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Tag Archives: Jason Wolf


Commercial Parking Lots: 4 Things You Should Know

Commercial Parking Lots 4 Things You Should KnowWhen it comes to commercial parking lots, a well-paved and maintained parking lot has a greater impact on the customer experience than you may realize. Parking lots are the first thing that your customer sees when entering your business. You want to make a great first impression because you never get a second chance to make it right.

If your asphalt parking lot is filled with cracks, potholes, unsightly striping and other signs of deterioration, this could drive away potential business before they even make it through the door. Being proactive with having a parking lot maintenance plan allows you to be ahead of the damage and improve the safety and curb appeal of your commercial parking area.

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Commercial Parking Lots: 4 Things You Should Know

Condition

Just like the human body, asphalt grows weak over time, and without a preventative maintenance plan it can lead to serious damage and potential liabilities. The most effective approach in parking lot maintenance is being proactive rather than reactive. Don’t wait until the damage is done to fix it. Services like sealcoating not only make your parking lot appear new but help fight against the oxidation from the sun and damage from traffic. Having a parking lot maintenance plan in place will help keep your parking lot safe and fresh year after year.

Repairs and Maintenance

Some repairs are unavoidable, even when a parking lot maintenance plan is in place. The best way to avoid trip hazards and automobile damage is to walk your parking lot quarterly. Check to see if there are new cracks or potholes, uneven surfaces and proper drainage. If any of these arise, contact your trusted preventative maintenance partner to assess the damages and get started on the repairs.

Compliance

We all want parking lots to look aesthetically pleasing, but are they compliant with the law? ADA Compliance ensures that parking lots with 20 parking spaces or more, have at least one designated area for those with disabilities.

Always make sure that you are following the accessibility regulations to avoid fines and to ensure you are providing a safe parking lot for your customers that require handicap spaces.

Parking Spaces

Are the parking spots on your lot clearly defined? Do they have enough space in between them? Providing comfortable distance between parking spaces is essential in decreasing the risk of liabilities and providing safety for your patrons. Clearly defined parking spaces create a seamless appearance and experience for your customers. Up-keeping on your line striping helps the flow of your lot and the safety for everyone traveling through.

If you are looking to create the best first impression, contact American Asphalt Company for your complimentary parking lot assessment. American Asphalt Company is New Jersey asphalt manufacturer, commercial asphalt paving and parking lot maintenance company. With three asphalt plants in the South Jersey area, and two commercial parking lot maintenance and paving locations in New Jersey, American Asphalt is your full service asphalt company.

Patrick Polazzo

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While Covid-19 Caused Office Vacancies…WCRE Moves and Doubles Office Space in Marlton, New Jersey Headquarters

WCRE Moves & Doubles Office Space in Marlton, NJ HeadquartersDue to COVID-19, office space vacancies have risen throughout the country and some companies have been forced to scale back. But not Marlton, New Jersey based Wolf Commercial Real Estate (WCRE); they moved in early March 2021 to larger headquarters and doubled their space. A full-service Philadelphia and South Jersey commercial real estate brokerage, advisory and property management services company, they are proud to announce their move to One Holtec Drive, Marlton, NJ. The firm specializes in office, retail, medical, industrial, and investment properties in the Greater Philadelphia region, Southeastern Pennsylvania, Northeastern Pennsylvania, the Lehigh Valley and Southern New Jersey.

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Bucking the trend in office space vacancies, Managing Principal and Founder Jason Wolf is proud of WCRE’s ability and need to move. He explained,

“Our move is an indication of our belief in the future. While we have all struggled in so many ways through the Pandemic, we are feeling optimistic and see great potential in the market.”

Wolf is betting on the idea that, despite the downsizing that has occurred in response to the pandemic, the pendulum will swing back, and WCRE will be well-positioned to meet the anticipated demand for office space. He continued,

“We know that people thrive in an energized work environment, and collaboration breeds success. We embrace that philosophy fully.” Wolf adds more about future opportunities, and said, “What’s going to start happening over the next few years is flight to quality. Tenants in this market, especially post-pandemic, are looking for healthier, newer, inspired spaces to encourage their staff to return to the office.”

WCRE also takes great pride in their place in the community, as Wolf explains,

“This is our home, our mission, our work, and our play. Our community is growing, and we are part of that through our charitable arm – The WCRE Foundation. Our staff gets totally involved in our charities, and their commitment to helping others is a great demonstration of their dedication to our clients as well.”

The WCRE Foundation supports six local charities with strong personal connections to their employees. Bancroft, CARES Institute at Rowan University, the American Cancer Society, Susan G. Komen Foundation-Philadelphia, Samaritan New Jersey, and the Jewish Federation of Southern Jersey are the Foundations current beneficiaries. Each year, The WCRE Foundation hosts both a Celebrity Charity Golf Event and an Ice Hockey Event, that includes 6 Philadelphia Flyers Alumni playing in a competitive ice hockey game with donors and enthusiasts that support their mission. Flyers Alumni that have participated in past events include Brian Propp, John LeClair, Todd Fedoruk, Doug Crossman, Kjell Samuelsson, Andre Faust and Brad Marsh. Lou Nolan (Flyers Emcee) and Kerry Frasier (Retired NHL referee) are also involved each year.

