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Monthly Archives: November 2018


Adequate Due Diligence for Commercial Properties

How do you know if you have done Due Diligence for Commercial Properties? I hear statements like the one below all the time. 

“I’m buying a commercial/industrial property; I need a Phase I Environmental Site Assessment (Phase I ESA)” or “I’m leasing a commercial/ industrial property; I don’t need to worry about performing any due diligence because I’m not purchasing the property”.

But is a Phase I ESA all you need, or is that too much? How much time do you have to perform your due diligence? How much money are you willing to spend? How much risk and potential liability are you willing to accept? These are all questions that you might want to consider as you proceed with your real estate transaction.

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As I’ve discussed in an earlier article, when performing due diligence to obtain innocent purchase protection in New Jersey, one needs to perform both an ASTM Phase I ESA and a Preliminary Assessment (PA). But, is that really all you need as far as your due diligence is concerned? While a Phase I ESA or PA report helps provide protections against certain environmental liabilities, risks, and concerns – specifically, the federal Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) or the New Jersey Spill Act, respectively – they don’t protect against all liabilities, risks, and concerns. For example, these assessments typically don’t include an evaluation for the presence of wetlands, asbestos, lead-based paint, or radon. Nor do they include an evaluation of the building’s structural or mechanical condition, an evaluation of the building’s energy use or waste  management efficiency, or whether the facility operations are in current compliance with applicable state or federal regulations and requirements.

It’s important to know which assessments you need, if any, because not all these due diligence concerns are necessarily your due diligence concerns. If you’re only planning on leasing a facility, you may not be interested in determining the structural or mechanical integrity of the building envelope, since that would likely be the responsibility of the landlord. Or, if you’re involved in litigation regarding the site, you may require a review of the historical conditions and regulatory status of the facility, but not necessarily need a comprehensive review of the current condition of the property. Perhaps you only need a limited scope of work now, such as a simple “desktop review”, or a Phase I ESA for refinancing purposes, but you also plan on expanding the facility in the future; in this case, you may need to know if there are any restrictions to building construction, such as the presence of wetlands or engineering limitations at the site. It all depends on what you plan on doing at the site, both now and in the future.

So how do you know if you’re paying too much for a due diligence assessment you don’t necessarily need, or not performing enough due diligence to give you the protection you need and the comfort and peace of mind you expect?

Answer: Find a consultant whom you trust, and who specializes in environmental, engineering, and land use due diligence. Your consultant should be your advocate. Ask questions of your consultant, and expect your consultant to ask questions of you and what your current and future plans are for the property. If you don’t feel comfortable or understand the answers, it may be best to discuss the matter further with other consultants to ensure you’ve made the best choice for your particular needs.

Here at Whitman, we have extensive experience in real estate due diligence. We work on many different types of projects with all types of clients, including individuals and corporations who want to buy a property, investors who want to sell their properties, banks that are overseeing a property refinance, companies that want to expand their operations, facilities that want to assess the efficiency and compliance of their current operations, businesses that want to rent a leasehold, attorneys who require historical information regarding former site operations, and the list goes on.

More than anything, we take pride in our commitment and dedication to our clients’ best interests, and enjoy finding creative solutions for our clients’ challenges. We look forward to helping you attain and then surpass your business goals.

To help you ascertain what level and amount of due diligence you may require, Whitman has designed a simple= “cheat sheet” that summarizes many of our due diligence services, and when you might consider utilizing them.

If you have any questions regarding real estate due diligence, would like a copy of the due diligence cheat sheet, or would like a quote for any of Whitman’s wide selection of due diligence services, please contact Chemmie Sokolic, Whitman’s Director of Due Diligence Services, at 732-390-5858 or csokolic@whitmanco.com.

 

 

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Life in the Fast-Food Lane: Restaurants Add Drive-Thrus Across the Country

Jack in the Box Chief Executive Leonard Comma knows his fast-food chain’s sales are dependent on drive-thru lanes. That’s why he said his company is investing as much as $45 million the next three years on digital menu boards and canopies to make the experience faster and more personal.

