Building Successful Relationships

Tag Archives: Philly industrial space


Mixed Messages Cloud the View Toward Clarity in Economic Policy

Analysts had hoped to get some clarity in the past week on both monetary policy and fiscal policy fronts. Instead, with all the recent announcements, reversals, and delays related to trade deals, there were many moving parts with which to contend.

On the monetary policy side, the Fed formalized its intent to keep interest rates in the U.S. economy – along with national and Philadelphia commercial real estate markets – steady for the foreseeable future. This was largely expected, though some comments by Federal Reserve Chairman Jerome Powell suggested an interesting shift in the committee’s mindset over the previous year.

In his most recent press conference, Powell said “even though we’re at 3.5 percent unemployment, there’s actually more slack out there.” And then later, “I like to say the labor market is strong. I don’t really want to say that it’s tight.”

This CoStar Realty Information Inc. report from Robert Calhoun and Matt Powers involving economic issues as they relate to U.S. and Philadelphia commercial properties is being made through Philadelphia commercial real estate broker Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm.

The suggestion by a Fed chairman that 3.5 percent unemployment affecting, among other segments of the economy, the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – doesn’t represent maximum employment would have seemed crazy even just three or four years ago and would have been met with incredulity.

We know that to be true because in June of 2016, then-Fed Governor Jerome Powell said, “The unemployment rate has fallen from 10 percent to 5 percent, close to the level that many observers associate with full employment.”

We should congratulate the Fed for being humble about its ability to estimate something unobservable like full employment. You can’t see full employment, but you will know it by its fruits. Those fruits are rising wages and rising inflation.

November’s consumer price index showed little risk of an undue rise in inflation any time soon. While the monthly increase in the core consumer price index (excluding food and energy) was double that of October, the year-over-year increase remained at 2.3.

The Fed bases its inflation target on a measure known as personal consumption expenditure, which tends to run lower than the index due to differing weights. As the core index was most recently 73 basis points above core expenditure, this week’s inflation data suggests that the Fed should continue struggling to meet its inflation target and its resultant effects on U.S. and Philadelphia commercial real estate listings.

As for future wage growth, that depends on continued hiring. Earlier in the week, we got more information on the health of the labor market in the form of the National Federation of Independent Business’s survey. Widespread small business sentiment – as well as the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – appears to have rebounded from uncertainty-driven declines over the last few months.

Plans to increase both capital spending and hiring rebounded strongly, reversing declines that were looking worrisome. The reason for the improvement appears to be better November sales, with more firms reporting an increase in sales than a decline.

Firms were already seeing improvements even before this week’s improved clarity on the outlook. The survey questions about labor tightness and wage growth involving national and Philadelphia commercial real estate properties showed meaningful upticks as well. Given such low recent levels in sentiment across the board, we have been expecting a slowing in growth. While this is still likely, as seen in Friday’s weaker retail sales figure, the most recent small business report says maybe we’ve found a floor.

Last week also provided needed clarity from the fiscal side after weeks of conflicting reports. On Tuesday, the Democrats and Republicans came to an agreement on revamped language for a U.S.-Mexico-Canada trade deal. On Thursday, the U.S. and China reportedly finally agreed to terms on “Phase One” of their trade deal, two months after it was initially reported to be agreed on.

Later is better than never, with the deal reported to call off the planned Dec. 15 tariffs and cut the Sept. 1 tariffs in half. While some details are still lacking and there is no guarantee of further progress, the worst case has been averted. Much like with the Fed, there appears a reduced chance of this issue forcing the U.S. into recession and influencing national and Philadelphia commercial real estate listings. construction. (Robert Calhoun is a managing director and senior economist and Matt Powers is associate director of market analytics for CoStar Market Analytics in New York City.)

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

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

A Philadelphia commercial real estate broker with expertise in Philadelphia commercial real estate listings, Wolf Commercial Real Estate provides unparalleled expertise in matching companies and individuals seeking new Philly office space, Philly retail space or Philly industrial space with the Philadelphia commercial properties that best meets their needs.

As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philly office space, Philly retail space or Philly industrial space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need – a strategic partner who is fully invested in your long-term growth and success.

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

Share

Are Retailers’ Earnings Reports Telling Us Something?

 “After seven consecutive quarters of comparable sales growth, we experienced a deceleration in our third-quarter sales,” – Macy’s CEO Jeff Gennette in a statement accompanying the retailer’s most recent earning release.

Retail has been the big story these past few weeks as many publicly traded companies reported earnings for the third quarter. The tone was … not positive.

