Monthly Archives: March 2019
Let’s look at the best practices for proper asphalt parking lot maintenance. The four most precious assets associated with a commercial building; the roof, the HVAC system, the elevator (if there is one), and the parking lot. The parking lot is the first impression of your company to your employees; as well as, your client base. A decision as to do business with a company or not…often comes right in the parking lot. The expected useful life of a parking lot (that was properly constructed) should be 15-20 years providing proper maintenance has been applied.
Proper Asphalt Parking Lot Maintenance Includes:
• Seal coating every two years
• Crack sealing as soon as they appear, and before they widen/worsen.
• New striping for safe navigation by pedestrians and motorists.
• Proper signage
• Pothole repairs as soon as they appear.
• Inlet repair at the first sign of failure
• Water should never be standing in a parking lot- find/remediate the root cause. Pavement failure is often the result of standing water and the subsequent freeze-thaw cycles. Small untreated cracks eventually turn into potholes which cause the pavement to fail. Once this or alligatoring occurs, there is no course of action other than costly reconstruction.
Best Practices for Proper Asphalt Parking Lot Maintenance fall into 3 Categories
1. Must do: Consisting of concerns revolving around property and personal liabilities. Some potential hazards include raised sidewalk, broken curb, potholes, large cracks, alligatored areas, and failing inlets.
2. Should do: Consisting of preventative maintenance measures that will provide life cycle cost savings by “getting ahead” of tomorrows problems today. These include crack sealing, seal coating and small repairs.
3. Could do: When the budget permits, reconstructing the area earlier is better than later. Costly base repairs can often be avoided if milling and paving are performed early.
Whether you count your career in months, years or decades…it doesn’t take much time to see this pattern: the overwhelming majority of the property losses you face are liquid based events. Your “Location, Location, Location” will be interrupted by “Water, Water, Water” because it is the most common cause of property loss. The risk is present year round, whether it’s a flood that’s weather driven, or it rains inside your space due to a plumbing break or roof leak. Due to its threat level to life safety, fire receives our attention to protocols by way of building design, code compliance, annual inspections, drills, materials selection and more. However, the rate of incidence of fire is extremely low compared with the frequency, and high cost of property damage and business interruption caused by water. With this in mind, it’s a great return on your investment of time, to initiate or review your team’s plan for response.
HOW READY IS YOUR STAFF TO CONTAIN A WATER LOSS? (the most common cause of property loss)
6 Quick Questions before the next emergency
• Is my staff aware of the Safety hazards of a water event, and how to safely navigate them?
• Is a diverse cross-section of my staff knowledgeable and trained in how to shut off the water?
• Are key 24/7 contacts for subs such as plumbers, electricians, alarm and remediation contractors at your fingertips and in hard copy? Is the information published and posted in a logical, accessible manner?
• Do I have an app with a closed group, or group text pre-loaded for my crisis team and I to communicate during an emergency?
• Is my staff trained in how to divert water in a multi-floor water release, and how to conduct an assessment of the extent of damages?
• Do we have basic tools on hand such as shop vacs for extraction, plastic sheeting to cover and protect contents, and clear bags to remove (but not dispose of) water impacted items?
• Make certain the area is safe for entry, free of electrical hazards. A licensed electrician is required to manage the following:
• Water impacted basements housing electrical and HVAC
• Equipment and appliances not rated for submersion
• Any wiring, outlets, and panels that have come in contact with water
• Coordinate with a licensed mechanical contractor to inspect and verify HVAC equipment if affected by water damage.
• Contact Alarm & Elevator contractors as needed.
• Determine Category of Water Source (Clean or Contaminated).
• If Flood or Sewage water, PPE and environmental testing are recommended.
ADDRESS THE SOURCE
Address the source and stop water from flowing into the building. Multiple people in various departments should be trained in how to shut off the water. Photomapping and signage to demonstrate the location and instructions for shut off valves is key.
INSPECTION & INITIAL CLEANUP
• A Thorough Assessment is the Foundation of a Successful Recovery. Missed areas and issues create costly secondary damage down the road.
• Direct and/or capture water in a manner that is efficient and prevents further infiltration and damage. For example, when water pouring from floor to floor, direct water into one stream through one deliberate opening in the ceiling tiles, instead of many points.
