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WCRE APPOINTED EXCLUSIVE AGENT FOR 1004-1026 SPRING GARDEN STREET IN PHILADELPHIA

WCRE APPOINTED EXCLUSIVE AGENT FOR 1004-1026 SPRING GARDEN STREET IN PHILADELPHIA

New Assignment Adds to Firm’s Growing Engagement in Pennsylvania

1004-spring-garden

1004-1026 SPRING GARDEN PRESS RELEASE PDF


November 7, 2016 – Marlton, NJ –
WCRE is pleased to announce its appointment as exclusive leasing agent for 1004-1026 Spring Garden Street in Philadelphia. The property is the former Union Transfer Annex, and is located in the heart of the Spring Arts district. It consists of more than 9,000 square feet, with highly visible street frontage. The lively, walkable neighborhood includes the Union Transfer music venue, new apartments and restaurants on Avenue of the Arts North, and the Reading Viaduct Park in Callowhill, which started construction last week. Next door is 990 Spring Garden, which hosts office space for creative businesses. The area has ample street parking, and is highly accessible to multiple public transit lines.

“WCRE is proud to offer this location in one of Philadelphia’s fastest-growing neighborhoods,” said Leor Hemo, executive vice president of WCRE. “We look forward to applying our WCRE 360 marketing approach to find a new user for this highly-desirable property.”

A marketing brochure is available upon request. 

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

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WCRE FIRST QUARTER REPORT: SEASONAL SLOW-DOWN, SHAKY FINANCIAL MARKETS TAKE TOLL ON SOUTHERN NEW JERSEY, BUT AREAS OF STRENGTH REMAIN

Philadelphia Continues its Strengthening Trend

Q1 2016 Press Release in PDF

April 7, 2016 – Marlton, NJ –Commercial real estate brokerage WCRE reported in its latest quarterly analysis that 2016 began much as 2015 ended: with Southern New Jersey commercial real estate growth slowing down somewhat. The report included some reasons to stay optimistic, such as continuing healthy activity levels among local bellwether industries, the ongoing decline in office vacancy rates, and signs of gradual business expansion.

“The first quarter was marked by volatility in the financial markets, which seemed to have stabilized by the end of the quarter,” said Jason Wolf, founder and managing principal of WCRE. “This uncertainty, coupled with the expected cyclical slow-down due to winter weather seem to have been a drag on our market, but we believe the overall outlook is still strong.”

There were approximately 326,533 square feet of new leases and renewals executed in the three counties surveyed, which represents a drop of +/- 30 percent compared with the first quarter of 2015. The quarter also saw a drop in prospecting, with about 200,000 SF of lease deals in the pipeline and expected to close in the near term. Still, the trend of positive absorption continued, making up approximately 146,532 square feet of total activity, up about ten percent over the previous quarter. Vacancy rates continued to improve, as well, and several large trophy assets changed hands as owners repositioned and new investors entered our market.

Other office market highlights from the report:

  • Overall vacancy in the market continues to drop, and is now down to approximately 11.45%. This is a slight improvement over the previous quarter.
  • Average rents for Class A & B product continue to show strong support in the range of $10.00-$14.00/sf NNN or $21.00-$25.00/sf gross for the deals completed during the first quarter. This is essentially unchanged from the previous two quarters.
  • All of the major private owners and REITS showed moderate leasing and prospect activity for the first quarter – with Burlington County vacancies tightening up, many larger vacancy opportunities are also shifting towards Camden County, which is not controlled by these ownership entities.
  • New Jersey’s unemployment rate moved lower for the 13th consecutive month, down to 4.3 percent. It is down by two full points over the past year and is now at the lowest level since August 2007.

