Tag Archives: Philadelphia industrial space


Construction Not Keeping Up with Demand in Light Industrial Market

new Jason stats graphic - June 2015While huge warehouse and distribution mega-boxes get most of the attention from analysts and institutional capital, the unassuming light-industrial market in U.S. commercial properties has quietly emerged as the sleeper in today’s red-hot U.S. industrial market.

At midyear, the overall industrial sector, including industrial space in Philadelphia, led all major commercial property types in growth of investment sales and rental rate appreciation. The light industrial and manufacturing subtype between 100,000 to 300,000 square feet in the U.S. commercial real estate market boasted the highest year-over-year rent growth of any property type at 5.7%, compared to 5.4% for logistics buildings, 4% for office and 3.9% for apartments.

In fact, U.S. light industrial and Philadelphia industrial space are so hot that even older, lower-functioning buildings — many located on infill properties in supply-constrained markets — posted annual rent growth of 6.1%, the strongest rent growth within the entire industrial spectrum, according to a report from The CoStar Group that is being shared by Wolf Commercial Real Estate, a leading Philadelphia commercial real estate brokerage firm.

Another reason for the spiking rents is that the both the U.S. light industrial and the industrial space in Philadelphia sectors have seen little growth in new supply in the current cycle. Most big-name capital sources remain focused on acquiring and developing mega-logistics properties when searching U.S. commercial real estate listings. These properties are capturing the bulk of industrial net absorption, fueled by the so-called “Amazon effect” of e-commerce as retailers reconfigure their supply chains around same-day or next-day shipping.

Investors may finally be ready to take another look at light industrial development in U.S. commercial properties. As rents for these smaller buildings have ticked up, replacement rents now appear to be high enough in many markets to justify new construction.

“Finally, light industrial development is starting to pencil out,” said Rene Circ, CoStar Director of Research, Industrial Property who prepared the report that was shared with Wolf Commercial Real Estate, a top Philadelphia commercial real estate brokerage firm. “The tenants are there, the economy is fine, but the space is not.”

Replacement rents for both national industrial space and industrial space in Philadelphia have been high enough to support construction of larger warehouse and distribution properties in U.S. commercial properties for several quarters, and developers have heeded the call. While maintaining a measured pace of development in most markets, logistics construction last year finally passed the average of 120 million square feet under construction annually during the previous expansion cycle between 2002 through 2007.

That said, light industrial construction involving U.S. commercial real estate listings has remained stubbornly below its previous cycle average of 40 million square feet under construction annually.

“It’s very unusual for industrial to post this kind of rent growth and beat out the office and multifamily sectors,” Circ said in his report on national and Philadelphia industrial space that echoes the beliefs of the local market experts at Wolf Commercial Real Estate, a highly respected Philadelphia commercial real estate brokerage firm.

For more information about Philadelphia industrial space or any Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) or Leor Hemo (leor.hemo@wolfcre.com) at Wolf Commercial Real Estate, a premier Philadelphia commercial real estate broker that specializes in industrial space in Philadelphia.

Wolf Commercial Real Estate is a Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, marketing commercial offices, medical properties, industrial properties, land properties, industrial 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 and services, provides unparalleled expertise in matching companies and individuals seeking new Philadelphia industrial space with the Philadelphia commercial properties that best meets their needs.

As experts in Philadelphia commercial real estate 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 industrial space Philadelphia 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.

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Office Supply Growth Remains Strong Despite Absorption

new Jason stats graphic - June 2015The demand for U.S. commercial property and U.S. commercial real estate – including Philadelphia commercial real estate listings – rebounded in the second quarter of 2015 following slower-than-expected net absorption in the first three months of the year as businesses continued to add office jobs and to lease space.

Net absorption – both nationally and for the key segments of Philadelphia office space, Philadelphia retail space and Philadelphia industrial space – roared to 25 million square feet in the second quarter, according to a report from the Co-Star Group provided by Philadelphia commercial real estate brokerage firm Wolf Commercial Real estate, a leading Philadelphia commercial real estate broker.  This growth was the second-highest jump in quarterly demand since 2006 and was more than double the 12 million square feet absorbed during the first quarter.

