Philly Retail Space

Philly Retail SpaceWolf Commercial Real Estate is a premier Philadelphia commercial real estate broker that represents Philly retail space for lease and sale.

We are experts in the Philadelphia retail space market, with a team of seasoned and knowledgeable real estate advisors ready to help you achieve your real estate goals. At Wolf Commercial Real Estate, we go well beyond simply handling property transactions. As an unparalleled Philadelphia commercial real estate broker, we are a strategic partner whose number-one priority is our client’s long-term growth and success in the Philadelphia retail space market.

Retail businesses looking to buy or lease retail space in Philly can be assured that the professionals at our Philadelphia commercial real estate brokerage firm have the expertise to help you find the Philly retail space that best suits your needs. At Wolf Commercial Real Estate, we make certain that the sale or lease terms for your new Philadelphia retail space work to advance your commercial real estate goals. We’re the Philadelphia commercial real estate broker that is with you from the beginning of the transaction to the end, making the transition to your new retail space in Philly smooth and seamless.

Do You Own Philly Retail Space?

Retail property owners looking to sell or lease retail space in Philadelphia will appreciate the defined marketing strategy that the team at our Philadelphia commercial real estate brokerage firm creates and customizes for each property and sub-market. This process works to effectively and efficiently match buyers and tenants with retail space in Philly.

Retail space in Philadelphia is aggressively priced, and market trends show that the retail business in the region is poised for a massive rebound. For more information, please contact the team at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate brokerage firm.

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Markets for U.S. and Philly Retail Space Look Toward Strong Rent Growth in 2016

new Jason graphic - 6-3-15The retail sector’s national vacancy rate dropped to 5.9% in the final quarter of 2015 on the heels of posting a strong 20 million square feet of net absorption, according to a new retail real estate report from the CoStar Group. This scenario bodes well for rent growth in the year ahead in an increasing number of shopping districts in the U.S. and Philly retail space markets, the report said.

CoStar’s 2015 State of the U.S. Retail Market Review and Forecast said the last quarter of the year saw only 12 million square feet of new retail space come online, capping off the year’s “moderated pace” of shopping center development that has continued into 2016.

Construction in the U.S. retail market, including the market for Philadelphia retail space, remains fairly low in comparison to earlier cycles, but new shopping center space now in development stands at its highest level since the recession — 70 million square feet nationwide, CoStar reported.

Included in the new retail projects now underway are 21 malls and five outlet centers, but only 10 power centers, the report noted.  That is a significant drop in power centers than in the previous cycles, according to CoStar.

Grocery-anchored neighborhood centers, however, have increased considerably in the past two years, with 86 now underway, the report said.  Thus trend clearly indicates of the strength of smaller independent in-line tenants and also reflects the positive impact of the continuing economic recovery on local economic strength, CoStar reported.

CoStar also noted a changing pattern among developers who are focusing more on urban mixed use infill projects rather than following the population to build shopping centers in far-out suburban locations.

This trend was especially notable in supply-constrained markets as New York City, Miami and Honolulu, CoStar said, adding that between 1% and 1.5% of new retail inventory currently is being constructed in these three markets.  Among the major projects in these three cities are Miami’s Brickell City Centre, New York City’s shopping centers near the World Trade Center and Hudson Yards, and Honolulu’s International Market Place, opening in Waikiki this summer.

At the same time, retail markets such as Raleigh, Nashville, Houston and Charlotte that were previously high-growth markets but are not as supply constrained now are seeing lower levels of construction than the 2006-2008 real estate cycle, CoStar said.

Dallas, Raleigh, Fort Lauderdale, Orlando, and Austin, all of which have cleared out their overhang of vacant store space from the last cycle, had the strongest year-over-year demand growth in 2015, according to the report.

CoStar said rent growth in premier retail districts with at least $2 billion in spending power within a three-mile radius slowed in recent quarters and would remain good through 2016, but far below the explosive pace of the recent past.