• Walk the building to determine extent of damage. Use the “360 degrees” approach. Work from the source room/area, up & down, side-to-side, follow gravity as water seeks its lowest point.
• Inspection Tools Include: High powered flashlight, Hygrometer (Temp & Humidity Monitor), Moisture Meter, Thermal Imaging camera, painter’s tape for waterlines & mark out and floor plans.
• Document via photos & video.
• Move sensitive equipment, cover & protect contents.
• Extract standing water, set drying equipment.
• Manipulate contents in a manner to promote proper drying. For example, move lateral cabinets away from walls, roll back carpet and carpet pad.
• Remove saturated contents, do NOT dispose, document, allow insurance adjuster to determine if salvageable. Save potential faulty parts and subcontractor logs in the event subrogration (legal means of seeking other another party’s resources for financial recovery) measures apply.
• Review your Organizations Chain of Command & Procedures for Internal Reporting.
• Make sure your “phone/text tree” and alert systems are ready to activate your response, and to provide notifications to management, staff and occupants.
Tip: A few basic notification templates developed in advance will go a long way towards saving time and stress during a crisis.
For more information about the most common cause of property loss, Contact:
Christine Messina, Vice President
AllRisk Property Damage Experts
877.247.5252 24 Hrs
Connect with us!
Some of the industry’s top commercial real estate mortgage bankers expect business to stay just as strong in the national and Philadelphia commercial real estate markets in 2019 as it was in the past two years even as the economy shows signs of slowing.
The Mortgage Bankers Association predicts loan origination in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – will only reach $530 billion in 2019, essentially on par with 2017 and 2018.
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 amount of financing in the fourth quarter of 2018 beat the year-earlier period by 14 percent, the group said. It suggests that commercial and apartment lenders apparently have not been scared off by government shutdowns, stock market volatility, looming global trade wars and other headline events. And this follows almost a decade of recovery involving U.S. and Philadelphia commercial real estate listings tipped from one of the nation’s worst real estate collapses, as analysts and economists wonder how long this recuperation can last.
Indications for the immediate future of both national and Philadelphia commercial real estate properties are for steady lending activity, bankers agree.
For 2018, “the market as a whole ended the year roughly flat compared to 2017, continuing a plateau we’ve seen in mortgage borrowing and lending since 2015,” said Jamie Woodwell, vice president of commercial research for the mortgage bankers’ group.
These were among the key points from the Washington, D.C.-based trade group, which represents lenders, investors, developers, and others involved in commercial real estate financing.
– Financiers avoid retail: Blame the rise of ecommerce and retail chain store closings, but MBA figures show loans in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – posting relatively anemic growth in the past year. They were up 1 percent in the fourth quarter from a year earlier in 2017, compared with 32 percent growth for apartment loans and 28 percent growth for industrial loans.
– Aging boomers haven’t yet spurred a healthcare lending boom: US. growth for healthcare and senior-housing-related lending was up 61 percent year-over-year for the fourth quarter, but analysts said aging baby boomers still comprise only a fraction of development and lending activity.
– As banks get queasy, others stand by: Even if banks dealing with national and Philadelphia commercial real estate listings are getting skittish about how long the good times can last, a multitude of other financiers stand ready to step in, and the fastest growing contingent includes debt funds. Numerous prominent firms in financial management and private equity have established funds geared primarily to lending to third-party commercial investors and developers, and they are finding rewards even in a tight interest rate environment.
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 (firstname.lastname@example.org) 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.
The best way to avoid lawsuits from tenants is by creating and maintaining good tenant relationships. Investing the time and money required to maintain and cultivate a positive working relationship with your tenants can be the difference between amicably settling differences and a costly lawsuit. Working on the relationship also creates value by maximizing tenant cooperation with timely rent payments, property upkeep and longer lease terms.
AVOID LAWSUITS BY SCREENING POTENTIAL TENANTS
Conducting a background check on prospective tenants is a wise way to ensure a mutually successful experience for you and the applicant, and it is an effective risk management tool. Background checks do present some costs, but the risk of not performing the screening on tenants could have more serious financial consequences, resulting in lost income, property damage and litigation costs. Elements of a thorough background check include the following:
• Criminal history
• Credit check
• Previous landlord verification
• Identity verification
• Employment verification
AVOID LAWSUITS BY TAKING CARE OF YOUR PROPERTY
Taking measures to properly maintain the premises sends a powerful message to tenants. It proves that you take your role as building manager seriously and encourages them to take pride in the condition of their rented space. Better, it could bolster relationships and lessen the probability that they will take legal action in the event of an incident or dispute.
