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Tag Archives: South Jersey commercial real estate listings


New Jersey Bill Aims to Help Vacant Malls, Office Parks

New Jersey lawmakers are making a new legislative push to help rid the state of its vacant and half-empty malls and office complexes, properties that have fallen victim both to e-commerce and a new preference in corporate America for urban settings.

Under a bill that recently came out of committee in the state Legislature, “buildings used, or previously used, as a shopping mall, shopping plaza, or professional office park,” that have been vacant or partially vacant in the South Jersey retail space commercial real estate market with less than 50 percent occupancy for at least two years, can qualify to be designated as needing redevelopment.

This report involving South Jersey retail space commercial properties is being made through South Jersey commercial real estate broker Wolf Commercial Real Estate, a South Jersey commercial real estate brokerage firm.

Once a municipality in the South Jersey retail space commercial real estate market designates an area as needing redevelopment, that site becomes eligible for economic incentives from the town – including being able to make payments in lieu of taxes, or Pilot programs. The bill’s goal is to spark the repurposing of such underutilized and sometimes rundown properties by developers.

With the demise of many retail chains among all South Jersey commercial real estate properties – and the rise of online shopping – malls across the nation have struggled with vacancies and closings. New Jersey has been hit particularly hard by office-park vacancies, because of its large supply of suburban office stock at a time when the millennial workforce is favoring downtown workplaces.

“Without the help proffered by this bill, there is good chance that investors will just be unwilling to take on these complex redevelopment projects, and the malls will deteriorate, cease to provide revenue support for the towns in which they’re located and, not least, they will go from being a destination to unattractive and possibly dangerous, lightly occupied, vestiges of a time gone by,” said one industry spokesperson.

The bill, whose sponsors include State Assemblywoman Carol Murphy, a Democrat representing Legislative District 7, basically updates and expands the types of South Jersey commercial real estate listings that can qualify as being in areas in need of redevelopment.

Murphy said she is very familiar with the issue of vacant malls in part because of what has happened within her own area, Burlington County. Earlier this year, Sears, the last retail tenant in the once-busy Burlington Center mall at 2501 Mount Holly Rd. in Burlington, New Jersey, shut its doors in the South Jersey retail space commercial real estate market, leaving a vacant shopping center in its wake.

“What used to be a thriving shopping center, a shopping mall, is now completely closed,” Murphy said. “So that’s sitting there and we’re trying to figure out what we’re going to do with that.”

Real estate firms dealing with South Jersey commercial real estate listings should be financially encouraged to look at existing, empty retail and office properties to redevelop “without having to take up more of our free land and space,” she said.

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

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

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

As experts in South Jersey commercial real estate listings and services, the team at our South Jersey commercial real estate brokerage firm provides ongoing detailed information about South Jersey commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for South Jersey retail space for sale or lease, Wolf Commercial Real Estate is the South Jersey 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 South Jersey commercial properties for lease or sale through our South Jersey commercial real estate brokerage firm.

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Casinos Hit Jackpot as Court Allows Legalization of Sports Betting

In a boost not to just Atlantic City but to betting venues across the country, the Supreme Court this week overturned a 1992 federal law that had prohibited most states from authorizing sports betting.

The court said the federal law violated constitutional principles limiting the federal government from controlling state policy involving this specific portion of the U.S. commercial real estate market – which includes South Jersey retail space. It unconstitutionally required states to prohibit sports betting under their own laws.

This report on trends in the U.S. and South Jersey commercial properties market is being made through South Jersey commercial real estate broker Wolf Commercial Real Estate, a South Jersey commercial real estate brokerage firm.

Atlantic City, which has seen five of more than a dozen casino/hotels closed over the last five years, will see two of them re-open next month under new ownership and management. The new operators were placing their bets in part on New Jersey winning its case at the Supreme Court, which would be a positive move for both the national and South Jersey commercial real estate markets.

The floodgates now are officially open for other states to allow sports betting as well, said Daniel Wallach, a gaming and sports law lawyer with the law firm of Becker & Poliakoff in Fort Lauderdale, as consensus is that this Supreme Court decision is significant for both national and South Jersey commercial real estate properties.