Macy’s stock fell 11 percent during the week after reporting the first decline in sales in nearly two years. Home Depot dropped 8 percent after a sales miss. Kohl’s fell by 19 percent, missing significantly while also lowering its outlook. Urban Outfitters fell by 19 percent. Nordstrom fell 10 percent. Only the Target and the TJX Companies – owner of discounters TJ Maxx, Marshalls and HomeGoods – saw their shares rise after each reported a strong quarter.

It is well established by now that the U.S. economy – along with national and Philadelphia commercial real estate markets – are heavily dependent on the consumer, so how worried should we be about the red flags waving in these retail earnings reports? Is this what a strong consumer looks like? The story feels like it is about more than just shoppers shifting to online spending.

This CoStar Realty Information Inc. report from Robert Calhoun and Matt Powers involving U.S. and Philadelphia commercial properties is being made through Philadelphia commercial real estate broker Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm.

Consumer spending in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – is ultimately built on the foundation of a strong labor market. While we continue to see job growth and low unemployment nationwide, cracks could be starting to show. We have seen job openings decline in recent weeks, and now it seems employers could also be actively laying off more workers. Weekly claims for unemployment insurance rose to 226,000 last week. While still very low from a historical standpoint, claims are up 15,000 in just two weeks.

Weakness in employment appears to be regional, focused largely on the Midwest and some scattered Northeast and Western states. However, the South remains the healthiest region. Every single state in what the U.S. Census Bureau defines as the South – except Maryland and Oklahoma – continues to see jobless claims fall. The economy in Oklahoma is much more heavily dependent on oil than other states (8 percent of employment versus only about 0.5 percent nationwide), so it has seen jobless claims rise as oil prices have declined from 2018 highs. And Maryland really isn’t even in the South, right?

This regional divergence in jobless claims seems largely driven by prolonged weakness in the manufacturing sector, on which Great Lake states are reliant. Manufacturing accounts for roughly 17 percent of that region’s gross domestic product compared to 11 percent in the U.S., including U.S. and Philadelphia commercial real estate listings.

It has been noted earlier that increased uncertainty causes a decline in business activity in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – as well as a decrease in hiring. It also typically signals a slowdown in firing, as decision-makers wait to see how events such as the trade war situation play out. Is this dynamic beginning to change in a worrisome way?

That is hard to say, but if it was, you would see it first in the areas of the country that are most at risk from the trade war, and it appears as if that could be happening.

Fortunately for the economy, the consumer isn’t the only game in town. Housing continues to buck the otherwise weakening trend in most areas of the U.S. economy, with more strong data out this past week, especially involving national and Philadelphia commercial real estate properties.

The National Association of Home Builders’ Housing Market Index posted one of its best figures since the last recession in its November report. The portions of the survey that asks homebuilders their thoughts on current sales, sales over the coming six months, and foot traffic of prospective buyers all have substantially improved in 2019.

Housing starts and permits also reported a leap in the Census Bureau’s October report. By “back-of-the-envelope” math, the rise in homebuilder sentiment and issuance pace of new permits is roughly equivalent to nearly a 1 percent boost to real GDP growth among national and Philadelphia commercial real estate listings. With no trade deal signed yet and wavering hiring indicators, that 1 percent becomes essential.

Meaningful regional divergence also can be seen in homebuilding activity: The Midwest is seeing declines in new building permits while the South leads the way on new construction. (Robert Calhoun is a managing director and senior economist and Matt Powers is associate director of market analytics for CoStar Market Analytics in New York City.)

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

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

A Philadelphia commercial real estate broker with expertise in Philadelphia commercial real estate listings, Wolf Commercial Real Estate provides unparalleled expertise in matching companies and individuals seeking new Philly office space, Philly retail space or Philly industrial space with the Philadelphia commercial properties that best meets their needs.

As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philly office space, Philly retail space or Philly industrial space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need – a strategic partner who is fully invested in your long-term growth and success.

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

Share

Big-Box Store Landlords See Signs Shoppers Still Spending

Some big-box store and mall owners in both national and Philadelphia commercial real estate markets are releasing sighs of relief: Consumers still are spending and could keep that up throughout the crucial holiday shopping season and into 2020, lifting any concerns of an immediate acceleration in store closings.

Peering into the earnings results of some the nation’s predominant big-box discounters like Target and TJ Maxx can offer a sense the economy and consumer confidence in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – will stay strong, at least for now.

That’s been a much-talked-about topic recently in U.S. and Philadelphia commercial real estate listings circles as investors awaited earnings reports they hoped would shed light on the current state of an industry evolving quickly to balance in-store and e-commerce sales as well as its brick-and-mortar footprint.

This CoStar Realty Information Inc. report from Jennifer Waters involving U.S. and Philadelphia commercial properties is being made through Philadelphia commercial real estate broker Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm.