WCRE oversees more than 200 properties

WCRE oversees more than 200 properties, comprising 4.8 million square feet, and still embodies the values set forth when Wolf founded the company: integrity, quality, teamwork, and focus.

In addition to teamwork being a core pillar of the company’s philosophy, it resonates on another level with several of the staff members who are former collegiate and professional athletes. Brian Propp played for the Philadelphia Flyers, Ryan Barikian played college football at Towson, Mitchell Russell played national championship caliber lacrosse at Duke University, Sean Kelly played baseball for Rutgers University, Phil Costa played college football at University of Maryland and in the NFL for the Dallas Cowboys, and Michael Scanzano played college baseball for University of Pittsburgh and minor league professional baseball.

About WCRE

Built on keen market expertise and intensely personalized service, WCRE has been operating in Southern New Jersey and the Greater Philadelphia area since 2012. 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. They 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 intensive focus on clients’ business goals and their highly personal approach to client service, WCRE is creating a new culture and a higher standard, going well beyond handling property transactions and serving as a strategic partner invested in clients’ long-term growth and success.

WCRE’s innovative and analytical approach to the market, using SEO, digital media, blogging and a very strong social media presence, has cultivated a massive, highly engaged customer base with followings almost ten times those of some of their competition. Their unparalleled expertise and commitment to service has earned the trust of a broad array of clients, and the firm has been a five-time winner of the prestigious CoStar Power Broker Award, which recognizes the “best of the best” in commercial real estate.

WCRE’s South Jersey headquarters can be reached at 856-857-6300 and inquiries for the PA offices in both Philadelphia and King of Prussia may be directed to 215-799-6900.

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  southjerseyofficespace.comsouthjerseyindustrialspace.comsouthjerseymedicalspace.comsouthjerseyretailspace.comphillyofficespace.comphillyindustrialspace.comphillymedicalspace.com and phillyretailspace.com.

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How to Prepare Your Parking Lot Post Winter

How to Prepare Your Parking Lot for Winter

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Did you prepare your parking lot for winter? Most property owners neglect this because many property managers and commercial property owners are unaware of how the winter weather, salt and plowing can cause damage to their parking lot. Winter weather can wreak havoc on a commercial parking lot, specifically in our region. Harsh winter weather can and will wreak havoc on your asphalt parking lot. The best way to protect your parking lot from the freeze-thaw cycles that we experience is by having a preventative maintenance plan in place. When you add snow plowing and rock salt to an existing damaged parking lot, it will erode the asphalt and cause further damage.

It is always important throughout the year to conduct a physical inspection of your parking lot. When you notice signs of cracking, potholes, or the asphalt color looks faded, it is best to contact your asphalt parking lot service provider to assess the damage and devise a parking lot maintenance plan that suits your needs.

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3 Ways Prepare Your Parking Lot Post Winter

Crack Sealing: 

A part of preventative maintenance is to crack seal. Crack sealing prevents water from seeping into the sub-base. During the winter season, when water seeps into the cracks, the freeze thaw cycle will make the water expand and contract. The once small cracks can become potholes.

Undetected potholes may appear as snow and frost thaw. Many times, these damages are caused by snowplows or existing cracks hat have been affected by the freeze thaw cycle. It is imperative to seal cracks and fill potholes to prevent potential.

Asphalt Repairs:

Potholes can be repaired with hot mix asphalt in the fall months. Damaged asphalt is saw cut and removed, then the area is cleaned and prepared for the installation of new asphalt. When hot asphalt is unavailable, EZ Street high performance cold asphalt is a great alternative. This material works in cold temperatures, and can even be applied in water. Neglecting potholes, especially in the colder months, can be very dangerous. As the asphalt continues to break apart and the holes become larger and larger, this creates a safety hazard for both pedestrians and vehicles.

Inlet Repairs:

When water seeps into your inlets, the inside structure deteriorates. Salt and ice melt used in the winter months also washes into the storm drains, which further erodes the walls. To avoid a potential sinkhole, make sure your catch basins are structurally sound, the interior walls are parged, and the surrounding asphalt is intact.

To Prepare Your Parking Lot for Winter, contact the experts at American Asphalt Company to help address any immediate hazards. We will be able to provide a complimentary assessment of your parking lot and keep you within budget.

For more information on ways to prepare your parking lot for winter, contact:

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Working With a Commercial Real Estate Broker

Working With a Commercial Real Estate BrokerDo you want to rent a commercial property for your business? If so, you need to make an important decision. It’s time to hire a commercial real estate broker to help you locate an ideal spot for your company. Here’s a deep dive into how to work alongside your broker successfully.

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What Does a Commercial Real Estate Broker Do?

