Note: This article was published by the Central Penn Business Journal. Click here to read the original version.

Rapid technological advancements and significant demographic shifts significantly influence the real estate industry. These various factors like growing urbanization, longevity of Baby Boomers and differentiated lifestyle patterns of Millennials are changing the way people value real estate. Add into the mix macroeconomic and regulatory developments, and you have the perfect storm for some significant changes to come to the real estate market in 2018.

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Note: This article was published by the Central Penn Business Journal. Click here to read the original version.

Continuing with part II from our series on the health and future of the U.S. economy, we again welcome the knowledge and insight of Robert Calhoun. Robert is the Northeast Regional Economist for CoStar Group where he manages a team of economists and analysts tasked with producing research at a local, regional and national level on commercial real estate, the economy and capital markets.

Let’s now dive into what real estate market participants should be keeping a watchful eye on in 2018 – Be sure to also take a look back at part I from this series which focuses on the U.S. economy as a whole!

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Note: This article was published by the Central Penn Business Journal. Click here to read the original version.

With the GOP’s proposed tax bill on its way to conference committee to reconcile the House and Senate versions, Omni Realty Group chatted with CoStar’s Regional Economist for the northeast, Robert Calhoun, about the state of the U.S. economy.

For more than a decade, Robert has been an influential source of economic analysis as it relates to monetary policy and real estate markets. He manages a team of economists and analysts tasked with producing research at a local, regional and national level on commercial real estate, the economy and capital markets.

Through this two part series, Robert shares a wealth of knowledge and insight in his answers to our questions. Let’s take a look at what we can learn about the current state of our economy and the largest threats and opportunities we might encounter in 2018 – Be sure to stay tuned for part II from this series as we diver deeper into commercial real estate and the economy!

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This article was originally published on the Central Penn Business Journal and DukeLong.com.

The issue of conflicts of interest between parties exists in a variety of industries. Ethics rules prohibit a single lawyer from representing competing sides in the same transaction. It’s common sense. You can’t ensure fair and equal representation to competing parties if you represent both sides. And clients want more than just fair representation; they want to feel they have an advocate who puts their interests above all others.

So why then, are real estate agents not restricted from representing competing parties in the same way lawyers are? In Pennsylvania, as in many states across the United States, real estate agents are permitted to represent both a buyer and seller (or tenant and landlord) in the same real estate transaction. It’s great for the real estate agents since they make full commissions, but what about the clients they represent?

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Note: This article was originally published by the Central Penn Business Journal. Click here to read the original version.

The Challenges of Commercial Leasing In Central Pennsylvania

When it comes to commercial leasing in Pennsylvania, tenants face some unique challenges. However, there are also some challenges we share with tenants all across the United States. For businesses, the terms of your commercial real estate lease can have a profound impact on your ability to conduct business and earn a profit.

The best way to navigate the challenges of commercial leasing, right here in Central Pennsylvania as well as nationwide, is to be aware of potential roadblocks and develop a plan to maneuver around them, when necessary. Here’s what you need to know.

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Note: This article was originally published by the Central Penn Business Journal. Click here to read the original version.

You are likely aware that there are different classifications of office space, specifically Class A, B and C. But what qualities determine the letter associated with any given commercial property? Is it the location, the layout, the finishes or the amenities?

The answer is it has to do with all of these things! The classification of office space is very important to keep in mind both as a real estate investor and as a business tenant. Your budget and use of the space will help determine the class best suited for your needs. When looking to rent or buy commercial real estate, you can save a lot of time and frustration by teaming up with an experienced tenant representative or buyer agent who can advise you on the most appropriate class.

Here’s an overview of the pros and cons of each of the three classifications of office real estate!

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Note: This article was originally published by the Central Penn Business Journal. Click here to read the original version.

How Medical Marijuana Will Impact Real Estate in Pennsylvania

Since the legalization of medical marijuana in April, the Pennsylvania Department of Health has placed a lot of focus on developing a program that is expected to be operational by 2018. In fact, temporary regulations were just rolled out to give growers and processors an idea of the rules they will need to follow.

All types of industries are anxiously anticipating the economic impact of legalized medical marijuana. For some businesses, it will be a major boost. For others, it will hardly move the needle. It makes sense that growing, processing and dispensing will require new space, but how much will this really impact real estate?  Let’s take a look.

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Note: This article was originally published by the Central Penn Business Journal. Click here to read the original version.

The New Year is well under way, but before we get too far into 2016, it’s worth taking a look back at the largest commercial lease deals that occurred in the Central Pennsylvania market in 2015. These deals represent significant trends and help predict where the market may be headed in future quarters.

Each sector within the commercial real estate market – retail, office and industrial – experienced a unique trend worth noting. Without further ado, let’s take a closer look at the largest lease deals that occurred in Dauphin, Cumberland, York, Lancaster and Lebanon counties for the retail, office, and industrial markets in 2015.

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Note: This article was originally published by the Central Penn Business Journal. Click here to read the original version.

By now you have likely heard about the Federal Open Market Committee (FOMC) voting in December to raise the federal funds rate for the first time in almost 10 years. And if you haven’t, well, it’s time to take a crash course in what’s going on, and specifically how it will impact our local economy!

Mostly symbolic, this initial rate increase was just the first step in what will likely be a drawn-out process of monetary policy normalization. An important conclusion we can draw, is that it reflects the FOMC’s belief that the labor market is close enough to full employment.

While a 25-basis-point increase alone is not very significant, what matters most is where things head next. We can reason that the monetary policy, via the federal funds rate, will remain favorable in the near future. Also, current market conditions suggest inflation will remain below 2% for the next 10 years.

With a basic background as to what’s going on, let’s dive a little deeper into what this activity means for our economy, specifically for commercial real estate.

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Note: This article was originally published by the Central Penn Business Journal. Click here to read the original version.

2015 has brought a boost in office space construction to Central Pennsylvania and there is even more space to come! While this may be exciting news for businesses looking to expand into the local market, we need to watch this trend closely and cautiously because the potential impact may not be so favorable for landlords and sellers of commercial office space.

The good news is we have four projects under construction that will deliver more than 400,000 square-feet to the market within the coming year, with a majority of this space already preleased. However, this promising news for the market is tempered by the fact that many tenants will vacate other office space nearby to occupy these newly constructed office buildings.

Once delivered, this square footage will most certainly impact net absorption and vacancy rates in the Central Pennsylvania submarket. What can we do to prepare and attempt to reduce any negative impact? Let’s first take a look at what’s going on in the market and then analyze what will likely result from these trends.

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