New Subsidies for East Market Project in Philly Office Space Market

philadelphia-skylineThe Philly office space market got a boost this week with a new infusion of subsidies for the much-anticipated East Market project in Center City Philadelphia.

The state of Pennsylvania has earmarked another $2.5 million in Redevelopment Assistance Capital Program (RACP) funds and the City of Philadelphia has committed $4 million in city funds to the group of developers behind the $230 million redevelopment plan that will bring new Philadelphia office space, Philadelphia retail space and apartment housing to Center City.

Pennsylvania Gov. Tom Corbett’s office said East Market already stood to receive $7.5 million in RACP funds, which are matching grants that are paid once a project is completed.

The massive East Market project covers the redevelopment of the 1100 block of Market Street, an important component in the Philly office space market.  Site prep work on the former Girard Square is already underway.  Demolition for the first phase is scheduled to begin in mid-October with construction slated to start in early 2015.  The redevelopment plan will bring 650,000 square feet of Philadelphia office space, Philadelphia retail space and apartment housing to the city.

Later stages of the project will depend on market conditions, including the market for office space in Philly.  Eventually, all of the structures on an entire city block bound by Market, Chestnut, 11th and 12th streets will be either renovated or replaced.

A 17-story tower with 160,000 square feet of Philadelphia retail space and 322 apartment units will be erected in phase one.  The initial phase also will include renovation of the 200,000-square-foot family court building which will have Philadelphia retail space at street level and Philadelphia office space above.

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

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 office space in Philly 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 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.

Philadelphia Office Space Deliveries, Construction And Inventory

research-information-graphic-phlSeven new office buildings totaling 413,734 square feet were completed in the Philadelphia office space market in the second quarter of 2014, according to the latest market trend report from the CoStar Group.  As a comparison, first quarter 2014 deliveries to the Philly office space market amounted to 121,952 square feet in four buildings.

Another 2,116,720 square feet of office space in Philly was under construction at second quarter’s end, according to CoStar’s Second Quarter 2014 Market Report.

Notable deliveries of office space in Philadelphiathis year include:  Two City Center, a 296,025-square-foot facility that delivered in second quarter 2014 and is now 40% occupied, and 1401 Roosevelt Avenue, a 60,000-square-foot building that delivered in first quarter 2014 and is now completely occupied, CoStar said.

The two largest projects under construction in the Philly office space market at the end of the second quarter this year were FMC Tower / Walnut Street Tower, an 830,000-square-foot building with 68% of its space pre-leased and 3737 Market Street, a 340,000-square-foot building with 82% of its space pre-leased, the market report noted.

Total Philadelphia office space inventory at the end of the second quarter stood at 401,999,668 square feet in 20,835 buildings, CoStar said, adding that the Class-A office sector equaled 128,991,730 square feet of office space in Philly in 955 projects.  Owner-occupied buildings in the Philly office space market numbered 942, representing 35,997,940 square feet of office space in Philadelphia, according to the report.

In comparison to second quarter Philly office space trends, 217 new buildings were delivered to the U.S. national office market, adding 11.38 million square feet of completed construction, CoStar noted.  Another 101 million square feet of office space in the U.S. market remained under construction at second quarter’s end, the report said.  In the South Florida market , the 80,000-square-foot facility at 3905 NW 107th Avenue delivered to the market while 520 Newport Center Drive, a 354,845-square-foot building in the Orange County market remain under construction.  Total office inventory at the end of the second quarter 2014 consisted of nearly 10.42 billion square feet in more than 500,800 buildings, of which about 20,800 were owner-occupied buildings representing 905 million square feet, according to CoStar.

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

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.

Philly Office Space Vacancy Rate Drops

research-information-graphic-phlThe Philly office space vacancy rate dropped in the second quarter 2014, closing the quarter with a vacancy rate of 10.9%  for the Philadelphia office space market, according to the CoStar Group’s newest market trend report.

