Monthly Archives: July 2016

A local medical company is planning to erect a new tower to house its operations in Philadelphia. The first phase of construction will yield an eight-story, 250,000-square-feet, building for housing business operations, while a second phase will add another 290,000-squre-feet to the complex, expanding Philadelphia’s state of the art medical offerings.

Pennsylvania entrepreneurs planning on starting a new business or have a lot to think about when it comes to the facilities they operate from. The question of whether to lease or purchase space involves many important considerations. Small business owners should assess their cash flows before making a final decision.

Commercial property prices plunged in Pennsylvania and around the country in the wake of the 2008 financial crisis, and federal regulators and watchdogs have kept a close eye on the U.S. financial sector in the years since to prevent another debt-fueled economic emergency. The Office of the Comptroller of the Currency, which is an independent bureau within the Department of the Treasury, releases two reports each year about the state of American banks, and the first 2016 report indicates that concern is growing about relaxed underwriting standards in the residential and commercial property markets.

When a commercial real estate investor considers purchasing a building in Pennsylvania, the zoning of the property will be very important. If the property is not zoned for commercial use, an investor may not be able to develop the structure in the way that they would like to. A property’s zoning shouldn’t be an absolute deal-breaker, however, because it can often be changed.

Pennsylvania law outlines what is expected of landlords, and at least one thing is exceptionally clear — retaliating against tenants is expressly prohibited. Business owners sometimes struggle to identify this type of behavior, especially as they focus on the ongoing success of their commercial ventures. Landlord retaliation can even force business owners to take desperate measures in attempts to retain their commercial space.

As waterfront properties and neighborhoods continue to develop across the country, there are commercial and other concerns about concessions that have been made to developers. Notably, developers have asked for special considerations in return for creating affordable-housing units. A frustrating factor occurs when developers who abide by the agreed-upon zoning and land use laws have to witness others reneging on their agreements.

Many Pennsylvania developers are preparing for their commercial real estate loans to mature. When that occurs, most will need to refinance their mortgages. They may find it difficult to find financing when they need it, however, especially if they own multi-family properties or strip malls.

In recent years, one of the main topics in the construction industry has been environmentally-conscious or green construction. As this is a relatively new way of building, the materials and governmental mandates change rapidly. Though this is a continuously evolving topic, there are certain main tenets that developers and builders follow.

There are some instances when individuals may need to gain the right to enter someone else’s property. In legal terms, easement is the right by one party to enter and access another person’s property for a specific purpose. Because of such an easement, depending on the circumstances, a person may be able to use property not belonging to them, or someone else may come upon someone’s property and they would have no legal recourse to remove them. Across Pennsylvania, and elsewhere in the country, many people are forcing conservation and other easement rights that may adversely affect property owners.

It is not enough just to purchase a piece of property and begin development. Many commercial real estate ventures require the approval of the city, county and/or municipality in which the project is taking place. For example, a company is set to purchase an old Kraft Heinz plant here in Pennsylvania and is more than likely facing an uphill battle to receive the needed approvals to demolish the plant and build warehouses.