Store closings across the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – have been at a record pace, causing owners, investors and lenders to watch retail earnings reports closely to see if any slowing demand could mean more closings and empty store property on their hands.

Even with results that fell short of some of Wall Street’s expectations, retailers repeated the same song: the economy is still ticking away, and consumers still are in good shape. Of course, many of these retailers in national and Philadelphia commercial real estate properties remain focused on keeping their costs low, which can help lure shoppers into stores. The harder test is faced by the department stores that offer more expensive items and are reporting earnings results later this week.

But for the lower-cost sellers, the healthy results came despite the Commerce Department’s October sales report, which showed a reduction in spending tied mostly to vehicles and gasoline sales, two volatile segments. Skipping over those, spending rose, albeit at a speck of 0.1 percent, but analysts mostly have disregarded those factors as outliers.

Target, for example, exceeded earnings expectations with results that buttressed its strategy of providing consumers with unique items. The Minneapolis-based chain introduced new apparel brands, a proprietary grocery brand, and opened 25 mini Disney stores last month at competitive prices.

TJ Maxx, the parent of its namesake stores as well as Marshalls, Home Goods, and Home Sense in Canada, also reported robust results and plugged its forecasts. For TJ Maxx, for example, the wave of store closings has been a boon to the company’s business model of purchasing leftover inventory and selling it at reduced prices.

There are exceptions, such as J.C. Penney and Kohl’s, which are scrambling for ways to keep their brands relevant, according to analysts. While big-box and mall owners with national and Philadelphia commercial real estate listings continue to keep an eye on those retailers, they can rest assured that consumers are still opening wallets as job growth continues to keep unemployment at low levels. – By Jennifer Waters, CoStar Realty Information Inc.

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

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

A Philadelphia commercial real estate broker with expertise in Philadelphia commercial real estate listings, Wolf Commercial Real Estate provides unparalleled expertise in matching companies and individuals seeking new Philly office space, Philly retail space or Philly industrial space with the Philadelphia commercial properties that best meets their needs.

As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philly office space, Philly retail space or Philly industrial space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need – a strategic partner who is fully invested in your long-term growth and success.

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

Share

Lower Inflation Figures Reflect Slowing Rent Growth

Recently released October consumer inflation numbers indicate less upward pressure on prices throughout national and Philadelphia commercial real estate markets, largely driven by weaker growth in housing costs, including slowing rent growth. The weaker inflation report comes after the Federal Reserve has already cut interest rates three times this year, in part to boost inflation closer to its target.

The slowdown in rent growth reflected in these lower inflation figures in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – is consistent with the trend in CoStar data on apartment rents, which have decelerated to around 2.6 percent today from above 3 percent in recent quarters.

This CoStar Realty Information Inc. report from Robert Calhoun involving U.S. and Philadelphia commercial properties is being made through Philadelphia commercial real estate broker Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm.

According to the Bureau of Labor Statistics’ data, the consumer price index, which measures the price Americans pay for consumer goods and services, increased 1.8 percent in October compared to a year earlier. A meaningful increase in energy services and gasoline prices affecting U.S. and Philadelphia commercial real estate listings drove the slight uptick from the 1.7 percent increase seen in the previous month.

The core consumer price index, which excludes volatile food and energy prices and is a better measure of underlying inflation pressure, slipped to 2.3 percent year over year, down from 2.4 percent in September. The resultant decline in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – was largely driven by housing-related costs.

The shelter costs among national and Philadelphia commercial real estate properties account for roughly one-third of the consumer price index and nearly half of the core index. While government figures show rent for primary residences growing at 3.7 percent from a year ago, month-over-month rent growth decelerated to just 0.1 percent. This is the slowest growth in more than eight years.

Goods inflation, excluding food and energy, slowed somewhat in October as well. Apparel prices were the primary cause. While they are very noisy, the month-over-month decline of -1.8 percent represents the third-largest drop in apparel prices since at least 1947.

Prices for goods may see upward pressure going forward because of higher tariffs on imports from China and a recent decline in the foreign exchange value of the U.S. dollar. Continued strength in the labor market and wages concerning national and Philadelphia commercial real estate listings should allow retailers to pass on much of the expected price increases through to consumers.

Households in the U.S. spend three times as much on services as on goods. Despite slowing shelter costs, services inflation rose slightly in October to 3 percent. The cost of medical care services has been rising dramatically in recent months and now stands 5.1 percent higher than a year ago. Unemployment among healthcare practitioners and technicians is currently just 1.1 percent, which could be pushing up the cost of such services.

