Monday, July 13, 2020

Lehigh Valley Warehouses and Logistics Not Terribly Affected by Coronavirus Through the Second Quarter

The coronavirus caused some minor disruption to Pennsylvania's Lehigh Valley logistics market through the second quarter, but fallout from the pandemic was largely limited to investment activity.

Roughly 60 deals closed through 2020’s tumultuous first two quarters, but only a handful finalized from April through June. With one exception, these were small properties trading between local buyers.

Given the uncertainty, its understandable why investment remains mostly muted through the third quarter; However, a June acquisition of the five-star, 475,000-square-foot LogistiCenter 33 could indicate investor confidence slowly coming back. The $62.5 million deal was easily the largest of the quarter and involved Black Creek Industrial. The Denver-based REIT acquired the asset for roughly $130 per square foot, comparing quite favorably to the market average near $85 per square foot.

Nearly everyone involved in the logistics industry remains bullish about its future, and it’s not hard to see why. The pandemic has forced the nation to rapidly adapt to online shopping, and e-commerce levels surged through the second quarter. According to Adobe’s Digital Economy Index, e-commerce growth has accelerated about five years in the past three months. Total online spending for May, at $82.5 billion, is up 77% from that same time in 2019.

Lehigh Valley is uniquely situated to take advantage of this trend. The market is at the intersection of I-79 and I-476, which allows distributors direct access to all the northeast’s major cities as well as other prominent shipping nodes like Nashville and Columbus.

Consequently, more than 10 million square feet was underway at the time of the shutdown, and builders still managed to deliver roughly 1 million square feet through the second quarter. The most notable of these new properties was at 7378 Airport Road, a 450,000-square-foot distribution center near the international airport in Bath.

The airport area has seen a flurry of construction and leasing activity in recent years. Within a five-mile radius, there’s close to 2.3 million square feet of logistics space underway, and it was here that the biggest lease of the second quarter finalized, when Geodis signed for a million square feet in April.

This type of sustained demand has given owners the confidence to continue building in the midst of a world-altering pandemic, and close to 2.3 million square feet broke ground between April and June.

While vacancies understandably softened somewhat through the second quarter, this is largely the result of incoming supply and a handful of moveouts. Because of the primacy of location in shipping, Lehigh attracts some of the biggest names in logistics, and it had a relatively low level of at-risk tenants when the coronavirus arrived. This should insulate owners of existing supply in the coming months, as millions of square feet in spec space arrives.

CoStar data shows less than half of this space was pre-leased at the end of second quarter, and an excess of supply might drag on rents. However, growth over the past several years has been otherwise healthy, and year over year changes remained positive through the second quarter. At the end of June, the average space in Lehigh was leasing for close to $6.20 per square foot, a year-over-year change of nearly 5%.

Lehigh will remain a market worth monitoring through the third quarter. New space arriving during so much uncertainty will test demand like never before and the speed of lease-up will likely impact both rents and investment volume.

Free Standing and Shopping Center Retail REIT Rent Collections Jump in June (Video)

Thursday, July 9, 2020

As US Rent Collections Soften, Concerns Grow for Apartment Owners

By John Doherty CoStar News

Apartment landlords, as well as their tenants, are now feeling the heat as the coronavirus pandemic drags on.

Industry executives say worries for landlords are mounting. Demand for higher-end rentals is falling with a half-million new units set to hit the market. And rent collection is down at Class B and C properties just as the federal unemployment benefits that kept many of those renters afloat are set to expire at the end of the month.

Payments have been halted on hundreds of Fannie Mae and Freddie Mac loans to apartment landlords — a wait-and-see limbo often followed by default. The concerns were laid out in a webinar Wednesday hosted by the National Multifamily Housing Council.

“Those are harbingers,” said Jeff Adler, chief operating officer of Yardi, one the five big rent-collection software companies that contribute to NMHC’s rent-tracker survey. “There is a recession going on. There have been job losses. There has been demand destruction.”

Declining rent collections and falling revenue because of waived fees and concessions are putting owners on edge. The suspension of late payment and credit card fees has become standard while new tenants are offered free rent.

NMHC reported Wednesday that 77.4% of renters nationwide made a full or a partial payment for this month’s rent through Monday. That’s down from the collections of 80.8% during the first week of June, and down from the 79.7% rate the first week of July last year.

Margette Hepfner is the chief operating officer of Dallas-based Lincoln Property Company, which owns or manages about 200,000 apartments in the country, second only to Greystar. On the webinar, she expressed concern that some of the biggest coastal markets, New York City and Southern California for instance, were showing the lowest collection rates.

“New York City was an early lagger,” she said. But collection rates were better in June than May, before new problems. “But [for Lincoln] New York in July had the lowest payment rate in the country.”

NMHC tracks rent collection at about 11 million occupied apartments around the country. The industry advocacy group does not break down how many paying residents made only partial payments — but to date most big operators say it’s a small percentage.

Most of the landlords reporting their rent-collection data to NMHC are relatively large: professionally managed properties big enough to hire a company such as Entrata or ResMan to handle rent collections.

Smaller landlords — owners of properties with 50 units or fewer — seem to be suffering more, said Adler. Another wild card weighing on the apartment sector is the soon-expiring moratorium on evictions. Renters who have fallen behind in payments could soon be kicked out, but that would also mean a rise in vacancy, which could affect owners’ agreements with their lenders.

Hepfner, though, said that's not a pressing concern.

“We are not facing an eviction bomb,” she said.

Barbara Corcoran On Real Estate Trends During Covid 19 (Video)

Tuesday, July 7, 2020

Curaleaf Acquires New Jersey Cannabis Dispensary

By Linda Moss CoStar News

Curaleaf Holdings, a vertically integrated U.S. cannabis company, has picked up the business and state medical marijuana license of an alternative treatment center in New Jersey, where the industry is poised for potential growth.

The Wakefield, Massachusetts-based firm said Monday it completed its planned acquisition of Curaleaf NJ, a nonprofit that holds one of the original six medical cannabis licenses in the Garden State. Curaleaf Holdings, which previously provided management service for the New Jersey facilities at 640 Creek Road and 130 Harding Ave., both in Bellmawr, now owns 100% of the operation.

The Bellmawr properties are part of New Jersey's largest medical cannabis dispensary, which totals 51,000 square feet including space for cultivation and processing. Cannabis is a burgeoning business in the Garden State, and Curaleaf Holdings is planning an expansion. In November, voters across the state will decide if they want to legalize the sale of marijuana for adult recreational use.

In accordance with recently adopted state regulations, Curaleaf Holdings plans to open two additional New Jersey dispensary locations, as well as an additional cultivation and processing operation slated for a site in Winslow, which is expected to create hundreds of jobs, the company said in a statement.

Curaleaf NJ occupies a 13,500-square-foot dispensary building on Creek Road and a 23,600-square-foot industrial property on Harding Avenue in the borough of Bellmawr in Camden County, not far from Philadelphia.

Curaleaf Holdings acquired the Curaleaf NJ license and other assets in exchange for canceling loans that were used to fund the build-out of the previously managed nonprofit entity.