Net absorption totaled positive 876,918 square feet of office space in Philly in the second quarter 2014.  In comparison, net absorption was negative 433,098 square feet of office space in Philadelphia in the first quarter 2014, CoStar’s First Quarter 2014 Market Report said.

Vacant sublease space in the Philly office space market decreased in the second quarter, ending the quarter  at 1,262,768 square feet, the report noted.

Costar said that among the tenants moving into large blocks of space in the Philadelphia office space market in 2014 were:  Incyte Corporation, moving into 191,056 square feet at 1801 Augustine Cut Off; The Harrisburg University of Science & Technology, moving into 149,820 square feet at Harrisburg University Academic Center; and Beneficial Mutual Bancorp, Inc., moving into 95,764 square feet at 1818 Beneficial Bank Place.

Rental rates in the market for Philadelphia office space increased over the previous quarter, the report said, ending the second quarter 2014 at $21.48.

A total of seven buildings delivered to the office space in Philly in the second quarter 2014, CoStar reported.  The seven buildings totaled 413,734 square feet of office space in Philadelphia.  An additional 2,116,720 square feet of office space in Philly remaining under construction at the end of the quarter, the report said.

In comparison to the quarterly results in the Philadelphia office space market, the U.S. National Office vacancy rate dropped to 11.4% from the previous quarter, CoStar noted, with net absorption at positive 24.53 million square feet in the second quarter. Nationally, average rental rates rose to $22.22, and 217 buildings delivered to the market totaling nearly 11.4 million square feet, according to the report.

For more information about office space in Philadelphia or any Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) at Wolf Commercial Real Estate, a premier Philadelphia commercial real estate brokerage firm that specializes in Philly office 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 and services, provides unparalleled expertise in matching companies and individuals seeking new Philadelphia office 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 office space in 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.

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.

WCRE REPORT: NEW INVESTMENT, SMALL BUSINESS EXPANSION STRENGTHEN SOUTHERN NEW JERSEY COMMERCIAL REAL ESTATE MARKET

research-information-graphic-phlJuly 8, 2014 – Marlton, NJ – The Southern New Jersey office market seems to have shifted from recovery mode toward the first steps of real growth, according to the latest analysis by Wolf Commercial Real Estate (WCRE). The firm’s quarterly market report finds a mix of mostly positive trends during the second quarter, making for an overall bullish tone in the market for 2014. The CRE market was very busy during the quarter, bouncing back from the setbacks imposed by the harsh winter to reclaim another portion of vacancy and set up a healthy pipeline of deals that are expected to close later in the year.

There were approximately 310,493 square feet of new leases and renewals executed in Burlington, Camden, and Gloucester Counties during the second quarter, including several large spaces, ranging in size from 6,000 to 44,000 square feet. Notably, expansions and new deals remained strong this quarter, representing 52 percent of all transactions. Net absorption for the quarter was approximately 112,368 sf, and prospect activity was extremely active, with a pipeline of approximately 350,000 square feet of pending deals expected to close during the third quarter.

“Vacancy rates continue to fall, and conditions in our region have improved to the point where we expect to see them fall even further,” said Jason Wolf, founder and principal of WCRE. “We’re seeing lower unemployment, including gains in office jobs, and a general boost in small business confidence, which is fueling expansion.”

The report noted that for the second straight quarter, many of the subject properties were located in prime 3M locations within Burlington County, and that the tightening of those areas was causing demand to shift toward vacancies in Camden County.

Other office market highlights from the report:

  • Both Burlington County and Camden County saw significant decreases in vacancy this quarter, though Burlington continued to maintain a markedly lower vacancy rate than Camden, at 9.1 percent compared with Camden’s 18.1 percent.
  • Average rents for Class A & B product continue to show strong support in the range of $11.00-$14.00/sf NNN or $21.00-$24.00/sf gross, with an overall market average showing strong support in the $10.00-$12.00/sf NNN or $20.00-$22.00/sf gross for the deals completed during the first quarter. This is essentially unchanged from the previous quarter.
  • New lease activity for Q1 is in the range of approximately 161,316 square feet of new deals and/or expansions and approximately 149,177 square feet of renewals.
  • All of the major private owners and REITS showed a significant increase in prospect activity for the quarter, and all continue to remain cautiously optimistic for 2014.