This report is not likely to change the central bank’s current stance on interest rates, at least for now. Although inflation is not trending in the direction the Fed would like, the Federal Open Market Committee indicated at its meeting in October that it intends to hold interest rates steady as it monitors incoming data. (NOTE: Robert Calhoun is a managing director and senior economist for CoStar Market Analytics in New York City.)

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

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

A Philadelphia commercial real estate broker with expertise in Philadelphia commercial real estate listings, Wolf Commercial Real Estate provides unparalleled expertise in matching companies and individuals seeking new Philly office space, Philly retail space or Philly industrial space with the Philadelphia commercial properties that best meets their needs.

As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philly office space, Philly retail space or Philly industrial space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need – a strategic partner who is fully invested in your long-term growth and success.

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

Share

East and West Trade Deals Bring Sighs of Relief, for Now

Recession and trade talks recently have been in the same sentence, with political entrenchment a risk to sap growth through the rest of this year and next. In that case, new preliminary trade agreements between both the U.S. and China and U.K. and European Union offer seemingly good news for national and Philadelphia commercial real estate markets. However, while these two pre-deals are a relief on their face, neither appears completely satisfying, nor complete.

The U.S. agreement with China, announced late on Oct. 11 with details slow to leak, appears far from a done deal in relation to the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space. The faint sketch of the terms appears to focus on a phased agreement, where China would purchase more agricultural products from the U.S. and agree to new currency management standards.

This CoStar Realty Information Inc. report involving U.S. and Philadelphia commercial properties is being made through Philadelphia commercial real estate broker Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm.

Meanwhile, across the pond, U.K. Prime Minister Boris Johnson returned home to sell his Brexit deal to Parliament last weekend, and the initial response was hardly positive. Parliament is likely to remain in a frantic state as the deal appears to choose a much harsher Brexit than that agreed to by Johnson’s predecessor, Theresa May, and some favor further delay until a consensus can be reached.

With industrial production growth turning negative compared to a year prior, based on August data released last week, any further slowdown in trade is everyone’s problem; U.S. and Philadelphia commercial real estate listings already are peripherally dealing with the consequences.

China’s industrial production, while staying positive, has slowed dramatically as well with GDP growth falling to a 30-year low, according to figures announced this past week. The industrial real estate sector in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – is cooling in the face of these headwinds.

Overall, third quarter growth for national and Philadelphia commercial real estate properties should continue, but it faces plenty of crosscurrents. One major plus has been personal consumption, which remains elevated because of the tight labor market and despite a modestly weaker retail sales report this past week.

The second biggest boost is likely to be from government, though U.S. subsidies may not be enough to counteract the more significant drag from trade. Non-residential investment is a concern, with businesses confidence dropping severely recently amid uncertainty. All those factors portend a mixed message for office and retail, ultimately with their fate determined by whatever long-term clarity can be glimpsed as the economy settles into a slower growth path.

One noteworthy data point: Investment in residential housing among the varied national and Philadelphia commercial real estate listings has been muted since the financial crisis, but it looks on track to have a stellar second half of 2019. Housing starts surged in September according to data released last week, and a rise in homebuilder confidence means it is likely to stay near that level.

This is good for the economy but perhaps negative for multifamily investors, as lower rates and higher incomes are spurring home ownership. Note: Robert Calhoun is a managing director and senior economist and Matt Powers is associate director of market analytics for CoStar Market Analytics in New York City.

For more information about Philly office space, Philly retail space, and Philly industrial space or other Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker that specializes in Philly office space, Philly retail space and Philly industrial space.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

A Philadelphia commercial real estate broker with expertise in Philadelphia commercial real estate listings, Wolf Commercial Real Estate provides unparalleled expertise in matching companies and individuals seeking new Philly office space, Philly retail space or Philly industrial space with the Philadelphia commercial properties that best meets their needs.

As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philly office space, Philly retail space or Philly industrial space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need – a strategic partner who is fully invested in your long-term growth and success.

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

Share

Philadelphia Job Growth Slows Heading Into 2020

With construction activity ramped up throughout the national and Philadelphia commercial real estate markets, and with Center City’s restaurants packed, most residents maintain a positive feeling about the current health of Philadelphia’s economy.

But the pace of job growth has also been disappointing in recent months, with total jobs in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – growing by 1.1 percent year-over-year as of August. This is well below the national pace and about half the rate of job growth achieved in Philadelphia just two years ago.

This CoStar Realty Information Inc. report involving U.S. and Philadelphia commercial properties is being made available through Philadelphia commercial real estate broker Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm.