After years of slow and steady increases in office supply, the level of office space under construction on the office space portions of both the U.S. commercial property and the U.S. commercial real estate markets reached 124 million square feet in the second quarter, the highest total since 2009 and slightly eclipsing the 15-year average of 122 million square feet. This total included a number of Philadelphia commercial real estate listings.

Rent growth reached a 4% annual rate in the first half of 2015, while the national office vacancy rate declined 20 basis points to 11.2%. This decline was reflected as well in surveys of Philadelphia office space, Philadelphia retail space and Philadelphia industrial space as reported by Philadelphia commercial real estate brokerage firm Wolf Commercial Real estate, a leading Philadelphia commercial real estate broker.  Nationwide, the 27 million square feet of new office space deliveries in the first half of 2015 exceeded the historical first-half average of 21 million square feet, reflecting a relatively healthy office market and broader economy.

“We’re at a supply/demand balance, which is a real sweet spot in the market cycle for the office market,” said, Co-Star Group, Inc. Director of U.S. Research Walter Page. An all-time high of 63% of the 2,000 office submarkets that make up the U.S. commercial property and the U.S. commercial real estate markets, and which includes a number of Philadelphia commercial real estate listings, now show improving vacancies, with 48% of the metro markets now reporting lower vacancies than they did at the peak of the market during 2006-07.

Vacancies across the nation and for Philadelphia office space, Philadelphia retail space and Philadelphia industrial space now are dropping, even among 3-Star office properties, a sign that recovery is accelerating in the lower end of the office quality spectrum.

That said, tenants continue to demand higher-quality space, a trend that also has been noted by Philadelphia commercial real estate brokerage firm Wolf Commercial Real estate, a leading Philadelphia commercial real estate broker.  Year-over-year demand growth remains weak at 0.6% for 3-Star buildings, according to the Co-Star report, as compared to 2.4% for 4- and 5-Star buildings, with tenants willing to pay a 41% rent premium for newer, higher-end buildings over lesser 3-Star assets.

For more information about Philadelphia office space, Philadelphia industrial space, Philadelphia retail space or other Philadelphia commercial or investment properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) or Leor Hemo(leor.hemo@wolfcre.com) or Lee Fein (lee.fein@wolfcre.com) at Wolf Commercial Real Estate, a premier Philadelphia commercial real estate broker that specializes in Philadelphia office space.

Wolf Commercial Real Estate is a Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, 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 extensive expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philadelphia office space or new Philadelphia retail 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 Philadelphia office space or Philadelphia retail 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.

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Robust Leasing and Absorption Help Drive U.S. Commercial Real Estate Price Appreciation

new Jason stats graphic - June 2015Supported by record levels of absorption and strong leasing, U.S. commercial real estate prices, which locally includes Philadelphia commercial real estate prices, rebounded in May, with continued strong recovery in both higher-end U.S commercial property and accelerating investor interest in smaller, lower-priced assets, according to the latest CoStar Commercial Repeat Sale Indices.

The value-weighted U.S. Composite Index – which includes Philadelphia office space, Philadelphia retail space and Philadelphia industrial space – along with the equal-weighted U.S. Composite Index gained 1.4% and 1.7%, respectively, in May, according to the data based on 1,258 repeat sales in May and more than 140,000 repeat sales since 1996.

The value-weighted index of both U.S. and Philadelphia commercial real estate listings advanced 12.2% in the trailing 12 months through May and now stands 12% above its prior peak, reflecting the strong recovery of larger, higher-value properties. The equal-weighted index began its recovery later in the cycle but has increased at a faster rate of 14.1% in the trailing 12 months through May 2015 as smaller properties, such as Philadelphia commercial properties, continued to gain favor with investors.