WCRE also reported on the local retail market, where the news is quite bright for Center City Philadelphia, but less so for Southern New Jersey. Highlights from the retail section of the report include:

  • Several major retailers are moving into large Center City spaces, including Nordstrom Rack, Forever 21, and American Eagle Outfitters.
  • Southern New Jersey welcomed a new Whole Foods and saw a new outlet center break ground in Deptford, but there are some troubled centers amid those still experiencing growth.
  • Overall retail vacancy in the tri-county area is at 15.7%, up for the second straight quarter.
  • Class A retail product rental rates continue to show strong support in the range of $30.00-$40.00/sf NNN, which is essentially unchanged from the previous several quarters.
  • Class B product shows support in the range of $15.00-$25.00/sf NNN, which is also unchanged.

The full report is available upon request. 

About WCRE

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

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

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Developers Acquire Center City East End Buildings In Philly Office Space Market

a Philly buildingThree Philadelphia commercial real estate investors have quietly purchased buildings in the Philly office space market in Center City’s east end, investing over $300 million in what they believe will be the next hot market in Philadelphia, according to the Philadelphia Business Journal.

Keystone Property Group and Mack-Cali Realty Corp., which acquired the Curtis Center this week, have together invested just over $210 million in two buildings in the Philadelphia office space market’s Independence Square submarket in under a year, the newspaper said.  Keystone and Mack-Cali have focused their interests on the Market Street East area of the Philly office space market, according to the Journal.  Another transaction involving office space in Philly in the CenterCity east end came with Keystone and Mack-Cali’s recent acquisition of the Dow building at 6th and Market street, just a short distance from the CurtisCenter.  The $20 million renovation of that building will include a beer garden slated to open soon.

Brickstone Realty Cos., owner of the Lits Building, also has been growing its portfolio of buildings in the same area, investing $105 million along the 1100 block of Chestnut Street in the Philadelphia office space market, the newspaper reported.  The company now owns 1112-1128 Chestnut Street and has a 192-square-foot redevelopment project underway that will feature 95,000 square feet of retail space and 112 apartments.

Brickstone also is looking at acquiring other mixed use and office space in Philadelphia and currently has three buildings on Chestnut Street or 11th Street under agreement, according to the Journal.  Plans call for that space to be converted into loft apartments, creative office space and co-working space, adding an unknown amount of square footage to existing office space in Philly.

Keystone and Mack-Cali, which paid $125 million for the historic Curtis Building, will invest another $25 million to transform the building into a mixed-used complex with 90,000 square feet of  office space in Philadelphia, as well as 90 upscale apartment units and a restaurant with outdoor dining, both overlooking Independence National Historic Park and Washington Square Park.  The company said more apartments might be added once existing office leases roll over and only a small portion of Philadelphia office space might be kept in the long term.

Other Philadelphia commercial real estate investors also are showing increased interest in CenterCity’s east end.  In March 2014, a partnership sponsored by Rubenstein Partners purchased the 850,000-square-foot Penn Mutual Towers for an undisclosed amount.  Penn Mutual Towers — actually three buildings that overlook Independence Mall and Washington Square — will be modernized to create high-quality Philadelphia office space.  The purchase was the company’s first investment in the Philly office space market in years, an apparent sign of their confidence in the Center City east end submarket.

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

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 Philadelphia office 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 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.

Philly Office Space Deliveries, Construction and Inventory

research-information-graphic-phlThe Philly office space market saw the completion of five new office buildings totaling 131,624 square feet in the first quarter of 2014, according to a new market trend report just released by the CoStar Group.  In comparison, deliveries in the Philadelphia office space market in the fourth quarter 2013 totaled 457,209 square feet in eight buildings.

