Tag Archives: South Jersey commercial real estate


WCRE Exclusively Represents Samaritan Healthcare & Hospice Secure Their New Mount Laurel Headquarters Location

Redevelopment Continues in Region

Samaritan Healthcare & Hospice

WCRE is proud to have played a key role in representing Samaritan Healthcare & Hospice procure their new Headquarter location in Mount Laurel, New Jersey. Samaritan Healthcare & Hospice completed a long-term lease at the 27,600 square foot free standing office building located at 3906 Church Road in Mount Laurel, NJ. The property is positioned directly across from Lifetime Fitness and directly next to several other well-known community service occupiers, including Bancroft. 3906 Church Road provides immediate access to I-295 (Exit 36) and The New Jersey Turnpike providing for convenient access for their clients and employees.

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Samaritan plans to relocate their entire Marlton office where they currently occupy approximately 21,000 SF of office space for the last 20 plus years.

The new Mount Laurel facility will be a complete interior and exterior renovation bringing a fresh, new look to the building.

Samaritan will relocate its corporate office to the new location in the beginning of 2020, the year of Samaritan’s 40th anniversary. “It’s an exciting time for Samaritan. A new year, new expanded services, and a new home,” says Mary Ann Boccolini, President and CEO of Samaritan Healthcare & Hospice. “The expanded space in the new building will enable us to support our growing family of services and employee base that touches over 10,000 lives every year. This new space will support our growth in years to come as we provide more and more essential healthcare services across the healthcare continuum to more and more people in the south Jersey and surrounding communities.”

WCRE’s Managing Principal, Jason Wolf noted the complexity involved in matching the parties according to their needs. “This assignment showcases our ability to work with multiple parties to structure a long-term investment and redevelopment transaction that will provide excellent outcomes for everyone involved,” Wolf said.

This transaction adds to WCRE’s growing number of educational, non-profit and institutional transactions in the Philadelphia and Southern New Jersey region. This highly specialized sector is an area of strength and growth for WCRE.

The local ownership of 3906 Church Road was represented by Evan Zweben at Colliers International and Veritas Real Estate.

About WCRE

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

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

 

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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 Second Quarter Report: Southern New Jersey Market Shows Strong Fundamentals

WCRE Second Quarter Report: Southern New Jersey Market Shows Strong Fundamentals, Appears Poised For Growth

July 7, 2017 – Marlton, NJ – Commercial real estate brokerage WCRE reported in its latest quarterly analysis that the Southern New Jersey market, which started off 2017 on a cautiously optimistic note, continued picking up steam through the second quarter.

“The overall mood of the market seems to be positive, riding a wave of steady moderate growth in the national economy, increasing expansion locally, and investor interest from outside the region” said Jason Wolf, founder and managing principal of WCRE. “Office occupancy needs increased during the quarter, and we have been seeing increased capital spending and construction hiring this year for the first time in years.”

There were approximately 395,155 square feet of new leases and renewals executed in the three counties surveyed (Burlington, Camden and Gloucester), which represents an increase of approximately 24 percent compared with the previous quarter, and a remarkable 58 percent increase over the second quarter last year. While leasing showed this notable rise, the sales market had a dip in volume during the second quarter, with some 554,590 square feet worth more than $46.1 million trading hands.

New leasing activity accounted for approximately 43.4 percent of all deals. Overall, gross leasing absorption for the quarter was in the range of approximately 85,000 square feet.

Download the Report (PDF) >>>

Other office market highlights from the report:

Overall vacancy in the market is now approximately 10.4 percent, which is a solid improvement over the previous quarter’s 11.05 percent.

Average rents for Class A & B product continue to show strong support in the range of $10.00-$14.50/sf NNN or $20.00-$24.50/sf gross for the deals completed during the quarter. This is essentially unchanged from the previous two quarters.

Vacancy in Camden County improved dramatically, standing at 11.7 percent for the second quarter, down from 13.3 percent in the first quarter.

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

The Philadelphia industrial market remains very healthy, and the outlook is positive. Vacancy rates for flex and industrial properties in Philadelphia are well below the regional and national averages, and the expectation is that supply will continue to meet demand.