The momentum shift to lower-quality and smaller tracts of U.S. commercial property – which encompasses Philadelphia office space, Philadelphia retail space and Philadelphia industrial space – also is mirrored by the recent growth of the general commercial segment within CCRSI’s equal-weighted index. The General Commercial Index rose by the fastest rate among the four major CRE price indices, 14.6%, for the 12 months through May, while the Investment Grade Index increased 11.9%.

Robust leasing activity in both nationwide and Philadelphia commercial real estate listings is driving price appreciation across more markets and property types. For the 12 months ended at mid-year 2015, net absorption in office, retail, and industrial properties – as well as both U.S. and Philadelphia commercial properties – totaled 575.5 million square feet — a 39.3% increase over the same period in 2014 and the highest annual total since 2008.

Net absorption in the general U.S. commercial property segment rose 37% over the 12-month period through second-quarter 2015. Meanwhile, net absorption in the investment grade segment remained just as strong, increasing by nearly 40% over the 12 months as commercial tenants continued their flight to higher quality space.

For more information about Philadelphia office space, Philadelphia Industrial Space, Philadelphia retail space or other Philadelphia commercial or investment properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) or Leor Hemo(leor.hemo@wolfcre.com) or Lee Fein (lee.fein@wolfcre.com) at Wolf Commercial Real Estate, a premier Philadelphia commercial real estate broker that specializes in Philadelphia office space.

Wolf Commercial Real Estate is a Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, 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 extensive expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philadelphia office space or new Philadelphia retail 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 Philadelphia office space or Philadelphia retail 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.

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Report: Commercial real estate investment sales to reach $500 billion in 2017

new Jason stats graphic - June 2015U.S. commercial real estate, including Philadelphia commercial real estate, has managed to climb out of the deepest economic trough in more than 70 years. In the long term, the evidence suggests that it will keep on climbing.

That’s not to suggest that the climb for Philadelphia office space, Philadelphia retail space, Philadelphia industrial space and other Philadelphia commercial real estate listings will be steep from here, or that there’s open-ended potential for ever-increasing gains in all metrics.

For example, the recent Consensus Forecast released by the Urban Land Institute – and circulated by Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker and Philadelphia commercial real estate brokerage firm specializing in Philadelphia commercial properties – predicted that U.S. commercial property investment sales volume would reach $470 billion this year and $500 billion during both 2016 and 2017.

ULI’s most recent consensus of 43 industry economists noted upward revisions from six months earlier. The prediction for transaction volume, to cite one example, was revised upward from the October 2014 projection of $25 billion for this year and $445 billion for next year. This appears to be good news for Philadelphia office space, Philadelphia retail space, Philadelphia industrial space and other Philadelphia commercial real estate listings and also bodes well for U.S. commercial property and U.S. commercial real estate.

Gross Domestic Product growth similarly is expected to peak at 3.0% for each of the next two years before tapering off to 2.8% in ’17. Each of these years, however, will represent the first time this metric has exceeded the 20-year average since ’10, when it rebounded—weakly—from a 2.8% decline the year prior. This portends better times for Philadelphia commercial properties and Philadelphia commercial real estate.

“It is always difficult to predict with any precision when an expansion will come to an end,” said chief economist Kevin Thorpe, “but the latest data on confidence, jobs, debt ratios and capital flows shows there is little evidence to suggest the US expansion can’t on go for a lot longer. From a U.S. commercial real estate perspective, the odds are heavily in favor that expansion has a lot of runway left.”

For more information about Philadelphia office space, Philadelphia Industrial Space, Philadelphia retail space or other Philadelphia commercial or investment properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) or Leor Hemo(leor.hemo@wolfcre.com) or Lee Fein (lee.fein@wolfcre.com) at Wolf Commercial Real Estate, a premier Philadelphia commercial real estate broker that specializes in Philadelphia office space.

Wolf Commercial Real Estate is a Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, 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 extensive expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philadelphia office space or new Philadelphia retail 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 Philadelphia office space or Philadelphia retail 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.