With states now authorized to legalize sports betting, Wallach predicts there will be a flurry of state legislation related to U.S. and South Jersey commercial real estate listings in hopes of raising revenue from the activity.

New Jersey racetracks and casinos – both key parts of the U.S. commercial real estate market, including South Jersey retail space – already have mobilized and could be taking bets before the end of the summer, Wallach said. Other states will not be far behind as Pennsylvania, Connecticut, West Virginia, and Mississippi have already passed bills, and an additional 14 states have introduced bills.

The U.S. Supreme Court heard oral arguments last December in a case brought by the state of New Jersey arguing for the right to allow sports betting in the state.

The decision was a setback for professional and collegiate sports leagues and organizations, including the National Collegiate Athletic Association, the National Football League, Major League Baseball and National Basketball Association that supported the ban on sports betting, contending the ban is necessary to protect the integrity of their games.

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

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

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

As experts in South Jersey commercial real estate listings and services, the team at our South Jersey commercial real estate brokerage firm provides ongoing detailed information about South Jersey commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for South Jersey retail space for sale or lease, Wolf Commercial Real Estate is the South Jersey 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 South Jersey commercial properties for lease or sale through our South Jersey commercial real estate brokerage firm.

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Casino Firms Roll the Dice Again on Atlantic City

Placing their bets on a slowly rebounding local economy — and the prospects for legalized sports gambling in the state of New Jersey soon — investors are planning to re-open two shuttered casinos in Atlantic City this summer.

Hard Rock International and an affiliate of Integrated Properties in Denver, both major players in the U.S. commercial real estate market – which includes South Jersey retail space, are moving forward with plans to open new casinos along the famed Boardwalk after acquiring the closed properties at rock-bottom pricing. The openings are not without risk as they will compete for gaming revenue that still is nowhere near what it was 10 years ago at the city’s peak.

This report on trends in the U.S. and South Jersey commercial properties market is being made through South Jersey commercial real estate broker Wolf Commercial Real Estate, a South Jersey commercial real estate brokerage firm.

Competition for gaming dollars already is heating up. Casinos in Atlantic City have been dropping their hotel room prices to those you might see along a lonely stretch of an interstate highway (rooms from $44 a night), which is about 30 percent lower than previously offered lows. Guests also are being enticed with increased spa and dining credits, free drinks while gambling and up to $400 in online poker deposits.

Despite the increased competition, including some coming from the national and South Jersey commercial real estate market, owners of existing casinos in Atlantic City said they hope the addition of new attractions helps bring in more traffic.

“We view the openings as a net positive for Atlantic City,” said John Payne, president and chief operating officer of VICI Properties, which owns the real estate under two other Atlantic City casinos. “As real estate owners, we view what’s occurring in the market through a different lens than operators. We expect our assets to benefit from the increased traffic. Altogether, these openings help further build out and bring more positive attention to Atlantic City.”

More gambling and more visitors – many with connections to national and South Jersey commercial real estate properties – mean enhanced property values for real estate owners, Payne said.

“Our two Atlantic City properties — Caesars Atlantic City and Bally’s Atlantic City — are located on the Boardwalk in proximity to The Hard Rock,” Payne said. “We expect The Hard Rock will be very proactive about driving new business to the Boardwalk area, and its unique focus on entertainment will be a key differentiator in the marketplace.”

The unknown for Caesars and the other casino operators is what happens with New Jersey’s bid to legalize sports betting. The U.S. Supreme Court heard oral arguments last December in a case brought by the state of New Jersey arguing for the right to allow sports betting in the state. The Supreme Court has yet to issue a ruling in this case that has major implications for several firms dealing in U.S. and South Jersey commercial real estate listings.

“We think [sports betting] will benefit our casinos in New Jersey,” Eric Hession, chief financial officer of Caesars, said. “We know for example that here in Las Vegas, some of our top days are the Super Bowl and NCAA [Final Four] weekend and some other sporting event days. People will want to go to Atlantic City on weekends to watch football and bet in our sports books, which will become potentially larger components of the property.”

The first new casino scheduled to open will be the Hard Rock Hotel & Casino opening June 28. The property was taken over out of bankruptcy by affiliates of Carl Icahn’s Icahn Enterprises. The Seminole Tribe of Florida, which owns the Hard Rock chain, bought the property a year ago for $300 million.