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

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

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker that specializes in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philadelphia retail space with the Philadelphia commercial properties that best meets their needs.  As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philly retail space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

Please visit our websites for a full listing of South Jersey and Philadelphia retail space for lease or sale through our Philadelphia commercial real estate brokerage firm.

Philly Retail Space Update: Market East Transformation Underway

Philadelphia’s East Market Street has been a commerce and transportation hub since the time of 19th-century slaughterhouses and horse-drawn trolleys.  This strip of retail space in Philadelphia has certainly experienced both good times and bad.  Even with the 1977 opening of the Gallery, the consolidation and downfall of Philadelphia’s grand department stores resulted in an absence of upscale Philly retail space.  At the turn of the century, Rittenhouse Row — and more recently, west Chestnut Street — became the city’s preferred shopping destination.

Market East Rebirth revised 12-7-15But now, Market East is moving toward regaining its significance as “Philadelphia’s Main Street,” with a revitalization effort that will see more than 1.6 million square feet of new and renovated Philadelphia retail space introduced to this segment of the Philadelphia commercial real estate market.

Leading the transformation is retailer Century 21, which in 2014 opened a 100,000-square-foot store at 8th & Market, its first location outside New York City.   But PREIT/Macerich’s planned overhaul of The Gallery as a premium outlet center is garnering the most interest now as current retail tenants are being relocated to clear the way for the multi-year makeover.  An overlooked feature of this Philadelphia commercial real estate development is that it will literally break down the massive walls of the Gallery to bring Philly retail space down to street level, thereby making Market Street more appealing to pedestrian traffic than it has been in nearly 40 years since The Gallery opened.

On the opposite side of Market Street, a 775,000 square foot mixed-use project is now being built by National Real Estate.  The development will feature 322 residential units, along with Philadelphia commercial properties that will include office space, hospitality, parking and retail.  National’s Philadelphia commercial real estate project also will improve pedestrian access to Chestnut Street, where Brickstone Realty is building several Philly commercial properties.  Most notable among Brickstone’s projects is a development that will provide 112 apartment units and 95,000 square feet of Philadelphia retail space on the 1100 block of Chestnut.

Rents for retail space in Philadelphia in the Market East area have remained fairly steady, but occupancy rates have increased significantly over the past decade. Thanks to a population of more than 183,000 people in Greater Center City and record number of future bookings at the Pennsylvania Convention Center, demand for retail space in Philly is expected to remain solid for the foreseeable future.

mannino spFor more information about Philly retail space or other Philadelphia commercial properties, please call 215-799-6900 to speak with Anthony V. Mannino, Esq., Vice President-Corporate Strategies, at Wolf Commercial Real Estate, a premier Philadelphia commercial real estate broker with expertise in Philadelphia retail space.

Wolf Commercial Real Estate is a Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philly 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 retail space in Philly with the Philly commercial properties that best meet their needs.  As experts in Philadelphia commercial real estate listings, including retail space in Philadelphia, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about retail space in Philly and other Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philadelphia retail space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

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 Retail Space Stands to Benefit from Increase in Retail Chain Store Openings

new Jason graphic - 6-3-15Retail chains in the U.S., including those in the Philly Retail Space market, plan to open 42,506 new stores in the 12 months and 79,650 stores in the next 24 months, a jump of 4% and 4.2%, respectively in new store openings year to date in 2015, according to a new report.

The jump in planned chain store openings is being propelled by recent employment and retail sales growth, along with higher consumer confidence, the latest National Retailer Demand Monthly report from RBC Capital Markets says.

Retailers also have found increased confidence in the retail market from forecasts for sales of about 3.6% for the 2015 holiday season that, comfortably close to 2014’s healthy 4.1%, according to the consensus estimate of the National Retailer Federation, Deloitte and four other retail forecasters.

Lower gas prices also may be having a slow but noticeable impact on consumer budgets, potentially prompting greater nondiscretionary spending, RBC Capital Markets said.  Retailer are hoping to attract these extra consumer spending with more new store openings.

Despite 2015’s steady increase in new store openings so far, new construction for shopping center redevelopment and ground-up construction has trickled down as the year has progressed, according to RBC.