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Pre-Construction Architect Index Back In Positive Territory

new Jason stats graphic - June 2015Following two months of overall decline, an index measuring architect billings which serves as a leading indicator of future construction spending in areas related to office space in Philly rose in May, according to the American Institute of Architects (AIA).

An increasing demand for construction of Philadelphia office space, schools, hospitals, cultural facilities and municipal buildings – a market that includes Philadelphia commercial properties and Philadelphia commercial real estate – helped nudge the Architecture Billings Index (ABI) back to 51.9 last month, up from April’s contracting growth number of 48.8.

After hot starts, two sectors reflecting future commercial real estate construction spending – such as that underway involving office space in Philadelphia – cooled off during April, with commercial/industrial and multifamily residential projects logging declines of 48.3 and 45.9, respectively. Index numbers above 50 indicate an increase in billings.

The recent volatility in the index reflects the long and halting recovery for construction and architect services despite a generally favorable business climate, says AIA Chief Economist Kermit Baker.

“We continue to receive mixed signals on business conditions in the marketplace,” Baker said. “There are still construction sectors and regions of the country that are struggling, producing the occasional backslide in the midst of what seems to be growing momentum for the entire industry,” noting that many industry sectors are experiencing something of a building boom, akin to what is happening with Philadelphia commercial real estate listings.

In addition to Philly office space, apartment projects continue to break ground across a large number of markets but appear to be leveling off after a torrid pace of construction even as office and multifamily high-rise projects in Manhattan and San Francisco are reaching post-recession highs.

Construction at the Hudson Yards redevelopment is kicking into high gear in New York, while in Washington, D.C., the 66-acre redevelopment of the Walter Reed Army Medical Center is now expected to break ground before the end of next year.

For more information about Philly office space, Philly Industrial Space, Philly retail space or other Philadelphia commercial or investment properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) or Leor Hemo(leor.hemo@wolfcre.com) or Lee Fein (lee.fein@wolfcre.com) at Wolf Commercial Real Estate, a premier Philadelphia commercial real estate broker that specializes in Philly office space.

Wolf Commercial Real Estate is a Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, 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 extensive expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly office space or new Philly retail 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 or Philly retail 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.

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International Capital Now Involved In 20 Percent of U.S. CRE Deals

new Jason stats graphic - June 2015The large amount of foreign capital entering the U.S. commercial real estate market is having a major impact, according to a recent report by the CoStar Group.

“Foreign investment in the U.S. commercial property market is soaring,” said Kevin Thorpe, DTZ’s chief economist, whose comments also refer to U.S. commercial property. “International capital is now involved in nearly 20% of total sales volume in the U.S., more than double the (historical) norm.”

Most recently, Brookfield Property Partners sold a 49% stake in a downtown Boston office tower and a Washington DC office portfolio to Australian Super, an Australian super-annuation fund. Net proceeds of the deals total approximately $649 million and values 75 State St. in Boston at $605 million and the eight DC-area properties totaling 2.2 million square feet at $1.32 billion. There currently no numbers available relating to Philadelphia commercial properties or Philadelphia commercial real estate listings or the sale or lease of Philadelphia office space (Philly office space), Philadelphia retail space (Philly retail space) or Philadelphia industrial space (Philly industrial space).

With numerous examples of similar deals, sales of U.S. commercial property are approaching all-time highs. This year total U.S. commercial real estate investment in North America is expected to surpass $390 billion, exceeding the $373 billion investment peak in 2007, according to DTZ.

The reasons why overseas investors find the U.S. commercial real estate market so appealing number almost as much as the countries they hail from.

“Some of it (sales activity) is driven by capital preservation,” Thorpe said. “Some of it is driven by relative yield, which still generally favors the U.S., and some of it is driven by an economic trajectory that is a clear standout on the world stage. Barring something unforeseeable, the U.S. commercial property markets will shatter records this year, both in terms of volume and pricing.”

While Canadian investors have traditionally been the biggest investors in U.S. commercial real estate since 2013, the share of investment capital coming from Asia has continued to increase, according to new data from Morgan Stanley Research.