WCRE has expanded into southeastern Pennsylvania, and the firm’s quarterly reports now include a section on transactions, rates, and news from Philadelphia and the suburbs. Highlights from the first quarter Pennsylvania section include:

  • The Philadelphia regional office market is continuing its positive trajectory from 2015 in terms of rental rate growth and decline in vacancy rates. While much of this is felt in the CBD core, some of the suburban markets are experiencing similar activity. Repositioning of older Class B product to Core Class A assets coupled with the strong investor appetite for value-add deals is anticipated to continue through 2016.
  • Center City Philadelphia, specifically Market East, is experiencing a resurgence of activity including PREIT’s “top-to-bottom” renovation at the Gallery at Market East. Rental rates in the CBD are at all-time highs while demand from both regional and national tenants continuing to flock to the market. In terms of the suburban markets, the appetite for core assets continues to be paramount from institutional investors with value-add plays on older center, similar to the office market. Target will be opening two of its TargetExpress-brand stores in Center City Philadelphia in the summer of 2016.
  • The Philadelphia regional industrial market is strong, with large distribution facilities continuing to hold the greatest demand from institutional players. Rental rates continue to increase while vacancy rates are holding steady. There have been a variety of transactions, specifically in the expanded market area with prices fetching all time high levels. Planned improvements at Philadelphia’s port over the next three years should provide continued demand for warehouse space.
  • Philadelphia’s expanding CBD is seeing new construction across all sectors. The Comcast Innovation and Technology Center and Cira South represent two of the largest office uses under construction. At 16th & Chestnut, the 700-room, dual-brand W/Element hotel has broken ground and is expected to open in 2017. Major mixed-use projects are planned for the long-vacant, block-long parcels at Broad and Washington. Several Market East projects are underway, and Drexel is planning to develop more than 6 million square feet in its University City Innovation Neighborhood.

WCRE also reported on the Southern New Jersey retail market, noting mixed results there, as well. Highlights from the retail section of the report include:

  • Overall retail and food establishment sales dropped during the first quarter, which is expected post-holiday season.
  • Retail vacancy in Camden County stood at 11 percent, with average rents in the range of $12.12/sf NNN.
  • Retail vacancy in Burlington County stood at 14.8 percent, with average rents in the range of $12.05/sf NNN.
  • Retail vacancy in Gloucester County stood at 6.9 percent, with average rents in the range of $11.52/sf NNN.

The full report is available upon request.

About WCRE

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

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

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Second-Tier U.S. Retail Markets Poised for Stronger Demand and Rent Growth

new Jason stats graphic - June 2015The national vacancy rate for the U.S. retail market declined to 5.9% for the quarter ended December 31, 2015 as the retail sector registered a robust 20 million square feet of net absorption, creating an environment primed for 2016 rent growth in an increasing number of shopping districts, according to a new report on the U.S. retail market from the CoStar Group.

The moderated pace of shopping center construction in 2015 was capped off with the retail industry bringing only 12 million square feet of new retail space online in the fourth quarter 2015, according to CoStar’s 2015 State of the U.S. Retail Market Review and Forecast, which said the slower pace of development would continue into 2016.

Compared to prior cycles, construction in the U.S. retail market, including the market for  Philadelphia retail space, remains fairly low, but the level of new shopping center space now under development is at its highest level since the recession, standing at 70 million square feet nationwide, the report notes.

New retail construction projects include 21 malls and five outlet centers, but only 10 power centers, significantly fewer than in prior cycles, CoStar said.

One area where retail construction has grown is in grocery-anchored neighborhood centers, now numbering 86, a notable increase over the past two years and indicative of the strength of smaller independent in-line tenants, the CoStar report said.  This trend also points to the increasing economic strength in local communities as the economic recovery continues.

One notable change the report highlighted is a change in developers focusing on more urban mixed use infill projects instead of building shopping centers in far-out suburban locations as the population shifted further afield.

CoStar said this trend within the U.S. retail market was particularly widespread in supply-constrained markets as New York City, Miami and Honolulu, noting that between 1% and 1.5% of new retail inventory is now being developed in these three markets.   Construction includes several major project, CoStar said, such as the Brickell City Centre in Miami, shopping centers near the World Trade Center and Hudson Yards in New York, and the International Market Place, which opens this summer in Honolulu’s Waikiki submarket.

At the same time, retail markets that previously were high-growth but are now not as supply constrained are experiencing lower levels of construction than the 2006-2008 real estate cycle, the report said.  These markets include Raleigh, Nashville, Houston and Charlotte, according to CoStar.

Markets with the strongest year-over-year demand growth in 2015 included Dallas, Raleigh, Fort Lauderdale, Orlando, and Austin, all of which have cleared out their overhang of vacant store space from the last cycle, CoStar said.