Quick-service purveyors across the national and Philadelphia commercial real estate market such as Starbucks Corp. and Dunkin’ Brands Group Inc. are also changing how they view their real estate by collectively spending tens of millions of dollars to let people eat in their cars as customers increasingly demand speed and convenience.

This Co-Star Research 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.

Drive-thru lanes contribute more than 70 percent of San Diego-based Jack in the Box’s sales, Comma said during a recent earnings call concerning the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space. “They represent a sizable sales opportunity,” he said.

Modern drive-thru technology has been around since the 1940s but came of age in “car-crazy California” in the 1950s, according to the National Museum of American History, which noted that by the 1970s “major fast-food franchises nationwide began to install drive-thru windows.”

The concept has never been more popular.

A study by trade publication QSR Magazine found that most fast-food chains among national and Philadelphia commercial real estate properties report about 70 percent of their sales happen at a drive-thru window, saying “the outdoor lane is just as important today to quick-service business as ever before – if not more so.”

Starbucks, which said in its Nov. 1 earnings call that it plans to build 600 new locations across North America in 2019, adding to its roster U.S. and Philadelphia commercial real estate listings, is expanding a push it began last summer to equip about 80 percent of all new stores with a drive-thru lane. Many of those won’t have interior seating, resulting in a much smaller store footprint.

Drive-thru, out-the-window and mobile-order-and-pay combined accounted for more than 50 percent of all orders in the U.S. commercial real estate market, including Philly office space, Philly retail space and Philly industrial space, in the past three months, up more than 10 percentage points in two years, Starbucks Chief Financial Officer Rosalind Brewer said.

“Last quarter, our stores with drive-thru well outperformed our café comp,” Brewer said. “This format will be a continued focus into 2019.”

Last summer, Seattle-based Starbucks said sales were 25 percent to 30 percent higher at stores with drive-thru lanes. Competitor Dunkin’ Brands Group, based in Canton, Massachusetts, said the drive-thru restaurants among its national and Philadelphia commercial real estate listings boast 40 percent higher sales volume.

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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Treasury Department Issues Federal Opportunity Zone Regulations

On October 19, the U.S. Treasury Department issued the much-anticipated proposed federal opportunity zone regulations for the federal Opportunity Zone (OZ) tax incentive program created under the 2017 Tax Cuts and Job Act, as well as related Revenue Ruling 2018-29.

The guidance indicates that a second set of proposed regulations will be issued later in the year that will address issues such as defining “original use,” the treatment of assets sold by a Qualified Opportunity Fund (QOF) and logistical issues with respect to the movement of tangible assets of a QOF business in and out of an Opportunity Zone.

These regulations were highly anticipated by the real estate development and fund creation communities, which have been awaiting clarity from Treasury since the creation of the Opportunity Zone Program earlier this year. As Forbes magazine indicated a few weeks ago, there is likely $6 trillion of capital gains in the U.S. that represent potential available investment capital that could use this program to drive investment into applicable Qualified Opportunity Zone (QOZ) businesses or real estate.

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THE PROPOSED REGULATIONS PROVIDE THE FOLLOWING CLARITY AND FLEXIBILITY FOR QOFS:

1. Gains
Only capital gains may be deferred under the Opportunity Zone Program.

2. Entity Structure
A QOF must be an entity classified as a corporation or partnership for federal income tax purposes— noting that LLC, LPs, REITs, RICs and common trusts under Section 584 do work for this purpose.

3. Collateral
While an investment in a QOF must be equity, an investor in a QOF may use its interest in a QOF as collateral for a loan.

4. Start Date
A QOF has the ability to establish the initial month for the six-month period after which the QOF must hold at least 90 percent of its assets in QOZ property.

5. “Substantially All” Test for Businesses
Substantially all of the tangible assets of a QOZ business must constitute QOZ business property. The proposed regulations now define “substantially all” as 70 percent. The combination of the requirement that a QOF hold at least 90 percent of its assets in QOZ property and the requirement that 70 percent of a QOZ business constitute QOZ business property may reduce the Opportunity Zone business property requirement to 63 percent of the investments made in a QOF, providing greater flexibly.