Store closures are hurting workers in the retail trade sector, which has lost 7,000 jobs over the past 12 months. Meanwhile, growth in the education and health services sector of U.S. and Philadelphia commercial real estate listings has slowed significantly, following the more than 2,500 layoffs tied to the closure of Hahnemann Hospital.

There are a few silver linings to the current labor market picture. The professional and business services sector among national and Philadelphia commercial real estate properties is growing at some of the fastest rates observed during the current economic expansion. This category is comprised of high paying subsectors such as information technology, legal services, accounting and scientific research and development.

Moreover, much of the current slowdown in aggregate job growth is happening for a good reason. With the local unemployment rate now below 4 percent in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space, it simply is becoming difficult for companies to find available candidates.

All and all, Philadelphia’s labor market is awash in mixed signals, as is the overall U.S. economy. With profits among most of the region’s largest publicly traded companies remaining near record highs, a recession over the next several quarters does not appear to be likely.

But local job growth is slowing while national and Philadelphia commercial real estate listings also are showing weakness in the manufacturing, agricultural and homebuilding industries. Election uncertainty could also be an increased drag on business investment in the quarters ahead.

All of this means that while recession signals are not imminent, Philadelphia’s economic outlook is less bullish heading into 2020 than it was heading into 2019. – By Adrian Ponsen, CoStar Realty Information Inc.

For more information about Philly office space, Philly retail space, and Philly industrial space or other Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker that specializes in Philly office space, Philly retail space and Philly industrial space.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly office space, Philly retail space or Philly industrial space with the Philadelphia commercial properties that best meets their needs.

As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philly office space, Philly retail space or Philly industrial space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need – a strategic partner who is fully invested in your long-term growth and success.

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

Share

Midsize Tenants Dominate Demand for Industrial Space

E-commerce and last-mile logistics tenants in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – are fueling additional demand for expansion in the U.S. and spurring midsize space users to dominate the industrial market.

Midsize industrial tenants – those who occupy 50,000-sq.-ft. to 300,000-sq.-ft. boxes – are driving industrial demand in various segments of the national and Philadelphia commercial real estate market, according to a report from real estate services firm Avison Young in a recent issue of National Real Estate Investor magazine.

For example, between January 2017 to June 2019, tenants in Chicago signed 872 industrial leases totaling 97.3 million sq. ft., with an average size of 111,629 sq. ft. Tenants in Atlanta signed 320 industrial leases totaling 36.2 million sq. ft., with an average size of 113,243 sq. ft. Dallas tenants signed 490 leases totaling 52.5 million sq. ft., with an average size of 107,265 sq. ft. Tenants in Indianapolis signed 41 leases totaling 52.5 million sq. ft., with an average size of 146,341 sq. ft., according to Avison Young.

This CoStar Realty Information Inc. report involving U.S. and Philadelphia commercial properties is being made through Philadelphia commercial real estate broker Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm.

“[Midsize users] do dominate the market,” says Brooks Staley, senior consultant with The CoStar Group, a research firm dealing with market metrics dealing with U.S. and Philadelphia commercial real estate listings. “There are a lot more users who are looking for space in that kind of sweet spot than those who are looking for big boxes.”

For example, in Indiana, demand for midsize industrial space is booming, but the supply is scarce. As of mid-June 2019, there were 12 speculative industrial buildings of 250,000 sq. ft. or less being developed in Central Indiana, totaling 2.1 million sq. ft. In the state’s southern submarket, there is, however, only one midsize space available, a 70,400-sq.-ft. property in Greenwood.

Florida’s industrial markets also are showing growth among midsize users. Orlando tenants signed 68 industrial leases totaling 7.3 million sq. ft., with an average deal size of 108,095 sq. ft. Tampa Bay tenants signed 53 industrial leases totaling 5.0 million sq. ft., with an average deal size of 94,333 sq. ft. Jacksonville tenants signed 61 leases totaling 7.0 million sq. ft., with an average deal size of 114,590 sq. ft.

The growth in e-commerce and the need for last-mile delivery throughout national and Philadelphia commercial real estate properties has only strengthened the demand for midsize industrial boxes. At the end of June 2019, pricing for these types of assets averaged $68.71 per sq. ft., with around $4.7 billion in sales volume, according to CoStar data. At the end of June 2018, prices averaged $59.08 per sq. ft., with $7.7 billion in sales volume. In June 2017, pricing in the sector was at $59.56 per sq. ft., with $7.3 billion in sales volume.

“You can see that there’s been a pretty steady acceleration of pricing at 300,000 square feet and below. The same goes for larger sizes as well,” says Staley. “Industrial is the hot property type to be in right now, and that makes sense because of the tailwinds we’re seeing from e-commerce, from how all sorts of retailers are looking at their supply chain. We’re going to see pricing boosts for both midsize and large boxes.”