Rents and occupancy are expected to enjoy healthy increases in the near term as the result of the combination of higher consumer sales, increased demand for space among retailers, and a lack of  growth in new supply,  RBC said.

The CoStar Group’s latest retail real estate market data backs up the forecast for increased  demand for retail space, including Philadelphia retail space.  CoStar notes that the national retail vacancy rate is at the lowest point since it began tracking the market, now standing at roughly 5.9% according to preliminary third-quarter data.

The CoStar Portfolio Strategy indicates that absorption has outpaced new construction by almost a 2-to-1 margin over the past year, with the amount of retail space under construction now about 38.5% below the average amount that was under construction between 2006 and 2008.

Not all retailers are seeing a rosy future for their industry. Wal-Mart Stores, Inc., the world’s largest retailer, surprised the market by forecasting a 12% decline in net profits for 2016.  As a result, the retailer plans to reduce new store openings in the U.S. in the next fiscal year to between 135 and 155 stores, compared with the 354 stores it opened in the last fiscal year.

Despite strong net absorption, retail space rents are still 7% below their pre-recession peak — the only major commercial property segment where asking rents have not yet matched to their highs in the last cycle.  At blame are the struggling shopping centers, especially those in the outer fringe suburbs, that have leased space at lower rates to discounters, fitness centers and non-retail users, thereby offsetting the exceptionally strong recovery in urban retail properties.

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

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

Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm that specializes in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philadelphia retail space with the Philadelphia commercial properties that best meets their needs.  As experts in Philadelphia commercial real estate 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 retail space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

Please visit our websites for a full listing of South Jersey and Philadelphia retail space for lease or sale through our Philadelphia commercial real estate brokerage firm.

Local Market Remains Steady despite National Economic Volatility

new Jason graphic - 6-3-15While the national economy was affected by turmoil in the global markets, the Philadelphia commercial real estate market continued its progress for another quarter, according to the latest quarterly analysis from Wolf Commercial Real Estate, a premier Philadelphia commercial real estate broker that specializes in Philly commercial real estate listings and services, including Philly retail space and other Philadelphia commercial properties.

An expected summer slow-down did slow the pace of transactions, but overall growth, expansion, and positive absorption stayed on track said the report from this Philly commercial real estate brokerage firm. Healthcare, insurance, financial services, defense contracting, and technology companies led the way.

“As in the past several quarters, we saw a healthy volume of transactions due to business expansion and improving job growth during the third quarter,” said Jason Wolf, founder and managing principal of Wolf Commercial Real Estate, a leading Philly commercial real estate brokerage firm.. “We also saw an uptick in deal activity among small and mid-size businesses, which is welcome good news that the market had been waiting for.”

The report from this Philly commercial real estate broker details many factors contributing to continued strength in the market, including large and small lease deals, the beginning of new construction activity, several investment acquisitions of office properties, and continued repositioning among the area’s REITs.

According to the report issued by Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm with expertise in Philadelphia commercial real estate listings and services, including Philadelphia retail space and other Philly commercial properties, this repositioning also covers the latest coup for the GROW NJ program, a recently announced 1.7 million square-foot mixed use development along the waterfront in Camden, NJ.

According to Wolf Commercial Real Estate, the third quarter posted approximately 477,983 of new leases and renewals executed in the Philly commercial real estate market. This is a nearly 20 percent improvement over the third quarter a year ago. New tenant leases consisted of approximately 280,360 square feet, and renewals and expansions made up approximately 197,623 square feet. New leasing activity represented approximately 58.7% of all deals for the quarter.

Overall, gross absorption for Q3 is in the range of approximately 233,610 square feet. In addition to the consummated deals, this section of the report from the Philadelphia commercial real estate broker that specializes in Philadelphia commercial real estate listings indicated a pipeline of approximately 350,000 square feet of significant pending lease deals expected to close in the near term.