"Curaleaf is one of New Jersey's oldest and largest providers of cannabis," Curaleaf CEO Joseph Lusardi said in a statement. "The asset acquisition we announced today completes our vertical integration and conversion to a for-profit entity in the state, marking a major milestone for our New Jersey presence. With our strong growth and a cannabis adult-use ballot approval on the horizon, we are actively investing in the expansion of our market leading position to better serve the more than 9 million residents of the Garden State with the quality cannabis products they rely on."

Originally, New Jersey medical cannabis alternative treatment centers were required to be operated as nonprofits. Curaleaf Holdings' announcement comes in the wake of changes to New Jersey Department of Health regulations, which now permit such treatment centers to sell or transfer their license to a for-profit entity, with state approval.

In March 2018, under the direction of Gov. Phil Murphy, who campaigned on a platform that included cannabis legalization, the health department issued the Executive Order 6 Report, which immediately expanded the medical cannabis program in many ways.

For example, chronic pain and anxiety were added as as qualifying conditions for medical cannabis use; the monthly product limit was doubled; and current licensees were permitted to open satellite dispensaries. In December, the Legislature passed a bill to add an initiative to the November ballot this year that will allow voters to decide whether to legalize the sale of adult-use recreational cannabis.

Curaleaf Holdings operates in 18 states with 57 dispensaries, 15 cultivation sites and 24 processing sites, employing more than 2,200 people across the United States.

Top Ten Issues Affecting Commercial Real Estate 2020-2021 Part 1 & 2 (Videos)

Part 1  

Partnership Finances $120M Loan for Philadelphia Mixed-Use Project

By Ingrid Tunberg

Bank OZK and Fisher Brothers affiliate, Lionheart Strategic Management LLC have closed $120 million in financing to fund the ground-up construction of a mixed-use project in Philadelphia.

For the loan, Bank OZK provided $107.5 million as the senior secured lender, and Lionheart provided $12.5 in mezzanine financing.
The $179 million mixed-use project, located at 510 N. Broad St., will feature 410 multifamily units and retail space, which has been partially pre-leased to a national, investment-grade grocery chain.

The partnership’s local sponsor, Alterra Property Group previously developed Philadelphia multifamily properties at 4233 Chestnut St. and the LVL 4125 at 4125 Chestnut St. Alterra Property Group will employ similar, modular construction techniques at 510 N. Broad St.

Lionheart’s next credit vehicle will deploy the financing. The company is currently finalizing its capital raise.

“As a long-term investor, Lionheart is bullish on the broader US economy and is particularly focused on well-located, urban assets that are being developed by strong sponsors in dynamic markets with multiple foundational economic demand drivers. This transaction highlights our continued desire to pursue deals in the current environment,” said Winston Fisher, chairman of Lionheart. “It has been a pleasure to work alongside Bank OZK on another transaction and we look forward to building a strong partnership with local sponsor, Alterra Property Group.”

Monday, July 6, 2020

Industrial Commercial Real Estate Market Update–July 2020 (Video)

The Impact COVID-19 Is Having On Commercial Real Estate (Video)

Philadelphia Apartment Rents Top US in Coronavirus Resilience

By Adrian Ponsen
CoStar Market Analytics

Philadelphia commercial real estate pros are always quick to tout the stability of their region’s healthcare-driven economy, and its vastly more affordable cost of living compared to other large U.S. cities.

The coronavirus and its economic shock are proving that for Philadelphia’s apartment market at least, these benefits are far more than empty talking points.

Through its range of apartment search platforms, CoStar’s rent series is fed by tens of thousands of daily updates to rent listings per market. Its data shows that among the nation’s largest 20 markets, Philadelphia’s apartment rents have held up best since the coronavirus began to grip in the U.S. in March.
Philadelphia’s outperformance is particularly notable given that Pennsylvania was the second state in the U.S. to order nonessential businesses closed and has been among the slowest to fully reopen.

Affordability appears to be key in determining rent resiliency in the face of the coronavirus. The markets that have endured the steepest drops in rents since the crisis took hold are those notorious for exorbitant cost of living including the San Francisco Bay Area, and Orange County California.

Outside of Philadelphia, rents are also holding up relatively well in smaller markets that are havens of affordability in otherwise prohibitively expensive regions, such as Sacramento, Baltimore and Inland Empire.

Not only has Philadelphia maintained the most resilient asking rents in the face of the coronavirus, its landlords have also been doling out concessions at the lowest rates of any top 20 market in the U.S.
Philadelphia has its own set of long-term challenges including its slow growth economy, and there’s no guarantee the market will be a top performer in rent growth over the next several years as the U.S. economy recovers.

However, the coronavirus’ real-time stress test on markets across the country is clearly demonstrating just how compelling Philadelphia’s apartment sector is as a destination for investors looking for stable properties that can avoid sharp downsides in net operating income.

The current crisis is also revealing that in some of the country’s most expensive coastal markets, the foundations for sky-high living costs are far less solid than they appeared just a few months ago.

Thursday, July 2, 2020

Piedmont Office Realty Trust Sells Landmark Office Tower for $360M

by Ingrid Tunberg
Independence Blue Cross has acquired the landmark, 45-story, class A, office tower at 1901 Market Street in downtown Philadelphia from the Atlanta-based REIT, Piedmont Office Realty Trust, in a $360 million transaction.

The 800,000-square-foot tower has been exclusively leased to the health insurance company, serving as its headquarters, since the property’s completion in 1989. Piedmont Office Realty Trust has owned the asset since 2003.
Selling for $450 per square foot, the transaction represents the disposition of Piedmont Office Realty Trust’s sole Philadelphia asset. As a result of the sale, 96% of the REIT’s annualized lease revenue is now generated from its seven core markets, primarily from its Sunbelt locations.

Throughout the past eight years, the office tower has undergone more than $110 million in capital improvements, including various interior renovations, a new lobby, an outdoor plaza and new mechanical systems.

“The sale of 1901 Market Street concludes a successful recycling story for Piedmont, allowing us to dispose of a long-term, 100%-leased asset in a non-strategic market where we believe the value potential during our ownership has been realized and to fully reinvest the proceeds accretively into our recent purchase of Dallas Galleria Office Towers,” said Piedmont president and CEO, C. Brent Smith. “The transaction was structured as a 1031 exchange for tax purposes; therefore, no special distribution will be required despite the nine-digit gain on the sale of 1901 Market. Overall, this transaction represents a good strategic move for the purchaser and a phenomenal outcome for our stockholders.”

Tuesday, June 30, 2020

The Carlton Group Closes $153M in Equity for a Philadelphia Multifamily

By Ingrid Tunberg
The Carlton Group has closed on a $153 million joint-venture equity investment for a 346-unit, class A, multifamily development in downtown Philadelphia within an Opportunity Zone.

The joint-venture equity was sourced from an international family office, on behalf of the Carlton Group’s client, a Salt Lake City-based multifamily owner-operator.
Executing the transaction on behalf of the firm, was the Carlton Group’s CEO Michael Campbell, managing director, Kyle Morque and director, Chad Roberson.

Expecting Opportunity Zone development activity and interest to remain high among investors, the company plans to bring additional Opportunity Zone offerings to market in the coming months.

