It was a joint CREW member effort in Fall 2013, and four gals reaped the rewards this summer, 2014. Debbie Keen, Director, Business Relationships for ADVANCED OFFICE ENVIRONMENTS, supported CREW’s charity last year by purchasing the golf package that Peggy Gallagher, PG Commercial, had donated to the CREW Charitable Luncheon in fall of 2013.
Awesome foursome made up of Debbie Keen, Advanced Office Environments, Rebecca Udell, KSS Architects, Amanda Ryland, Remington Group Inc., and Peggy Gallagher, PG Commercial Real Estate. Had fun playing 9 plus 9 at WVCC this summer.
The beneficiaries for the CREW Philadelphia Fall 2013 luncheon were Women’s Community Revitalization Project (“WCRP”) and CREW Network Foundation.
Beneficiaries from 2013 Fall Luncheon:
“Proceeds from the silent auction will be donated to this year’s (2013) luncheon beneficiaries: Women’s Community Revitalization Project (“WCRP”), which builds low income housing for women and families led by women; and CREW Network Foundation, which supports CREW Network in advancing the success of women in commercial real estate through charitable, philanthropic and educational programs.”
Finding Office Space in Philadelphia
Whether you are from the Philadelphia region, or not, when it comes to searching for commercial real estate office space it is not as easy as hopping on the web to do a search. Leasing or purchasing space needs to be seen as an investment with the opportunity for your business to grow, or make changes, without having to sell/move again for maybe a 3,5, 7+ year period. Some of the obvious options for leasing commercial offices space are located in Center City Philadelphia, which is well known for its skyscrapers with amazing views. But what about finding the right solution for your actual needs long term. How do you know you are seeing all the opportunities that can meet your criteria? How do you know which Landlord’s are a little more motivated, maybe due to a higher vacancy, or another project they want to start? Sometimes the property is off the beaten path, or in a location you would not have thought of on your own, or there is a sublease space with little market exposure. That is where your commercial real estate agent comes to the rescue! With access to information on the agents for the buildings and data on what is available, but an understanding of regulations, and extras you may not consider. (more…)
Office Space that Works Harder and Smarter???
Just read the news in Natalie Kostelni’s article in the Philadelphia Business Journal about Tony Colciaghi designing office space that “works harder and smarter” for the law firm, Ballard Spahr. I have never had the opportunity to meet Tony but his comments make a lot of sense when it comes to the trend often referred to as shrinking office space in corporate real estate. Apparently on the lease renewal in 2012 there was a significant reduction in the office size of about 34,500 SF in a building with floor plates of about 22,500 +/- SF, the Mellon Bank Building. Beautiful office building built around 1998.
According to the news piece in the fall of 2012 Ballard Spahr signed an 18 year lease for about 189,481 square feet reducing the previous office size by about 34,500 SF +/-. Tony an architect with Francis Kaufman continues his comments by saying “We have to stop thinking it’s all about space reduction. It’s really not. It’s about giving people the right amount of space to do what they do… Before Ballard Spahr…..but the space is working a lot harder for what they do everyday……The space just works a lot harder and smarter.” Hurrah to Tony for his success in designing Ballard Spahr’s office renovations, and for his insights into the recent trends in office design. Congratulations to Ballard Spahr for successfully renewing its lease and living through the renovations.
Monday, January 20, 2014
Do you take it for granted like I do, that we have such a stable banking system in the United States? I was reminded why we have such a stable banking system by Dr. Plosser when I heard him speak at LaSalle University’s Economic Outlook luncheon on 1/14/2014.
Dr. Plosser gave us his Perspective on the Economy and Monetary Policy…. He made a point that he was giving us his opinion and not the opinion of the Open Market Committee which he serves on.
We were refreshed on the history of the Federal Reserve which was created by Woodrow Wilson in 1913. Congress sets its goals, and the last time the goals were set was 1978. One thing unique about our central bank is that it is comprised of12 regional banks for diversity. There were over 400 + people there and a reporter from Wall Street Journal, and one reporter from Bloomberg News.
