Philadelphia Area Commercial Real Estate Market Overview
Philadelphia Area Commercial/Investment Real Estate Report - 4th Quarter, 2011
Guest Author: Craig Fernsler, CCIM,
2012 President PA/NJ/DE CCIM Chapter
As I attended Real Share at the Union League in Philadelphia on March 7, the sentiment from the expert panelists and fellow attendees were generally upbeat and positive regarding the Philadelphia commercial market. One main factor regarding Philadelphia is that it is "sandwiched" between New York City and Washington, DC. This geographical fact creates the perception that the Philadelphia market and submarkets are "cheap" because rents and sale prices are consistently lower and is perceived by outsiders as a "value play." There is also a constraint on supply in the Philadelphia region with the difficulty for new development and buildings getting approved by municipalities and to come onto market economically.
2011 transaction volume was up 80% from 2010 nationally. As we are 2/3 through Q1, 2012, there seems to be a tremendous amount of activity overall in the real estate market. From residential properties to office properties to retail properties, more showings, more interest, and more proposals are working through the cycle. It remains to be seen whether this trend is the start of a true recovery, or if it is a "blip" on the radar screen.
The multi-family market is especially desirable for purchasers. More and more people are choosing to rent than to own a home because of economic fear. Also, many of these renters have increased credit issues that must be dealt with by property managers. There are many buyers for the apartment property type and there is also significant capital to lend for apartment purchase. The key is that the numbers have to work.
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If your exchange proceeds were placed into an interesting bearing exchange account with one of the several financial institutions utilized by 1031 CORP., you should have received a Form 1099-INT directly from the financial institution.
Note that if your exchange was initiated in one calendar year and completed in the following year, you will have two separate Form 1099-INT statements; one for each calendar year with each statement reporting the respective interest earnings.
Regardless of whether you reinvested the interest earnings into your replacement property or received them directly after the completion of your exchange, the interest reported on the Form 1099-INT should be reported just as any other interest earnings for the tax year.
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Trending this Month...
Multiple Replacement Properties
Investors seem to be maximizing the
opportunities available with the current real estate market couple with still historically low interest rates and leveraging their exchange funds into
multiple replacement properties.
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1031 Seminars
Join us at our next complimentary seminar to learn more about 1031 exchanges and their many benefits. You must register in advance. Refreshments will be provided.
1031 EXCHANGES MADE EASY
Wednesday, April 18th, 6:30 - 8:30 pm
1031 CORP., 100 Springhouse Drive, Suite 203, Collegeville, PA
REGISTER NOW by emailing RSVP@1031CORP.com with your contact information! To schedule a 1031 seminar or sales workshop for your group, please call Margo McDonnell, CES® at 1.800.828.1031 ext. 212 or send her an email at margo@1031CORP.com.
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Lunch & Learn Webinars 
Join us for one of our complimentary Lunch & Learn Webinar Series webinars designed to provide quick educational sessions to help you build and preserve wealth. Grab your lunch and log on to a computer near you!
Form 8824 Made Easy
Wednesday, March 28th, 12:05 - 12:50 pm EST
It is time to report your 1031 exchange to the IRS. HELP! Bettye Matthews, CPA, will walk you through Form 8824 line by line. This webinar is for individuals and tax preparers and will help simplify this complicated form. Register Now!
1031 Exchanges Made Easy
Thursday, April 5th, 12:05 - 12:50 pm EST
This webinar will provide an overview of 1031 tax-deferred exchanges and their many benefits. We'll also review the requirements of a successful exchange. Register Now!
Advanced 1031 Exchange Topics
Thursday, April 19th, 12:05 PM - 12:50 pm EST
This webinar will review topics such as reverse and improvement exchanges, personal property exchanges, related party transactions, installment sales and partnership issues. 1031 basics will not be covered so if you don't know the basics, you are encouraged to take our "1031 Exchanges Made Easy" webinar first. Register Now!
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2011 Exchange Reporting Guide
Download our 2011 Exchange Reporting Guide here for information on reporting your 1031 exchange, when to file your tax return, when to file for an extension and other important tax reporting assistance!