“Carlton’s ability to access Opportunity Zone-focused equity for this transaction is indicative of our global reach and relationships with investors who have divergent investment goals and tax mandates. We pride ourselves on our tireless work ethic and ability to identify non-traditional, off-the-radar foreign and domestic investors and lenders,” said Campbell.

Friday, June 26, 2020

Portfolio of 7 buildings sells for $14.9M in NJ

Michelle Caffrey Reporter
Philadelphia Business Journal

A seven-building portfolio of single-story office buildings in Mount Laurel sold for $14.85 million to a buyer who’s now amassed more than 400,000 square feet of single-story office space in the region. The sale comes as those types of properties, which often have private entrances, could see increased demand from employers looking to avoid shared common areas like lobbies and elevators to minimize Covid-19 risk. 

The seven buildings total 244,000 square feet of space and are located at 11000, 12000, 14000, 15000, 17000 and 18000 Commerce Parkway in the Greentree North Corporate Center, as well as 1001 Briggs Rd. in Cambridge Crossing. The buyer, Brooklyn-based Golden Gate Capital, is renaming the Greentree North Center to the Mount Laurel Commerce Center. 

The seller was Connecticut-based real estate investment firm Greenfield Partners, according to public property records. The most recent sale is the last piece of a larger South Jersey office portfolio it acquired from Liberty Property Trust in 2014 and has slowly sold off over the past three years, said 

Most of the properties Greenfield has sold off have been 100% leased out, or close to it, including a two-building portfolio of single-story offices at 1015 and 1025 Briggs Rd. in Mount Laurel it sold for $13.7 million last fall. 

The Greentree and Cambridge Crossing portfolio, however, is about 50% occupied on average, with some buildings fully leased and others completely vacant. One of the largest tenants is applicant screening firm Vertical Screen.

Since the properties were the last ones Greenfield still held in the region, he said they were willing to sell now instead of waiting until they’re fully leased. 

The property was marketed and buyer was identified before the Covid-19 pandemic hit, but the deal took a little while longer to complete because of uncertainty in the market, Marzullo said. Golden Gate was able to secure credit union financing for the fully-leased properties, but bridge financing for the value-add portion fell through as Covid-19 shook up financial markets. Once CBRE was able to help the buyer secure another loan from a new lender, Marzullo said, they were back on track. 

“We had a seller and a buyer who were very committed to selling and getting to closing, and we finally got it there,” he said. 

Commercial Real Estate Sales Fall 24% to $39.1 Billion

By Mark Heschmeyer CoStar News
Commercial real estate pricing dropped during a dramatic slowdown in transaction volume during the coronavirus pandemic, according to the latest monthly CoStar Commercial Repeat Sale Indices.

The repeat sales of $39.1 billion for the first five months of 2020 fell 24.2% from the same time a year earlier. This is the first look at the year's commercial real estate pricing trends, calculated by using the price change from the pair of first and second sales of properties sold multiple times. The indices are based on 538 repeat sales in May and more than 227,324 since 1996.

“While volume generally held up well versus the prior year in the first three months of 2020, it dropped more precipitously in April and May, reflecting overall caution among investors as well as physical challenges in transacting deals in a lockdown,” said Nancy Muscatello, managing consultant for CoStar. “The deceleration in deal volume was felt across the size and building-quality spectrum.”

In the investment-grade property segment, repeat sales volume was down 25.1% in the first five months of 2020 compared to the same time a year earlier. The group reflects larger asset sales common in major markets.

The general commercial segment, which reflects the more numerous but lower-priced property sales typical of secondary and smaller markets, was down 22.4%.

Both of the two major composite price indices declined in May, reflecting investor uncertainty and slower deal volume. However, both indices were still up between 3% to 5% on an annual basis over more than two decades.
The equal-weighted U.S. Composite Index, which reflects the more numerous, but lower-priced property sales typical of secondary and smaller markets, fell 1.3% but was still up over time.
The value-weighted U.S. Composite Index, which reflects larger asset sales common in major markets, declined by a more modest 0.1% in May after gaining since the Great Recession
The rate of commercial construction deliveries has also slowed due in part to delays stemming from lockdown measures in some states. Deliveries as a percent of total inventory across the three major property types — office, retail and industrial — are projected to total 515 million square feet in the 12 months ending in June, down 5.2% from the same time a year earlier.

Notably too, the rate of construction completions going into the pandemic is also much lower than at the peak of the last cycle of economic expansion. During the height of that growth between 2007 and 2008, quarterly deliveries averaged 0.44% of total building inventory. In the past four quarters through June, deliveries averaged just 0.23% of total inventory.

“More subdued construction levels going into a downturn may help to blunt the impact of weaker demand on vacancy rates,” Muscatello said.

Amazon to Open 14 Delivery Stations in New Jersey

by Linda Moss Costar 
As it continues to expand its distribution network, e-commerce giant Amazon has leased sites to open more than a dozen new delivery stations in New Jersey this year.

The Seattle-based company's delivery stations handle the so-called last mile of its delivery process, with packages sent to them from Amazon fulfillment centers. At the delivery stations, those packages are sorted and then loaded into vehicles for delivery directly to customers.

One of the 14 leases that Amazon has signed in the Garden State is for 109,086 square feet at 555 MacArthur Blvd. in Mahwah, where it launched its delivery station last month, the company said Thursday.

"We are excited to continue to invest in the state of New Jersey with new delivery stations that will provide efficient delivery for customers, and create thousands of job opportunities for the talented workforce,” Amazon spokeswoman Emily Hawkins said in an email.

Amazon, a major driver of industrial leasing in New Jersey, has been hustling to handle the surge of orders it has seen from people locked down in their home due to the coronavirus pandemic. It is the most active company to take U.S. warehouse space since the COVID-19 outbreak began, signing 38 new deals spanning almost 20 million square feet, according to CoStar data. And it is one of the largest occupiers of smaller warehouse buildings, with more than 80% of its deals last year for small- and medium-size buildings, according to CoStar.

Earlier this week, Amazon confirmed it was leasing a planned 868,000-square-foot multistory warehouse at 55-15 Grand Ave. in the Maspeth section of Queens in New York City, where it expects to use about 117,000 square feet for a delivery station and the rest for parking.

In addition to Mahwah, Amazon said it has signed leases for space in New Jersey at:
  • Paddock Street, Avenel.
  • International Drive S, Budd Lake.
  • Moonachie Avenue, Carlstadt.
  • Washington Avenue, Carlstadt.
  • Thomas McGovern Drive, Jersey City.
  • Court South, Edison.
  • Central Avenue, Kearny.
  • Logistics Drive, Kearny.
  • Lower Road, Linden.
  • Center Square Road, Logan Township.
  • Delancy Street, Newark.
  • North Street, Teterboro.
  • Forest Parkway, West Deptford.
Collectively, the stations will create thousands of full-time and part-time jobs, paying a minimum of $15 per hour. Amazon has more than 150 U.S. delivery stations, according to Hawkins.