6. Reasonable Working Capital
There is a “reasonable working capital” safe harbor with respect to nonqualified financial property limitation for the cash to be used by a QOZ business for the construction or improvements for a period of 31 months, provided there is a written plan and schedule for the use of such equity and the QOZ business substantially complies with the schedule.

7. Expiration Date
The benefit of the election to increase of an investor’s basis in a QOF to fair market extends beyond the designation of an opportunity zone until December 31, 2047.

8. Gains of Partnerships and Partner’s Gains
A partnership may elect to defer all (or a part) of a capital gain. If an election is made, the elected deferred gain is not included in the distributed shares to the partners. If, however, the partnership does not elect to defer the gain, a partner may elect its own deferral with respect to the partner’s distributed share of its gain. The partner has 180 days from the beginning of the last day of the partnership’s taxable year, effectively giving the partner a second bite at the gain apple and use of the Opportunity Zone deferral and reduction methodology for capital gains.gain. The partner has 180 days from the beginning of the last day of the partnership’s taxable year, effectively giving the partner a second bite at the gain apple and use of the Opportunity Zone deferral and reduction methodology for capital gains.

Revenue Ruling 2018-29 provides an example of land and a building in an Opportunity Zone being converted from commercial to residential use and provides that such conversion of use did not constitute an original use. When determining the increase in basis required to satisfy the substantial improvement test, land is excluded from this calculation. Thus, land value will not need to be included when calculating the increase in basis required to satisfy the substantial improvement test.

In sum, the proposed regulations provide greater flexibility to a QOF in three of the more problematic requirements for the use of the Opportunity Zone Program. First, the combination of Revenue Ruling 2018-19 and the definition of “substantially all” with respect to the percentage of tangible assets constituting Opportunity Zone business property provides flexibility in satisfying the substantial improvement requirement for QOZ business property. Second, the 31-month safe harbor with written plans and schedule permits longer-term projects to be completed. Finally, while investors wait for clarity in the next round of regulations with respect to the ability and effect of a QOF selling and buying assets in an Opportunity Zone, the proposed regulations permit a holder of an equity interest in a QOF to use that interest as collateral for debt.

The regulations can be relied on by investors and developers in transactions so long as the rules are followed.

About Duane Morris

Duane Morris attorneys continue to work with a multitude of clients, helping them structure fund formations, fund investment in qualified opportunity zones, creation of qualified businesses within opportunity zones, entity creation, securities filings and blue sky regulatory filings in this exciting space.

For Further Information
If you have any questions about this Alert, please contact Brad A. Molotsky, Arthur J. Momjian, any of the attorneys in the Real Estate Practice Group, attorneys in the Affordable Housing and Community Development Practice Group, attorneys in the Project Development/Infrastructure/P3 Practice Group or the attorney in the firm with whom you are regularly in contact.

Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm’s full disclaimer.

 

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WCRE HELPS FEED NEIGHBORS WITH 5th ANNUAL THANKSGIVING FOOD DRIVE

Wolf Commercial Real Estate (WCRE) wrapped up its fifth annual Thanksgiving Food Drive today by delivering over 100 bags of food and $1,400 in supermarket gift cards and donations 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.

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“Over the past five plus 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.”

The food drive is part of WCRE’s Community Commitment program, which also includes donating a portion of the proceeds from transactions to one of several local charities. In September the firm hosted its third annual celebrity charity hockey game, in which local business leaders played alongside several former Philadelphia Flyers. That event raised more than $60,000 that was shared among several local charities.

Over the past 3 years, The WCRE Foundation has successfully raised approximately $200,000 from its community fundraising efforts.

About WCRE

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

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

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Opportunity Zone Property Sales Up 8 Percent Over Last Year

Investors pumped $2.6 billion more into properties covered by the federal Opportunity Zone tax incentive initiative — an 8 percent increase from the same time last year — even before the Treasury Department released guidelines on the program.

