Bolstered by plans for several large employers to move to Camden, NJ, as well as improvements in key indicators across the board, the South Jersey commercial real estate market ended 2014 on a high note with all signs pointing to a strong 2015, according to the fourth quarter market report from Wolf Commercial Real Estate, a leading Southern New Jersey commercial real estate broker with expertise in South Jersey commercial real estate listings and services, including South Jersey retail space.
The South Jersey commercial real estate market experienced a busy fourth quarter with deal activity up 20 percent over the third quarter 2014 and 30 percent over the fourth quarter 2013, along with a high volume of transactions that were expected to close in the early part of the new year, the market analysis said.
Burlington, Camden and Gloucester counties – the three counties surveyed for the report – had new leases and renewals totaling approximately 481,761 square feet were executed in 2014, according to the market analysis. Positive absorption spiked, comprising approximately 222,618 square feet of total activity.
With eight major sales transactions totaling approximately $95 million in value and in excess of 1.25 million square feet, the sales market also experienced a robust fourth quarter, according to the report issued by Wolf Commercial Real Estate, a Southern New Jersey commercial real estate brokerage firm that specializes in South Jersey commercial real estate listings and services.
Demand for commercial space in Camden County, particularly in the city of Camden, grew markedly in 2014 as a result of the tightening of Burlington County’s 3M markets, as well as , incentives offered under the GROW NJ initiative, the analysis said.
“Burlington and Camden have been in a horse race, with Burlington moving ahead the past few quarters, but on the strength of GROW NJ, Camden County clearly won this round,” said Jason Wolf, founder and managing principal of Wolf Commercial Real Estate, a premier Southern New Jersey commercial real estate broker with expertise in South Jersey retail space.
Four major South Jersey companies — Subaru, Holtec, Lockheed Martin, and Cooper Health – took advantage of a combined $525 million in tax incentives and announced plans to relocate corporate headquarters to the city of Camden, joining both the Philadelphia 76ers ownership organization, which had previously announced plans to build a new team headquarters and practice facility in Camden, and a new 20-acre retail center anchored by a supermarket that is planned for 2016.
Other South Jersey office space highlights in the report from Wolf Commercial Real Estate, a Southern New Jersey commercial real estate brokerage firm that specializes in South Jersey commercial real estate listings:
- Overall South Jersey office space vacancy rates continue to decline, and are now down to approximately 14.3%.
- Average rents for Class A & B retail product continue to show strong support in the range of $10.00-$14.00/sf NNN or $21.00-$24.00/sf gross, with an overall market average showing strong support in the $10.00-$12.00/sf NNN or $20.00-$22.00/sf gross for the deals completed during the fourth quarter 2014.
- Despite strides made in the city of Camden, Camden County’s vacancy rate stood at 18.8 percent, significantly higher than Burlington County’s 9.8 percent vacancy rate.
- All of the major private owners and REITS showed moderate leasing and prospect activity for South Jersey office space in the fourth quarter – with Burlington County vacancies tightening up, many larger vacancy opportunities are also shifting toward Camden County, which is not controlled by these ownership entities.
The South Jersey retail space sector saw increased sales activity in 2014 with consumer confidence at a nearly seven-year high. Highlights from the report’s South Jersey retail space section include:
- Overall retail vacancies in the tri-county area are hovering around 10.3%, a major improvement from the 17-18% range at year end 2012.
- Class A retail product rental rates continue to show strong support in the range of $30.00-$40.00/sf NNN.
- Several new retail developments are underway or have been announced for the tri-county area.
The full report on the South Jersey commercial real estate market is available upon request from Wolf Commercial Real Estate.
For more information about South Jersey retail space or any South Jersey commercial properties, please contact Jason Wolf (856-857-6301; firstname.lastname@example.org), Leor Hemo (856-857-6302; email@example.com), Christina Del Duca (856-857-6304; firstname.lastname@example.org), Todd Levin (856-857-6319; email@example.com), Scott Seligman (856-857-6305; firstname.lastname@example.org) or Christopher Henderson (856-857-6337; email@example.com) at Wolf Commercial Real Estate, a Southern New Jersey commercial real estate brokerage firm.
Wolf Commercial Real Estate is a leading Southern New Jersey commercial real estate broker that provides a full range of South Jersey commercial real estate listings and services, marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other South Jersey commercial properties for buyers, tenants, investors and sellers. Please visit our websites for a full listing of South Jersey commercial properties for lease or sale through our Southern New Jersey commercial real estate brokerage firm.