CoStar’s First Quarter 2014 Market Report also noted that there was 1,194,598 square feet of office space in Philadelphia under construction at the end of the first quarter 2014.

CoStar said notable deliveries of office space in Philly in 2014 include: 1401 Roosevelt Avenue, a 60,000-square-foot facility that delivered in first quarter 2014 and is now fully occupied, and 3069 English Creek Avenue, a 40,000-square-foot building that delivered in first quarter 2014 and is currently not occupied.

In addition, the report noted that the largest projects underway in the Philadelphia office space market at the end of first quarter 2014 were 3737 Market Street, a 340,000-square-foot building with 74% of its space pre-leased, and 2006 Route 130 N, a 215,100-square-foot facility that is 100% pre-leased.

At the end of the first quarter 2014, total Philly office space inventory in the Philadelphia office space market area totaled 734,635 square feet in 20,694 buildings, CoStar said.  The Class-A office sector amounted to 128,911,199 square feet of office space in Philadelphia in 955 projects, according to the report.  Within the Philly office space market, owner-occupied buildings stood at a total of 916, representing 35,288,471 square feet of office space in Philly, the report said.

Compared to the trends in office space in Philadelphia in the first quarter 2014, the U.S. national office market had 321 buildings totaling 16.1 million square feet complete construction in the quarter, CoStar said.  An  additional 90.1 million square feet of office space was still under construction at the end of the first quarter, the report noted.  In the Boston market, 50 Northern Avenue, a 550,000-square-foot facility delivered in the first quarter, and in New York City, the 3.04 million-square-foot OneWorldTradeCenter remained under construction.  At the end of the first quarter 2014, the national market had almost 10.4 billion square feet of total office inventory in more than 499,500 buildings, according to CoStar.  This included approximately 20,000 owner-occupied buildings with 884.5 million square feet of office space.

For more information about office space in Philly or any Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker that specializes in office 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 that specializes in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly office 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 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.

Philly Office Space Vacancy Rate Rises

research-information-graphic-phlThe vacancy rate for the Philly office space market increased in the first quarter 2014, ending the quarter with a Philadelphia office space vacancy rate of 11.2% , according to a new market trend report from the CoStar Group.

The vacancy rate rose over the previous quarter, the report said, with net absorption totaling negative 324,914 square feet of office space in Philadelphia in the first quarter 2014.  In comparison, net absorption equaled positive 1,217,600 square feet of office space in Philly in the fourth quarter 2013, according to CoStar’s First Quarter 2014 Market Report.

Co-Star also reported that vacant sublease space in the Philadelphia office space market increased in the first  quarter, ending at 1,368,152 square feet.

According to the report, tenants moving into large blocks of space in 2014 include: The Harrisburg University of Science & Technology, moving into 149,820 square feet of office space in Philadelphia at 326 Market Street; Beneficial Mutual Bancorp, Inc. moving into 95,764 square feet of office space in Philly at 1818 Beneficial Bank Place; and BioTelemetry, Inc. moving into 46,972 square feet of Philly office space at 1000 N Cedar Hollow Road.

A total of five buildings delivered to the Philadelphia office space market in the quarter, Co-Star reported.   Those five building totaled 131,624 square feet of office space in Philadelphia, the report said.  Another 1,194,598 square feet of office space in Philly was still under construction at the end of the first quarter 2014, according to the report.

In comparison to the quarterly results in the Philly office space market, the U.S. National Office vacancy rate dropped to 11.5% from the fourth quarter 2013, CoStar said, with net absorption totaling positive 21.68 million square feet in the first quarter. Average rental rates nationally increased to $22.17, and 321 buildings delivered to the market totaling more than 15.1 million square feet, CoStar reported.

For more information about office space in Philly or any Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@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 that specializes in Philadelphia commercial real estate listings and services, provides unparalleled expertise in matching companies and individuals seeking new Philadelphia office 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 office space in 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.

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.