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Thursday, June 25, 2020

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LCOR Breaks Ground on Transit-Oriented Apartment Complex Near Philadelphia

LCOR, a full service investment, management and development firm, broke ground on 51 Washington Street, a 304-unit apartment complex in Conshohocken, Pennsylvania, located approximately 15 miles from Philadelphia’s Center City district.

Slated to be completed in early fall 2022, the transit-oriented development is steps away from Conshohocken’s new regional Southeastern Pennsylvania Transportation Authority (SEPTA) station.

Plans for the development include a mix of studio, one- and two-bedroom floor plan configurations, and 17,000 square feet of amenity and management space, including an outdoor pool and interior courtyard. The seven-story project adjacent to the Schuylkill River Trail will feature a two-level garage offering approximately 366 parking spaces.

The project marks LCOR’s fourth development in the area, adding to Arlo in Malvern, 1919 Market Street in Philadelphia and Heathergate at Oxford Valley in Langhorne.

“Upon completion, 51 Washington Street will present this community with an exceptional and unique living experience,” Peter DiLullo, senior vice president and principal of LCOR, said in a statement. “We’re excited to work in close partnership with the Borough of Conshohocken and SEPTA to improve access the new transit station and waterfront.”

Amenity highlights include various entertainment areas such as a golf simulator, clubroom, formal lounge and covered outdoor space overlooking a swimming pool with waterfall edge and sun shelf, according to a press release. Additional amenities include a sizeable fitness center, along with break-out pods ideal for working from home.

Over its 40-year history, the Bethesda, Maryland-based development firm has applied its comprehensive expertise and fully integrated investment management and development strategy to more than 300 large-scale mixed-use projects, according to its website.

Niles Bolton Associates serves as the project's architect, and the construction manager is CBG Building Company. Construction financing was provided by Webster Bank.

Is Multifamily Real Estate in the Clear? (Video)

Wednesday, June 24, 2020

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Oliver Tyrone Pulver Corp. Reveals Plans for New Office Tower in Center City Philadelphia

Oliver Tyrone Pulver Corp. (OTP) has revealed plans for a new office tower at 1301 Market St. located in the heart of Center City Philadelphia.

"This tower is designed to deliver the most beautiful, efficient and productive office space in Philadelphia," Donald Pulver, president of OTP, said in a statement. "Offices that are perfectly located and perfectly designed are nearly impossible to find, and this will be the only one available in Philadelphia. Tenants will be able to attract, retain and inspire the best talent and operate most efficiently in this brand-new space."

The project is designed by internationally renowned architects Skidmore, Owings & Merrill.

"This property was developed to appeal to today's most forward-looking tenants," Healy said. "Trends show that top talent demands unmatched amenities, so new tenants at 1301 Market have the advantage of attracting and retaining the best and brightest from our region and beyond."

Amenities at 1301 Market will include a 10,000-square-foot fitness center, outdoor terraces, café, bike lockers, conference rooms, tech-enabled casual workspaces and a two-story, glass-enclosed marble lobby.

Lower levels will offer 25,200-square-foot floor plates, and upper floors will have 17,000-square-foot floors with ample natural light and views.

OTP has developed more than 15 million square feet of first-class office space in major U.S. cities and suburbs, including 5 million square feet in Philadelphia, according to its website.

The tower, which is planned to deliver up to 700,000 square feet on up to 30 floors, is slated to be completed in 2023.

Tuesday, June 23, 2020

Three Reasons COVID-19 Won’t Reverse Philadelphia’s Long-Term Urban Revival

By Adrian Ponsen CoStar Market Analytics 

The coronavirus has thrust Greater Center City Philadelphia’s real estate market into turmoil. Few renters are looking to move at all given the current circumstances, and the rare ones who are on the move aren’t exactly flocking to smaller units in dense, urban areas.

Weary of forcing their employees back into crowded spaces, many major Market Street corporate tenants can barely get their offices back up and running. The finances of restaurants Philadelphians normally flock to are in tatters.

It’s tempting to think the long-term economic revival the city has experienced over the past two decades will reverse given these pressures. Here are three reasons why that likely won’t happen:

1. Recent Healthcare and Life Science Expansions Remain Concentrated in Philadelphia’s Urban Core

With more than 16 million Americans set to age past 70 in the coming decade, the healthcare and life sciences sectors are the Philadelphia area’s most promising economic drivers by a long shot. Their recent local expansions have also been highly concentrated in Philadelphia’s urban core.
Apart from some key deals signed at Discovery Labs in Montgomery County, nearly all the area’s recent leases signed by growing life sciences innovators, including Century Therapeutics, Spark Therapeutics and Wistar Institute, have been tied to properties in the Navy Yard or University City.

Philadelphia’s life sciences pioneers are gravitating to these more expensive urban locations because proximity to Philadelphia’s major universities, startup incubators, and hospitals is critical to their success.

The same applies to Philadelphia’s healthcare giants. Penn Medicine’s largest ever capital project, a 1.5 million-square-foot hospital, dubbed the Pavilion, is on track to complete construction in University City by early 2021. Jefferson Health recently received a $70 million donation, bringing it closer to groundbreaking on a 225,000-square-foot biomedical research facility at 9th Street and Locust Street, and also announced plans to build a 23-story ambulatory care center at 11th Street and Chestnut Street.
2. Millennials’ Preference for Urban Philadelphia Living is Not a Fad

America’s largest demographic cohort, the millennials, are fast aging into their early 30s. Many believe this will create and exodus from cities back to the suburbs, as growing numbers of middle-aged urban professionals have kids, demand more space and seek better-funded public schools.

In Philadelphia, the data does not support this thesis, at least not for college-educated millennials.

The NAHB has been surveying individuals born between 1980 and 1996 on their housing preferences for more than 10 years. Even as more of their survey respondents age well into their 30s, their preference for urban living has only grown dramatically.
Meanwhile, Philadelphia is vastly more affordable than most large U.S. cities. The housing cost constraints that force other cities’ millennials into the suburbs are not as strong here. This has helped not only retain millennials from nearby suburbs, but also attracted larger numbers of them from more expensive cities nearby.

Growth in college-educated residents aged 18-34 has continued at a rapid pace in Philadelphia, while remaining relatively flat in most nearby suburban counties.
The city has even outperformed the suburbs in growth of college educated residents aged 35-44. This is a harbinger of future housing demand within city limits, and a clear sign that aging into the mid-30s doesn’t automatically prompt a move to the suburbs as some fear.
3. Emerging Shortages of Skilled Workers Will Pull Employers Into Central-Locations

With members of the massive baby boomer generation continuing to pass retirement age during the 2020s, America is on track for by far the slowest working age population growth in its modern history.
This will likely bring more intense skilled labor shortages and competition for knowledge workers, making it more and more critical for companies to locate close to universities and close to the neighborhoods where recent grads prefer to live, all to better compete at building internship pipelines and hiring young talent.

Skilled labor shortages should also incentivize companies to grow in locations that can source workers from the widest possible areas. In that environment, Center City’s vast public transit network, which pulls in commuters from across three states, could prove even more critical.

There’s no question that Center City’s economy and real estate markets are in for a rough patch over the next several months. The city’s sheer number of job losses, degraded tax revenues, and crippled hospitality industry present immense challenges. But Philadelphia’s long-term re-urbanization of wealth is not likely to reverse over the next decade. There are too many powerful forces pushing in the opposite direction.