There are a few similarities between commercial and residential real estate brokers. If you’ve ever purchased a house with a broker, you know they guide buyers through the process from start to finish. These professionals are licensed by the state to perform various tasks, including finding properties and negotiating sales.

That’s the same for every broker, no matter what they sell. However, you should know that commercial brokers tend to work with multiple parties since more people are involved in these sales. It’s also standard for commercial brokers to know their clients’ financial situation so they can prioritize their bottom line.

Essentially, you hire a commercial broker to find a property that aligns with your company’s needs, wants, and goals.

Reasons to Hire a Commercial Real Estate Broker

Reasons to Hire a Commercial Real Estate BrokerIt’s smart to hire a broker for many reasons. If you’ve never rented a space for your business before, you might not know how to navigate the process alone. That’s a thought many people have before they rent a property. Let’s take a look at how a broker will help.

1. Negotiate Terms
Are you a natural negotiator? If not, you’re certainly not alone. Many savvy business owners don’t feel like they can negotiate successfully. These professionals will consider your finances as they review rent prices and other fees. Additionally, they might negotiate points like parking, utilities, and more. That’s all to arrive at a better agreement between you and the landlord.

2. Evaluate Leases
You need to fully understand lease agreements before you sign one. This space will be under your business’s name. If you need someone to help you evaluate leases, your broker can assist. That’s a bonus when you might look at two or three agreements in one week.

3. Market Knowledge
If you’ve rented commercial space before, you know you have to look far and wide to find properties that are both quality and affordable. Brokers can access listings that might not be available publicly. It’s essential to consider more than one rental so you can get the best deal. As a result, you can benefit from their market knowledge. These are only a few reasons why brokers can be helpful when you want to find commercial rental properties.

What to Remember When You Hire a Commercial Real Estate Broker

These professionals have various advantages that make them worth every penny. However, you might be curious about how to “use” your broker effectively. After all, you don’t want to pay someone who doesn’t meet your expectations.

Take a look at what you can do to work with your broker correctly.

1. Make a Checklist
Do your best not to expect your broker to read your mind. This individual won’t know your needs, wants, and goals unless you communicate with them. If your company requires a commercial garage door, for example, you need to jot down that point, as well as any special features that you need from it. These details will allow your broker to find the best location for you as quickly as possible.

Set a meeting with your team to determine what your rental space needs to look like. Consider everything from bathrooms to storage to location. Be sure to outline your budget, and don’t forget outdoor space, too.

Do you need a highly visible spot for advertising? Take every point into consideration.

2. Conduct Enough Research
It’s smart to choose a broker who specializes in your industry. If you own a coffee shop, you don’t want to work with someone who’s only rented office buildings. That’s where research comes in handy. Do your best to find an individual broker or entire brokerage for your specific situation.

How do you know whether a broker will be a good fit? Ask them to discuss their recent transactions. If you see they’ve had success with companies similar to yours, you’ve probably found someone who can help. It’s always important to ask for referrals, too. Call any references to discuss their strengths and weaknesses. Keep in mind you might have to interview several brokers before you find a connection with one. It’s essential to plan ahead so you have enough time. Otherwise, you’ll likely feel rushed and overwhelmed.

3. Don’t Sit Back
There are times when your broker will need to “take the wheel,” such as when you want to negotiate lease terms. This point doesn’t mean you should check out entirely. It’s still important for you and your partners to be involved. If you don’t know what happens throughout the process, you’ll inevitably run into obstacles later. Nominate someone from your company to visit rental properties and attend related meetings when you don’t have time.

4. Always Ask Questions
Don’t be afraid to ask questions and offer comments. It’s your business’s space, so you need to have the final say. If you’re curious about something during the search, you should be vocal. It’s key to trust your broker, but you don’t want to let things slide that might affect your prospects.

5. Look at All Options
However, you also need to consider every broker you come across. Don’t limit yourself to whichever broker you find first. If your friend recommends a specific professional, you should certainly speak with them — but you don’t want to pick them just because you got a recommendation.

Be sure to look at multiple brokers in your area. There’s a chance you’ll find someone along the way who meshes with your company better than anyone you interviewed beforehand. It’s always smart to cast a wide net. These tips will help you build a strong relationship with your broker so you can find an ideal commercial rental space.

Use These Tricks to Build a Relationship With Your Commercial Real Estate Broker

It’s not always an easy process to find a commercial property for your business. Fortunately, you can hire a real estate broker to help. Be sure to use these tips to form a successful relationship with whoever you choose. This way, you can find the best possible space.

Rose Morrison is a residential and commercial real estate writer and the managing editor of Renovated. To see more of her work visit: https://renovated.com/

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Utilizing Big Data in Commercial Real Estate

Big Data May Change Commercial Real Estate

Big Data May Change Commercial Real Estate

Let’s look at how you can utilize big data in commercial real estate. Over the past few years, new computer technology has made data analysis — assessing and using datasets that are too large for conventional analytics — increasingly practical for businesses in and outside the tech industry.

