Commercial Real Estate Archives

By the end of the year, Philadelphia may be the first World Heritage City in the United States. The designation would put the city on the same list as Assisi, Italy, Mexico City and Chengde, China and more than 200 other cities around the world.

The large inventory of vacant and abandoned properties in Philadelphia is at the center of yet another controversy. This time the issue is not safety, as we discussed in our March 12, 2015, post. This time, the issue is unpaid property taxes.

The Philadelphia Department of Licenses and Inspections has had its problems in the past. The Market Street building collapse in June 2013, for example, highlighted some of the department’s shortcomings. (See our Nov. 1, 2013, post, L&I takes criticism from all sides in June 5 building collapse, for more information.) There had been complaints about failures of all sizes before Market Street, though, and the last two years may not have seen much change.

It really doesn’t end. The continuing saga of Revel, the bankrupt casino complex in Atlantic City, has taken another, somewhat unexpected turn. Developer Glenn Straub may own the property, but the state of New Jersey has pointed out that he is not automatically entitled to the casino license granted to the original owners.

We are finishing up our discussion of Philadelphia’s Storefront Improvement Program. The program reimburses property owners in select commercial corridors up to $15,000 for repairs and general improvements to the front of their buildings. Federal law — in particular the Davis-Beacon Act and related legislation — requires that construction projects that cost more than $2,000 pay workers the “prevailing wage” set by the Department of Labor. SIP is funded by federal grants.

While we cannot recommend it, we have to admit that ignorance is, at times, bliss. There are some things that we are much better not knowing, things beyond the old “sausage and lawmaking” adage. One of those things is the meaning of the federal regulations that guide the Storefront Improvement Program here in Philadelphia.

The city of Philadelphia is committed to neighborhood economic development in a number of ways. For the most part, though, neighborhoods have to take care of themselves before the city will lend a hand. Even then, assistance often comes in the form of funding and training instead of direct services. Employees of the Department of Commerce will not, for the most part, be out knocking on doors to convince community organizations to apply for grant money, nor will they manage the grant money once it is secured.

Bankruptcy Judge Gloria Burns approved the sale of Revel casino to Florida developer Glenn Straub on Thursday, April 2. By the end of the next day, Glenn Straub and his Polo North Country Club were the undisputed owners of the failed casino. And what a deal he got: Built for $2.4 billion, the purchase price of $82 million works out to about 4 cents on the dollar.

There are plenty of opportunities in Philadelphia for interested parties to enter the real estate market. There are individuals and companies that want to expand their existing portfolios in the city, in the state or even abroad. There are also individuals and companies that want to test the waters or to dive right in to the real estate market.

There are many different things the process of getting a new business off the ground can involve. For some businesses, this process includes purchasing a piece of commercial real estate to serve as the business’ location.