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Thursday, June 18, 2020

Veltek expanding Exton footprint by 115,000 square feet

by Natalie Kostelni Philadelphia Business Journal
Veltek Associates Inc., a privately held maker of sanitizers, sterile disinfectants and other products for the pharmaceutical and health care industries, is expanding by 115,000 square feet in Exton.

West Whiteland officials approved a land development plan for the construction of what will be an addition to an existing two-story, 60,000-square-foot building at 475 Creamery Way in the Oaklands Corporate Center. E. Kahn Development Co. owns the property and will develop the addition for Veltek. 

Veltek has had a presence in Exton since 2010. Earlier this year, the company renewed its lease for 150,000 square feet at 1 Tabas Lane. It operates a facility at 15 Lee Blvd. in Malvern.

The company was formed in 1981 by Arthur L. Vellutato Sr., a former Merck & Co. researcher. When the senior Vellutato died in 2009 his son, Arthur L. Vellutato Jr., took over as CEO of the company. It has several divisions that thrive under regular circumstances but has found increased demand during the coronavirus pandemic.

The company makes a variety of sanitizers, disinfectants, cleaners and other related products used by pharmaceutical, biotechnology and healthcare companies in their manufacturing facilities. In addition, it has what it refers to as a "disposal products manufacturing" division that makes sterile and non-sterile disposable garments, face masks and other items used by the healthcare, biotech, medical device and electronics industries.

At the end of 2018, E. Kahn bought what was then a vacant 55,000-square-foot office and lab building on nearly 17 acres off Creamery Way from Sabic Innovative Plastics, a chemical and plastics company that is part of Saudi Arabia-based Aramco. The company had closed its Exton office in 2017. It also ceased manufacturing operations at a 110,000-square-foot facility at 251 S. Bailey Road in Thorndale in March 2016. Kahn had also purchased the Bailey Road building from Sabic when it shuttered that factory.

What Rent Cuts Mean For CRE Investors (Video)

Wednesday, June 17, 2020

The Office Hub and Spoke Model is Coming to Office Space

by Les Shaver
The office hub-and-spoke concept is nothing new. Companies have used it for years.

Their headquarters serves as the hub of the business, while the spokes are a geographically distributed network of offices, usually based on talent and client needs. The headquarters is generally in a core location accessible to public transportation, and it acts as the cultural center of the business.
Like many things in commercial real estate, COVID-19 has acted as an accelerant for the hub-and-spoke model.

“It’s inevitable that COVID has forced companies to rethink their space and logistical needs, and this model is evolving,” says Bryan Murphy, CEO of Breather. “With more and more companies becoming comfortable with their employees working from home and as a result, extending their work from home policies comes a change for the future of work.”

As companies have grown more accustomed to their employees working remotely, Murphy says they’re now looking to downsize their headquarters.

“HQ will still be the cultural hub but may have only 30% of employees working from there on a day-to-day basis,” Murphy says. “Ultimately, executives want more flexibility when it comes to real estate—both for their people and their leases. They’re looking to supplement with flexible spaces that serve the needs of their employees.” 

“Larger spaces typically work better for hubs as they’re equipped with the tools, features and layouts needed for acting as a business’s core location,” Murphy says. “Typically, a hub space would include multiple breakout rooms, different areas of soft-seating and areas for large team meetings.”
Since the hubs serve as a company’s headquarters, they often have a larger employee count. “When employees from out of town (or who typically work in a spoke) meet as an entire team, they will usually meet in the hub,” Murphy says. “Larger spaces that are built and designed specifically for fuller teams can fulfill the needs and purpose of a hub.”

Spokes are traditionally smaller locations that are often designed as an open space to accommodate the needs of a single team or company function. They can be appropriate for sales, marketing, call centers and special projects.

“These spokes will range from drop-in spaces located closer to their homes to reduce commuting time, to spaces where they can drop in for some quiet time, to spaces built for collaboration where teams can come together to ideate and plan,” Murphy says.

The implications of more companies adopting the hub-and-spoke model could be huge for office landlords. “This will impact landlords because the hub and spoke model means that tenants don’t have a need for a massive HQ,” Murphy says. “We expect to see tenants move away from 10-year leases, and instead add spokes on flexible terms based on the current needs of the business.”

The move away from long-term leases will force landlords to offer more flexibility. “People want space solutions that provide flexibility and options,” Murphy says. “Companies that are able to provide flexible space and, more specifically, private space options, in particular, will continue to see upticks and grow in popularity as people seek alternatives to traditional office space.”

JV Breaks Ground on Philadelphia Area Multifamily

By Ingrid Tunberg
The joint-venture partnership of GMH Capital Partners LP and AEW Capital Management LP has broken ground on its four-story, multifamily development in Malvern, PA.

The 225-unit community, The Pendleton at Malvern, is slated to open in summer 2021.
The Pendleton at Malvern will offer a variety of floorplans to future tenants, including studios, one-bedroom units and two-bedroom units. Each residence will feature stainless steel appliances and state-of-the-art interiors, and certain residences will offer private balconies.

The property’s outdoor amenities comprise a resort-style pool, entertainment areas, a beer garden and a bocce court within a private, half-acre courtyard. The community will additionally feature a fitness center, motion studio, e-lounge, conference rooms, concierge, a dog-wash area, a gaming room and a kitchen/bar.

Situated on Lancaster Avenue, the property will be offer access to Philadelphia through its close proximity to major roadways, such as Route 202, Interstate 76, The Pennsylvania Turnpike and Route 29. The community will also be located near The Great Valley Corporate Center, which hosts companies such as Microsoft, Siemens, IKON and Johnson & Johnson. 

“We believe The Pendleton at Malvern’s central location in a live, work, play environment fits right into the township’s comprehensive plan to promote Route 30 as a corridor with a diverse mix of land uses and improved multimodal transportation options,” said Gary Holloway Jr., GMH Capital Partners president. “We are excited to work alongside AEW in establishing yet another exceptional apartment community right in our backyard, and we look forward to welcoming new residents upon completion.”

Multifamily Exterior Rendering

Thursday, June 11, 2020

Red Solo Cup Manufacturer to Consolidate Footprint, Open New Facility in Delaware

By Cara Smith-Tenta 
CoStar News

The company that manufacturers red Solo cups plans to fill up some industrial space in Delaware.

Dart Container Corp, based in Mason, Michigan, agreed to occupy a 1 million-square-foot distribution center in New Castle, Delaware. The distribution facility is expected to open later this year and employ between 60 and 70 workers.

Dart’s new Delaware facility is reportedly planned to open in Delaware City Logistics Park, a 190-acre business park that is being developed by Northpoint Development, a commercial developer based in Riverside, Missouri, according to media reports. Dart declined to comment on the location of its new Delaware facility, and Northpoint Development declined to comment on Dart’s behalf.

The new facility is meant to replace two of Dart’s distribution centers in Maryland, one in Havre de Grace, and another in Hampstead, the spokesman said. Collectively, those facilities employ more than 80 workers, and around 15% of those employees are expected to be transferred to the Delaware distribution center.