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Big data can provide new, profound insights that you couldn’t uncover with less comprehensive information. New analytics techniques are also making nontraditional, unstructured datasets more accessible. As a result, new tools and approaches have made it possible for landlords and real estate companies to take advantage of the tech.

Some commercial landlords are already using data analytics for marketing, building management and investing. Over the next few years, the tech could radically transform the way commercial landlords buy real estate, market to potential tenants and oversee their properties.

Using Data Analytics for Intelligent Building Management

In some buildings, property owners are already using big data and new analytics technology to make building management more efficient and eco-friendly. For example, a building owner might install new Internet of Things sensors that collect minute-to-minute data on humidity, temperature, lighting and air quality. In aggregate, this information could give building owners and their tenants a nearly real-time picture of where renters might be underserved — like inadequately ventilated or poorly lit rooms. The data may also show where building resources may be going to waste Property managers may use this information to make building lighting, cooling and heating more efficient — shutting off lights and cutting temperature control in unoccupied rooms. In some buildings, this information will help smart HVAC and lighting systems manage these changes automatically, allowing building owners to reduce costs and improve the building’s energy efficiency.

The right tool might also help building owners identify areas for potential improvement. For example, they may find rooms that are harder to heat or cool due to poor insulation, hallways that may have inefficient lighting setups or areas where natural lighting may allow tenants to cut down on their use of electric lights.

Preventing Building Systems Failure With Big Data

IoT sensors and big data analysis can also help detect energy fraud and failures in metering systems — both of which can lead to inaccurate billing measurements.

Big data is “smart” enough to identify failures in other building systems — potentially reducing maintenance costs or preventing costly repairs. Data from air quality and humidity sensors, for example, can give building owners an idea of when HVAC systems are beginning to fail, or when simple fixes are necessary — like a new filter. These sensors might enable a kind of predictive maintenance strategy, which could cut down on the need for frequent maintenance checks and help reduce the risk of sudden and unexpected building system failure. This use of data can even help some buildings qualify for green building certifications like LEED certification. Recently, these certifications have become a significant draw for tenants looking for ecofriendly buildings. In some areas, they’ve also improved buildings’ property value by a substantial margin.

The adoption of analytics in commercial real estate is ongoing, but not mainstream yet. Even in buildings where systems are already collecting data, it mostly goes underused. One survey found that 77% of smart building owners store the data their building management systems collect, but 42% of those owners don’t analyze that information.

However, before too long, the tech is likely to be a standard fixture of modern buildings. Current industry estimates forecast that, by 2035, there may be as many as 45 trillion connected sensors in operation in the built environment. All these sensors will be collecting massive amounts of data, at volumes that will make big data critical for commercial landlords.

Data Driven Marketing of Commercial Real Estate

Big data could also transform how commercial landlords market to and negotiate with potential tenants Collected market data might give landlords a better idea of which potential tenants are looking for commercial space in their area, or how much they should charge for a particular building based on floor space and building amenities. This information could help improve marketing efforts — allowing landlords to create targeted advertising campaigns or adjust rents to better reflect tenant income and local property values.

Data Analytics for Real Estate Investment

Soon, this data might also help landlords develop new investment strategies. Market analysts have found that there may be significant, untapped power in nontraditional data for real estate investors and commercial landlords. big data analysis could evaluate information drawn from new sources of real estate data — anything from residential surveys to online restaurant reviews to the number of permits issued to build swimming pools in the area.

Insights in that data can reveal hyperlocal patterns in the real estate market — giving investors a better sense of how property values may change over time. These patterns might help them create more informed investment strategies, and develop the best possible understanding of the local real estate market. Insights into market trends, coupled with data on comparable properties, may also help improve estimated property valuations. Better estimates might enable real estate buyers to develop better bidding approaches, helping them secure valuable properties without overspending.

How Big Data May Change Commercial Real Estate and Property Management

Over the next decade, the big data market is likely to grow significantly — and the industry will probably produce even more data-based solutions for commercial landlords. Right now, landlords can already use this data and IoT tech for building management. With the right information, building owners can adjust and optimize systems to cut down on wasteful energy use, reducing costs and making buildings more eco-friendly. It might even be possible to automate entire buildings.

At the same time, data analytics can also help property companies improve their marketing and investing efforts. More comprehensive data sets drawn from traditional and nontraditional sources can give businesses a better picture of their local real estate marketing — allowing for more effective targeted advertising and informed investment strategies.

Rose Morrison is a residential and commercial real estate writer and the managing editor of Renovated. To see more of her work visit: https://renovated.com/

Rose Morrison

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WCRE APPOINTED EXCLUSIVE LEASING AGENT FOR COLWICK BUSINESS CENTER

LEASING AGENT FOR COLWICK BUSINESS CENTERWolf Commercial Real Estate (WCRE) is pleased to announce that it has been appointed exclusive leasing agent by Golden Gate Management for its recently acquired Cherry Hill office portfolio located at Colwick Business Center, 53-55-57 Haddonfield Road in Cherry Hill, New Jersey. Colwick Business Center consists of three office buildings comprising of approximately 173,000 square feet.