But despite strong demand and rising prices for midsize industrial facilities, investment sales activity in in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – is decelerating. In June 2019, there were 639 deals closed in the sector. In June 2017 and 2018, there were 1,121 and 1,197 deals, respectively. Staley says this drop stems from investors choosing to invest in ground-up construction to dodge rising prices on existing properties.

“We’ve done analysis that shows a lot more players in the industrial space actually are turning to development rather than acquisition in order to make returns,” says Staley. “[Pricing has] gotten so frothy in the marketplace that players are backing off or they’re saying, ‘We can develop. We can scrape a site and develop something.’ That would be the best shot at getting good returns.”

The same story is happening for large industrial facilities, or boxes with more than 300,000 sq. ft. In June 2017, pricing among such national and Philadelphia commercial real estate listings reached $48.18 per sq. ft., with around $3.2 billion in sales volume. By June 2019, prices climbed to an average of $76.20 per sq. ft., but with around $3.9 billion in sales volume.

“We would expect at the moment, because of pricing trends among all size ranges, that price appreciation will maybe stagnate a little bit as deals begin to dry up,” says Staley. “People are little bit leery of overpaying this late cycle.” – By Sebastian Obando; CoStar Realty Information Inc.

For more information about Philly office space, Philly retail space, and Philly industrial space or other Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker that specializes in Philly office space, Philly retail space and Philly industrial space.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly office space, Philly retail space or Philly industrial space with the Philadelphia commercial properties that best meets their needs.

As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philly office space, Philly retail space or Philly industrial space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need – a strategic partner who is fully invested in your long-term growth and success.

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

Share

Philadelphia’s Unemployment Rate Falls to 30-Year Low

After another month of job growth, the Philadelphia market has reached an important milestone: The metro area’s unemployment rate fell to 3.1 percent in May, the lowest level of unemployment recorded in Philadelphia since the Bureau of Labor Statistics (BLS) began publishing the figure in 1990.

This CoStar Realty Information Inc. report involving Philadelphia commercial properties and employment is being made through Philadelphia commercial real estate broker Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm.

For the Philadelphia commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – current record-low unemployment represents both a blessing and a potential risk.

On the positive side, it reflects how the local economy and Philadelphia commercial real estate listings are clearly stronger than they were 10, 20, or even 30 years ago. The healthcare sector has powered this transformation, growing its employee count by 25 percent – or more than 100,000 local jobs – since the end of the last recession 10 years ago.

With available workers in short supply, competition for new job recruits across all industries operating out of Philadelphia commercial real estate properties is forcing companies to raise wages across industries and not just for the highest paid positions.

At least five local health systems have announced plans to raise their minimum wage since late 2018. The BLS also reported that average hourly wages across businesses contributing to the local commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – sectors grew by 3.6 percent last year. Pay increases such as these have supported rent growth over 3 percent among Philadelphia’s workforce housing rentals.

But the lower Philadelphia’s unemployment rate goes, the harder it will become for local companies to find the employees they need, making it more difficult for businesses to grow and less likely that they will expand their real estate footprints.

At 1.2 percent year-over-year, Philadelphia’s pace of job growth has already slowed to about two-thirds of the pace recorded in 2014 to 2015, when available workers were easier for companies to find. In line with that trend, the pace at which local office tenants looking for Philadelphia commercial real estate listings are expanding their square footage has also slowed in the past three to four years.

Philadelphia’s tight labor market will likely persist into next year. Under this scenario, wage gains should continue to support accelerated rent growth in workforce housing rentals while slowing job gains keep a lid on office tenant expansions.

Office tenants in Philadelphia commercial real estate markets may not be growing aggressively, but they will likely continue to put increased emphasis on leasing high-end space to help recruit and retain employees, as it is becoming increasingly costly to lose them. – By Adrian Ponsen; CoStar Realty Information Inc.

For more information about Philly office space, Philly retail space, and Philly industrial space or other Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker that specializes in Philly office space, Philly retail space and Philly industrial space.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly office space, Philly retail space or Philly industrial space with the Philadelphia commercial properties that best meets their needs.

As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philly office space, Philly retail space or Philly industrial space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need – a strategic partner who is fully invested in your long-term growth and success.

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

Share

Property Investors Increasingly Prefer the Flavor of Fast-Casual Restaurants

Sit-down, full-service restaurant chains operating in national and Philadelphia commercial real estate markets continue to face pressure from fast-casual competitors, and not just in the competition to woo diners.