Chinese institutional investors have studied the market and are now seeking partnerships with U.S. commercial property owners, and some are even considering direct development opportunities, Morgan Stanley analyst Jerry Chen noted last week.

Furthermore, despite U.S. commercial real estate prices rising above 2007 peaks, cap rates here are higher than in many other developed countries, driven primarily by higher benchmark Treasury rates. Similar trends have been seen in U.S. commercial property. This can be interpreted to refer to Philadelphia office space (Philly office space), Philadelphia retail space (Philly retail space) and Philadelphia industrial space (Philly industrial space).

Chen also noted that Morgan Stanley has observed increased demand from Chinese retail investors with both U.S. commercial property and U.S. commercial real estate developers targeting Chinese individuals to fund projects through the EB-5 program, which provides a method of obtaining a green card for foreign nationals who invest money in the United States.

She also said there could be more incentives for foreign investment on the horizon. U.S. House and Senate bills (H.R 2128 and S. 915) recently proposed reforms to the Foreign Investment in Real Property Tax Act (FIRPTA). If enacted, supporters believe the changes to the law would draw substantial new foreign capital into the U.S. commercial real estate market, as well as the U.S. commercial property market, by changing certain exemptions from FIRPTA and clarifying the application of other provisions to REITs and their shareholders.

For more information about Philly office space, Philly Industrial Space, Philly retail space or other Philadelphia commercial or investment properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) or Leor Hemo(leor.hemo@wolfcre.com) or Lee Fein (lee.fein@wolfcre.com) at Wolf Commercial Real Estate, a premier Philadelphia commercial real estate broker that specializes in Philly office space.

Wolf Commercial Real Estate is a Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, 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 extensive expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly office space or new Philly retail 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 or Philly retail 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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Philly Industrial Space Vacancy Rate Unchanged

research-information-graphic-phlThe vacancy rate in the Philly industrial space market closed the first quarter of 2015 at 8%, according to the latest market trend report from the CoStar Group.

The first quarter Philadelphia industrial space vacancy rate remained the same as the fourth quarter of 2014, CoStar said in its First Quarter 2015 Market Report.   Net absorption totaled positive 2,325,770 square feet of industrial space in Philly in the first quarter, compared to positive 2,438,459 in the fourth quarter 2014, CoStar noted.  Vacant sublease space in the Philadelphia industrial space market dropped in the first quarter, ending the quarter at 1,928.064 square feet, according to the report.

CoStar said tenants moving into large blocks of industrial space in Philadelphia in the first quarter of 2015 included Zulily, Inc. moving into 800,250 square feet of Philly industrial space at 10 Emery Street; Amazon.com moving into 700,000 square feet of industrial space in Philly at Ames Dr, and Jacobson Companies moving into 300,000 square feet of industrial space in Philadelphia at Harrisburg Distribution Center #4.

Rental rates for Philadelphia industrial space ended the first quarter at $4.47, a decrease over the last quarter of 2014, CoStar said.

A total of eight buildings representing 2,721,284 square feet of industrial space in Philly delivered to the market in the first quarter 2015, with 10,814,461 square feet of industrial space in Philadelphia still under construction by quarter’s end, the report noted.

In comparison to the first quarter 2015 results on the Philly industrial space market, the U.S. National Industrial vacancy rate dropped to 7% from the fourth quarter 2014, with net absorption totaling positive 49.59 million square feet in the first quarter, according to the report.  CoStar also said that average rental rates for the national market reached $5.63 in the first quarter, and that 284 industrial buildings delivered to the national market, totaling nearly 37.5 million square feet.

For more information about Philadelphia industrial space or any Philadelphia commercial properties, please call 215-799-6900 to speak to Jason Wolf (215-588-8800-cell; jason.wolf@wolfcre.com), Leor Hemo (215-514-1750-cell; leor.hemo@wolfcre.com) or Lee Fein (215-206-5580-cell; lee.fein@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate brokerage firm that specializes in Philadelphia commercial real estate listings and services.

