Tag Archives: U.S. commercial real estate


Purchasing Commercial Real Estate – How To Protect Your Financial Data

Purchasing Commercial Real EstateWhen it comes to purchasing commercial real estate, protecting your secure information is critical. The following aricle outlines some of the situations you must be aware of when purchasing commercial real estate.

Download the full article here.

Regardless if you are purchasing, selling, renting, leasing, or building a commercial property, a wealth of information about you is shared with multiple vendors throughout the transaction. Realtors, Titling Agencies, Real Estate Attorneys, CPAs, and Banks all provide important services when dealing with a real-estate transaction. No one is going to take the security of your data as serious as you, unless it is demanded by compliance requirements OR YOU.

It is time that we, as consumers, start to demand at least the most basic of security controls from the vendors that we work with, especially when purchasing commercial real estate. After all, the effects of carelessness end up effecting us the most. The rest of this article will dive into a few of these recent cyber scams related to real estate and what we can do to protect ourselves.

SITUATION #1
One of the latest scams in recent months starts when the scammer hacks into a busy real estate agent’s email account. The scammer starts watching emails go back and forth waiting for a big sale that is about to close. As closing day nears, the scammer registers a new email address similar to the agents. (i.e. “Josephine Smith” <jsmith@prudental.com> instead of “Josephine Smith” <jsmith@prudential.com> or jkweilin@yahoo.com instead of jkwellin@yahoo.com.) They then email escrow from this email address acting as the listing agent and tell escrow where to wire the funds for the sale. Usually the deed transferring the title has already been completed and escrow closed before the sellers start wondering where their wire transfer is a few days later.

SITUATION #2
People are constantly attached to their cell phones now-a-days. With limited data plans many people will connect to the free Wi-Fi networks at your favorite Starbucks or Dunkin Doughnuts. If you’ve every connected to one of these before you may realize the next time that you go back it automatically connects. That is because the network has been saved in your device and your device is constantly looking for these networks so that when it finds one it automatically connects. The problem is that a scammer with a $15 transmitting device can “read” the known networks on your devices and the recreate a fake network with the same name, then just like that your device connects and the scammer has access.

SITUATION #3
There have been alerts about particular strands of malware that targets settlement software. The malware is called ZeuS Bot and Zero Access Rootkit, which attacks settlement software and issues checks and moves funds into fictitious files. There have been cases of potential loss exceeding $300,000 per incident.

SITUATION #4
The Consumer Financial Protection Bureau (CFPB) made an advancement in protecting consumer’s information last October. CFPB Compliance is one of the largest safeguards protecting consumer data privacy and it requires title agents and other professionals who handle housing transactions to maintain compliance or else face steep financial penalties. The two most important aspects of maintaining compliance is the security and privacy of NP (non-public information) and TILA-RESPA (Truth in Lending Act and Real Estate Settlement Procedures Act). As of October 2015, all financial data transferred via email must be encrypted. (i.e. HUD documents) Unfortunately, 7 months later I have still seen a lack of compliance to this requirement.

How To Protect Yourself When Purchasing Commercial Real Estate

Doing your due diligence ahead of time when picking entities to help you with your real-estate transaction will not only keep your private information safe. It will ensure that you are working with the leaders in the industry. Those that care about your personal information and understand not only the legal requirements but also the ethical requirements. Which, by-the-way, tend to be the vendors that have mature processes and practices in place to ensure maximum uptime of their services making sure that your transaction goes as smooth as possible. So, here are some tips of what to look for. These apply to everyone involved. Banks, Real-estate Agents, Title Agencies, CPAs, and Attorneys. You’re only as secure as the weakest link.

1) Do not do business with a real-estate agent that uses their personal email addresses from places like yahoo, Gmail, or Aol. This is the sign of “smoke” before a “fire”. Using personal email addresses show a lack of appropriate security controls and structure within the organization. They are often more easily hacked due to the lack of organizational control without the mechanisms to monitor for unauthorized access. Sending personal information about yourself to a free email account can expose you to a slew of security concerns.

2) Do they have a security awareness training? This is vitally important these days since most “breaches” are not technical in nature. They are done by the manipulation of the ignorance of a human.