Investors also appear to be losing some of their appetite for real estate in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – that has been leased to such “casual dining” chains such as Hooters, Outback Steakhouse, Red Lobster, Chili’s and Texas Roadhouse.

This CoStar Realty Information Inc. report involving U.S. and Philadelphia commercial properties is being made through Philadelphia commercial real estate broker Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm.

Cap rates, the annual yield for U.S. and Philadelphia commercial real estate listings, jumped up in the first quarter for so-called “net lease” properties tied to casual dining restaurants.

According to a report from Wilmette, Illinois-based real estate firm The Boulder Group, “cap rates in the net lease casual dining sector increased to 6.32%” in the first quarter, up from 6.05% a year ago. The firm noted that the rate of increase among national and Philadelphia commercial real estate properties was wider than other types of net lease investment properties.

Net lease properties involve leases in which the landlord has little to no responsibility for managing the real estate beyond collecting a rent check. An increasing cap rate in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – can reflect the greater risk that a tenant might struggle or fail to renew at the end of its lease. The length of the term left on a lease is one of several factors used in determining the cap rate. The more years left on a lease tends to attract better prices for the property and lowers cap rates.

Many investors looking for lower risk among national and Philadelphia commercial real estate listings have targeted fast-casual properties, or restaurants that typically do not offer table service. Earlier this month, the dirt underneath a Portillo’s in Normal, Illinois, sold for $4.4 million and is expected to produce an annual yield of 5% for the private investor. – By Richard Lawson; CoStar Realty Information Inc.

For more information about Philly office space, Philly retail space, and Philly industrial space or other Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker that specializes in Philly office space, Philly retail space and Philly industrial space.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly office space, Philly retail space or Philly industrial space with the Philadelphia commercial properties that best meets their needs.

As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philly office space, Philly retail space or Philly industrial space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need – a strategic partner who is fully invested in your long-term growth and success.

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

Share

May Retail Sales Data Shows Strength in Consumer Spending

May retail sales numbers reported throughout businesses operating in national and Philadelphia commercial real estate markets did not disappoint, suggesting a rebound in consumer spending from a slow start to the year. And that’s good news for commercial real estate.

First-quarter consumption related to the U.S. commercial real estate market – including such action taking place involving Philly office space, Philly retail space and Philly industrial space – was relatively weak and volatile, as consumer spending declined on durable goods, such as cars and furniture.

This CoStar Realty Information Inc. report involving U.S. and Philadelphia commercial properties is being made through Philadelphia commercial real estate broker Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm.

The consumption slowdown raised concerns about the health of the U.S. economy, which relies heavily on Americans’ willingness to consume. Despite the choppy retail sales data at the start of the year involving businesses in U.S. and Philadelphia commercial real estate listings, CoStar economists expected consumer spending to rebound. Those expectations were based on the continued strength of consumer fundamentals, including healthy income growth, subdued inflation, rising wealth and access to credit.

May retail sales data from the Census Bureau was in line with those expectations. Retail sales among businesses operating in national and Philadelphia commercial real estate properties grew 0.5 percent compared from the previous month, and the April data was revised higher. Compared to a year ago, retail sales were up a solid 3 percent.

Sales at warehouse clubs and superstores throughout the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – were especially strong in May, as were food sales at supermarkets and other grocery stores. Food services continued to do well, with especially robust growth at limited-service restaurants. By contrast, sales at department stores declined over the past year, dragged down by double-digit declines in conventional chain stores; sales at discount stores, however, have held up better.

While the American consumers who interact with businesses dealing with national and Philadelphia commercial real estate listings appear happy to spend, all this consumption does not translate into demand for physical retail space. The May retail sales data was in line with the ongoing shift in buying preferences. E-commerce continued to grow at roughly four times the pace of total sales – up 12 percent in May on a year-over-year basis. — By Galina Alexeenko; CoStar Realty Information Inc.

For more information about Philly office space, Philly retail space, and Philly industrial space or other Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker that specializes in Philly office space, Philly retail space and Philly industrial space.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly office space, Philly retail space or Philly industrial space with the Philadelphia commercial properties that best meets their needs.

As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philly office space, Philly retail space or Philly industrial space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need – a strategic partner who is fully invested in your long-term growth and success.

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

Share

Tips for Investors Entering the Cannabis Real Estate Market

With 10 states plus the District of Columbia legalizing cannabis for recreational use and medical marijuana legal in another 23 states across the national and Philadelphia commercial real estate markets, cannabis sales are projected to grow from $10.8 billion today to about $100 billion over the next five years, according to the National Institute for Cannabis Investors.