Philadelphia’s office market continues to gain strength across the board, with far lower vacancy rates than regional and national averages for both Class A and Class B properties in the Central Business Districts and around the suburbs. Conditions are in place that seem to bode well for continued growth, including increasing employment and new construction.

The Philadelphia retail sector has not been immune to the systemic challenges facing retail businesses everywhere. Namely, the massive shift to online retailing and away from brick-and-mortar. Still, there were some positive signs amid the spate of announced store closings. Community shopping centers remain an area of strength in the market, with vacancy rates nearly half the national average. 

WCRE also reported on the Southern New Jersey retail market, noting that e-commerce sales were high and moving higher still, while brick-and-mortar retail sales were growing at a modest two percent. Overall retail sales were 3.9 percent higher this year compared to 2016. Highlights from the retail section of the report include:

Retail vacancy in Camden County stood at 9.4 percent, with average rents in the range of $11.33/sf NNN.

Retail vacancy in Burlington County stood at 10.5 percent, with average rents in the range of $13.35/sf NNN.

Retail vacancy in Gloucester County stood at 7.1 percent, with average rents in the range of $13.78/sf NNN.

The full report is available upon request.

About WCRE/CORFAC International

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

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

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WCRE First Quarter Report: Southern New Jersey Market Is Weathering Global Uncertainties

WCRE FIRST QUARTER REPORT: Southern New Jersey Market Is Weathering Global Uncertainties with Characteristic Strength

April 6, 2017 – Marlton, NJ – Commercial real estate brokerage WCRE reported in its latest quarterly analysis that despite political uncertainty at home and around the world, the Southern New Jersey market has started off 2017 on a cautiously optimistic footing.

“Even with an expected winter slowdown affecting office leasing activity, and added anxiety with the transfer of political power in Washington, the overall mood of the market seems to be positive,” said Jason Wolf, founder and managing principal of WCRE. “As we’ve seen the past couple of years, several business sectors increased their occupancy needs during the first quarter, and we continue to see increased capital spending, construction hiring, and expansions.”

There were approximately 317,886 square feet of new leases and renewals executed in the three counties surveyed (Burlington, Camden and Gloucester), which represents a decrease of approximately 18 percent compared with the previous quarter, but is essentially unchanged from the first quarter last year. While leasing slowed a bit, the sales market doubled in volume during the first quarter, with some 767,988 square feet worth more than $133.5 million trading hands. New leasing activity accounted for approximately half of all deals – a big increase over the fourth quarter. Overall, net absorption for the quarter was in the range of approximately 122,572 square feet.

Download The Report PDF>>>

Other office market highlights from the report:

Overall vacancy in the market is now approximately 11.05 percent, which is a nominal increase from the previous quarter.

Average rents for Class A & B product continue to show strong support in the range of $10.00-$14.50/sf NNN or $20.00-$24.50/sf gross for the deals completed during the quarter. This is essentially unchanged from the previous two quarters.

New Jersey’s unemployment rate moved down to 4.4 percent, putting it below the national rate of 4.7 percent.

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

Office demand in Center City is still exceptionally strong, as rental rates continue on an upswing and vacancy levels are compressing to all-time lows.

There is a significant amount of inventory of multi-family, including recently developed, under construction, and proposed, in both the City of Philadelphia and Philadelphia suburbs. Rental rates have either remained relatively stable or decreased slightly. Concessions are becoming commonplace at many apartment communities.

While much of the pricing for commercial real estate accounts for increasing interest rates, many purchasers are showing signs of hesitation and fears of potential decreases in market fundamentals.

The industrial market in the City of Philadelphia and its suburbs is fetching price points never experienced in the marketplace. The lack of available product coupled with significant demand is putting further upward pressure on overall pricing.

WCRE also reported on the Southern New Jersey retail market, noting an incongruous mix of consumers earning more and showing a willingness to spend, and a high number of retailers declaring bankruptcy. The report attributes this to a growing shift to online shopping and other changes in spending habits. Highlights from the retail section of the report include:

The Conference Board reports that consumer confidence is at its highest level since 2000.

Nine retailers filed bankruptcy in the first quarter, which is the same as the total for all of 2016.

Retail vacancy in Camden County stood at 6.4 percent, with average rents in the range of $12.92/sf NNN.