Other regional findings from the report:

  • Western retail markets, such as Honolulu and San Francisco, posted the strongest rent growth in the cycle so far.
  • Markets that recovered later in the cycle, such as Atlanta — with its solid population and demand growth — are now poised for improved rent growth.
  • Houston, where office sector demand has been hit hard by the decline in energy prices, is seeing a bright spot in the retail sector “because population growth has outpaced retail supply for so long that the market has actually seen less retail space built per capita than any time during the last 30 years.”
  • Washington, D.C., New York City and U.S. retail markets that enjoyed robust retail growth early in the recovery, are now seeing a slowdown in rent growth.
  • Like their Eastern counterparts, Midwest markets also are “playing catch-up” in demand growth and rents.

The CoStar report predicts slowed but “good rent growth” in premier retail districts — those with at least $2 billion in spending power within a three-mile radius — but a level of growth that is far lower than the explosive pace of the recent past.

For more information about Philly retail 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 leading Philadelphia commercial real estate brokerage firm that specializes in Philadelphia retail space.

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 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 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.

Please visit our websites for a full listing of South Jersey and Philly retail space for lease or sale through our Philadelphia commercial real estate brokerage firm.

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Philadelphia vs. Camden?

Philadelphia vs. Camden?

The battle for new business.

Philly vs Camden

Following the passage of the New Jersey Economic Opportunity Act in 2013, a number of high-profile developments and corporate relocations in Camden have made front-page news. Attracted by public incentives, Subaru and the Philadelphia 76ers have announced moves to downtown Camden. Liberty Property Trust is also planning a nearly $1 billion multi-use development, with more than 1.7 million square feet of office, retail, and housing in two towers on the Camden waterfront.

As the regional business community gathered in recent months to assess the coming year, many questioned whether the explosive growth in Camden could hamper business attraction efforts or eclipse developments in Philadelphia. The consensus seems to be that, for the next few years, public incentives will make Camden an attractive alternative.

The 2013 New Jersey Economic Opportunity Act amended and consolidated economic incentive programs to encourage development for specified uses in designated areas of the state.   The two most prominent programs offered by the New Jersey Economic Development Authority (NJEDA) are:

  • The Grow New Jersey Assistance Program (Grow NJ), which provides incentives to employers for job creation and retention; and
  • The Economic Redevelopment and Growth (ERG) Program, which provides incentives to developers for qualified projects.

Both programs take the form of tax credits, and will be accepting applications through June 30, 2019.

Grow NJ offers credits of $500 to $5,000 per job created for projects in eligible locations which meet capital investment and job creation/retention benchmarks. The ERG program provides incentives to developers for up to 30-40% of an eligible project’s total development cost. Both programs have intricate requirements for defining eligible costs and calculating economic impact and job growth. In addition, both programs offer additional bonuses or lowered eligibility thresholds for projects with specified uses and/or located in designated geographic areas.

How does this compare to incentives offered in Pennsylvania? Pennsylvania offers a mix of grants, low-cost loans, tax abatements, and tax credits, administered through many different agencies. Major projects tend to be awarded incentives on a more ad-hoc and project specific basis, making the pursuit of incentives a more intense process for developers. Traditionally available incentives such as the Redevelopment Assistance Capital Program (RACP) have experienced reduced growth over the last few years, while newly-enacted programs such as the Multi-Modal fund have made grants available for transportation-related projects.

New Jersey’s state incentives are largely streamlined under the NJEDA programs. Tax credits can be used over ten years and, unlike many Pennsylvania programs, are generally transferable. According to the NJEDA, statewide there are 160 active Grow NJ projects with awards totaling $3.1 billion, and 42 active ERG projects with awards totaling $819 million. Compared to available Pennsylvania incentives, New Jersey’s spending represents significant competition.

No one has suggested that Camden’s growth heralds a downturn in Philadelphia. Over the past decade, Philadelphia has experienced strong growth in the multi-family market, increased population in its downtown, and a higher retention of graduating students. The “meds and eds” sectors will continue to drive growth, and major projects are on the horizon in University City and Market East. However, until the Grow NJ and ERG programs close in 2019, generous incentives will make Camden a legitimate player in the ongoing effort to attract major businesses.