As a result, investors in cannabis-related industrial real estate can expect exceptional returns on investment (ROI) throughout the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space. In a 2018 survey by Denver-based PropTech developer Apto, 76 percent of commercial real estate brokers handling cannabis deals in all states where the drug is legal in some form reported cannabis deals pricing above market.

This National Real Estate Investor report involving U.S. and Philadelphia commercial properties is being made through Philadelphia commercial real estate broker Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm.

Cannabis property deals may be more lucrative than other industrial transactions, but they are also more complicated, according to survey respondents. When asked to compare the difficulty of cannabis transactions involving U.S. and Philadelphia commercial real estate listings with traditional industrial deals, they answered with an average of eight on a scale of one to 10, with 10 being “most difficult.” Even so, 85 percent of brokers surveyed said they are willing to do more cannabis deals.

Investors willing to take a property through local licensing and entitlement processes for national and Philadelphia commercial real estate properties prior to leasing space or putting it on the block will realize the greatest boon in value, however, because there are limited number in any location, according to Rick Frimmer, managing director and head of the national cannabis advisory group at EisnerAmper, an accounting and advisory firm based in New York City.

Cannabis real estate values are likely to continue rising due to the supply-demand imbalance, says Clint Callan, a San Francisco Bay Area-based partner at the national law firm of Duane Morris LLP. “With cannabis, there are only so many spaces and opportunities available, which runs up the price,” he adds.

When asked how well the supply of industrial cannabis real estate in their market aligns with demand for space, respondents in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – answered with an average of four on a scale of one to 10, with one being “not in balance” and 10 being “in perfect balance.”

Commenting on survey results, Apto founder Tanner McGraw says that legalization of marijuana across more states is beginning to impact real estate markets, as local jurisdictions grapple with zoning and other issues that affect availability of sites. “Survey results suggest there is somewhat of a shortage of sites available, likely because allowable zoning has not caught up with demand,” he notes.

Local jurisdictions dealing with national and Philadelphia commercial real estate listings may limit zoning for cannabis uses to specific industrial areas and impose strict security, fire, and safety requirements for cannabis operations because cannabis products are at high risk for theft and manufacturing processes use chemicals to extract compounds, such as THC and CBD oil, according to Frimmer.

For more information about Philly office space, Philly retail space, and Philly industrial space or other Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker that specializes in Philly office space, Philly retail space and Philly industrial space.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly office space, Philly retail space or Philly industrial space with the Philadelphia commercial properties that best meets their needs.

As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philly office space, Philly retail space or Philly industrial space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need – a strategic partner who is fully invested in your long-term growth and success.

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

Share

Mall Outlook Darkens as Online Sales Surge

A couple of the more than 2,200 numbers buried deep in this month’s Census Bureau report on retail sales in the national and Philadelphia commercial real estate markets may add to mounting concerns for U.S. shopping mall investors about the growing threat from e-commerce.

The report shows that for the first time, non-store retail sales (including e-commerce sales) in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – totaled more than those for the department stores that anchor most traditional Class B and Class C malls.

This Co-Star report involving U.S. and Philadelphia commercial properties is being made through Philadelphia commercial real estate broker Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm.

Non-store retail sales in February, the most recent month reported, totaled $59.77 billion involving U.S. and Philadelphia commercial real estate listings. E-commerce sales account for about 88 percent of that volume.

The total for general merchandise national and Philadelphia commercial real estate properties housing retailers, the category that includes department stores, totaled $59.74 billion. Ten years ago, general merchandise store sales outpaced non-store sales by 47 percent.

The figures contribute more gust to the intensifying headwinds for shopping mall investors in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – whether they are property owners, lenders or real estate investment trust and commercial mortgage investors.

“Class B and C malls in particular are driving weaker loan performance as they generally have less favorable locations, weaker anchor profiles and are particularly vulnerable to competition, both from other malls and internet sales,” Fitch analysts said in a recent report. “Losses of foot traffic and sales have led to additional store closures with increasing mall vacancies affecting property-level cash flow, thus putting pressure on loan performance.”

Overall, there have been more than 5,800 store closings reported this year among national and Philadelphia commercial real estate listings. That elevated level of closings could lead to a widening gap in performance between property owners with more Class A malls than those with more Class B and Class C malls, Morgan Stanley & Co. analysts reported this week in their outlook for upcoming REIT first quarter earnings results.

For more information about Philly office space, Philly retail space, and Philly industrial space or other Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker that specializes in Philly office space, Philly retail space and Philly industrial space.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly office space, Philly retail space or Philly industrial space with the Philadelphia commercial properties that best meets their needs.

As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philly office space, Philly retail space or Philly industrial space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need – a strategic partner who is fully invested in your long-term growth and success.

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

Share

Share

Share