Last month, Icahn cashed in his other Atlantic City casino, after agreeing to sell its majority-owned subsidiary, Tropicana Entertainment Inc. and its seven casinos, for a total price of $1.85 billion. That deal amounts to a sale price of $370,520 per hotel room Tropicana owns. Icahn paid what amounted to $106,270 per room for the 1,882-room Tropicana Casino & Resort in Atlantic City when he gained control of it in 2009.

The other hotel-casino property slated to open in Atlantic City this year is the 1,399-room Ocean Resort Casino at 500 Boardwalk. Denver-based AC Ocean Walk acquired the former Revel Casino for $200 million this past January. The property once carried a $3 billion valuation. Hyatt Hotels Corp. is partnering with AC Ocean Walk, an affiliate of Integrated Properties, in the venture.

At 60 stories, it is the tallest structure in Atlantic City and stands out in the U.S. commercial real estate market – including South Jersey retail space. The expansive 6.4 million-square-foot resort is to feature a 138,000-square-foot casino, 160,000 square feet of indoor meeting and convention space, another 90,000 square feet of flexible outdoor special event space, five swimming pools and a 32,000-square-foot fitness center.

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

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

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

As experts in South Jersey commercial real estate listings and services, the team at our South Jersey commercial real estate brokerage firm provides ongoing detailed information about South Jersey commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for South Jersey retail space for sale or lease, Wolf Commercial Real Estate is the South Jersey 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 South Jersey commercial properties for lease or sale through our South Jersey commercial real estate brokerage firm.

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WCRE Regional Investment Market Update

Those of you that have been tracking the Southern New Jersey commercial real estate leasing market are well aware that we are approaching our 3rd consecutive quarter of decreasing office leasing activity. There are a few factors directly responsible for this, none of which include the word Brexit. 

Even with the slow-down in leasing activity, a flurry of active investors are looking to South Jersey and greater Philadelphia for better returns.  We’ve recently seen one investor that was not previously active in this market purchase multiple assets from major REITS, making it one of the top 5 owners (by square footage) of Class A Office properties.  This previously New York-focused investor completed at least 8 South Jersey acquisitions in 18 months – and may not have satisfied their appetite for investment properties in this market just yet! 

The example of this single investor/owner highlights a broader trend.  The continued demand for income-producing assets in and around Philadelphia is driven by the easy access to cheap capital, combined with better returns of 150+ basis points being achieved in South Jersey, offering a much more favorable risk profile when compared to markets such as NYC.  Many REITS are also exiting suburban properties to redeploy cash, thereby opening up opportunities for new-to-market investors. 

Right now, everyone is focused on the impact that Brexit and the upcoming U.S. Presidential Election could have on the markets.  From an investment standpoint, the real focus should be on volatility and uncertainty within a specific asset class.  Investors want to be certain, right?  Always.  

While we don’t all have a crystal ball, investors can still pay attention to research-based analytics to identify the appropriate risk/return profile.  At Wolf Commercial Real Estate (WCRE), that is what we do, all day, every day.  The ease of access to capital at historically low interest rates is greater than any time in the past 10 years.  At the same time, there are greater opportunities to purchase quality properties in a stable market.  The returns have never been greater for commercial real estate assets in Southern New Jersey and Philadelphia.   

WCRE can help you take advantage of this unique set of market conditions.  Our investment team has years of experience with a variety of asset classes in the region.  They can help you find just the right property to create better certainty, increased returns, and greater diversification to your real estate investment portfolio. 

If you are considering the sale or purchase of property as an investment vehicle, the professionals at WCRE can provide the right guidance and analysis to help generate the maximum return on your assets.

Please visit our website at www.wolfcre.com for a full listing of South Jersey and Philadelphia commercial properties for lease or sale through our New Jersey and Pennsylvania commercial real estate brokerage firm.

For More Information Contact:

transfer-taxesAnthony V. Mannino, Esq.