For more information about Philly or New Jersey office space, Philly or South Jersey retail space or other Philadelphia and Southern New Jersey commercial properties, please call 215-799-6900 or 856-857-6300 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 leading Philadelphia commercial real estate brokerage firm with expertise in Philly office space and Philly retail space.

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 and South Jersey commercial real estate broker that specializes in Philadelphia and Southern New Jersey commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly and New Jersey office space or Philly and South Jersey retail space with the Philadelphia and Southern New Jersey commercial properties that best meets their needs.  As experts in Philadelphia and New Jersey commercial real estate listings and services, the team at our Philadelphia and South Jersey commercial real estate brokerage firm provides ongoing detailed information about Philadelphia and New Jersey commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philly or Camden office space or Philly or Camden 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.

For More Information Contact:

transfer-taxes
Anthony V. Mannino, Esq.

P: 215 799 6900

D: 215 799 6140

F: 856 283 3950

M: 215 470 6084

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Retailers, Investors Seek to Entice Shoppers with New Experiences

new Jason stats graphic - June 2015With consumer confidence and spending on the rise, retailers and retail investors hope to capture a greater portion of consumer dollars by offering shoppers “treasure hunt” experiences that deliver valuable merchandise at low prices and embrace the “shopping, dining and entertainment” concept, a new Costar news report says.

Retailers, malls and shopping centers can no longer rely on location alone to attract shoppers, the report said, but must court customers with bargains and the promise of a shopping experience that is fun, surprising and entertaining.

Stores that achieve this goal will have the strongest growth during the next year, while those that don’t will fall behind in 2016, the CoStar news report said.

Expect 2016 to bring “renewed focus on redevelopment of existing centers, expansion when possible and repositioning of shopping center properties and introduction of new retailers and formats by owners to create buzz and ambiance and better serve their trade areas,” according to the report.

Despite the improved economy, the report noted, many consumers remained committed bargain hunters, a trend that is reflected in the tenant mix in retail centers nationwide.  In fact, the off-price apparel and footwear market registered nearly $45 billion in revenue in 2015, a hike of more than 40% since 2009, the news report said.

Long-time value retailers such as T.J. Maxx and Ross Dress for Less are old pros at promoting the “treasure hunt’ strategy, incorporating a smattering of higher-end products into their merchandise mix to keep consumers coming back in hopes of snagging a real bargain.

But this retail sector is getting crowded as higher-end department stores and apparel retailers increasingly introduce their own value-concept establishments, including the highly successful Nordstrom Rack, as well as Saks OFF 5TH, Macy’s Backstage and the newcomers in this sector, J. Crew Mercantile and Find@Lord&Taylor.

Luxury Retail Market

Even as consumer demand for value-priced merchandise ramps up, luxury stores continue to attract a steady flow of shoppers. Look for high-end retailers in 2016 to focus more on “experiential” retail settings that aim to provide customers more reasons to linger and explore, primarily by offering more restaurants and entertainment venues, the report said.

Mall owner Simon Property Group, for example, has created luxury “wings” within malls that are anchored by high-end chain stores such as Neiman Marcus. Other mall owners have introduced sophisticated mobile apps that provide tech-savvy shoppers a virtual treasure map to find everything they need in the mall, or even within the mall’s individual stores, CoStar reported.

“Clearly, conventional retail has stepped up its game to compete with, and more importantly, complement online retail,” one expert said in the news report.

2016 Predictions

Demand for physical retail space in 2016 is expected to outpace the growing yet still modest level of new store construction and deliveries, the news report said.

“We’ll continue to see slow and steady upticks in national occupancy, driven by the expansion of the U.S. economy along with the continued low levels of new supply, with construction of retail space still at historical lows,” one retail research expert said.

But look for shopping centers delivered in 2016 to be smaller in size than in recent years, with the majority of anchors remaining on the sidelines and many retailers reducing their physical space needs, according to one retail broker, who predicted that restaurants (especially fast casual), grocery, fitness, fast fashion and discount apparel would see the strongest growth in 2016.

