Tag Archives: U.S. commercial property


Low Level of Retail Construction Starting to Crimp Net Absorption

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

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

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

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

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

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

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

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

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

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with expertise in Philadelphia commercial real estate listings and services, provides unparalleled expertise in matching companies and individuals seeking new Philadelphia retail space with the Philadelphia commercial properties that best meets their needs.  As experts in Philadelphia commercial real estate services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for retail space Philadelphia for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

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Office Supply Growth Remains Strong Despite Absorption

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

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

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

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

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

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

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

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

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

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with extensive expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philadelphia office space or new Philadelphia retail space with the Philadelphia commercial properties that best meets their needs.  As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philadelphia office space or Philadelphia retail space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

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

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

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

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

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

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

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

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

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

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with extensive expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philadelphia office space or new Philadelphia retail space with the Philadelphia commercial properties that best meets their needs.  As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philadelphia office space or Philadelphia retail space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

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

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

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

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

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

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

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

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

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

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with extensive expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philadelphia office space or new Philadelphia retail space with the Philadelphia commercial properties that best meets their needs.  As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philadelphia office space or Philadelphia retail space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

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Pre-Construction Architect Index Back In Positive Territory

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

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

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

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

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

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

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

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

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

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with extensive expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly office space or new Philly retail space with the Philadelphia commercial properties that best meets their needs.  As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philly office space or Philly retail space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with extensive expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly office space or new Philly retail space with the Philadelphia commercial properties that best meets their needs.  As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philly office space or Philly retail space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

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

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After First-Quarter Surge, Commercial Real Estate Price Growth Levels Off

new Jason stats graphic - June 2015National commercial property prices leveled off in April after sales volume and property prices rose in the first three months of 2015, gaining more than 5% in the first quarter. The U.S. Composite Index in the latest CoStar Commercial Repeat Sale Indices (CCRSI) report found that prices dipped slightly in April as gains slowed a bit from a recent robust pace.

Both the value-weighted and the equal-weighted U.S. Composite indices decreased slightly in April, by 0.7% and 0.8%, respectively. Both had risen over the last three months, however, and are up more than 12% for the 12-month period ending in April 2015.

The investment grade segment of the equal-weighted U.S. Composite Index — which weighs each transaction equally and reflects the impact from the more numerous smaller market transactions — decreased by 1% in April. The U.S. general commercial segment of the equal-weighted index, which includes sales of lower-tier properties, declined by 0.8%.

Both indices remain positioned for continued recovery and are trending well above their prior year levels. See the full CCRSI June release and supporting materials.

While sales activity declined in April from the record-setting monthly pace set in the first three months of the year — in which repeat-sale transaction volume logged the highest first-quarter total since the CCRSI began — trailing 12-month pair sales remained strong for the month. April 2015 sales volume was still well above the year-prior monthly total, contributing to the strong annual gains.

In fact, the pair volume of $112.6 billion logged for the U.S. Composite Index during the 12 months through April 2015 constituted a 30% increase from the prior 12-month period, reflecting continued capital flows into commercial real estate.

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

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

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with extensive expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly office space or new Philly retail space with the Philadelphia commercial properties that best meets their needs.  As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philly office space or Philly retail space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

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

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Three Years of Growth Predicted for U.S. Commercial Real Estate Market

magnifying glassModerate economic growth will support steady strengthening in U.S. commercial real estate capital markets and fundamentals during the next three years, resulting in solid but unspectacular returns for U.S. real estate investors,  according to a report from the CoStar Group on the newest Urban Land Institute/EY Real Estate Consensus Forecast.

The forecast, which is based on a survey of 43 experts representing 32 of the nation’s top real estate investment, advisory and research firms, sees a slightly more rosy future for commercial property transaction volume and pricing, multifamily fundamentals and returns on institutional commercial real estate properties than did the April forecast.

The U.S. commercial real estate experts polled for the survey voiced apprehension regarding recent economic developments, including this week’s equities market selloff, the decline in oil prices and nervousness over global economic growth, CoStar said.  But the broader forecast for U.S. commercial real estate sectors overall was positive.

CoStar’s reported key findings from the forecast include:

— U.S. commercial property transaction volume is predicted to grow, but at a declining rate.  Volume will reach $445 by 2016, surpassing the second highest pre-recession annual volume reached in 2006.

— CMBS issuance will continue to grow, but at a more moderate rate, rising 43% by 2016, as compared to its nearly 80% increase in 2013.

— Look for returns of 11 percent on institutional real estate assets in 2014, moderating to 8.5% per year by 2016.

— U.S. commercial property prices are forecast to grow 10% this year, then slow to 6% in 2015 and 5% in 2016.

— Office, retail and industrial property vacancy rates will show a modest decline, but vacancy rates for apartments will rise.  Continued improvement in hotel occupancy rates are predicted.

— Rents for the four major U.S. commercial property types are predicted to rise.  Increases in 2014 will range from 2% growth rate for retail space to 4% for industrial space. Rents will jump by 4% for office space in 2016 and by 3% for all other property types.

For more information about Philly office space, Philly retail space or other Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com), Leor Hemo (leor.hemo@wolfcre.com) or Lee Fein (215-799-6900-office; 215-206-5580-cell; lee.fein@wolfcre.com) at Wolf Commercial Real Estate, a premier Philadelphia commercial real estate broker that specializes in Philly office space.

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

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with extensive expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly office space or new Philly retail space with the Philadelphia commercial properties that best meets their needs.  As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philly office space or Philly retail space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

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

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