Other office market highlights in the analysis from Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm that specializes in Philly commercial real estate listings and services, including Philly retail space and other Philadelphia commercial properties:

  • Overall vacancy in the market continues to drop, and is now down to approximately 12.15 percent, an improvement of three quarters of a point over the previous quarter. Vacancy in Burlington County is now down to 8 percent, while in Camden County it stands at 16.3 percent.
  • The majority of leasing activity for the third quarter was comprised of deals ranging in size from 3,000-80,000 square feet.
  • Average rents for Class A & B product continue to show strong support in the range of $10.00-$13.00/sf NNN or $21.00-$23.00/sf gross, with an overall market average showing strong support in the $10.00-$13.00/sf NNN or $20.00-$23.00/sf gross for the deals completed during the quarter. Rents have remained stable.

The full report is available upon request from Wolf Commercial Real Estate, a Philly commercial real estate brokerage firm with expertise in Philly commercial real estate listings and services, including Philadelphia retail space and other Philadelphia commercial properties.

For more information about Philly office space, Philly retail space or any Philly commercial properties, please contact Jason Wolf (856-857-6301; jason.wolf@wolfcre.com) or Leor Hemo (856-857-6302; leor.hemo@wolfcre.com) at Wolf Commercial Real Estate, a Philadelphia commercial real estate broker.

Wolf Commercial Real Estate is a premier Philly commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services that include Philadelphia retail space and other Philadelphia commercial properties.  Wolf Commercial Real Estate markets commercial retails, medical properties, industrial properties, land properties, retail buildings and other Philly commercial properties for buyers, tenants, investors and sellers.  Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

Philly Retail Space Update: Mixed Use Trend Hits Retail Space

new Jason graphic - 6-3-15The familiar design of lifestyle centers and traditional malls is being rethought as commercial real estate developers look to attract tech-savvy millennials and affluent baby boomers by introducing office space and residential living space to retail centers, including Philly retail space.

A report from the CoStar Group notes that mall and lifestyle center developers are increasingly interested in signing anchor tenants such as multi-screen or IMAX cinemaplexes and Apple Stores as they are in infusing creative office space and apartments to their multi-million-dollar retail projects.

Their goal is to draw in the millennial generation’s 80 million consumers, who represent the largest and fastest-growing retail segment in the U.S. economy.  Baby boomers still possess the greatest buying power in retail, but millennials wield considerable  influence on the industry.

Retail developers, including those in the Philadelphia retail space market, are hoping to replace dollars lost to online shopping by creating a new income stream by incorporating office and residential space in malls and lifestyle centers.  And they’re hoping these mixed use project will appeal to the multi-tasking nature of millennials.

Millennials — a loosely defined generation of those born between the mid 80s and into the early 00s — are viewed as extremely social individuals who crave a walkable, mixed-use environment that allows them to participate in many activities in one outdoor place, including exercising, dining, shopping, visiting with friends, seeing a movie and more.

Several new projects underway have been described as mixed-use, open-air malls to which office space, residential units and even hotels eventually will be added.  While many projects are new construction, redevelopment of existing retail centers also is planned.

These new retail projects, potentially including Philadelphia retail space in the future, serve as both the commercial and the social and civic centers of the community, with an outdoor public space design that adheres to traditional urban planning principles, one developer said.

The determination as to whether a mixed use center or a more traditional lifestyle center is best for any given community is based in knowing what customers want and in understanding the community’s demographic and economic base.

The Urban Land Institute says 13 percent of Gen Yers live in or near downtowns, dispelling the myth that they are, as a group, hip urban dwellers.  In reality, most live in neighborhoods in cities or in the suburbs.

Older millennials — those now in their mid to late 30s — carry the most influence. They are now beginning to have children and create households, with about 35 percent now owning their own homes.

These evolving demographics also may be changing the look of the traditional suburban office park.  As office park tenants strive to attract new employees in their 20s and 30s in the face of an increasingly competitive job market, some landlords are looking to make the suburban workplace more appealing by incorporating residential living space and retail space into the office park.

For more information about Philly retail space or other Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) or Leor Hemo (leor.hemo@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker with expertise in Philadelphia retail space.