Necessity-based establishments — such as grocers, drug and fuel retailers, and value-oriented stores — will see more expansion in 2016 if the rental rates they can afford are available.  Many of these retailers are actively seeking to expand, but face difficulty finding store locations that fit their needs.  Others are hesitant about moving up to the rents that would support both new development and redevelopment, according to the news report.

Investors Look for Retail Value

Consumers won’t be the only ones looking for value in 2016.  It’s also a goal for investors seeking returns in the rush of new capital pouring into retail real estate, which is expected to hit $50 billion in investment sales transactions by year end 2015.

A greater portion of that investment money is expected to trickle down from malls and large shopping centers to smaller strip and neighborhood centers in 2016, CoStar predicts.

With financial backers preferring larger shopping centers in previous cycles, sales of the smaller retail centers have represented a much lower percentage of total investment volume than in the past.  Malls and power centers represented about half of retail investment in recent years, a disproportionately high share compared to past cycles, CoStar said.

But that tide is about to turn as smart money looks to invest in smaller centers.  One result could be more large anchor or big box stores being revamped to hold multiple junior anchors, the news report noted.

For more information about Philly retail 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 brokerage firm with expertise in Philadelphia retail space.

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 Philly retail space with the Philadelphia retail space 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 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 Philly retail space for lease or sale through our Philadelphia commercial real estate brokerage firm.

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Philadelphia Retail Space Takes Center Stage in Market East Rebirth

From the time of the 19th century shambles and horse-drawn trolleys, Philadelphia’s East Market Street has been a center of commerce and transportation in the City. This corridor of retail space in Philadelphia has certainly seen its ups and downs. Even with the opening of the Gallery in 1977, the consolidation and demise of Philadelphia’s great department stores left a void of high-end Philadelphia retail space, and when it was filled again at the turn of the century it was Rittenhouse Row (and more recently, west Chestnut Street) that took the place of Philadelphia’s go-to shopping corridor.

Market East Rebirth revised 12-7-15The next few years will see Market East move toward regaining its status as “Philadelphia’s Main Street,” as more than 1.6 million square feet of new and renovated Philly retail space is expected to come on line.

Retailer Century 21 led the way in 2014 with its 100,000-square-foot store at 8th & Market, its first location outside New York City. The pending PREIT/Macerich renovation of The Gallery as a premium outlet center has received the most attention as current vendors and retailers are relocated for the multi-year remake. An overlooked aspect of this Philadelphia commercial real estate project is that it will break down the monolithic walls of The Gallery – literally – to create more active Philadelphia retail space uses at street level that will make Market Street more inviting to foot traffic than it has been in the nearly 40 years since The Gallery was built.

On the south side of the street, National Real Estate is in the midst of constructing a 775,000 square foot mixed-use development consisting of 322 residential units, as well as Philly commercial properties that include office space, hospitality, parking and retail. National’s Philadelphia commercial real estate development will also open up the block to provide greater pedestrian access to Chestnut Street, where Brickstone Realty is developing several Philadelphia commercial properties, the most notable being 112 apartment units and 95,000 square feet of retail on the 1100 block of Chestnut.

Although rents have remained relatively stable, occupancy rates for retail space in Philly have dramatically increased over the last 10 years. With Greater Center City now home to more than 183,000 people, and a record number of upcoming bookings at the nearby Convention Center, demand for retail space in Philadelphia should remain strong for the foreseeable future.

mannino spFor more information about Philly retail space or other Philadelphia commercial properties, please call 215-799-6900 to speak with Anthony V. Mannino, Esq., Vice President-Corporate Strategies, at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate brokerage firm that specializes in Philadelphia retail space.

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 Philly commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking retail space in Philly with the Philly commercial properties that best meet their needs.  As experts in Philadelphia commercial real estate listings, including retail space in Philadelphia, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about retail space in Philly and other Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for 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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Loan Origination Surge Fueled by Retail, Office

new Jason stats graphic - June 2015Commercial and multifamily mortgage loan originations experienced a 12% jump year over year for the third quarter 2015 and a 3% increased over the second quarter of 2015, a new report says.

The overall hike in loan originations for commercial/multifamily lending volumes came primarily from loans for retail and office for the third quarter, according to the Mortgage Bankers Association.