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Among many desirable attributes, Colwick Business Center features highly efficient suite layouts, private 24/7 access to each tenant suite, and ample parking. Available suites range in size from 2,500 to 29,475 square feet.

Current anchor tenants of this premier office complex include Virtua Health, Rutgers University and the State of New Jersey.  The new owner, Golden Gate Management, is committed the southern NJ marketplace with recent acquisitions of flex and office parks and their ability to enhance value with the lease-up of the available space in these buildings.  

“We are excited to be working with WCRE’s leasing team of John Mozzillo, and Bethany Brown, and I am confident they will be very successful in marketing this premier business center,”
– Fishel Schlesinger Principal, Golden Gate Management

All of the available buildings in Colwick Business Center are single story office properties with private entrances, offering all useable space with no loss factor. The efficient layouts not only provide cost savings but also help to ease the logistical and safety concerns Covid-19 has posed for tenants in multi-story properties that require elevators and common areas.

Colwick Business Center is located just west of the Cherry Hill Mall on a stretch of Haddonfield Road that has recently undergone a massive redevelopment renaissance. The area features affluent residential communities, retail centers, hotels, and other amenities attractive to office tenants. Additionally, The Garden State Towne Center, home to Wegman’s, Best Buy, Home Depot, Dick’s Sporting Goods and other high-end retailers, is conveniently located a short distance away on Haddonfield Road.

Colwick Business Center

 

A marketing brochure and tenant information package is available upon request and also in at this link

 

About Golden Gate Management

Golden Gate Management has led the development and repositioning of more than 1,500,000 million square feet of best-in-class commercial and residential properties. The company is highly experienced in managing all aspects of the development process, from site selection and
entitlements, through coordination of tenant move-in.

Golden Gate’s 10-year history as a preeminent management company is unmatched. Reflecting the company’s core competencies and start-to-finish execution capability, Golden Gate has served as a single-source solution for small and large tenants with its full breadth of its in-house capabilities of construction services thus building relationships with their tenants, Leveraging the strength of its experienced team, Golden Gate has emerged as a first-class project management firm.

 

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.comwww.southjerseyindustrialspace.comwww.southjerseymedicalspace.comwww.southjerseyretailspace.comwww.phillyofficespace.comwww.phillyindustrialspace.comwww.phillymedicalspace.com and www.phillyretailspace.com.

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Change to the Bankruptcy Code Protects Landlords

Change to the Bankruptcy Code Protects LandlordsLet’s look at how a temporary change to the bankruptcy code protects landlords. The Consolidated Appropriations Act of 2021 (CAA), signed into law on December 27, 2020 provides money for governmental departments, coronavirus stimulus to individuals and businesses, but also made a temporary change to the bankruptcy code. Some of those amendments directly affect the rights of landlords of commercial properties.

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Since the pandemic started, landlords have been working with their commercial tenants by reaching deferral and waiver arrangements for payment of rent in arrears. Landlords are concerned that if their tenants filed a bankruptcy petition, payments made outside the ordinary course of the lease could be recovered by the bankruptcy estate, if the trustee brought a lawsuit to recovery of those payments under Section 547 of the Bankruptcy Code. Sections 547 and 550 provide for the avoidance and recovery of payments made on or within 90 days before the debtor filed for bankruptcy or one year if such transfer was to an insider, known as the preference period.

Under the CAA landlords have temporary protection from preference and claw back litigation. The safe harbor is geared toward encouraging landlords to work with their struggling commercial tenants, reaching agreements on the payment of rent without the fear of having to turn over those payment to a bankruptcy estate. To qualify, the payment arrangement should have been entered into on or after March 13, 2020, and the payment arrangement should not include, fees, penalties, or interest in an amount greater than what the tenant would have if paid on time and in full.

Landlords should also be prepared that if a tenant does file for bankruptcy, Section 365(d)(4) allows additional time for debtors to assume, assign, or reject nonresidential real property leases. Under the CAA, a Chapter 11 debtor has an initial 210 days to make a determination, and a 90-day extension provision with landlord written consent. However, debtors will still be required perform all of their obligations under the lease in a timely manner, unless the court directs otherwise.

Since these amendments will sunset on December 27, 2022 unless extended, it is important to understand the developments in case law and provisions of the change to the bankruptcy code. Our professionals can assist you in navigating the new rules and how they can impact your rent collection actions.

This e-alert is provided by Hyland Levin Shapiro LLP as a general summary of the topics discussed; it does not replace the need to consult with a legal professional and is not intended to be a substitute for competent professional advice, including any advice regarding the effect of the Consolidated Appropriations Act of 2021 on your particular business. If you have any questions about the provisions summarized above, please contact Angela L. Mastrangelo, Esquire at mastrangelo@hylandlevin.com or 856.355.2989.

The contents of this article are for informational purposes only and none of these materials is offered, nor should be construed, as legal advice or a legal opinion based on any specific facts or circumstances.