Dart’s 607,987-square-foot facility in Havre de Grace sits at 1900 Clark Road, while its 1.03 million-square-foot facility in Hampstead sits at 630 Hanover Pike, according to CoStar data. Dart has occupied its Hampstead facility since 2001.

Dart operates a facility in Federalsburg, Maryland, at 1000 Industrial Park Road that employs 650 people. The spokesman said that facility will remain open.

New Castle sits right outside Wilmington and around 40 miles outside of Philadelphia, within the city’s metropolitan area. The narrative surrounding Philly’s industrial market, even throughout the coronavirus pandemic, remains “bullet-proof,” Adrian Ponsen, director of market analytics with CoStar in Philadelphia, writes in his most recent report on the city’s industrial market. The city’s industrial stock is just 5.1% vacant, compared to the national average of 5.5%, according to CoStar data, and Philadelphia is a strong East Coast distribution market that has attracted major retailers, including Amazon, Target and Walmart.

Though, there is something that could give investors in the city’s industrial market pause: More than 3 million square feet of distribution space in Philadelphia are occupied by troubled brick-and-mortar retailers, including Kmart, Sears and Office Depot, according to CoStar research, and the city is running the risk of having an overbuilt industrial market in the months and years to come.

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Tuesday, June 9, 2020

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Buccini/Pollin Group Buys $80M deal to buy Baltimore hotel

By Amanda Yeager  – Reporter, Baltimore Business Journal

A local real estate firm has put out a call for investors to join in on a distressed acquisition of the Renaissance Baltimore Harborplace hotel.

The Buccini/Pollin Group is preparing to close on a sale of the 622-room hotel at the end of June. The expected acquisition price is $80 million, which breaks down to nearly $129,000 per room, according to a listing on the investment platform CrowdStreet.

The firm, which has offices in Conshohocken and Wilmington, Delaware, is soliciting investments of up to $20 million in Class A membership interests, per the listing, which says offers are due by June 19. The minimum investment is $40,000.

The hotel, located at 202 E. Pratt St. in the heart of downtown Baltimore, last sold for $157 million in 2005. Current owner Sunstone Hotel Investors has spent nearly $40 million on the property over the past decade, the listing says, including a $24.1 million overhaul of the hotel's guest rooms, bathrooms and suites completed last year.

After the acquisition, the Renaissance Harborplace will become a franchise under the Renaissance brand and will be managed by the PM Hotel Group. The Buccini/Pollin Group, which will co-invest $7.1 million into the purchase, plans to sell the property after five years for $144.6 million.

The Renaissance Harborplace is among the Baltimore hotels that are accepting guests at a time when travel has suffered a massive blow due to the novel coronavirus outbreak. The occupancy rate for hotels in the city's central business district was 19.9% for the week of May 24-30, according to hotel data company STR.

Friday, June 5, 2020

Four Metrics You Need To Know Before Investing in Real Estate During a Recession (Video)

Century Therapeutics lease 32,500 SF in Philadelphia

By Ingrid Tunberg

The lease encompasses 32,500 square feet of new office and lab space within in One uCity Square, a 400,000-square-foot mixed-use community, comprising class-A office, lab and retail space. Located in Philadelphia’s University City neighborhood, the mixed-use community is a joint-venture between University City Science Center, Wexford Science & Technology LLC and Ventas Inc.
The development recently broke ground and is expected to deliver in early 2022. Century Therapeutics will occupy the space within the city’s growing life science ecosystem, upon completion.

Pennsylvania’s life sciences venture capital funding has totaled more than $392 million year-to-date, compared to $86.7 million within the first half of 2019; representing a more than 350% increase. The funding in Pennsylvania ranges from $250,000 to $200 million, with firms growing and in need of various-sized space of all sizes.

Century Therapeutics launched in 2019 to focus on developing cell therapies.

Thursday, June 4, 2020

Scout Capital Partners Finalizes Terms to Buy Cold Storage Logistics Center Underway Near Philadelphia

Scout Capital Partners, a Florida-based real estate investment and development firm, has recently entered into a contract to purchase Scout Cold Logistics Center - South Jersey upon completion.

The 332,000-square-foot facility located just 18 miles outside central Philadelphia will serve tenants in the perishables industry including online retailers, supermarkets and pharmaceutical companies.

Pent-up demand for cold storage facilities has been accelerated by the coronavirus pandemic and is expected to intensify due to the continued growth of online grocery shopping, according to a press release.

The building at 450 Swedesboro Ave. in East Greenwich Township has 97,000 square feet already pre-leased to a perishable logistics company.

“Our leasing strategy for Scout Cold Logistics Center - South Jersey will target local, regional and national perishable operators seeking flexible, climate-controlled space who want to be within a three-hour drive of more than 40 million consumers."

Scout was founded by Vincent Signorello and its industrial investment and development platform is led by Dan Marcus, a partner at the firm and longtime associate of Signorello.

“America’s supply of cold storage facilities is wholly inadequate to match the increasing demands of food distribution and online shopping, not to mention the need for storing highly-perishable pharmaceuticals and medical supplies,” Signorello said. “Scout Cold Logistics Center, in the heart of the Eastern Seaboard, will be a core asset within our national network of climate-controlled facilities.”

The facility, which will sport 80 loading docks and a 36-foot clear height, is slated to be completed this summer.

Tuesday, June 2, 2020

Retail CRE: Zooming to the Suburbs (Video)

Warehouse Leasing Picks Up as Consumers and Businesses Begin Spending Again

Industrial leasing is increasing as more states gradually reopen their economies from coronavirus-related closings and businesses get more comfortable committing to warehouse space.

Demand began slowing in mid-March, and CoStar logged some of the lowest levels of activity in history in April as skyrocketing numbers of Americans filed unemployment insurance claims, which totaled more than 40 million as of May 28. But consumers’ attitudes toward spending, which indirectly influence demand for logistics and distribution buildings, have begun to improve, CoStar managing director and senior economist Abby Corbett said in a new state of the market video.

Warehouse lease deals have gradually increased since the middle of April, and during the week that concluded May 23, more than 500 new leases were signed totaling nearly 13 million square feet, which is in line with the average weekly dealmaking collected throughout 2019, Corbett said.

Once again, e-commerce, medical, pharmaceutical and logistics operators such BMS Logistics led the charge. Amazon, among the most prolific users of industrial space before and during the coronavirus pandemic, signed a massive deal for 2.85 million square feet in Erlanger, Kentucky, near Cincinnati-Northern Kentucky International Airport.

Atlanta-based furniture store chain Haverty Furniture Companies Inc. raised $70 million by selling warehouses in Florida, Texas and Virginia. Havertys agreed to remain the tenant, and CoStar expects to see more sale-leaseback transactions as distressed retailers such as department store chain J.C. Penney look for ways to increase liquidity and pay their bills, Corbett said.

Meanwhile, CoStar has detected a major shift in construction from industrial projects built for specific tenants to warehouses built on speculation without signed tenants, Corbett said. Some industrial hubs such as Philadelphia and Pennsylvania's Lehigh Valley are seeing some problems with leasing up of new buildings.