Almost 40,000 properties in the more than 8,760 zones in the national and Philadelphia commercial real estate market have sold this year, according to CoStar data. More than 51,400 properties are being actively marketed for sale, and the release this month of the first round of regulations is expected to amplify that flow of money through the next couple of years.

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.

Opportunity Zone investments are a provision of the Tax Cuts and Jobs Act signed into law last December, deferring or eliminating capital gains taxes for new investments throughout the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – in communities that state and federal officials define as economically distressed. The Treasury worked into October this year to provide regulatory guidelines for the program.

Estimates range widely for the amount of capital that could flow into national and Philadelphia commercial real estate properties to take advantage of the tax benefits from investing in properties in these zones and holding onto them for at least 10 years. The federal government calculates the capital flow at $100 billion, while some industry estimates reach as high as $250 billion — and it could go higher if all benefits are factored in.

Not every property in a zone is eligible for tax benefits. To qualify, investment buyers must double the value of the investment in a specific time frame. Many zone properties among U.S. and Philadelphia commercial real estate listings, however, are newly constructed or not in need of new development or redevelopment. Nonetheless, these properties could also see an upswing in investment.

Other investors in the U.S. commercial real estate market, including Philly office space, Philly retail space and Philly industrial space, will be pumping money directly into businesses in the opportunity zones –- investments that are also eligible for the tax benefits.

This early activity this year tallied by CoStar may provide a clue to where the expected surge of money could flow into national and Philadelphia commercial real estate listings and for what property types. In CoStar’s analysis of this year’s opportunity zone sales, it excluded properties that were part of portfolio sales of $100 million or more, and that were targeting large national or regional portfolios and not specifically opportunity zone properties.

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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Parking Lot Tips for Business Owners

Parking Lot Tips for Business OwnersLets look at Parking Lot Tips for Business Owners. American Asphalt Company has been supplying and paving South Jersey since 1903. They just announced this past July, that they are now an employee owned company. This growth transition means that every employee behind the scenes and on the front line value and care about the projects and customers alike. Dave Sulkin, Vice President of sales and marketing, has been with the company for 10 years and came with 40 years of experience in new business development, sales, sales management and marketing. In recent years, Dave developed American Asphalt’s parking lot maintenance division, also known as, Solutions Division, which specializes in small paving and parking lot services.

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5 Parking Lot Tips for Business Owners

1. First Impressions are everything. You never get a second chance to make a first impression. This goes for your parking lot too. Would you be willing to trust a company if their parking lot looked neglected? The answer would be most likely no. We specialize in beautifying your parking lot so that your guests feel welcome and trust you BEFORE they walk into your building.

2. Safety is TOP PRIORITY. Potholes, cracks, and crumbled curb or asphalt, can cause you to be culpable for any personal injury or physical damage. If a client trips on broken asphalt, their heel gets caught in a crack, or their car gets damaged entering your parking lot, this can cause major liabilities. You’re parking lot shouldn’t be a warzone, dodging potholes and cracks.

3. Compliance is key in every work field. OSHA, HIPAA, ECOA are just a few compliance laws that some companies deal with. In the parking lot world, ADA Compliance is to protect those who are disabled. How? ADA Compliance ensures that there is enough spacing for parking wheelchairs and other mobilizations and required access to entranceways.

4. Preventative maintenance can save you thousands. We all take care of our bodies by taking vitamins, exercising, going to the doctors for check-ups; this is a part of preventative maintenance. Preventative maintenance applies to your parking lot too. Three years after your parking lot has been paved, seal coat should be applied. This along with crack filling and line striping are big parts in preventative maintenance, protecting your parking lot from the surrounding environment.

5. Parking lot signage. Signage serves an important role in safeguarding your clients and the general public. Most people associate auto accidents with public highways, but studies have shown that thousands of collisions occur each year inside parking areas. High profile messages can help prevent these incidents by providing a better understanding of their environment and a clear direction to both pedestrians and motorists.