3) Is there written policies and procedures in place to safeguard their client’s personal information. Having written policies shows that the company has done their due diligence by at least discussing the risk of taking your personal information on a laptop to the Starbucks for free Wi-Fi. What happens if the laptop is in a vehicle and is stolen? Does their written policy say to take laptops home they must have hard drive encryption? I know it sounds to technical to understand or implement, but here’s a little secret. “IT’S NOT ANYMORE” It just takes the adoption of the powers to be. (Sometimes the most difficult of obstacles)

4) Is there a shred policy? At one point your documents are going to be printed. Where do they go after you’re done?

5) Do they store client files in a locking file cabinet? Janitorial staff often comes by on nights and weekends when no one is there. A simple cell phone camera clicks and no one knows the difference. Not even a finger print left behind.

6) Do they use public or shared Wi-Fi? Ask then in casual conversation about password policies. You can make a simple remark like “It’s such a pain, my company makes me change my passwords every six months. Does yours?” BTW, six months is WAY too long to change passwords ESPECIALLY when dealing with financial data.

7) Don’t ever let them fool you by saying “We don’t store that information hear onsite. It’s all stored there so you have nothing to worry.” If they have access to it, that means that anyone that has access to them has access to it!!

8) Ask the agency if what their state’s “security breach notification law” is. Every state has one and they SHOULD know what it is.

9) If you see any agent accessing your personal information on a thumb drive, at MINIMUM, ask for a copy of their organizational wide policy. If they don’t have one you may want them to review the American Land Title Association (ALTA) guidelines surrounding nonpublic information (NPI) stating that “The use of removable data devices, like thumb drives, should be either prohibited outright or strictly controlled via an organization-wide policy.”

10) Ask them to send you a “test” encrypted email. If they cannot do so easily, then that means any backend operations involving YOUR personal information isn’t encrypted in compliance with government regulations.

Following these steps will help when purchasing commercial real estate.

For more information contact:


David J. Humphreys, MS, Security+, CISSP
humphreys CTO & Principal Security Consultant
phone: 856.316.4144 x103
Email: david@avasek.com

 

 

 

comberKevin Comber, ITIL, CBCP
VP of Business Resiliency
phone: 856.316.4144 x102
email: kevin@avasek.com

 

Share

Green Building in U.S. Commercial Real Estate Could Double by 2018

new Jason stats graphic - June 2015U.S. construction companies will ramp up green building activities during the next three years, potentially doubling past efforts to “go green” in the U.S. Commercial Real Estate industry, according to a news report from the CoStar Group.

CoStar cited the new World Green Building Trends study, which named the U.S. as one of the countries with the greatest number of construction firms planning to build new green institutional projects or work on green retrofits of existing buildings.  The global study — conducted by Dodge Data & Analytics with support from United Technologies Corp., Saint-Gobain, the U.S. Green Building Council and the Regenerative Network — taps the U.S. as a strong participant in the global green movement.

Survey respondents noted that more than 60% of pending construction projects in the U.S. Commercial Real Estate industry will include green design principles, a significant increase from the 2015 survey, CoStar reported.  Respondents who expect less than 15% of projects to be certified green measured 41% in 2015, but dropped to 27% for projections through 2018, according to the report.

The initiative to go green will present great opportunities for U.S. construction companies, as will the growth in green projects in developing countries, a Dodge Data & Analytics executive told CoStar, noting that the expertise of U.S. green designers, builders and manufacturers likely will be needed to support global green expectations.

The survey found that 46% of U.S. respondents anticipate working on new green institutional buildings (schools, hospitals, public buildings, etc.), compared to 38% worldwide, Costar said.  In addition, 43% of U.S. respondents expect work on green retrofits of existing buildings, as compared to a global average of 37% for this category, according to the news report.

However, U.S. respondents lagged slightly behind the global average when it comes to green building on private commercial projects, with only 41% of U.S. respondents predicting they will work on certified green commercial projects, compared to 46% globally, CoStar reported.

The one area in which the U.S. fell significantly below global expectations was in high-rise residential construction, with 15% of U.S. respondents planning to go green in this sector in comparison to 25% globally, according to the report.

U.S. respondents also stood apart from the global viewpoint, with 76% of U.S. respondents saying reducing energy consumption was the most important environmental reason to construct green buildings.  That finding almost doubled the percentage that called reducing water consumption the next most important environmental reason to go green, CoStar said.

A United Technologies sustainability officer said the study shows more firms in the U.S. Commercial Real Estate industry “recognize the economic and productivity value that green buildings bring to property owners and tenants, along with the energy and water benefits to the environment, which is driving the green building industry’s growth. It’s a win-win for people, planet and the economy.”