Retail vacancy in Burlington County stood at 11.1 percent, with average rents in the range of $12.31/sf NNN.

Retail vacancy in Gloucester County stood at 5 percent, with average rents in the range of $12.01sf NNN.

The full report is available upon request.

About WCRE

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

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

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WCRE Third Quarter Report: Southern New Jersey Office Leasing Rebounds

WCRE Third Quarter Report: Southern New Jersey Office Leasing Rebounds, Still Lags Behind 2015 Levels

Office Leasing Posts Strongest Quarter of the Year, Investments, Sales, and Philadelphia Remain Areas Of Strength

wcre_3qtr2016_reportMarlton, NJ – Commercial real estate brokerage WCRE reported in its latest quarterly analysis that the Southern New Jersey office market has bounced back nicely from the slow-down in commercial leasing activity that began late last year. Office leasing totals for the third quarter were the strongest they have been all year, though they are still off from the same time last year. The investment and sales market continued its hot streak, and the city of Camden is seeing progress from the Grow New Jersey program.

“The Brexit vote was something of a shock to the system during the second quarter, but this region showed its resilience and the strength of its fundamentals,” said Jason Wolf, founder and managing principal of WCRE. “The upcoming election means more uncertainty in the near term, but the overall tone is one of cautious optimism.”

There were approximately 365,224 square feet of new leases and renewals executed in the three counties surveyed (Burlington, Camden and Gloucester), which represents an incredible improvement of 44 percent compared with the second quarter of the year. The quarter saw a slight decrease in prospecting, with about 225,000 SF of lease deals in the pipeline and expected to close in the near term. Still, the trend of positive absorption continued, making up approximately 195,000 square feet of total activity.

Overall market vacancy dropped as well, with Camden County leading the way.

Download the Report>>>

Other office market highlights from the report:

Overall vacancy in the market is now approximately 10.65%.

Average rents for Class A & B product continue to show strong support in the range of $10.00-$14.00/sf NNN or $20.00-$24.00/sf gross for the deals completed during the quarter. This is essentially unchanged from the previous several quarters.

All of the major private owners and REITS showed moderate leasing and prospect activity for the quarter – with Burlington County vacancies tightening up, many larger vacancy opportunities are also shifting towards Camden County, which is not controlled by these ownership entities.
On the sales and investment side, about 416,050 square feet of properties worth a total of more than $52 million were traded.

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

Philadelphia and the surrounding suburbs continue on an upward trajectory in terms of construction for multi-family and repositioning of older Class B/C assets to core Class A properties. Despite these trends, we are witnessing some hesitation from the banking community regarding the viability of these extraordinarily high pricing levels. With thousands of units either under construction or slated for development in the Philadelphia region, the question regarding rental rates and vacancy levels is coming to the forefront of many deals.

Aramark signed a lease at 2400 Market Street in Philadelphia for a new headquarters. The 280,000+/- square foot space will be state-of-the-art with unparalleled views of the Schuylkill River. This international entity looked elsewhere in the region for space but chose to remain in Center City, which bodes well for the future of the market.

Five Below chose the Lits Building for its new Center City headquarters. The company also plans on leasing 180,000 square feet of office space and 15,000 square feet of retail space at 701 Market Street.

Strong demand continues in the industrial market, as evidenced by increasing prices and rental rates. Though much of the institutional activity appears to be in central Pennsylvania and the Lehigh Valley, pricing for non-institutional assets, especially in Philadelphia and the surrounding counties, is stronger than ever.

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

Overall retail sales and spending dropped again, although restaurants, grocery stores, and clothing stores did post modest gains for the third quarter. Interestingly, consumer confidence grew at the same time, hitting a post-recession high.

Retail vacancy in Camden County stood at 11 percent, with average rents in the range of $12.20/sf NNN. This is a slight increase in both vacancy rates and average rents.

Retail vacancy in Burlington County stood at 10.2 percent, with average rents in the range of $13.15/sf NNN. This is a notable drop in vacancy, while rents stayed essentially unchanged.

Retail vacancy in Gloucester County stood at 6.9 percent, with average rents in the range of $12.01/sf NNN. This represented an uptick in vacancy with rents unchanged.

The full report is available upon request.

About WCRE

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

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

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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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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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