Angela L. Mastrangelo, Esquire

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Why Reviews Matter in Business

Reviews Matter to ConsumersLet’s examine why reviews matter to consumers. The wide-spread and long-lasting effects of COVID-19 remain to be seen, but one thing we can all agree on is that both retail and consumer behaviors have been forever changed. Prior to COVID, consumers were gradually shifting to a more digital landscape, mostly driven by convenience. This past year, business and consumers were forced to drastically alter their behaviors and operate almost completely online overnight. While hopefully, some normalcy will return, studies are finding that customers prefer the digital transformation and many conveniences that it provides.

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What does this mean for businesses? Being online is no longer a luxury or an afterthought, it is a necessity for survival. Even further than that, a company’s online reputation and reviews has now become their biggest marketing and piece of influence.

Consumer’s are spending more time than ever looking at business listings, in fact 31% of consumers say they are more likely to check a Google listing before visiting than they were pre-pandemic. They are also referencing online reviews, not only to research the service or product, “they are confirming the safety of businesses by checking reviews” (https://lnkd.in/dKZ3Ky3).

As a small business, retailer, start-up company or commercial real estate firm, your online reputation can be your biggest advantage or your greatest liability. According to Aversa PR, “No matter your resources and budget, this Reputation Management should be a key principle in operating any business” in 2021.
(https://www.inquirer.com/business/covid-online-sales-small-business-fraud-reputation-risk-20201117.html).

Why Do Reviews Matter?

Choosing a new business or product is a risky decision and while making it, customers are looking to trust factors that show that this business is the best choice. Online reviews serve as Social Validation that a business is trustworthy. Consumers turn to online reviews as a judgement of approval from their peers to guide their purchasing choices.

In fact, 92% of B2B buyers said they purchased from a company after reading positive online reviews, while 72% said they ended their conversations or prospecting with a company due to negative reviews. The customer base has changed, over half of customers today grew up with the internet, cell phones, social media. They have been taught to consult the internet, and believe the internet, for every decision. Many businesses grow from word of mouth or direct referrals, online reviews are now the reference of choice from consumers.

A study from BrightLocal showed that 87% of customers (91% of 18-34yr olds) trust online reviews as much as a personal recommendation and that 93% of people Google first, then decide to engage based off their discovery. When it comes to your online reputation, it is simply too important to not have a proactive strategy or plan in place. Simply asking for reviews isn’t enough anymore. From responding to customers, analyzing review trends, managing the platforms and listings, it is easy to understand why companies quickly become overwhelmed.

With a firm strategy and execution plan, companies are able focus on growing their business offline with the piece of mind that their reputation is being protected and built positively online. Many commercial real estate brokerage firms employ these business and marketing strategies. Whether you choose to manage the process inhouse or use a full-service reputation management agency, to succeed in 2021, your online reviews can no longer be an afterthought.

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Sale and Leaseback of Commercial Real Estate

Sale and Leaseback of Commercial Real EstateLet’s explore the sale and leaseback of commercial real estate. With COVID-19 affecting so many businesses many may be looking at their real estate holdings to see if they should entertain a sale-leaseback transaction with a nonprofit real estate foundation for a particular property to free-up cash tied up in their real estate. For mission critical buildings that are being leased from non-profit or for-profit landlords, they may consider negotiating with the property’s owner for a sale-leaseback with a nonprofit real estate foundation, attempting to reduce rent expense. A nonprofit real estate foundation is a third-party nonprofit entity that sources low-cost capital to acquire or develop properties used by hospitals in furtherance of their charitable mission. The sale-leaseback option for so monetizing these non-core assets will work as well with traditional sources like insurance companies, REITs and other institutional investors.

Confer with the professionals at WCRE or ask us for a seasoned real estate or tax attorney but here’s one technique Abo has seen work well with business clients. Although real estate is generally thought of as an illiquid asset, some liquidity can be achieved by taking out a loan backed by the property. Alternatively, a sale and leaseback may be used effectively if a company’s balance sheet is burdened with excessive debt or just having difficulty in obtaining new capital. Typically, the transaction involves the company owned property being sold to a third party and then leased back to the company under a long-term lease.

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Sale and leaseback transactions may be on the rise but clients need to be aware that the IRS often focuses on transactions between closely-held corporations and their controlling shareholder to make sure that these transactions benefit the company as well as the shareholder. In one common type of sale and leaseback transaction, the company sells the land with a building on it to the shareholder and, in turn, the shareholder leases it back to the company. Some of the financial and tax benefits we’ve seen have included:

The rental deductions the company could take might be significantly larger than the former depreciation deductions if the property had been in service for many years.

After the sale and the leaseback transaction, the shareholder’s basis in the property will be its fair market value which is usually greater than the price paid for the property by the corporation. Thus, the shareholder’s depreciation deduction would be much greater than what was previously available to the corporation (also still need to consider the tax consequences of the sale to the corporation).

The sale and leaseback may enable the shareholder to generate passive rental income that could be offset
against passive losses of the shareholder.