P: 215 799 6900

D: 215 799 6140

F: 856 283 3950

M: 215 470 6084

Email Me>>>

 

For More Information Contact:

johntJohn T. Mozzillo

P: 856 857 6300

D: 856 857 6304

F: 856 283 3950

M: 856 816 6973

Email Me>>>

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Funding Project Infrastructure

Funding Project Infrastructure

Application Period Open for Commonwealth Financing Authority Multimodal Grants.

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In 2013, Pennsylvania passed Act 89, legislation that created new funding for investment in transportation projects statewide. One notable element of the bill was the creation of a Multimodal Fund for non-highway capital needs. By the fifth year of the fund, nearly $144 million in will be awarded annually to public and private entities for transportation-related projects statewide. Beginning on March 1st, applications are being accepted for the latest round of funding.

Broadly defined, the multimodal grants are available for planning and capital projects related to ports and waterways, freight and passenger rail, aviation, transit, and bicycle and pedestrian use. Eligible applicants are municipalities, councils of government, private businesses and nonprofits, economic development organizations, public transportation agencies, or railroad and port operators.

Many multimodal grants are used for capital improvements that are purely public in nature, such as the Delaware River Waterfront Corporation’s project to improve Spring Garden Street in the area of I-95. However, multimodal funding can be used to supplement construction of private developments under the banner of streetscape and pedestrian improvements. Examples of recent projects in Philadelphia include:

  • AIMCO and the City of Philadelphia are collaborating on the redevelopment of Park Towne Place, an 18-story residential and retail complex. A multimodal grant will fund street and sidewalk repairs, the installation of ADA sidewalks and drive entries, lighting and signage, and the upgrading of shuttle stops along the adjacent Benjamin Franklin Parkway.
  • Children’s’ Hospital of Philadelphia (CHOP) will use a grant to help fund the construction of a pedestrian bridge and stairway to link its main campus to the Schuylkill Banks/River Trail. The project will provide a safer crossing over an active rail line.
  • The Pennsylvania Real Estate Investment Trust (PREIT) received a grant to renovate the entrances and exits along 9th and 10th streets at the Gallery Mall. The funds will make the area safer and more accessible with improved lighting, streetscapes and signage.

Grants can range anywhere from $500,000 to $3 million. Matching funds are required and project expenditures must take place within certain timeframe to qualify for reimbursement.

There are actually two separately-administered multimodal programs, each with its own set of deadlines. One is jointly administered by the Commonwealth Financing Authority (CFA) and Department of Community and Economic Development (DCED). The application period for CFA/DCED multimodal grants runs from March 1, 2016 to July 3, 2016. Projects will be awarded at the November 2016 CFA board meeting.

The other multimodal fund is administered by the Pennsylvania Department of Transportation (PennDOT); the next application period is expected to open later in 2016. Qualifying applicants may apply to both the CFA/DCED and PennDOT programs for the same project.

Public incentives can be a useful tool for making a project economically viable, but should not be viewed as a primary source of funding. Applicants should also be aware that additional advocacy may be needed as part of a successful application.

If you are developing a project which may qualify for funding, the professionals at Wolf Commercial Real Estate can provide advice on a variety of successful strategies for pursing public and private sources of funding.

For more information:

http://www.newpa.com/programs/multimodal-transportation-fund/

http://www.penndot.gov/ProjectAndPrograms/MultimodalProgram/Pages/default.aspx#.VtSnm_krLIV

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 New Jersey office space or Philly or South Jersey retail space for sale or lease, Wolf Commercial Real Estate is the Philadelphia and Southern New Jersey 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
anthony.mannino@wolfcre.com

 

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WCRE and Somerset Properties Report Active First Half of 2015, with Approximately 140,000 Square Feet of Completed Lease Transactions

WCRE and Somerset Properties Report Active First Half of 2015 (PDF)

August 3, 2015 – Marlton, NJ – WCRE and Somerset Properties have been making a noticeable dent in the amount of vacant commercial space in Southern New Jersey. The companies announced multiple lease transactions totaling approximately 140,000 sf so far this year. WCRE participated in six total leases within Somerset’s portfolio: three transactions at Greentree North Corporate Center in Mount Laurel, NJ, two at Marlton Crossing Office Park, 303 Lippincott Drive in Marlton, NJ, and one lease at Horizon Corporate Center, 3000 Atrium Way in Mount Laurel, NJ.