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

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker that specializes in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking Philly retail space with the Philadelphia commercial properties that best meet 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 retail space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

Please visit our websites for a full listing of South Jersey and Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

Low Level of Retail Construction Starting to Crimp Net Absorption

new Jason graphic - 6-3-15With shopping center vacancies, including those involving Philadelphia commercial properties, continuing to tighten as retailers with retail space in Philadelphia and other areas across the country slowly fill the remaining excess space, with both nationwide and Philadelphia commercial real estate listings are facing a dwindling number of high-quality locations.

The U.S. retail real estate vacancy rate, which includes Philadelphia retail space, drifted down another 10 basis points to 6.1% in the second quarter — the 12th consecutive quarter of vacancy decline. The retail vacancy rate – according to a report released by The CoStar Group and disseminated by Wolf Commercial Real Estate, one of the leading Philadelphia commercial real estate brokerage firm – has already dropped below pre-recession lows in major metros like Boston, New York, and Denver, and demand remains solid despite continued store closings by Sears, Kmart, The Gap, Office Depot, Staples, Macy’s and even grocer A&P.

As tight as the market feels with the vacancy rate of national and Philadelphia retail space just 10 basis points shy of its previous cyclical low in 2007, CoStar senior real estate economist Ryan McCullough argues it’s even tighter today with both national and Philadelphia commercial real estate listings than it was at the height of the boom eight years ago.

Today, only 60 million square feet of new retail space in Philadelphia and across the U.S. is under construction, compared with 150 million square feet that was under construction in 2007 when developers working with national and Philadelphia commercial properties were building or expanding power centers, malls and shopping centers in pursuit of population growth in the suburban fringes.

“You really have far fewer options if you’re a retail tenant in today’s market, and that’s really starting to wear on the demand numbers,” said McCullough, who prepared the report that was shared with Wolf Commercial Real Estate, a top Philadelphia commercial real estate brokerage firm. “What’s holding back a lot of tenants today is the scarcity of available supply in good locations with strong demographics.”

Tenants looking for retail space in Philadelphia and across the country absorbed about 32 million square feet at mid-year 2015, compared to 37 million square feet in first half of 2014. The declining absorption numbers in recent quarters are a logical consequence of the lack of available space for national and Philadelphia commercial properties, rather than declining tenant demand, McCullough said. Until more U.S. and Philadelphia retail space enters the market, demand is likely to be reflected in terms of higher rent growth rates, he added.

Despite the limited supply of available space, the market for Philadelphia commercial real estate listings as well as those from coast to coast is still experiencing a bit of opportunistic leasing and store openings by retailers like Wal-Mart, Dollar General and Dick’s Sporting Goods, which can be productive in somewhat less attractive locations. McCullough expects such activity will likely dominate retail expansion until new shopping center supply ramps up. This perspective was supported on the local level by Wolf Commercial Real Estate, a highly respected Philadelphia commercial real estate brokerage firm.

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

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

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with expertise in Philadelphia commercial real estate listings and services, provides unparalleled expertise in matching companies and individuals seeking new Philadelphia retail space with the Philadelphia commercial properties that best meets their needs.  As experts in Philadelphia commercial real estate services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for retail space Philadelphia for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

Banks Close More Branches As Transactions Move Online

new Jason graphic - 6-3-15Joining many consumer goods retailers who are downsizing their brick and mortar locations, some of the nation’s biggest banks are now touting their bank branch closure plans. The primary driver behind both decisions is the same: more banking activity is occurring online and less in the physical world.

But banks have an additional driver: regulators are issuing stricter capital regulations are driving up accounting and personnel expenses in order to manage compliance.

Given the higher cost environment, banks – which make up a significant portion of Philadelphia commercial properties – no longer are quietly downsizing their branch networks. Instead, bank executives are making plans for further consolidation loud and clear, pointing out steps how they plan to rectify what many top bankers refer to as “core banking inefficiencies.”