Have you reported your 2011 Exchange yet? Does your tax professional have questions? Encourage them to join us for our informative Form 8824 Made Easy Webinar!
Form 8824 Made Easy Webinar
Wednesday, March 28th, 12:05 - 12:50 pm EST
It is time to report your 1031 exchange to the IRS. HELP! Bettye Matthews, CPA, will walk you through Form 8824 line by line. This webinar is for individuals and tax preparers and will help simplify this complicated form. Presented by 1031 CORP.'s Bettye Matthews, CPA. Register Now!
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Message from our President
 | | Margo McDonnell |
Dear Friends,
Happy Spring! While the calendar says Spring just started, we have been enjoying Spring-like weather most of the new year. We've also been enjoying a steady increase in activity that we usually see at the end of Spring. We are seeing many investors who have been on the fence for a long time finally taking that leap and trading up to something that may have been unobtainable just a few years ago. And why not? Now is a great time to buy.
While the news media is finally starting to report some of the positive signs in the real estate market, it is some times hard to gauge what is really going on even in our backyards. I asked Craig Fernsler, CCIM, the 2012 President of the PA/ NJ/ DE CCIM Chapter, to give us an overview of the state of the commercial real estate market in the Philadelphia region which you read above. All indicators in the Philadelphia region point to continued improvement fin the commercial sector and fortunately, the housing marketing is also steadily improving. Job growth and improved consumer confidence will help keep these moving in the right direction.
At one of our 1031 CORP. symposiums, I remember an attendee asking our panel of seasoned REALTORS® how will they know the right time to buy? Our good friend, Paula Hartman from Prudential Fox & Roach, REALTORS® in Margate, said "You won't know until it's too late. Just like you didn't know that 2005 was the time to sell, you won't know until the prices increase that now was the time to buy. Smart investors are buying." For those looking to trade up, we have no idea how long our window of opportunity will last.
If you want to discuss your situation and how you might benefit from a 1031 exchange, the exchange team at 1031 CORP. is always happy to help.
Best regards,
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About 1031 CORP.
Serving as a nationwide qualified intermediary for 1031 tax-deferred exchanges since 1991, 1031 CORP. strives to provide a superior exchange experience for our customers and their advisors. We provide our customers with enhanced security of funds, knowledgeable exchange professionals and a commitment to keep the exchange process simple for our customers and their advisors. Every member of the exchange team is a Certified Exchange Specialist® and has the experience and expertise to facilitate even the most complex exchange transaction, including reverse, improvement and personal property exchanges. Additional information can be found at www.1031CORP.com.
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Margo McDonnell, CES®
Certified Exchange Specialist®
President
1.800.828.1031 ext. 212
Mobile: 610.680.6896
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Sue Umstead, CES®
Certified Exchange Specialist®
Senior Vice President
1.800.828.1031 ext. 208
Mobile: 610.755.8520
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Marissa LoCascio, CES®
Certified Exchange Specialist®
Senior Exchange Officer
1.800.828.1031 ext. 210
Mobile: 610.742.4351
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Richard Heller, Esq., CCIM, CES®
Consultant
1.800.734.1031
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Bettye J. Matthews, CPA
Consultant
1.800.680.1031
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Joseph F. Szajnecki, CES®
Consultant
1.800.734.1031 |
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CCIM Event: Economic Forecast with Dr. Peter Linneman
Join Margo McDonnell and Sue Umstead at the 1031 CORP. table at the upcoming CCIM Event with Dr. Peter Linneman who will provide an economic forecast.
For more than three decades Dr. Peter Linneman has been a critical influence in driving the professionalization of real estate capital markets and the commercial real estate industry.
Location: Quorum at the University City Science Center, 3711 Market Street, Suite 800, Philadelphia, PA.
Cost: General Admission $35 / CCIM Chapter Members $25
Register Now!
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Join RICHARD M. HELLER, ESQUIRE, CCIM, CES® As He Teaches The Following Course:
Cost Per 3.5 Hour MCE Courses: $60 Per Course Per TriState Members/$75 Per Course Per Non-Member
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Article Exchange
If you have an article you would like to share, please forward it to Margo McDonnell,CES® and we'll include it in next month's reading list.
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