhance client service by providing additional broker support.  Nora brings more than five years of experience designing, creating and executing marketing campaigns across various industries through her independent marketing consultancy NF Design.  She has also served in marketing roles at Valley National Bank, Golf Performance Institute, ANCERO, and Compass Group at Rowan University.

“I’m excited to have such talented new team members servicing our clients in Philadelphia and South Jersey,” said WCRE Managing Principal, Jason Wolf.  “Our people have always been our biggest asset and our biggest advantage in the marketplace.”

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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 ww.southjerseyofficespace.com, www.southjerseyindustrialspace.com, www.southjerseymedicalspace.com, www.southjerseyretailspace.com, www.phillyofficespace.com, www.phillyindustrialspace.com, www.phillymedicalspace.com and www.phillyretailspace.com.

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