Over the last five years, banks that are a component of retail space in Philadelphia have trimmed their branch networks by 13,406 bank branches, while opening just 8,011 new ones, according to FDIC statistics. Their footprint in now 4.6% smaller than five years ago, with slightly more than 95,000 U.S. offices opened today.

In discussions with investors, banks are now talking about cutting another 4% to 5% of their branch networks this year alone.

At its peak, Bank of America had as many as 6,100 bank branches, including a number of them in Philadelphia retail space. That has fallen to about 5,000 branches today as competitive conditions and customer behaviors have changed.

Bank of America said it has about 31 million banking customers, and of those, about 17.6 million of them use mobile banking. In addition, the bank said about 60% of its transactions are now all digital, made through phones, online or ATMs at branches, according to Brian T. Moynihan, chairman and CEO of Bank of America.

Jamie Dimon, chairman and CEO of JPMorgan Chase, underscored the accelerating move to online banking, saying the recipe for failure is for a bank to never change locations, never change size, or never change the way they operate.

JPMorgan closed about 100 branches in the past year – with some of them in Philadelphia retail space – and now operates about 5,600 in its network, with further branch closings planned.

In addition to responding to consumer trends, bankers also noted the added costs associated with complying to new regulations.

After several rounds of branch closures, Donna Townsell, vice president of corporate efficiencies at Home Bancshares, said, “The savings and efficiencies gained from these closures will help to tee us up for the upcoming expenses that we expect to incur as we begin the planning for Dodd-Frank stress testing requirements.”

The long lead time before branches both in and out of retail space in Philadelphia close is also important in the rightsizing process, other bankers noted. Banks now find themselves in a transitional phase of serving two distinct customer basis: the old-school, in-branch customers, and all-digital customers.

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

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

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with expertise in Philadelphia commercial real estate listings and services, provides unparalleled expertise in matching companies and individuals seeking new Philadelphia retail space with the Philadelphia commercial properties that best meets their needs.  As experts in Philadelphia commercial real estate 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 retail space Philadelphia for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

Report: Every Sector of Philadelphia Retail Space Development at Its Peak

new Jason graphic - 6-3-15Retail space in Philadelphia is springing up with many major real estate developments, and Center City is undeniably at its center. For a couple of years, the city has been observing the development of level it hasn’t seen since the construction of Liberty Place towers during the late 1980s. And the same trend will continue for next few years. So says the latest Center City Development report on retail space in Philly prepared by CenterCityPhila.org.

Be it Philadelphia commercial properties, Philadelphia commercial real estate or Philadelphia commercial real estate listings, every sector is being transformed with a number of new Philadelphia retail space projects. The CenterCityPhila.org report features over 60 ambitious Philly retail space projects of different sectors proposed to be built between 2014 and 2018. Some have already been completed, many are under way, and some are yet to begin. But undoubtedly, this development phase will change the Philly and life here forever and for better.

Some of the most eye-catching projects involving retail space in Philadelphia are Comcast Innovation & Technology Center, a 1,121 feet tall skyscraper; Children’s Hospital of Philadelphia at South Street, which will house a research staff of 1000+; a 51-story hotel building with 460 rooms divided among two hospitality brands; Penn’s Landing Park, spanning across 11 acres; Renaissance Plaza, a residential complex of 1,398 units, and many more.

With all the new Philadelphia retail space projects under way, certainly a huge number of employment opportunities will be created in time to come. This in effect will attract thousands of people to the City of Brotherly Love from not just the US but from across the world, all looking for Philadelphia commercial properties, Philadelphia commercial real estate and Philadelphia commercial real estate listings. Meanwhile, there are plenty of alluring Philly retail space opportunities for real estate investors in Philadelphia, especially in the residential sector.

However, it isn’t just the pace of construction of retail space in Philly that has picked up recently that fascinates investors. There are many other factors that make Philadelphia an ideal place to develop and invest in real estate properties.

For instance, there is no property tax for first 10 years on new constructions in Philadelphia. Philadelphia is also among that handful of cities where the housing market is still stable, while the entire country is whining about a tight housing market and steeply rising house prices. Additionally, the markets involving Philadelphia commercial properties, Philadelphia commercial real estate and Philadelphia commercial real estate listings are among top 10 cities with highest rental return rates.

