in-site COMMERCIAL REAL ESTATE NEWS PA, DE, MD REGIONS
JANUARY 2016
5
REASONS YOU SHOULD
own your own office space
The Multi-Unit Investment Boom
Mobile Retail Disruption
PLUS The Land Conservancy of Chester County's Wild and Scenic Film Festival
From the Editor Beiler-Campbell Realtors has provided exemplary service to the commercial clientele of Southeastern PA, New Castle County Delaware and Northeast Maryland for over 40 years. We want to keep the business community informed of the opportunities within the local market, the pulse of the economy in our area, and the positive happenings in our business climate amidst unsurety in the markets. Feel free to submit your opportunities, expansions or other notable items that you feel the business community would like to be informed of. We would love to hear from you and feature you in this magazine, because after all, you make business happen here in our local area.
HELLO MY NAME IS
Beth Anne Grib SUBSCRIBE (610) 444-7770 Beiler-Campbell Realtors - Commercial Division 402 Bayard Rd, Suite 100 Kennett Square, PA 19348 bccommercialnews@outlook.com This magazine is published by Beiler-Campbell Realtors Commercial Division All Rights Reserved
Copyright 2016
IN-SITE
CONTENTS CRE INDUSTRY NEWS, LOCAL BEAT, MARKET PULSE
02 EDITOR'S NOTE The purpose of In-Site Magazine and opportunities to submit content for increased exposure for your company
06
LIVELY LOCAL
THE WILD & SCENIC FILM FESTIVAL
03
A Change of Course
05
THE MULTI-UNIT BOOM
THE MOBILE CONSUMER
Multi-Unit Investments are hot commodities in economy. Let's explore this trend and the factors driving this growth.
Mobile technology has taken the consumer by storm, but how are retailers responding?
02
BEILER-CAMPBELL REALTORS - COMMERCIAL DIVISION BCCOMMERCIALNEWS@OUTLOOK.COM WWW.BEILERCAMPBELLCOMMERCIAL.COM
JANUARY 2015| IN-SITE
04
WHY SHOULD WE OWN OUR OFFICE SPACE?
The
MULTI-
UNIT BOOM
The forecasts are positive, at least for this niche of the commercial real estate industry. It is predicted that the United States will experience moderate growth in the multifamily sector. This is both spurred by and contingent on several factors in the equation. One of the driving trends behind the boom simply said, returns are up. According to Axiometrics, the United States apartment sector generated its highest yearend annual effective rent growth since 2005, achieving doubledigits in some markets.
Source: NCREIF
Foreign investment has also been a driving force in the snatch and grab of US multiunit real estate. The contingencies that affect the future of this sector are the accuracy of the forecasted gross domestic product growth for 2016. The domestic economy must cooperate for this growth to continue. The expected US new job growth of over 2 million will surely play a part. Risks to this expected expansion are slow growth and economy instabilities in China and other emerging markets, the European recession and the steady conflicts in the Middle Eastern region.
Source: PPR, A CoStar Company IN-SITE MAGAZINE | 03
Buy or Lease?
On Point
That is the question
5 Reasons to purchase rather than lease in 2016 Market Rents are up US lease rates are at record highs coast to coast Property prices are down This is a buyer's market as property values have fallen to where we were in the early 2000's. Cost of Financing is down and more accessible Owner users have access to low cost lending solutions and with the expansion of resource types, the possibilities are abundantly diverse and interest on that loan is tax deductible. Your company can also take annual depreciation deductions on taxes. Cash Reserves The Federal Reserve Bank reports notable surpluses have provided a platform for real estate investment. Rental Rates are steadily increasing and with those escalation clauses written into your lease, your operational costs increase.
IN-SITE MAGAZINE | 04
CRE TECHNOLOGY
Mobile Retail Disruption The mobile movement has empowered consumers. Price comparisons can be done while standing in front of the elaborate story displays. The retailers that have responded and implemented in-store mobile technology are the benefactors in this market. The benefits aren't solely in the hands of the consumer. This mobile technology increases productivity, efficiency and reduce waste. Kiosks and salespersons equipped with instant inventory resources on portable devices have added value, reduced wait times, and engaged the consumer in ways they have now become accustom to, increasing customer satisfaction and the positive "social share" factor as well. While the rewards are great, the increased risk is undeniable. Retailers must implement mobile security to set up a solid infrastructure around the most vulnerable endpoints. Data breaches have cost retailers millions of dollars due to cybercriminals focusing on penetrating this often overlooked portal. New technology always goes hand in hand with new security demands for protection and loss prevention. IN-SITE MAGAZINE | 05
LOCAL EVENTS
WILD & SCENIC FILM FESTIVAL - WEST CHESTER
Fill out this card and send it with payment to Muse Magazine, PO Box 88991, Gabo Dr, Smyrna, GA 302380
THE LAND CONSERVANCY FOR SOUTHERN CHESTER COUNTY PRESENTS:
February 25-26, 2016 Chester County Historical Society West Chester, PA 19380 Doors open at 6 PM Films start at 7 PM IN-SITE MAGAZINE | 06
d e r u t Fea unity rt o p Op