By segment, year over year increases in the dollar volume of loans were 39% for retail properties, 17% for office properties, 11% for multifamily properties and 10% for industrial properties, the MBA said.  The dollar volume of loans dropped 9% for hotel properties and 30% for health care properties from the  third quarter 2014 to the third quarter 2015, according to the MBA.

The MBA’s commercial real estate research division said both commercial mortgage borrowing and lending continued to increase in the third quarter 2015 and that all but one major investor group and property type saw increases in year-to-date lending volumes, a trend that is forecast  to continue through the fourth quarter 2015.

Among investor types, commercial bank portfolio loans led the way, with a 93% spike in the dollar volume of loans originated year over year.   Life insurance company loans jumped 18% for the same period, while decreases were seen in the dollar volume of government-sponsored enterprises (GSEs – Fannie Mae and Freddie Mac) loans, down 3%, and commercial mortgage backed securities (CMBS) loan, down 8%.

For more information about Philly retail 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 leading Philadelphia commercial real estate broker with expertise in Philadelphia retail space.

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 brokerage firm that specializes in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly retail space with the Philadelphia retail space 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 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 Philly retail space for lease or sale through our Philadelphia commercial real estate brokerage firm.

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Philadelphia Retail Space Could See Spike in Retail Chain Stores

new Jason stats graphic - June 2015Retail chains in the United States, including those in the market for Philadelphia retail space, will open 42,506 stores in the next year and 79,650 stores in the next two years, an increase of 4% and 4.2%, respectively, year to date in 2015, a new report says.

The spike in planned store openings has a direct correlation to recent improvements in both employment rates and retail sales growth, as well as higher consumer confidence, according to the latest National Retailer Demand Monthly report from RBC Capital Markets.

Sales forecasts for the 2015 holiday season also have bolstered confidence among retailers, with sales expected to come it at about 3.6%, which is close to 2014’s robust 4.1%, according to the consensus estimate of the National Retailer Federation, Deloitte and four other retail forecasters.

RBC Capital Markets also said lower prices at the gas pump may be slowly having an impact on consumer budgets, potentially encouraging more nondiscretionary spending.  As a result, retailer are looking to capture those extra consumer dollars with more new store openings.

While 2015 has seen a steady increase in new store openings so far, new construction for shopping center redevelopment and ground-up construction has slowed as the year progressed, RBC said.

The combination of increased consumer sales, retailers’ higher demand for space, and inadequate growth in new supply indicates rents and occupancy likely will experience healthy increased in the near term,  RBC said.

The latest retail real estate market data from the CoStar Group endorses RBC’s forecast for  greater demand for retail space, including Philly retail space.  Preliminary third-quarter data indicates the national retail vacancy rate now stands at roughly 5.9%, the lowest point since CoStar began tracking the market.

The CoStar Portfolio Strategy shows absorption outpacing new construction by almost a 2-to-1 margin over the past year.  Retail space now under construction is about 38.5% below the average amount that was under way between 2006 and 2008, according to CoStar.

Bucking the trend, Wal-Mart Stores, Inc., the world’s largest retailer, has predicted a 12% decrease in net profits in 2016 and said it would reduce the number of new store openings in the U.S., dropping to between 135 and 155 new stores in the next fiscal year, from the 354 Wal-Mart stores that opened in the last fiscal year.

While net absorption is robust, rents for retail space have not performed as well as other commercial property types. Retail rents are still 7% below their pre-recession peak — the only major property segment where asking rents have not yet returned to their highs in the last cycle.  Analysts point to struggling shopping centers, particularly those in the outer fringe suburbs, that have been forced to lease space at lower rates to discounters, fitness centers and non-retail users, a practice that has offset the exceptionally strong recovery in urban retail properties.

For more information about Philly retail 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 Philadelphia retail 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 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 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 Philly retail space for lease or sale through our Philadelphia commercial real estate brokerage firm.

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Commercial Property Pricing Heats Up

new Jason stats graphic - June 2015Despite an increase in construction activity in multiple markets, aggregate demand continues to outstrip supply across all major property types, a new report from the CoStar Group says.  The result is lower vacancy rates and rent growth that continues to attract strong investor interest in commercial real estate, including Philly office space and Philly retail space, according to the newest CoStar Commercial Repeat Sale Indices (CCRSI).