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 (lee.fein@wolfcre.com) at Wolf Commercial Real Estate, a premier Philadelphia commercial real estate broker with expertise in Philly office space and Philly retail space.

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

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker that specializes in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly office space or 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.

Share

Surge in Architect Billings Portends Well for U.S. Commercial Real Estate Development

new Jason stats graphic - June 2015A surge in architecture billings predicts strong growth for U.S. Commercial Real Estate  development in 2016, a new index says.

The Architecture Billings Index (ABI), which is compiled by the American Institute of Architects (AIA), increased from 49.1 in August to 53.7 in September after experiencing a small drop the month before.  The index has expanded in six of the past nine months of 2015.

The ABI, which is a key indicator for U.S. Commercial Real Estate construction, presents a picture of billable design work roughly nine to 12 months before funds are actually spent on construction.

Another index, the new projects inquiry index, decreased somewhat from 61.8 in August to 61 in September.

The regional ABI remained the weakest in the Northeast at 43.7, while the most robust expansion was experienced in the South and the Midwest, standing at 54.5 and 54.2, respectively. The ABI for the West region was 51.7 in September.

Almost every market and every commercial property type saw increasing construction deliveries and starts in 2015, lately in the retail real estate sector.  The optimistic ABI index is a strong indicator that this hastening pace of development will continue well into 2016.

Fitch Rating also issued a report in October showing that the first eight months of 2015 experienced robust activity for U.S. private nonresidential construction, with the rate of construction spending anticipated to continue strongly through 2016.

From January through August, private nonresidential construction spending jumped 12.1% in over the same period a year prior.  That achievement came on the heels of an 11.3% improvement in 2014.

Manufacturing, office and lodging properties saw the healthiest levels of construction spending.  Fitch predicts the sector will increase by 8.5% in 2015 and 7% in 2016.   Public construction spending for projects such as highway and street construction also grew in 2015, up 5.8% during the first eight months of the year.

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 (lee.fein@wolfcre.com) at Wolf Commercial Real Estate, a premier 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 commercial real estate broker that specializes in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly office space or 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.

Share

Net Operating Income Remains Strong among Commercial Mortgage-Backed Securities

new Jason stats graphic - June 2015Net operating income (NOI) for performing securitized loans were up 2.7% in 2014 from their original underwritten levels, signaling strong but uneven growth in the performance of U.S. commercial properties and Philadelphia commercial properties, according to the latest analysis from a leading commercial mortgage-backed securities (CMBS) bond rating agency.

Overall, Nomura Securities International noted a “healthy dynamic” of performance currently is in place for U.S. commercial real estate and for Philadelphia commercial real estate. This report recently was shared with Philadelphia commercial real estate broker Wolf Commercial Real Estate, a leading Philadelphia commercial real estate brokerage firm that represents a number of Philadelphia commercial real estate listings.

Across securitized assets involving U.S. commercial real estate and Philadelphia commercial real estate, NOI growth at lodging properties outpaced other property types, while multifamily-backed CMBS NOIs underperformed.

“Given the diversity of properties securing CMBS loans, we would expect that changes in NOI should reflect national trends,” Nomura analysts said, including both Philadelphia commercial properties and U.S. commercial properties in their analysis. “While employment levels across the U.S. have improved, building remains subdued (outside of the multifamily and lodging sectors), creating a healthy dynamic for commercial real estate performance.”

In contrast, the multifamily and hotel sectors have benefited from several years of strong growth due to dislocation in the housing market and increased corporate and leisure travel, respectively.

According to CoStar Group Portfolio Strategies, office and retail NOI is currently 1% and 6% below values seen in 2010, respectively. However, CoStar is projecting that both sectors will show improvement over the next few quarters. This is seen as welcome news for Philadelphia commercial real estate listings, according to the Philadelphia commercial real estate brokerage firm of Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker.

Office NOI has likely stabilized and should regain 2010 levels very shortly as new construction remains subdued in most markets and employment growth (especially in white collar sectors) has resulted in positive absorption, allowing owners to begin pushing rents, Nomura noted, citing CoStar data.

While retail vacancy among U.S. commercial properties and Philadelphia commercial properties is low in prime shopping locations, overall retail vacancy remains elevated, which has dampened demand for new construction, according to Nomura.