For more information about Philadelphia retail space or any Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com), Leor Hemo (leor.hemo@wolfcre.com) or Lee Fein (lee.fein@wolfcre.com) at Wolf Commercial Real Estate, a premier Philadelphia commercial real estate broker that specializes in retail space in Philly.

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

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with expertise in Philadelphia commercial real estate listings and services, provides unparalleled expertise in matching companies and individuals seeking new Philadelphia retail space with the Philadelphia commercial properties that best meets their needs.  As experts in Philadelphia commercial real estate 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 retail space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

Philly Retail Space Update: The Struggle for Balance between Online and New Store Growth

new Jason graphic - 6-3-15Retailers, including those in the Philly retail space market, are struggling to develop a strategy for future sales growth that balances online expansion and opening new stores, according to new retail analysis.

BDO USA’s ninth annual analysis of risk factors noted by the 100 largest U.S. retailers in their most recent annual reports found that retailers were highly concerned about the best way to fund their growth, even as the retail industry enjoyed solid year-over-year industry performance, positive sales projections, strong consumer confidence and other positive economic indicators.

BDO said the number of U.S. companies that cited U.S. growth and expansion as an area of risk reached 92 percent this year, up from 56 percent in 2013. Retailers in the U.S. and Philadelphia retail space marketplace are vigorously seeking new ways to increase sales and reinforce store brands, while also recognizing the need for an omnichannel marketing approach to satisfy consumers’ increasing demand for online shopping options.

BDO said retailers moved away from primarily investing in new bricks and mortar stores in 2008.  As online buying by consumers ramped up, retailers’ return on the investment in new stores diminished and capital investments were redirected to online sales, supply chain networks and systems implementations.  But with spending in those areas less proven, retailers noted a increased risks with the new investment strategies.

In this new world of retail marketing, different retailers are in vastly different stages of funding their growth.

Wal Mart Stores — which boasts 4,500 U.S. stores and another 2,120 outside the U.S. — spent nearly 40% ($5.1 billion) of its fiscal year 2014 capital expenditures ($13.1 billion) on new store expansions and relocations.  But in the 2015 fiscal year that ended January 31, that amount dropped to $4.1 billion or about 34%, according to BDO. At the same time, Wal Mart’s investment in information systems, distribution, digital retail and other omnichannel expenses jumped from $2.5 billion (20%) to $3.3 billion (27%).

In comparison, Macy’s Inc. — which, with 823 stores in 45 states, is the largest department store in the U.S. — is just now embarking on its omnichannel strategy and is finding difficulties as it starts down this new road. In its last fiscal year, Macy’s spent about $1.1 billion primarily on new stores, store remodels, store maintenance and the ongoing renovation of it’s flagship store, Macy’s Herald Square in New York.  Physical store openings remain a key part of the retailer’s growth focus, with plans announced to open at least eight new Macy’s or Bloomingdale’s stores over the next four years in four states and one U.S. territory, stretching from Puerto Rico to Hawaii.   Macy’s posted first quarter 2015 sales of $6.232 billion, down 0.7% from a year ago, while expenses rose 1.2% over the prior year.   The company said some of the increased expenses came from the launch of a significant omnichannel initiative intended to bolster continued sales growth and enhance customers’ online, mobile and in-store shopping experience.

Macy’s remains committed to the new sales growth approach, but acknowledged that the learning curve was “steeper than we had expected.”

To strengthen their omnichannel sales potential, retailers have committed a massive investment in money, time and energy, but a new survey conducted by PwC for JDA Software found that only 16% of today’s retail companies can fulfill omnichannel demand profitably.  Survey respondents said the high cost of order fulfillment is eroding their margins.

The survey found that retailers acknowledged the importance of omnichannel fulfillment, labeling it a high or top priority and committing an average of 29% of their total capital expenditures for 2015 on improving their omnichannel fulfillment performance.

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

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