The value-weighted U.S. Composite Index and the equal-weighted U.S. Composite Index rose by 1.3% and 1%, respectively, in August 2015, and by 12.6% and 11.4%, respectively, for the year ended August 2015, the report said.  The indices are the two broadest measures of aggregate pricing for commercial properties within the CCRSI.

The General Commercial segment, which is affected by smaller, lower-value properties, experienced recent more robust growth, corroborating a broad-based pricing recovery, CoStar reported.  Within the equal-weighted U.S. Composite Index, the General Commercial segment saw a monthly increase of 1% for August 2015 and 11.9% for the year ended August 2015, driving the index to within 7% of its pre-recession high.

Net absorption across the office, retail and industrial segments — the three major property types — reached 611.4 million square feet for the year ended in the third quarter 2015.  That level was 20% more than in the prior year ending in the third quarter 2014 and stood as the second-highest annualized absorption total since 2008, according to CoStar.

Especially strong showings were seen in the office and industrial segments during the four quarters ending in the third quarter 2015, with net absorption averages at of 0.3% of inventory for the office sector and 0.4% for the industrial sector.  Gains in the retail sector were more modest at 0.2% over the same time period, the report noted.

The CCRSI’s U.S. composite pair volume of $79.5 billion year-to-date through August 2015 saw a 32% jump in comparison with the same time period a year earlier, CoStar said.

With volume up by almost 32% in the Investment-Grade and General Commercial sectors,  increased capital flows are being seen in both the high and low ends of the market, according to the report.

For more information about Philadelphia office space, Philadelphia retail space or other 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 premier Philadelphia commercial real estate brokerage firm that specializes in Philly office space and Philly retail space.

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 with expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philadelphia office space or Philadelphia retail space with the Philadelphia commercial properties that best meets their needs.  As experts in Philadelphia commercial real estate listings, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia office space, Philadelphia retail space and other 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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Low Level of Retail Construction Starting to Crimp Net Absorption

new Jason stats graphic - June 2015With shopping center vacancies, including those involving Philadelphia commercial properties, continuing to tighten as retailers with retail space in Philadelphia and other areas across the country slowly fill the remaining excess space, with both nationwide and Philadelphia commercial real estate listings are facing a dwindling number of high-quality locations.

The U.S. retail real estate vacancy rate, which includes Philadelphia retail space, drifted down another 10 basis points to 6.1% in the second quarter — the 12th consecutive quarter of vacancy decline. The retail vacancy rate – according to a report released by The CoStar Group and disseminated by Wolf Commercial Real Estate, one of the leading Philadelphia commercial real estate brokerage firm – has already dropped below pre-recession lows in major metros like Boston, New York, and Denver, and demand remains solid despite continued store closings by Sears, Kmart, The Gap, Office Depot, Staples, Macy’s and even grocer A&P.

As tight as the market feels with the vacancy rate of U.S. commercial property and Philadelphia retail space just 10 basis points shy of its previous cyclical low in 2007, CoStar senior real estate economist Ryan McCullough argues it’s even tighter today with both U.S. commercial property and Philadelphia commercial real estate listings than it was at the height of the boom eight years ago.

Today, only 60 million square feet of new retail space in Philadelphia and U.S. commercial real estate is under construction, compared with 150 million square feet that was under construction in 2007 when developers working with U.S. commercial real estate and Philadelphia commercial properties were building or expanding power centers, malls and shopping centers in pursuit of population growth in the suburban fringes.

“You really have far fewer options if you’re a retail tenant in today’s market, and that’s really starting to wear on the demand numbers,” said McCullough, who prepared the report that was shared with Wolf Commercial Real Estate, a top Philadelphia commercial real estate brokerage firm. “What’s holding back a lot of tenants today is the scarcity of available supply in good locations with strong demographics.”

Tenants looking for retail space in Philadelphia and across the country absorbed about 32 million square feet at mid-year 2015, compared to 37 million square feet in first half of 2014. The declining absorption numbers in recent quarters are a logical consequence of the lack of available space for U.S. commercial real estate and Philadelphia commercial properties, rather than declining tenant demand, McCullough said. Until more U.S. commercial property and Philadelphia retail space enters the market, demand is likely to be reflected in terms of higher rent growth rates, he added.

