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18A — August 14 - 27, 2020 — M id A tlantic Real Estate Journal

www.marej.com

P eople on the M ove

EWARK,DE — Land- mark Science & En- gineering’s president Trust provides a multitude of insurance products ACECBITnamesLandmark’s Ted C. Williams, PE Trustee N

Joins teamas an associate vice president NAI DiLeo-Bram & Co. welcomes Bayer

and painting, and the occa- sional upgrade of case goods is more akin to underwritten reserves for multifamily than for traditional office. The Philadelphia Business Journal recently reported that BMT (Bryn Mawr Trust) has decided to have 40% of its employees work remotely on a permanent basis, which is resulting in a significant re - duction to the amount of office space that the bank occupies along Lancaster Avenue in Bryn Mawr. Many companies may follow suit and shed excess office space as leases expire. The individual office and office suite concept allows firms to reduce their existing footprint, and convert office space from a fixed expense to a variable expense. As a firm’s need for employees expands and contracts, short- term individual office leases can be signed or allowed to expire. Change provides op- portunity; the changes in the office landscape may provide entrepreneurs with the op- portunity to assist companies with the establishment of an efficient headquarters and satellite approach to office space in the Covid-19 era. David L. Church, CCIM is managing director at U.S. Realty Capital, LLC. MAREJ companies we represent,” he added. For the past four years, Bayer was an associate direc- tor with Colliers Int’l. focusing on the retail sector. Prior to joining Colliers, Bayer was an associate at Cushman & Wakefield and was part of the NJ Retail team. Bayer has in-depth experience analyz- ing demographic and psycho- graphic data to help her clients identify viable market areas for new retail locations and create an overall real estate strategy. She holds a B.S. in Exercise Science & Sports Studies from Rutgers University and is a Member of the International Council of Shopping Cen- ters (ICSC). “I am looking forward to working with the NAI DiLeo Bram & Co team of profes- sionals. The firm is widely rec - ognized as one of the leading commercial real estate firms in the state and I am excited to expand the firms retail divi - sion,” said Bayer. MAREJ

PISCATAWAY, NJ — NAI DiLeo-Bram & Co. announced that Kelly Bayer

The ACEC Trust Programs were designed to enhance en- gineering companies’ mem- bership investment by help- ing control the firm’s costs. Programs are available for business insurance (BIT), life/ health insurance, and retire- ment plans. ACEC Trusts created partnerships with repu- table administrators and plan providers that offer valuable services with quality and com- petitive prices to ACEC mem- ber firms. Greyling Insurance Brokerage &Risk Consulting, a division of EPIC, was designed for design professionals and represents approximately 1,000 engineering firms throughout the United States. Ted Williams said he is “ex- cited to be part of a Trust that not only provides amultitude of

insurance products that protect the engineering business and their collective employees, but also provides tools that help educate our employees on all aspects from risk management to workplace safety.” Williams has served as executive com- mittee chair at ACEC national, where he was elected to the College of Fellows, inducted to the Order of the Engineer, and qualifies as an executive engineer. Having worked up through the ranks of ACEC Delaware, he currently serves as the New Castle County partnering chair. In Febru- ary, Williams was honored to be selected “Engineer of the Year” by the NSPE Delaware Engineering Society in recogni- tion for all of his professional contributions. MAREJ Rebeck specializes in the commercial office, office/flex and industrial/warehouse prod- uct categories. Rebeck held positions with Cresa working on regional and global accounts before shifting to a tenant advisory role. MAREJ ment in the commercial mar- ket is the industrial sector. In- ternet sales and online activity has pushed consumer activity towards more online commerce needing more distribution center capacity and away from traditional brick and mortar local businesses. The bottom line is many commercial prop- erties nationwide will need to be repurposed as the business community adapts to the new economy. The disruption in the commercial market nationally will take years to fully adjust and recover. What Lies Ahead Democratic Presidential can- didate Joe Biden has proposed eliminating many “tax loop- holes” and raising about $4 trillion in new taxes. He wants to increase individual taxes, corporate taxes, and capital gain taxes. Recently, he un- veiled a proposed $775 billion plan to provide more funding for children and the elderly financed by taxes on real estate investors with incomes more than $400,000, increased tax compliance, and targeting 1031 tax-deferred exchanges. Scott R. Saunders is se- nior VP at Asset Preserva- tion, Inc. MAREJ

has joined its team of pro- fessionals as an associate VP . Baye r specializes in representing local and na- tional retail occupiers and