However, in spite of these headwinds, the sector is starting to see positive absorption as discounters expand into empty big-box stores and neighborhood centers are benefiting from a more positive economic outlook, as well as the growth in the single family housing market, Nomura analysts added. Such expansion is welcome news for U.S. commercial real estate and Philadelphia commercial real estate.

Across the four major property types, lodging properties showed the largest NOI improvement. The lodging sector saw an increase of 12% from underwritten levels, with 71% of loans reporting improvement in NOI. Growth in lodging, a key sector among current Philadelphia commercial real estate listings, is seen as positive by Philadelphia commercial real estate broker Wolf Commercial Real Estate, a leading Philadelphia commercial real estate brokerage firm.

Based on national trends, Nomura said it would expect the multifamily sector as a whole to perform more strongly as well. On average, these properties report a 3% decrease from underwritten NOI, versus a 3% increase across all property types, and almost a quarter report a decline in most recent NOI of more than 10% from underwritten levels.

For more information about 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 (lee.fein@wolfcre.com) at Wolf Commercial Real Estate, a premier Philadelphia commercial real estate broker that specializes in Philadelphia commercial real estate.

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, industrial 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 Philadelphia commercial properties that best meet their needs.

As experts in Philadelphia commercial real estate 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 commercial real estate 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.

Share

Construction Not Keeping Up with Demand in Light Industrial Market

new Jason stats graphic - June 2015While huge warehouse and distribution mega-boxes get most of the attention from analysts and institutional capital, the unassuming light-industrial market in U.S. commercial properties has quietly emerged as the sleeper in today’s red-hot U.S. industrial market.

At midyear, the overall industrial sector, including industrial space in Philadelphia, led all major commercial property types in growth of investment sales and rental rate appreciation. The light industrial and manufacturing subtype between 100,000 to 300,000 square feet in the U.S. commercial real estate market boasted the highest year-over-year rent growth of any property type at 5.7%, compared to 5.4% for logistics buildings, 4% for office and 3.9% for apartments.

In fact, U.S. light industrial and Philadelphia industrial space are so hot that even older, lower-functioning buildings — many located on infill properties in supply-constrained markets — posted annual rent growth of 6.1%, the strongest rent growth within the entire industrial spectrum, according to a report from The CoStar Group that is being shared by Wolf Commercial Real Estate, a leading Philadelphia commercial real estate brokerage firm.

Another reason for the spiking rents is that the both the U.S. light industrial and the industrial space in Philadelphia sectors have seen little growth in new supply in the current cycle. Most big-name capital sources remain focused on acquiring and developing mega-logistics properties when searching U.S. commercial real estate listings. These properties are capturing the bulk of industrial net absorption, fueled by the so-called “Amazon effect” of e-commerce as retailers reconfigure their supply chains around same-day or next-day shipping.

Investors may finally be ready to take another look at light industrial development in U.S. commercial properties. As rents for these smaller buildings have ticked up, replacement rents now appear to be high enough in many markets to justify new construction.

“Finally, light industrial development is starting to pencil out,” said Rene Circ, CoStar Director of Research, Industrial Property who prepared the report that was shared with Wolf Commercial Real Estate, a top Philadelphia commercial real estate brokerage firm. “The tenants are there, the economy is fine, but the space is not.”

Replacement rents for both national industrial space and industrial space in Philadelphia have been high enough to support construction of larger warehouse and distribution properties in U.S. commercial properties for several quarters, and developers have heeded the call. While maintaining a measured pace of development in most markets, logistics construction last year finally passed the average of 120 million square feet under construction annually during the previous expansion cycle between 2002 through 2007.

That said, light industrial construction involving U.S. commercial real estate listings has remained stubbornly below its previous cycle average of 40 million square feet under construction annually.

“It’s very unusual for industrial to post this kind of rent growth and beat out the office and multifamily sectors,” Circ said in his report on national and Philadelphia industrial space that echoes the beliefs of the local market experts at Wolf Commercial Real Estate, a highly respected Philadelphia commercial real estate brokerage firm.

For more information about Philadelphia industrial 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 industrial 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, industrial 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 industrial space with the Philadelphia commercial properties that best meets their needs.

As experts in Philadelphia commercial real estate 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 industrial 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.

Share

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.

Share

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.

Share

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.

Share

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.

Share

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.

Share

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.

Share

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.

Share

Share

Share