Take these measures to be prepared for maintenance issues:
• Establish a procedure for dealing with maintenance requests that guarantees prompt service to tenant requests
and maintenance issues
• Create, clearly communicate and promptly enforce policies regarding shared spaces.
AVOID LAWSUITS BY TAKING SECURITY MEASURES
States and municipalities have differing legislation regarding the duties of building owners and managers. Although you may not be expected to guarantee the safety of tenants, visitors and guests, you must exercise reasonable care to protect them from foreseeable events. What’s more, security measures make tenants feel safe, strengthening your relationship with them and lowering the likelihood of a lawsuit. They can also potentially lower your insurance premiums.
AVOID LAWSUITS BY FOCUSING ON CUSTOMER SERVICE
Taking extra steps to make tenants feel welcome helps to create a cooperative relationship that is unlikely to end in legal litigation. Small gestures such as the following can dramatically improve the relationship you have with tenants:
• Prompt, polite responses to requests
• Support during moves
• Clearly outlined policies and swift enforcement for all tenants
AVOID LAWSUITS BY TRANSFERRING RISK
Even with positive landlord-tenant relationships, there are potential exposures that must be addressed with well designed property and liability insurance policies. For more information, contact the insurance professionals at Hardenbergh Insurance Group today.
Brian Blaston, Partner
Hardenbergh Insurance Group
phone: 856.489.9100 x 139
WCRE APPOINTED EXCLUSIVE AGENT TO MARKET 3 FORMER BB&T BANK LOCATIONS IN THE GREATER PHILADELPHIA AREA
WCRE | CORFAC International is pleased to announce that it has been appointed by Branch Banking and Trust Company (NYSE: BBT) as the exclusive sales agent to market 3 separate BB&T bank locations in the Greater Philadelphia Area.
The 3 locations include two locations in Pottstown, PA and one location in Bensalem, Pennsylvania.
1830 E High Street in Pottstown is a 5,742 square foot building with 3 drive-thru lanes and great visibility along the highly traveled East High Street.
The 1111 Ridge Road location in Pottstown is 2,997 square feet with 3 drive-thru lanes and ample parking spaces.
The property at 2460 Bristol Road in Bensalem is a 3,889 square foot location equipped with 3 drive-thru lanes and just off the Pennsylvania.
All 3 of the opportunities represent great options for an investor or potential owner user/occupant. The locations present highly visible sites for retail or professional uses, as they are surrounded by various other retail attractions and professional offices.
“We are very excited about the opportunity to continue building our relationship with BB&T. We are looking forward to replicating our past success of unloading BB&T assets with these three great properties” said Mitch Russell, associate of WCRE.
“We are proud of our partnership with BB&T and look forward to continuing our successful relationship with a top-tier financial institution in the region,” said Jason Wolf, managing principal of WCRE.
A marketing brochure is available upon request and additional information can be found at the links below:
- 2460 Bristol Road, Bensalem, PA 19020
- 1830 E High Street, Pottstown, PA 19464
- 1111 Ridge Road, Pottstown, PA 19464
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.
Branch Banking and Trust (B&BT) is a bank holding company currently based out of Winston Salem, North Carolina. BB&T has displayed aggressive growth across the country through acquisitions and mergers culminating in the recent merger with SunTrust. With the completion of this merger, the bank will be renaming itself and relocating its headquarters to Charlotte, NC. With over 2,000 branches across 15 states, BB&T offers commercial and consumer banking along with asset management, mortgage and insurance services to its clients. Additional information can be found at https://www.bbt.com/about-us/default.page.
This article talks about how important Office Space Decommissioning is when moving to a new space.
Here’s a secret that no one ever tells you about moving – the bulk of your relocation costs are NOT transitioning your belongings to the new space. The fact is, office space decommissioning is a significant factor in your budget, sometimes adding up to 3-5 times that of the actual relocation itself.
Office Space Decommissioning Is More Than Just Moving Out
All too often, clients miss the not so obvious “other move” when it comes to their office relocation. Clients split their time and attention operating their core business while also focusing on the “new” space and the endless questions, details, and decisions that are required to get that space ready to unveil. The “old” space, as well as the furniture in it, is often overlooked. If you think you can just leave the furniture and the cleaning for the landlord, you are mistaken!