Ted C. Wil- l iams, PE, FACEC has been named a Trustee of ACEC BIT, a Business In- surance Trust Program that makes busi-

Kelly Bayer

diminishes the value of na- tional footprints and makes those “brands” less impor- tant. The changed landscape provides an opportunity for real estate entrepreneurs, as well as companies that want or need to shed excess office space. The entrepreneurial oppor- tunity involves the acquisi- tion and adaptive reuse of 10,000 – 30,000 s/f one- and two-story commercial build- ings located in established ar- eas with high concentrations of employees who are now working remotely. Current interior improvements would be demolished and replaced with furnished individual offices and office suites. Com - mon areas are to be minimal – a conference room avail- able by reservation, a small kitchen, and restrooms. There would be no receptionists, shared lobby, or communal office equipment. This model provides quality office space close to home that can be leased on a monthly, quar- terly, or annual basis. And, for the entrepreneur, this model eliminates the tremendous periodic expenditures for ten- ant improvements and leasing commissions. Reserves for ongoing carpet replacement “We are very excited to have Kelly join our team,” said David A. Simon, SIOR and chief operating officer. “The retail sector has been severely impacted by COVID-19 and there is no doubt that we will see a lot of change in this specific asset class. However, change creates opportunities and we are confident that Kel - ly’s proven market knowledge and experience will greatly benefit the individuals and owners, and in this new posi- tion will continue to utilize her experience and expertise to provide exceptional real estate solutions for her clients.

Ted C. Williams

ness insurance, professional liability, risk management, and workers compensation plans available to ACEC member firms. As one of 10 Trustees - all engineers and business owners, Williams will work with the program administra- tor to oversee the performance and delivery of key benefits to member firms. WASHINGTON, DC — Edge announced the hiring of Kristin Rebeck as VP, advi- sory services. Formerly VP at The Tenant Agency, Rebeck brings more than 12 years of di- versified commercial real estate experience, with a focus on sales exchange investors who must move quickly to identify re- placement property within the 45-day identification period. • Some investors are ex - changing out of real estate located in downtown areas that are seeing increased pro- test activity and fleeing for the safety of suburbs which have become more desirable these past few months. • Other investors are plan - ning to purchase property in more remote areas. Many rural and mountain towns are seeing a big increase in demand. The volume of commercial transactions nationwide has dropped due to many variables. In some cases, buyers have dropped out of contract due to uncertainty about the fu- ture. In late March and April, commercial financing became difficult to obtain. Non-QM financing froze up completely and many exchange investors had lenders saying they could no longer fund loans for the acquisition of replacement property and buyers under contract to purchase exchange Commercial 1031 Exchange Market

and leasing, to the company. In her new role, Rebeck will interact with landlords, invest- ment groups and institutional owners of commercial real estate to provide guidance and timely solutions to their real estate requirements. Rebeck joins Edge as VP, advisory services

continued from page 2A Office in the Covid-19 Era . . .

continued from page 12A 1031 Exchange Update - Summer 2020

properties faced these same fi - nancing challenges. Also, some investors, concerned about a looming recession, chose to sell and pay taxes as they raised cash to survive the downturn. There are segments of the commercial market such as the $240 billion hotel industry that are facing massive unemploy- ment and unforeseen vacancy rates. The leisure and hospital- ity industry has lost 4.8 mil- lion jobs. Business travel has slowed to a trickle and been transformed with virtual meet- ings using applications like Zoom, Skype, Facetime or Mi- crosoft Teams. Other segments of the commercial market are seeing major disruptions. As employers have adjusted to employees working fromhome, the demand for office space has dropped and will likely never return to where it was before the pandemic. Office vacancy rates could reach 25% or more. In addition, projections indi- cate 20-25% of the strip malls and shopping centers are at risk of going bankrupt unless they see a new mix of tenants fill vacancies. About 25% of the restaurants will not be able to survive under current market conditions. One positive seg-

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