Wolf Commercial Real Estate is a Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, 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 that specializes in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new industrial space in Philadelphia 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 industrial space in Philly 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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Philadelphia Industrial Space Deliveries, Construction and Inventory

research information graphicThe Philadelphia industrial space market grew by 327,200 square feet in the fourth quarter 2014 with the completion of three Philadelphia industrial buildings, a new market trend report from the CoStar Group says.

In comparison, four Philadelphia industrial buildings were delivered in the third quarter 2014, adding 906,337 square feet to the Philly industrial space market, according to CoStar’s Fourth Quarter 2014 Market Report. 

Among the notable deliveries of Philly industrial buildings in the year 2014 were:  West Hills Business Center – Building A, a 980,000-square-foot project that delivered in the second quarter and is fully occupied, and Berks Park 78 – Dollar General, a 906,919-square-foot facility that also delivered in second quarter 2014 and also is now 100% occupied, the report said.

Another 16,734,334 square feet of industrial space in Philadelphia was still under construction at the end of the fourth quarter, according to the report.

The largest of the Philadelphia industrial buildings still under construction at year end were Liberty at Shippensburg – Building B, a 1,700,000-square-foot facility with 100% of its space pre-leased, and Majestic Bethlehem Center – Site 2, a 1,644,450-square-foot project that also is fully pre-leased, CoStar said in the report.

Total inventory of industrial space in Philadelphia equaled 1,030,722,790 square feet in 20,377 Philly industrial buildings as the fourth quarter ended, CoStar noted.  The Philadelphia flex space sector comprised 85,676,583 square feet in 3,312 projects and owner-occupied Philly industrial buildings totaled 2,650, accounting for 241,093,478 square feet of Philadelphia industrial space,  the report said.

In comparison to fourth quarter results from the Philly industrial space market, 240 new industrial buildings were delivered to the national industrial market, representing 41.79 million square feet, Costar reported, adding that construction was underway on an additional 164.7 million square feet of industrial space at quarter’s end.

Among the significant deliveries to the national market in 2014, CoStar said, were:  South Washington Park – Building 2, a 227,000-square-foot industrial project in the Northern New Jersey market, and 2150 Opdyke Road, a 168,000-square-foot facility in the Detroit industrial market.  CoStar also noted that 3507 Pasadena Boulevard, a 600,000-square-foot facility in the Houston industrial market, remained under construction at the end of the quarter.  Total U.S. industrial inventory at quarter and year end equaled nearly 21.15 billion square feet in more than 623,000 buildings, of which approximately 90,000 were flex buildings.

For more information about Philadelphia industrial space, Philadelphia flex space or any Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com), Leor Hemo (leor.hemo@wolfcre.com) or Lee Fein (lee.fein@wolfcre.com) at Wolf Commercial Real Estate, a premier Philadelphia commercial real estate broker with expertise in Philly industrial space and Philadelphia flex space.

Wolf Commercial Real Estate is a Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, 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 that specializes in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new industrial space in Philadelphia 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 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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Philadelphia Industrial Space Vacancy Rate Drops

magnifying glassThe Philadelphia industrial space vacancy rate dropped to 8.3% in the third quarter 2014, according to the newest trend report from the CoStar Group.

The third quarter vacancy rate for industrial space in Philly was down from the 8.6% rate that stood at the end of both the first and second quarters 2014.  CoStar’s Third Quarter 2014 Market Report said net absorption in the third quarter was positive 3,482,534 square feet of Philly industrial space, compared to positive 3,536,167 square feet in the second quarter.  Vacant sublease space in the market for industrial space in Philadelphia was 942,647 square feet at quarter’s end, a decline over the second quarter, CoStar said.

Among the tenants moving into large blocks of Philly industrial space in the third quarter were:  Wal-Mart Distribution, moving into 1,200,000 square feet of Philadelphia industrial space at 2785 Commerce Center Boulevard; Ocean Spray, moving into 980,000 square feet of industrial space in Philly at West Hills Business Center – Building A, and Kane Warehousing, Inc., moving into 955,935 square feet of industrial space in Philadelphia at Distribution Center 6 in the Stauffer Industrial Park.