"Tenants looking for modern space have far more options than they did just two or three years ago," Corbett said. "Over 600,000 square feet of space with 30-foot clear heights is now available, compared to just 400,000 square feet in 2018."

Thursday, May 28, 2020

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AAMCO Plans to Expand Throughout the US

Car-repair giant AAMCO Transmissions and Total Car Care has  new push to expand its network of AAMCO franchises in the US.

AAMCO, based in Philadelphia, has more than 600 franchises in the US and Canada. AAMCO’s chief strategy officer, Brian O’Donnell, said the company aims to “accelerate growth in targeted US markets.” 

AAMCO is targeting suburban locations with between 3,000 and 5,500 square feet of space. It added that the optimal site for a new AAMCO location would be 4,500 square feet in either a stand-alone store or as the “end-cap” store at the far end of a shopping center or strip center—and in a high-traffic location with parking for more than 10 cars and with easy access to major roads.

“The current market conditions have demonstrated the essential nature of automotive service companies such as AAMCO, making them a highly attractive tenant for property owners in challenging economic times." 

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Wednesday, May 27, 2020

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Local Company Buys Philadelphia Industrial Complex to Expand Business

A local private company has purchased a 330,000-square-foot industrial complex at 700 Ramona Ave. in Philadelphia for $8.5 million, or about $26 per square foot.

The buyer purchased the property to utilize the site as an expansion of their existing business.

The property consists of two large industrial buildings on approximately 14.5 acres and provides access to Route 1 Roosevelt Expressway and I-95.

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Tuesday, May 19, 2020

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Duke Realty To Build 615,600 SF Build-to-Suit Warehouse in Lehigh Valley

By Natalie Dolce

The Pennsylvania office of Duke Realty Corp., the leading domestic only, pure-play logistics property REIT is progressing on the 615,600-square-foot, build-to-suit warehouse for Max Finkelstein Inc., one of the nation’s largest independent, family-owned wholesale distributors of passenger and light truck tires. The building is being constructed on part of a 132-acre parcel less than 10 miles east of the split between I-81 and I-78 in Berks County, PA, at the western edge of the Lehigh Valley submarket.

“Max Finkelstein has been in business for more than 100 years and has operations throughout the Northeast and Mid-Atlantic States. We are excited to deliver a new, custom-designed, state-of-the-art facility that will be a core component in their supply chain,” says Art Makris, SVP for Duke Realty in the Northeast region of the US, in a prepared statement. “This new facility incorporates modern features, including increased clear heights, enhanced lighting and a state-of-the-art fire protection system, which will provide them with enhanced storage and warehouse capabilities, along with a safe operating environment.”
The new building, which will be known as Central Logistics Park 100, is located at 100 Fort Motel Dr. in Myerstown. Max Finkelstein’s new building includes 7,000 square feet of office space and incorporates 45′ clear height and LED lighting. The remaining acreage on the site can accommodate additional development of up to 584,820 square feet.

“Designing a state-of-the-art, purpose-built warehouse to serve as the hub of our distribution center network, meeting all of our specific requirements, is critical to our growth.” says Sean Franciscus, COO with Max Finkelstein. “We selected Duke Realty due to their ability to deliver a facility with all of the features we need and in the ideal location for efficiently serving our 16 regional distributions centers via its proximity to I-81, I-78 and I-83. The site was pad-ready which expedited the building’s delivery.”

Friday, May 15, 2020

Black Creek Buys South Jersey Warehouse Site

Black Creek Group has acquired a site in Southern New Jersey for $14.75 million that has local approvals for construction of a 300,700-square-foot warehouse-distribution facility.

The Denver-based real estate developer purchased the nearly 31-acre site, which includes two parcels, at 837 Railroad Ave. in Florence from Foxdale Properties of Pasadena, California. At the time of sale, the site was fully approved with entitlements for the industrial building.

In an emailed statement to CoStar, Black Creek said it's seeking bids to begin construction during the summer with expected completion of the shell next spring.

"The site’s premier, infill location combined with its immediate development potential attracted every major institutional developer on the East Coast. The outcome was an extremely competitive marketing process where we were able to drive pricing to the highest achievable level."

The site is in Burlington County, which had over 30.6 million square feet of inventory as of the first quarter. With its position along the Northeast corridor, the county has quick access to New York City and Philadelphia.

The industrial vacancy rate in Burlington County has been at or below 5% over the past three years, even with more than 5 million square feet of new construction completed throughout that time period.

Wednesday, May 6, 2020

King of Prussia Mall will eventually reopen, but the shopping mecca may never be the same

Natalie Kostelni Reporter Philadelphia Business Journal
When the King of Prussia Mall eventually reopens, there will be a series of safety protocols that its employees will be required to follow while its retailers and shoppers will be encouraged to voluntarily adhere to similar measures to help keep the coronavirus from spreading.

No date has yet been set by owner Simon Property Group (NYSE: SPG) to reopen the King of Prussia Mall and its other Philadelphia-area retail properties, including Philadelphia Mills and the Philadelphia Premium Outlets. When shoppers do return to King of Prussia, they will be arriving at a mall that will be on the cusp of a transition as a result of the pandemic and its effect on the retail industry, as well as forces already impacting it.

“This will accelerate a bunch of trends that we have been talking about when it comes to retail,” said Shawn Howton, a professor of finance and real estate at Villanova University and director of its Daniel M. DiLella Center for Real Estate.

From an increase in online shopping to the survival of restaurants, all types of retailers are being tested at this time, Howton said. Some questions that will arise from the changes underway include whether restaurants need to provide more space for social distancing and if a landlord will adjust rents downward to reflect that. When some retailers go dark, how will malls and property owners backfill the space since demand for traditional retail is expected to remain sluggish?

“This will provide an opportunity for property owners to rethink uses, and there will be capital on the sidelines to take advantage of this,” Howton said.

The biggest difference between the Great Recession and the Covid-19 crisis is that the pandemic isn't just an economic issue but also a health issue, which brings a whole series of challenges. "Even when a municipality says you're good to open, what does that even look like?" said David Putro, senior vice president at investment research firm Morningstar.

When some states allowed malls to open this weekend, only about 20% of their stores reopened and most of the shoppers who ventured to those malls were ordering online and picking up items in the store, Putro said. That raises other questions for retailers, such as what staffing levels should be.

"It's layer after layer," he said. "It's a really interesting time."

At this point, it's too soon to predict how consumer behavior will change, he said. Will people feel comfortable trying on clothes after someone else has tried them on? With high unemployment, will consumers feel like spending on a new pair of jeans or will they be more thrifty?

J. Crew’s parent company, Chino Holdings, filed for Chapter 11 bankruptcy Monday, and other stores that are marquee tenants at King of Prussia are expected to seek similar financial protections as they struggle. Some of those retailers with unknown fates include large department stores that have been mainstays at the mall for decades and take up large anchor spaces at the property.

Neiman Marcus is one of those with a precarious future and is reportedly nearing a bankruptcy filing. Others that are in flux include Nordstrom, Lord & Taylor, Sears, Macy’s and Bloomingdales. The latter four are already retrenching and closing stores.