WCRE First Quarter Report: Heavy Snow Did Not Dampen First Quarter Commercial Real Estate Activity In Southern New Jersey

research-information-graphic-phlApril 7, 2014 – Marlton, NJ – The second snowiest winter on record couldn’t stop the enthusiasm in the regional commercial real estate markets, according to the latest quarterly report by Wolf Commercial Real Estate (WCRE). Driven by job gains and growth in some industries, the region bounced back from the slight slow-down of the fourth quarter, posting a 26 percent increase in square feet leased compared with the first quarter of last year.

The report by the Southern New Jersey firm noted many positive trends during the first quarter, setting up for a solid 2014. “This year we’ve seen vacancy rates continue their slow, steady declines, unemployment in New Jersey heading in the right direction, and locally we have seen big shifts by some of the largest corporate players,” said Jason Wolf, founder and principal of WCRE. “A few national trends and headlines, such as declining unemployment nationwide, a cooling of international tensions, and expected increases in consumer confidence, are fueling the increased activity we’ve seen in our region.”

Even with historic severe weather, the CRE market was very busy during first quarter, with further stabilization of rents, the consummation of a mega-deal for a 24-building office/flex portfolio, and another large group of assets coming onto the market. There were approximately 397,141 square feet of new leases and renewals executed in the three counties surveyed. Notably, expansions and new deals remained strong this quarter, representing 54 percent of all transactions. Net absorption for the quarter was approximately 123,746 sf, a 20-point increase over the fourth quarter of 2013.

The report noted that many of the quarter’s subject properties were located in prime 3M locations within Burlington County, and that the tightening of those areas was causing demand to shift toward large vacancies in Camden County.

The two most noteworthy developments in the quarterly report were the closing of Liberty Property Trust’s (NYSE: LRY) disposition of its entire office/flex portfolio in the region, and Brandywine Realty Trust’s (NYSE: BDN) listing a portion of its area portfolio for sale. The Liberty Property Trust portfolio, comprising 1,188,285 square feet in 24 buildings, was purchased by Somerset Properties. Brandywine has listed five office buildings totaling 397,000 square feet.

Other office market highlights from the report:

— Burlington County continued to maintain a significantly lower vacancy rate than Camden County, at 9.6 percent compared with Camden’s 19.3 percent, though both counties saw decreases of more than a point this quarter.

— Average rents for Class A & B product continue to show strong support in the range of $11.00-$14.00/sf NNN or $21.00-$24.00/sf gross, with an overall market average showing strong support in the $11.00-$11.50/sf NNN or $21.00-$21.50/sf gross for the deals completed during the first quarter. This is essentially unchanged from the previous quarter.

— New lease activity for Q1 is in the range of approximately 215,910 square feet of new deals and/or expansions and approximately 181,231 square feet of renewals, for a total of approximately 397,141 square feet of leasing activity.

— All of the major private owners and REITS showed a significant increase in prospect activity for the quarter, and are all cautiously optimistic for 2014.

— Businesses that specialize in banking, consulting, government, information technology and financial services all were very active in Southern New Jersey during the first quarter.

WCRE also reported on the local retail market, noting that the first quarter experienced a lull, which was driven in part by the weather and in part by a weak holiday shopping season. Highlights from the retail section of the report include:

— Overall retail vacancy in the tri-county area is hovering around 15.2%, up several points from a fourth quarter marked by disappointing retail sales figures.

— Class A retail product rental rates continue to show strong support in the range of $30.00-$40.00/sf NNN, which is essentially unchanged from the previous several quarters.

— Class B product shows support in the range of $15.00-$25.00/sf NNN.

The full report is available upon request.

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

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

New Lease Signings for Philly Office Space

philadelphia-skylineThe select top office lease signed during the fourth quarter 2013 in the Philly office space market was at 1801 Augustine Cut-Off in the North New Castle County submarket, according to a market trend report from the CoStar Group.  The landlord for this 190,823-square-foot deal in the Philadelphia office space market was represented by Capano Management, the report said.