Rental rates for industrial space in Philly were unchanged from the second quarter, holding at $4.49 at the end of the third quarter, the report said.

Four buildings delivered to the Philly industrial space market in the third quarter, adding 906,337 square feet of industrial space in Philadelphia to the market.  Another 12,035,258 square feet of industrial space in Philly remained under construction at quarter’s end.

In comparison to the Philadelphia industrial space market, the U.S. National Industrial vacancy rate decreased, ending the quarter at 7.5% , the CoStar report noted.  Net absorption was positive 64.71 million square feet.  Average rental rates in the U.S. market rose to $5.47 in the third quarter.  A total of 206 industrial buildings representing nearly 28.6 million square feet delivered to the U.S. market in the quarter, the report said.

For more information about Philly industrial space or any Philadelphia commercial properties, please contact Lee Fein (215-799-6900-office; 215-206-5580-cell; lee.fein@wolfcre.com) at Wolf Commercial Real Estate, a premier Philadelphia commercial real estate brokerage firm with expertise in Philadelphia commercial real estate listings and services.

Wolf Commercial Real Estate is a Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, 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 that specializes in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new industrial space in Philly 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 industrial space in Philadelphia  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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Philly Industrial Space Deliveries, Construction and Inventory

magnifying glassThe Philly industrial space market saw the completion of eight Philadelphia industrial buildings in during the second quarter of 2014, bringing 3,127,992 square feet of Philadelphia industrial space to the market, according to a new CoStar report.

In comparison, the first quarter 2014 saw three Philly industrial buildings equaling 214,056 square feet completed in the Philadelphia industrial space market, said CoStar’s Second Quarter 2014 Market Report. 

Among the second quarter’s most notable deliveries of Philadelphia industrial buildings were:  9645 West Hills Court, a 980,000-square-foot building, and 30 Martha Drive, a 906,919-square-foot facility building, the report stated.  Both of these newest Philly industrial buildings are 100% occupied, CoStar said.  An additional 8,276,767 square feet of industrial space in Philly was still under construction at quarter’s end the report noted.

Liberty at Shippensburg on Olde Scotland Road, a 1,700,000-square-foot project, and 3215 Commerce Center Drive, a 1,644,450-square-foot building, were the largest of the Philly industrial buildings remaining under construction at the end of the second quarter, according to the report.  Both of these Philadelphia industrial buildings have 100% of their space pre-leased, CoStar said.

Total inventory of industrial space in Philadelphia reached 1,021,212,845 square feet in 20,149 Philadelphia industrial buildings by quarter’s end, the market report said.  The Philadelphia flex space sector consisted of 84,692,787 square feet in 3,265 facilities, CoStar stated.  Owner-occupied Philly industrial buildings in the Philadelphia industrial space market numbered 2,617, encompassing 239,826,483 square feet of industrial space in Philly.

Compared to the second quarter 2014 results from the market for industrial space in Philadelphia, the national industrial market saw 229 projects completed in the second quarter 2014, representing 28.56 million square feet, according to Costar.  Another 119.7 million square feet of industrial space was still underway at quarter’s end.  The 2.1 million-square-foot 4500 S. Dobson Road facility delivered in the Phoenix market in the second quarter 2014, while the 1.8 million-square-foot D1X Mod 2 project remained in progress in the Portland market.  Total U.S. industrial inventory equaled 20.96 billion square feet in more than 618,000 buildings at the end of the second quarter.  More than 69,000 of these were owner-occupied Philadelphia industrial buildings.

For more information about industrial space in Philly, Philadelphia flex space or any Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) or Leor Hemo (leor.hemo@wolfcre.com) at Wolf Commercial Real Estate, a premier Philadelphia commercial real estate broker that specializes in industrial space in Philadelphia and Philadelphia flex space.

Wolf Commercial Real Estate is a Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, 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 that specializes in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new 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 Philadelphia 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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