The IRS would obviously be concerned that these transactions have economic substance and that they are
based on reasonable market conditions, and not just designed to generate larger tax deductions. Thus, for
a sale to be valid, the controlling shareholder should have taken an equity interest in the property and also
assumed the risk of loss. For the leaseback to be valid, four tests come to mind that really should be met:

1. The useful life of the property should exceed the term of the lease.

2. Repurchase of the property by the corporation at the end of the lease term should be at fair market value and not at a discount.

3. If the leaseback allows for renewal, the rate should be at a fair rental value (speak to WCRE, not necessarily the accountant).

4. The shareholder should have a reasonable expectation that he or she will generate a profit from the sale and leaseback transaction based on the value of the property when it is eventually sold and the rental obtained during the lease term.

I suspect one of the biggest risks for the seller-lessee is the loss of a valuable asset that could have substantially appreciated over its useful life. Also, the rental market could drop, leaving the seller locked into a rental rate in excess of fair value. On the other side of the table, the seller could move or default, leaving the buyer with unattractive real estate in a soft market.

Even if there are no other problems, the benefits of the deal could be substantially reduced if the IRS deems that it is merely a “financial lease.” In that case, the IRS will treat the seller-lessee as the true owner of the real estate, with all the appropriate tax assessed, and the buyer-lessor will be treated as a lender-mortgagee.

Since sale and leaseback transactions can be quite complicated and also have to pass IRS muster, as I stated earlier, whether you are a buyer, seller or investor, you are well advised to consult with WCRE and seasoned real estate/tax counsel about your financial and tax consequences and the manner of structuring and implementing them to withstand possible IRS challenge.

FOR MORE INFORMATION:
Martin H. Abo, CPA/ABV/CVA/CFF is a principle of Abo and Company, LLC and its affiliate, Abo Cipolla Financial Forensics, LLC, Certified Public Accountants – Litigation and Forensic Accountants. With offices in Mount Laurel, NJ and Morrisville, PA, tips like the above can also be accessed by going to the firm’s website at www.aboandcompany.com.

 

Martin H. Abo, CPA/ABV/CVA/CFF
307 Fellowship Road, Suite 202
Mt. Laurel, NJ 08054
(856) 222-4723
marty@aboandcompany.com
For more information, contact:

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WCRE HIRED BY LANDMARK HEALTHCARE FACILITIES TO LEASE MEDICAL OFFICE BUILDING

Wolf Commercial Real Estate (WCRE) is pleased to announce that it has been retained by Landmark Healthcare Facilities as the exclusive agent to market for lease the Medical Office Building located at 6 Earlin Avenue, Browns Mills, New Jersey.

Landmark PR (PDF)

This new listing opportunity adds to WCRE’s growing number of assignments of medical and healthcare properties in the Southern New Jersey and Philadelphia region.

This Medical Office Building is a multi-tenanted healthcare property totaling 57,962 rentable square feet and is located in Burlington County, New Jersey. 

The Medical Office Building features 3-stories with approximately 20,000 square foot floor plates offering built-to-suit suites that can accommodate from 1,000 – 20,000 square feet. The trend–setting leaders of Landmark Healthcare Facilities have established the national standard for the development, ownership and management of the complete range of outpatient buildings.

Michael Cleary, Executive Vice President at Landmark Healthcare Facilities LLC said,

“This is the first time that Landmark has engaged a commercial real estate firm to lease space in a Landmark asset. Leasing outpatient buildings is a core competency of Landmark so we wanted to be 100% certain that the firm we selected to partner with was a firm that was aligned with Landmark’s values and a firm that had a deep understanding of the physician and health system relationship. After speaking with several commercial real estate firms Landmark recognized that WCRE has an outstanding track record of leasing success. Landmark believes that partnering with the WCRE team will enable this asset to exceed all expectations.”

WCRE’s New Jersey leasing specialist team of Ryan Barikian and Bethany Brown said,

“Landmark Healthcare Facilities is known for developing modern, technologically advanced assets and this MOB is no exception. We are proud to be representing Landmark for this best in class medical building – an asset to the Southern New Jersey medical community.”

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.comwww.southjerseyindustrialspace.comwww.southjerseymedicalspace.comwww.southjerseyretailspace.comwww.phillyofficespace.comwww.phillyindustrialspace.comwww.phillymedicalspace.com and www.phillyretailspace.com.

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Cost Segregation Can Increase Cash Flow for Commercial Properties

Cost Segregation Can Increase Cash Flow for Commercial Properties

Let’s look at how cost segregation can increase cash flow for commercial properties. Have you recently built, purchased, expanded or renovated a commercial property? If so, there may be significant untapped tax savings in the property or facilities. A cost segregation study can unlock those savings through greater tax deductions, accelerated depreciation and increased cash flow. Here’s how it works: Portions of a new or existing building are reclassified as “personal property” or “land improvement.” This cost classification can be depreciated over a shorter five, seven or 15 year period as opposed to the standard 39-year depreciable life of a commercial building.