After insights into the History of the Federal Reserve he shared his opinion on Monetary Policy such as our 3rd round, QE3. It was reassuring to hear that he thinks the economy has already met the criteria of substantial improvement, and we should conclude the asset purchases. And then we should plan policy for after QE3.. It was interesting to hear his list of Objectives. A question he raises with reference to the Objectives outlined is “Do we have the will to do it?” You can read the details here.
Here are some interesting and reassuring comments from the Question and Answer period.
Whether it is a sale/equity transaction, or a lease between owner and tenant, CRE agents receive a commission at settlement, or upon the signing of the lease. The amount of commission is often calculated as a percentage of the lease, or sale value, which often ranges from four to six percent, more or less. For example if a tenant signs a lease for a 2,000 square foot office at $21 per square foot, a 4% commission to the real estate agent would amount to $5,040.00 (3 years X 2,000 SF x $21 x 4%). The owner of the leased building pays the agent’s commission: typically one –half on the signing of the lease and the remaining one half when the tenant begins occupying the building. In many lease, transactions there are two CRE firms involved, both could represent the owner of the building (sub agent and agent), or one could represent the Tenant or Buyer, while the other represents the Owner.
What is happening with the Office Market after the 2008 – 2009 drop in Value and Demand, and being out of favor with investors?
Whether your business leases offices, or directly owns the building, you may find value in news on the status of trends in the Commercial real estate market in the Philadelphia region, and nationally. There is so much to say and so many statistics to reference. But, here is a quick short synopsis to give you a feel for the direction of market trends for planning purposes.
Click here to download my free 2013 report for our region!
With the advent of the internet and the wealth of information available online…. do I really need a commercial real estate agent to assist with my commercial real estate transaction?
Yes, and here is why.
As you can imagine finding a business location and/or a lease renewal for a location is a process. It is not just identifying a building and zip code it is more, and for those purchasing, it is a long term investment.
It is most efficient if you select a commercial real estate broker who can help you do the following:
- See the Big Picture
- Understand the Value of your Purchase
- Negotiate the Best Terms Possible
- Devote the Manpower and Time to Achieve all your Goals
Most commercial real estate agents work on a contingent basis, meaning they will get paid upon the purchase, or signing of the lease, which is usually paid by the Seller, or Building owner. This type of arrangement is often a win-win situation for the company as they are not obligated to make a purchase. With that being said a company may also enter a retained agreement with a retainer for services for a larger project that will take several years. Also most agents are working for the Buildings Owner. If you are a business looking for a location, or faced with a lease renewal, select an agent to represent your business.
If you decide to hire a commercial real estate agent we suggest you interview a few professionals and choose someone you like, trust and who has experience!
Tenant Representation is like being a personal shopper for a very large and complicated purchase; an industry term is Transaction Manager for the Tenant. The women of C.R.E.W., Commercial Real Estate Women, might agree this is one reason women make great commercial real estate brokers. Women know what they want, how to find it and are excellent negotiators.
Peggy Gallagher, owner of PG Commercial Real Estate and a woman real estate professional weighs in on the benefits of Tenant Representation and the value it has to a Business.
What makes an office space purchase, or lease, a complicated purchase? For starters the multiple layers from identifying the properties, to financing, to space layout, to taxes and orchestrating the move itself.
- Knowledge of the language in contracts and the business terms associated with it
- Distinguishing factors and expectations of different property classes: A, B etc
- Setting expectations and help to compare industry standard in a purchase or lease, which can assist with the negotiation process
- Access to information on available property and market information
- Value & Cost Comparisons Breakdown of actual cost per square foot to compare Buildings
- Assist you in building your Real Estate Team with key players
- Compare and contrast similar properties
If you are approaching a lease renewal, or looking to move office space, and in need of a personal real estate shopper, contact Peggy for how to get started!