Jeff Arnold, regional manager at Somerset struck a positive tone last week speaking at Bisnow’s Future of South Jersey event. “The regional CRE market has been gaining strength for a while now, and I am optimistic we will continue to see growth,” he said.

WCRE’s leasing team of Christina Del Duca, Leor Hemo, Chris Henderson, and Jason Wolf exclusively represented Somerset Properties in the marketing and leasing of these spaces, working collaboratively with ownership and the entire brokerage community to successfully lease the following spaces.

  • New 61,612 square foot lease at 303 Lippincott Drive, Marlton, NJ to a major healthcare company.
  • 42,022 square foot lease renewal and expansion of 22,718 square feet at 3000 Atrium Way, Mount Laurel, NJ to a large bank.
  • New 13,998 square foot lease at 303 Lippincott Drive, Marlton, NJ to a financial services firm.
  • New 9,100 square foot lease and expansion at 16000 Commerce Parkway for corporate offices.
  • Renewal of 7,500 square foot lease at 16000 Commerce Parkway, Mount Laurel, NJ to an engineering firm.
  • New 6,000 square foot lease at 6000 Commerce Parkway, Mount Laurel, NJ for a fitness center.

Somerset entered the Southern New Jersey market in 2013 by acquiring Liberty Property Trust’s entire office/flex portfolio comprising approximately 1,500,000 square feet. Overall, the portfolio is approximately 89 percent occupied. Notably, 3000 Atrium Way is now fully occupied, and 303 Lippincott Drive is 97 percent leased, with one remaining vacancy of 2,700 SF that can accommodate a small corporate office user.

“Somerset Properties is a very community-focused and entrepreneurial operator, and their recent success has set a bullish tone for our market,” said Christina Del Duca, vice president at WCRE. “We have several pending deals heading into the third quarter, and we’re optimistic about the prospect pipeline for the properties Somerset has entrusted to our WCRE team.”

With many of the larger blocks of space in Burlington County being absorbed over the past few years, Somerset has put a strong focus on several large blocks of space that are available for lease. Greentree North has available spaces up to 31,000 square feet. Marlton Crossing Office Park’s single story office properties have available spaces from 2,700 to 12,000 square feet. 2000 Crawford Place has available spaces from 3000 to 9390 square feet.

The Greentree North Corporate Center properties are well located on Commerce Parkway, providing direct access to Route 73 and convenient access to I-295, the New Jersey Turnpike, and Route 70. Amenities within the Greentree North Corporate Center include an on-site daycare center, and there are several restaurants, retail stores, banks, and hotels in the immediate area, including Greentree Square Shopping Center, East Gate Square, and the Moorestown Mall.

The Marlton Crossing Office Park single story properties are located on Lippincott Drive, which is directly off of Route 73, with convenient access to I-295, the New Jersey Turnpike, and Route 70. These properties are also surrounded by an abundance of retail centers, including restaurants and The Promenade at Sagemore. Amenities include a walking/jogging path within the office park.

The Horizon Corporate Center, home to 2000 Crawford Place, is positioned in a beautifully landscaped corporate park with space available for immediate occupancy. The property has a new exterior façade and is easily accessible to Routes 73, 70, 38, I-295 & NJ Turnpike.

A marketing brochure for each of these properties is available upon request or can be viewed at www.WolfCRE.com.

About WCRE

WCRE is a full-service commercial real estate brokerage and advisory firm specializing in office, medical, retail, 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, 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 and Instagram @WCRE1, and on Facebook at Wolf Commercial Real Estate, LLC.

Visit our blog pages at www.marltonofficespace.com, www.mountlaurelofficespace.com, www.southjerseyofficespace.com, www.southjerseyindustrialspace.com, www.southjerseymedicalspace.com, www.southjerseyland.com, and www.southjerseyretailspace.com.

About Somerset Properties

Somerset Properties is a full-service commercial real estate company that owns and operates five million square feet of space in five states. Since 1996 Somerset has been creating value for investors with its entrepreneurial approach to acquiring, managing, leasing, and developing commercial properties. Learn more about Somerset Properties at www.somprop.com

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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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