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What if you built, renovated, expanded or purchased a building in prior years? Cost segregation is still an option. The IRS allows taxpayers to change prior accounting methods to take advantage of these previously understated depreciation deductions. This can be done without amending tax returns and can generate a relatively large tax deduction in the year of change.

TAX REFORM MAKES COST SEGREGATION MORE VALUABLE THAN EVER

The tax benefits of cost segregation are even greater thanks to tax reform’s enhancement of bonus depreciation.
In general, bonus depreciation is applicable to depreciable business assets with a recovery period of 20 years
or less. Tax reform doubled bonus depreciation from 50 to 100 percent for qualifying property with acquisition
and in-service dates between September 27, 2017 and December 31, 2022. This means that 100 percent of
qualifying costs would be fully depreciated and recognized in year one and only the remaining building cost
would depreciate going forward over 39 years. After 2022, the bonus rate decreases by 20 percent annually,
so the time to act is now.

REAL RESULTS FOR REAL PROPERTIES

RKL performs over 80 studies every year for companies in a variety of industries, including rental real estate, office buildings, hotels/motels, golf courses, auto dealerships, manufacturing facilities, warehouses and more.

Here are two recent examples to demonstrate cost segregation can increase cash flow.

• Construction of a new hotel facility in 2018: Of the total project cost of $13.5 million, RKL identified $5 million as personal property and land improvements. This cost segregation combined with enhanced 100 percent bonus depreciation a present value of the tax savings of $958,000 (using a 37 percent federal tax rate and six percent discount rate), with projected additional depreciation deductions of $4 million for a tax savings of $1.5 million.

• Turn-key construction of a new medical office in 2017: Of the total project cost of $2.4 million, RKL identified $1 million as personal property and land improvements. This cost segregation combined with enhanced 50 percent bonus depreciation produced a present tax savings of $200,400 (using a 42.67 blended tax rate and six percent discount rate), with projected additional depreciation deductions of $695,000 over the next seven years. This will produce tax savings of $296,500 over that seven-year period with $233,200 in the first year alone.

• 2018 look-back study for a previously purchased office/distribution warehouse facility: RKL identified $326,200 of the original $1.375 million building cost as personal property and land improvements. This resulted in a one-time additional depreciation deduction in the current year’s tax return of $170,700. To obtain an analysis of potential cost segregation tax savings, contact RKL today.

FOR MORE INFORMATION CONTACT:

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Why Smart Buildings Matter to Commercial Real Estate Owners

smart buildings energy consumptionLet’s look at why smart buildings matter to commercial real estate owners. Energy cost savings are top of mind for every commercial building owner, operator, and facility manager, but it’s time to be proactive. On average, a U.S. office building spends nearly 29% of its operating expenses on utilities, and much of this expenditure goes toward HVAC operation.

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Researchers at Massachusetts Institute of Technology (MIT) estimate commercial buildings account for 20% of all the energy used in the U.S. and conclude that as much as 30% of that energy is wasted. Wasted energy will only increase over time without intervention. Imagine a solution that prevents waste and saves 15-30% on energy expenses? That’s possible to achieve with smart buildings.

Smart buildings are any facility that have complete automated controls and systems in place that are integrated together to form an intelligent data collection application, usually via a building automation system (BAS).
BAS offers reduced operation and energy consumption, improved building efficiency, preventative maintenance, comfort for workers and building occupants, and better use of resources.

At Pennoni, we offer our Utilities Watch (UW) solution, a combination of best-in-class energy analytics/fault detection software and engineering expertise that optimizes buildings, reduces costs, and minimizes environmental impact.

Through UW, our software continually analyzes data from diverse systems: BAS, energy, water, and other resource metering systems to identify opportunities for cost reduction. The fault detection and diagnostics application within the software drills down into patterns to identify issues, deviations, and opportunities for operational improvements and cost reduction.

Utilities Watch Key Benefits

Reduce costs

  • Optimize buildings and reduce energy consumption
  • Increase control and visibility of energy budget
  • Decrease maintenance and capital costs through proactive and predictive maintenance
  • Increase lifespan and reliability of HVAC systems

Validation and M&V

  • Performance goals
  • ECM’s, LEED

Commissioning

  • MBCx – automated ongoing commissioning

Risk Management

  • Disaster recovery (information supports better identification of issues)

Improve sustainability strategies, goals, and metrics

  • Full integration to EnergyStar Portfolio Manager
  • Earn additional LEED points for existing buildings

Improve portfolio management

  • Benchmark buildings and compare performance
  • Performance accountability

Deploying smart buildings software is only half of the equation. Our energy analysts and engineers write custom algorithms to automate analyses that traditionally required constant manual effort. From there, our team of engineers interprets the data to make it meaningful and actionable with custom dashboards and notifications that ensure the facility manager has full visibility and can readily prioritize activities, ensuring much greater efficiency.

For more on smart buildings and Utilities Watch, contact Tony Lepre at (609) 214-5520 or TLepre@Pennoni.com.

tony lepre

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