Smaller retailers such as J. Crew, which also has the Madewell brand, aren’t the only ones on the brink, according to various published and analyst reports. Gap Inc., which also has Banana Republic, Athleta, Old Navy and other brands, said in a Securities and Exchange Commission filing that it has drawn down most of a $500 million line of credit, doesn’t intend to pay rent until its stores reopen, and has taken other cost-cutting measures.
Fully story:

Retail Reopening - What Comes Next? (Video)

Thursday, April 30, 2020

Top Retail Leases Recognized for Philadelphia

Prominent retail leases signed by EFO Furniture Outlet, Giant Foods and Hobby Lobby negotiated by top dealmakers from Brixmor Property Group, CBL & Associates Properties and Tower Investments are among the first quarter retail leases recognized by CoStar.
As big ticket items involving sizable investments, commercial property transactions often have a wider impact within the community. Beginning this year, CoStar is recognizing the largest leases completed each quarter and the dealmakers who made them happen in their respective market.
Here are the Philadelphia retail leases selected as the First Quarter 2020 winners of the CoStar Power Broker Quarterly Deal Awards:

TOP LEASE: 1001-1051 N Dupont Hwy Dover, DE

1001-1051 N Dupont Hwy Dover, DE (CoStar)
Space Leased: 57,820 SF
Deal Type: New Lease
Sign Date: January 1, 2020
Size: 205,708 SF
Tenant: Hobby Lobby

Deal Commentary: This new Hobby Lobby location is the first location in Delaware, with the next closest location in Salisbury, Maryland. The arts and crafts retailer will occupy a space that has sat vacant since 2018 and was previously occupied by ACME Markets.

TOP LEASE: 344 Stroud Mall Rd Stroudsburg, PA

344 Stroud Mall Rd Stroudsburg, PA (CoStar)
Space Leased: 93,316 SF
Deal Type: New Lease
Sign Date: January 22, 2020
Size: 93,316 SF
Tenant: EFO Furniture Outlet
Deal Commentary: EFO Furniture Outlet, which has four locations in Pennsylvania, leased half of a key anchor spot at Stroud Mall that has been vacant since early 2019. EFO replaces Sears and joins ShopRite as the new arrivals at the mall. EFO and offers furniture and mattresses from known brands. The remaining square footage on the second floor remains vacant and for lease.

TOP LEASE: 1401 S Columbus Blvd Philadelphia, PA

File Photo / iStock
Space Leased: 46,000 SF
Deal Type: New Lease
Sign Date: January 22, 2020
Tenant: Giant Foods
Deal Commentary: This new Giant Foods will anchor a proposed project along the Delaware River waterfront in Philadelphia. The site for this store is between Reed and Tasker streets, South Columbus Boulevard and the Delaware River. Other plans for this site include 35,000 square feet of separate retail space and a Super Wawa. Giant is an American supermarket chain that operates in Virginia, Maryland, Pennsylvania, West Virginia and Washington, D.C. Some stores in these areas operate under the Martin’s brand.

TOP LEASE: 713 E Baltimore Ave Clifton Heights, PA

713 E Baltimore Ave Clifton Heights, PA (CoStar)
Space Leased: 32,711 SF
Deal Type: New Lease
Sign Date: March 27, 2020
Size: 92,651 SF
Tenant: Big Lots

Deal Commentary: Located in central Clifton Heights, this Big Lots will be the first anchor tenant in a newly redeveloped strip center. The rest of the center is available for lease with Gator Investments. This will be the first location for the discount retailer in this area, with the next closest location in Norristown.

TOP LEASE: 1130-1170 Mae St Hummelstown, PA

1130-1170 Mae St Hummelstown, PA (CoStar)
Space Leased: 38,202 SF
Deal Type: New Lease
Sign Date: February 26, 2020
Size: 216,158 SF
Tenant: Big Lots
Deal Commentary: The former Kmart in Hershey will be reopening at as a Big Lots, giving consumers in the area an option for big-box discount shopping. Big Lots will join Five Below, Planet Fitness and T.J. Maxx as new tenants. Big Lots will share some of the old Kmart Space with indoor play center, Where the Wild Things Play. Plans were approved in November for changes that include demolishing a 4,464 square foot area in the back for loading docks and making way for a fast-food restaurant with a drive-thru lane where the Kmart garden center used to be located.

TOP LEASE: 1300-1326 Lititz Pike Lancaster, PA

1300-1326 Lititz Pike Lancaster, PA (CoStar)
Space Leased: 15,242 SF
Deal Type: New Lease
Sign Date: January 1, 2020
Size: 82,698 SF
Tenant: Immunotek

Deal Commentary: Adding to its other donation centers around the country, Immunotek leased 15,242 square feet in Lancaster. Immunotek is the global leader in plasma supply. The company offers people compensation in exchange for plasma and then supplies it to patients who require medicine derived from plasma.

TOP LEASE: 6520 Frankford Ave Philadelphia, PA

6520 Frankford Ave Philadelphia, PA (CoStar)
Space Leased: 7,840 SF
Deal Type: New Lease
Sign Date: January 16, 2020
Size: 53,637 SF
Tenant: Family Dollar
Deal Commentary: Leasing over 7,800 square feet, Family Dollar joins Dollar Tree and Rainbow in Mayfair and adds to the already large number of discount stores in the center. Family Dollar is a discount chain offering a variety of goods including groceries, household items and beauty products. Unlike Dollar Tree, Family Dollar sells goods for over the price of $1.

TOP LEASE: 300 Lincoln Ave East Stroudsburg, PA

300 Lincoln Ave East Stroudsburg, PA (CoStar)
Space Leased: 11,338 SF
Deal Type: New Lease
Sign Date: March 3, 2020
Size: 79,080 SF
Tenant: Wine & Spirits Shoppe
Deal Commentary: The state-run Fine Wines & Spirits Shoppe leased over 11,000 square feet in East Stroudsburg. The Pennsylvania Liquor Control Board operates more than 600 Fine Wine & Good Spirits stores, which were originally known as State Store and then PA Wine & Spirits before a statewide rebranding and addition of e-commerce.

TOP LEASE: 11000 Roosevelt Blvd Philadelphia, PA

11000 Roosevelt Blvd Philadelphia, PA (CoStar)
Space Leased: 6,870 SF
Deal Type: New Lease
Sign Date: March 30, 2020
Size: 87,143 SF
Tenant: Boulevard Laundromat
Deal Commentary: Boulevard Laundromat is the latest tenant at Boulevard Plaza, leasing over 6,800 square feet and projected to move in by the end of May. The laundromat is one of many owned by a long-standing client of Soloff Realty.

TOP LEASE: 3501 Route 42 Turnersville, NJ

3501 Route 42 Turnersville, NJ (CoStar)
Space Leased: 9,800 SF
Deal Type: New Lease
Sign Date: February 1, 2020
Size: 240,773 SF
Tenant: Dollar Tree
Deal Commentary: This new location in Cross Keys Commons, which is set to open this month, will be the third Dollar Tree store in Turnersville. This u-shaped center in Turnersville features anchor tenants such as Walmart, Ross, Marshalls and Staples.