Despite the limited supply of available space, the market for Philadelphia commercial real estate listings as well as those from coast to coast is still experiencing a bit of opportunistic leasing and store openings by retailers like Wal-Mart, Dollar General and Dick’s Sporting Goods, which can be productive in somewhat less attractive locations. McCullough expects such activity will likely dominate retail expansion until new shopping center supply ramps up. This perspective was supported on the local level by Wolf Commercial Real Estate, a highly respected Philadelphia commercial real estate brokerage firm.

For more information about Philadelphia retail 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 retail 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, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with expertise in Philadelphia commercial real estate listings and services, provides unparalleled expertise in matching companies and individuals seeking new Philadelphia retail space with the Philadelphia commercial properties that best meets their needs.  As experts in Philadelphia commercial real estate 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 retail 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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Banks Close More Branches As Transactions Move Online

new Jason stats graphic - June 2015Joining many consumer goods retailers who are downsizing their brick and mortar locations, some of the nation’s biggest banks are now touting their bank branch closure plans. The primary driver behind both decisions is the same: more banking activity is occurring online and less in the physical world.

But banks have an additional driver: regulators are issuing stricter capital regulations are driving up accounting and personnel expenses in order to manage compliance.

Given the higher cost environment, banks – which make up a significant portion of Philadelphia commercial properties – no longer are quietly downsizing their branch networks. Instead, bank executives are making plans for further consolidation loud and clear, pointing out steps how they plan to rectify what many top bankers refer to as “core banking inefficiencies.”

Over the last five years, banks that are a component of retail space in South Jersey have trimmed their branch networks by 13,406 bank branches, while opening just 8,011 new ones, according to FDIC statistics. Their footprint in now 4.6% smaller than five years ago, with slightly more than 95,000 U.S. offices opened today.

In discussions with investors, banks are now talking about cutting another 4% to 5% of their branch networks this year alone.

At its peak, Bank of America had as many as 6,100 bank branches, including a number of them in Philadelphia retail space. That has fallen to about 5,000 branches today as competitive conditions and customer behaviors have changed.

Bank of America said it has about 31 million banking customers, and of those, about 17.6 million of them use mobile banking. In addition, the bank said about 60% of its transactions are now all digital, made through phones, online or ATMs at branches, according to Brian T. Moynihan, chairman and CEO of Bank of America.

Jamie Dimon, chairman and CEO of JPMorgan Chase, underscored the accelerating move to online banking, saying the recipe for failure is for a bank to never change locations, never change size, or never change the way they operate.

JPMorgan closed about 100 branches in the past year – with some of them in South Jersey retail space – and now operates about 5,600 in its network, with further branch closings planned.

In addition to responding to consumer trends, bankers also noted the added costs associated with complying with new regulations.

After several rounds of branch closures, Donna Townsell, vice president of corporate efficiencies at Home Bancshares, said, “The savings and efficiencies gained from these closures will help to tee us up for the upcoming expenses that we expect to incur as we begin the planning for Dodd-Frank stress testing requirements.”

The long lead time before branches both in and out of retail space in Philadelphia close is also important in the rightsizing process, other bankers noted. Banks now find themselves in a transitional phase of serving two distinct customer basis: the old-school, in-branch customers, and all-digital customers.

For more information about Philadelphia retail space or any South Jersey 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 also specializes in retail space in South Jersey.

Wolf Commercial Real Estate is a Philadelphia commercial real estate brokerage firm that additionally provides a full range of South Jersey commercial real estate listings and services, marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties and South Jersey commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with expertise as well in South Jersey commercial real estate listings and services, provides unparalleled expertise in matching companies and individuals seeking new Philadelphia retail space or the South Jersey commercial properties that best meets their needs.  As experts in Philadelphia commercial real estate listings and services, the team at our South Jersey commercial real estate brokerage firm provides ongoing detailed information about Philadelphia and South Jersey commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for retail space Philadelphia for sale or lease, Wolf Commercial Real Estate is the South Jersey and 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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