The problem is that neglecting to properly decommission the old office space leaves you exposed to a wealth of unnecessary costs.
The majority of commercial leases contain very specific requirements as to how the old space needs to be turned back over to the landlord. If not, it’s your deposit that hangs in the balance, just waiting to satisfy those obligations you signed off on in your original lease long ago. The removal of unwanted furniture and equipment can be an expensive undertaking, especially if not handled properly, and your landlord is well within his rights to apply your deposit to those costs.
Most commercial leases require that the occupied space be left “broom swept.” This means that all contents, freestanding furniture, workstations, office/IT equipment, shelving, racking, etc., must be completely removed, and all floors left cleared of debris and vacuumed. That also means following through on tiny details like removing any data/IT cabling that you’ve added while in residence. Overall, you need to return the space back to its original condition prior to your occupancy. Your lease should spell out the specific requirements and standards you will be held to.
So how do you protect your deposit? You need a detailed plan and a schedule! The easiest way to satisfy your lease obligations and get your deposit back is to consult a professional who is well-versed in handling the office decommissioning process. When you partner with the right commercial removal company or transition management company, they can help you properly navigate and negotiate your exit. Most standard moving companies aren’t experienced enough to guide you through this process, and handling it yourself elevates your “soft cost exposure.” Most people over value what they have, don’t fully understand what they’re required to do, and then end up running out of time. The reality is that there is a very tight timeline when you move and the space needs to be vacated. Why wait on a potential buyer to purchase unwanted assets, when it elevates your risk of exceeding that timeline and paying a costly penalty to your former landlord? You need to understand the cost of the distraction to your core business while focusing on something that is only likely to yield a marginal return.
When you value the assets you will not be moving to your new space, factor in the time it takes to liquidate them. It’s often best to hire an expert to advocate for your bottom line, and help you sort it all out in an efficient and expeditious manner. There are three outcomes in an office decommissioning: net positive, net zero, and net negative. To achieve “net positive,” the liquidation of furniture and/or equipment yields a positive cash return and is clearly the optimal outcome to strive for. To attain “net zero,” you can choose to donate contents to a local charity for re-purpose, or have a third-party company remove them at no cost. While you don’t make any money on the transaction, you save the potential cost of having to remove the contents yourself. For those items that simply don’t have much or any value, and need to either be recycled or disposed, you’ll find yourself in a “net negative”
position. Although there’s a nominal return for recycled items, the cost for disposing valueless items leaves you with a fee that an office decommissioning expert can help minimize. You don’t want to incur unnecessary storage costs for assets that won’t garner you a net positive return on that investment.
Quite frankly, there is an enormous difference between a transition management expert and a standard moving company. Before you sign with a relocation company, discuss with them the decommissioning services that they provide. Pin down the price for the services that you need, and compare that cost with hiring various removal providers. Most commercial movers overlook office space decommissioning, and this portion of the job can cost many times your relocation fee depending on how much of your existing furniture you will be taking to your new space. Once you have the transition team in place, establish a facility decommissioning plan and lock in hard dates and deadlines.
Make sure that the company is reliable, and that the personnel have the necessary skills to execute the plan. Often times, it is not worth the risk of going with the vendor with the lowest bid, as the cost for additional “buy back days” at your old space can quickly eclipse those cheap vendor savings.
So what is the takeaway from all of this? Simply that companies that focus all their time and effort on “hard costs” of relocation will be blindsided by the much more important “soft costs” of the move. A transition management expert minimizes your company’s exposure to lost revenue by reducing the distraction to your core business and curtailing downtime. Consult with an expert, and the savings on office space decommissioning will more than likely pay for the actual relocation.
About Argosy Management Group, LLC
Argosy Management Group (AMG) is a leader in office relocation and logistics project/move management. AMG services companies throughout the U.S. and worldwide. AMG delivers a wide range of comprehensive services: move management and transition planning, space planning and furniture needs, office and industrial relocation and liquidation, storage solutions and asset management, furniture disassembly and installation, and I.T./data center relocation.
For more information contact:
Shawn O’Neil, Partner
Argosy Management Group, LLC
7905 Browning Rd., Suite 112
Pennsauken, NJ 08109