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WCRE ADDS EXPERIENCED POLITICAL CONSULTANT, FORMER COUNCILMAN

David Spector to Enhance Engagement with Local Communities and Leadership

David SpectorWolf Commercial Real Estate (WCRE) is pleased to announce the hiring of David Spector as Director of Community Relations. Spector brings nearly a decade of community engagement and public service to expand the reach and strengthen the bonds with municipalities and businesses throughout New Jersey.

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As Director of Community Relations, David will work closely with elected officials, economic development offices and community leaders to strengthen WCRE’s connections within the various regions where the firm does business.

An experienced community relations professional, Spector has served as a Town Councilman in Bellmawr, NJ and was an Eagleton Fellow at Rutgers University. David started his career in politics working on a number of different campaigns at all levels of government on behalf of Chairmen Donald Norcross and James Beach. He was also an aide for Senator Fred Madden, Assemblyman Paul Moriarty and Assemblywoman Gabriela Mosquera, where he spearheaded communications, social media and constituent relations. Additionally, Spector has built close relationships with a variety of community organizations throughout Southern New Jersey including the Jewish Community Relations Council, Community Planning & Advocacy Council, American Red Cross and much more.

“As a firm that works closely with a wide variety of communities and businesses, we are excited to be partnering with someone like David who can help our clients to build stronger relationships with their neighbors throughout the Garden State,” said Jason Wolf, Founder and Managing Principal of WCRE. “David brings WCRE strong relationships with leaders throughout the region as well as the ability to establish new ones. We are very excited to bring our clients these new possibilities.”

About WCRE

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

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

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Bank Branch Closings Accelerate as Consolidations Continue to Rise

New Jersey Bill Aims to Help Vacant Malls, Office ParksBanks are closing more branches at a faster pace as clients choose technology over tellers, with the outlets shut in the third quarter running about 50 percent higher than the quarterly average over the past two years.

Branch consolidation in the national and Philadelphia commercial real estate market has been a response to the growing use of mobile apps to complete banking transactions that used to occur face-to-face. However, in their most recent earnings reports calls, bankers indicate the latest round of consolidations is helping them meet expense reduction goals.

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 nation’s more than 5,400 banks closed 1,129 offices in the third quarter in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – according to Federal Deposit Insurance Corp. data. They opened only 507, resulting in a net loss of 622 branches or roughly 3.4 million square feet based on the average size of a bank branch. Over the past two years, the net loss of bank branches per quarter averaged 422.

Wells Fargo & Co. is one of the banks most actively shrinking its portfolio in the national and Philadelphia commercial real estate properties market. In the third quarter, it consolidated 93 branches and said it was on track to consolidate 300 branches this year. In the fourth quarter, it expects to complete the previously announced divestiture of 52 branches to Flagstar Bancorp. As of Sept. 30, there was about $2.12 billion of deposits attached to those 52 Wells Fargo bank branches.

Wells Fargo’s downsizing across its U.S. and Philadelphia commercial real estate listings began last year. With about 5,940 offices in the United States, Wells has plans to shrink to about 5,000 branch locations by 2020. The moves are designed to help reduce Wells Fargo’s annual expenses expectations for 2018 of $53.5 billion to a range of $50 billion to $51 billion for the full year 2020.

SunTrust Banks too has already been well into the process of consolidating branches in the U.S. commercial real estate market, including Philly office space, Philly retail space and Philly industrial space. The institution has closed 74 locations in the past year, according to FDIC data.

“We’ve actually shrunk our branch count by about 25 percent already,” Allison Dukes, SunTrust chief financial officer, told analysts. “As I think about where we could go from here, I’d say, we expect to continue to shrink our branch network somewhere in the range of 4 percent or so a year.”

The percentage to close in SunTrust’s national and Philadelphia commercial real estate listings base will be influenced by consumer behavior patterns and the need to deliver continuous efficiency improvement, Dukes 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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