7-26-19

24C — July 26 - August 8, 2019 — Brokerage Directory — M id A tlantic

Real Estate Journal

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B rokerage D irectory

By Del Markward, SIOR, Caracor, LLC Real Estate Development 2019-2020 Philadelphia and surrounding areas commercial real estate projection

T

modern, high-bay warehous- es will also emerge where land can be made available in

Construction costs are outpac- ing incomes, and we expect city and suburban rents will be forced to level or drop in the next two years. This, in turn, will slow the construction of new product. While Philadel- phia rents have lagged those of New York and Washington, DC historically, those cities are also seeing downward pressures on rents due to lagging income and affordability indexes, so we expect a slowing of new product except in the best sub-market locations within each region. In all, and barring extreme government policies affecting the real estate markets and income, we see the regional real estate markets continuing to grow at or above the levels of inflation, with a proportionate dispersion occurring between the city and the surrounding suburbs in class of real estate. Del Markward, SIOR is president of Caracor, LLC Real Estate Development.  Hemo, Founder and Man- aging Principal of Vantage RES. “Alan’s extensive knowledge, experience and long-term relationships are a perfect match with the rest of the team and our mission: To develop long-term client relationships by providing exceptional, result oriented CRE service that is a direct result of our on-going pur- suit of excellence, as indi- viduals, teammembers, and leaders in our community” Throughout his career, Sussman has been a manag- ing member and principal owner of multiple commer- cial real estate companies, including Sussman Cor- porate Rental Assistance, ICON Property Group, and Alan J. Sussman & Com- pany, Inc., where he was responsible for the exclusive listings of over 20,000 apart- ment units and over $250M in sales. Sussman is licensed in New Jersey, Pennsylvania, Delaware and North Caro- lina. He is a member of the Board of Directors and was Chairman and co-creator of the “Best in Apartment Living” Awards Program for PAA East and NJAA. 

he U.S. commercial real estate market has been growing steadi-

nually in eastern PA, mostly along the I-78 and I-81 cor- ridors, with over 10 million

Center City Philadelphia has reached a high water mark for asking rents, cresting over $50 psf for the first time in the city’s history. Led by medical, tech- nology, bio-tech and supporting businesses, new office projects feature specialty designed buildings comporting to each industry’s needs. These facili- ties are rising next to shared, open-space office layouts. We- Work, a shared space pioneer, has become the largest tenant in NewYork City and has taken significant space in other major international cities, including Philadelphia. Despite not yet being profitable, their success in growth has spawned many competitors, each with the program of licensing space monthly to their customers as opposed to leasing, which has been the market standard until now. The apartment market will continue to grow at a faster pace than home ownership.

ly over the l a s t e i gh t years, and thi s t rend is expected to continue for at least the next two years. Na- tionally, the

The U.S. commercial real estatemarket has been growing steadily over the last eight years, and this trend is expected to continue for at least the next two years.

Del Markward

the best retail locations based on demographics, job growth, residential trends and devel- opment, and other factors to ensure retailers know where their customers are and where they’ll be coming from. Brick-and-mortar retail is far from dead; it’s just evolv- ing. The brands ready to adapt will be the ones we’ll still be buying from in 20 years. Phillip A. Azarik is a vice president of brokerage services with Metro Com- mercial.  relocating in one of the the remaining buildings .Frank Somma stated that It was the first sale to a new in- vestment client of Somma Assoc. The client intends to renovate and upgrade the entire structure to loft space for small businesses. DeGennaro originally listed the property and was the selling broker. The property is conveniently located close to public transportation, Rte. 280 and the Garden State Parkway. It is on the border of East Orange and Newark, in an economic and opportunity zone.  or near the city, but this land is limited. Older, well-located buildings, near rail or cargo hubs, may be candidates for renovations or, more likely, removal to make way for new, functional warehouses to serve households with same-day or even two-hour delivery services. The office market will con- tinue a steady climb in occu- pancy, subject to new product coming on the market, with rents growing two – three per- cent annually. New product in

retail market has taken some hits with high profile bank- ruptcies and downsizings, but e-commerce has picked up the slack with significant growth in retail-oriented warehouses and logistics facilities. The Philadelphia area, and eastern Pennsylvania as a whole, has followed suit keep- ing up with and often outpac- ing the most robust portions of the national markets. Distribution facilities have grown at a rate of 10% an-

feet of absorption in each of the last three years and just as much in the construction pipeline for the next three years projected. In addition to the state’s perimeter ware- house growth, there is a push to get closer to the heaviest population areas with last mile delivery services. We will see older mill and for- mer manufacturing facilities being re-purposed in urban centers and near-in suburbs to be used as logistics and same-day delivery hubs. New,

DeGennaro of Somma Associates closes Newark, NewJerseywarehouse

Vantage RES welcomes Sussman as dir. of inv. sales

NEWARKNJ — Somma Associates LLC , aHacken- sack based investment real

MARLTON, NJ — V an- tage Real Estate Services (Vantage RES) , one of

estate com- pany , has announced that Vi to DeGenna- ro broker/ salesperson has closed the sale of a 27,000 s/f

the region’s fast-growing full-service commercial real estate services and p r o p e r t y m a n a g e - ment firms, announced

shop, whether it is online or in- store. They have experienced both and the ratio between the two channels will meet an equilibrium and co-exist. But retailers shouldn’t over- look the role technology and experiences can play in their success in today’s market and for the foreseeable future. They should also always pay close attention to loca- tion, one constant that has always benefitted retailers. At Metro, one way we set up brands for success is by finding ping area. This marked the first sale of this property in 50 years. The seller, ASB Associates, LLC which was the owner of three con- tiguous buildings sold the subject property and are Warehouse on South 15th St.

Vito DeGennaro

Alan J. Sussman

warehouse on South 15th St., Newark. The sale con- sisted of a three story brick elevator warehouse on a 100’ x 100’ lot with off-street parking and large bay ship-

that it has hired veteran industry leader, Alan J. Sussman , as a member of its dynamic sales team. In the role of director of invest- ment sales, Sussman will focus on large-scale projects including investment-grade, multi-family and large-scale investment properties, in New Jersey, Pennsylvania, and Delaware. Given Suss- man’s extensive experience and his 35-year track re- cord of successfully selling multi-family apartment and investment properties, he brings unparalleled advan- tage to the fast-growing firm. “Vantage RES is now bet- ter placed than ever to serve our clients’ CRE needs in a very fast paced and com- petitive market,” said Leor

continued from page 11C How to sustain retail for the next 20 . . .

Retail space isn’t going anywhere

Retail will always need a brick-and-mortar presence. Some customers need to touch, try on, and sample the items they’re purchasing. Some customers want to pick up an item faster than it can ship. Some customers need a place where they can easily return or exchange a product. At this stage in the evolution of retail, consumers are settling in as to how and when they prefer to

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