Other major office leases signed in the quarter include a 70,110-square-foot office lease signed in the Conshohocken Ridge Corporate Center in the Philly office space market’s Conshohocken submarket, according to CoStar’s Fourth Quarter 2013 Market Report.  Exeter Property Group represented the landlord in this deal for office space in Philadelphia.

In addition, CSC renewed its lease for 36,616 square feet at 8000 Lincoln Drive East in the Philadelphia office space market’s South Burlington County submarket, the report said.  The landlord for this contract for office space in Philly was represented by Tequesta Properties, Inc.

In the Market Street West submarket for office space in Philadelphia, the District 1199C Training & Upgrading Fund renewed its lease for 31,307 square feet in the Land Title Building, CoStar said.  The landlord was represented by MS Fox Real Estate Group, Inc., according to the report.

Also in the Market Street West submarket for office space in Philadelphia, Brandywine Realty Trust represented the landlord and Jones Lang LaSalle represented the tenant in Pepper Hamilton LLP’s renewal of its 230,560-square-foot lease at Two Logan Square.  This deal for office space in Philly was signed in the third quarter 2013, according to the CoStar report.

In comparison to the fourth quarter 2013 results from the Philadelphia office space market, the largest new office lease signings that occurred nationally in the same quarter include the lease for 515,457 square feet signed by Group M Worldwide at 3 World Trade Center in the New York City market; CME Group, Inc.’s lease for 449,000 square feet at the World Finance Center – NYMEX building; Valean Pharmaceuticals International, Inc.’s 310,000-square-foot lease in the Northern New Jersey market; Cogo, Inc.’s lease of 234,484 square feet and Zebra Technologies Corp.’s lease for 233,286 square feet, both in the Chicago market, according to the CoStar report.

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

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 and services, provides unparalleled expertise in matching companies and individuals seeking new Philadelphia office 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 office space in 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.

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.

Philly Office Space Grows in Fourth Quarter

research-information-graphic-phlThe Philly office space market grew by 374,040 square feet in the fourth quarter 2013 with the completion of five office buildings in the Philadelphia market area, according to a new market trend report from the CoStar Group.

In comparison, four buildings totaling 24,500 square feet of Philadelphia office space were completed in the third quarter 2013, according to CoStar’s Fourth Quarter 2013 Market Report.  There were 797,349 square feet of office space in Philly under construction at the end of the fourth quarter 2013, the report said.

Significant deliveries of office space in Philadelphia in 2013 include: Endo Pharmaceuticals, a 300,000-square-foot facility that delivered in first quarter 2013   and Five Crescent Drive, a 207,779-square-foot building that delivered in first quarter 2013, according to the report.

The largest projects underway in the Philly office space market at the end of fourth quarter 2013 were 3737 Market Street, a 340,000-square-foot building and Great Valley Corporate Center, a 205,836-square-foot facility that is 100% pre-leased, CoStar reported.

Total Philadelphia office space inventory in the Philly office space market area was 400,032,971 square feet in 20,506 buildings as of the end of the fourth quarter 2013. The Class-A office sector was represented by 128,600,713 square feet of office space in Philadelphia in 950 projects, CoStar said.  Owner-occupied buildings in the Philadelphia office space market totaled 910 and accounted for 35,631,708 square feet of office space in Philly, the report noted.

In comparison to the fourth quarter 2013 results from the Philadelphia office space market, there were 177 buildings totaling 11.7 million square feet completed in the U.S. national office market  with another 86.9 million square feet of office space remaining under construction at the end of the fourth quarter 2013.  In New York City, the report noted that 4 World Trade Center, a 2.85 million-square-foot facility, delivered in 2013, but the 3.04 million-square-foot One World Trade Center is still under construction.  CoStar said total office inventory in the U.S. market was 10.37 billion square feet in almost 498,000 buildings at the end of the fourth quarter 2013.  This includes almost 20,000 owner-occupied buildings accounting for 884.5 million square feet, according to the report.

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

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 brokerage firm that specializes in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly office 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 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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