Continuing the momentum witnessed in the fourth quarter, 2015 is off to a strong start for the South Jersey commercial real estate market, which includes South Jersey retail space and South Jersey office space, according to the latest quarterly report from Wolf Commercial Real Estate, a South Jersey commercial real estate broker that specializes in Southern New Jersey commercial real estate listings and services.
While noting that challenges persist, the firms new quarterly report said the Southern New Jersey commercial real estate market has been buoyed by strong activity in the quarter among major healthcare institutions, investors, and large tenants.
“The moves we’ve seen this quarter signal significant business expansion and job growth,” said Jason Wolf, founder and managing principal of Wolf Commercial Real Estate. “This has helped to boost commercial real estate confidence and lending conditions, leading to a more optimistic atmosphere that is expected to continue throughout 2015.”
Significant transactions already announced and/or anticipated by major players in the South Jersey commercial real estate market, which includes Southern New Jersey retail space, are highlighted in the report. Included are Virtua’s planned relocation to 62,000 square feet of office space in autumn 2014 and the sale of two of Brandywine Realty Trust’s trophy assets to out-of-market investors. The two buildings — Libertyview and 1000 Atrium Way — totaled 221,405 square feet, and sold for an average of approximately $134/sf.
There were approximately 472,154 square feet of new leases and renewals executed in the market in the first quarter, according to the report from Wolf Commercial Real Estate, a South Jersey commercial real estate brokerage firm with expertise in Southern New Jersey commercial real estate listings and services. This level translates to a 7% increase in executed transactions over the 441,141 square feet that closed in the first quarter 2014, Wolf Commercial Real Estate said.
New tenant leases amounted to approximately 186,427 square feet and renewals and expansions were approximately 285,727 square feet in the Southern New Jersey commercial real estate market, which includes South Jersey retail space. Approximately 39.5% of all deals in the first quarter were for new leasing activity. Overall, the first quarter’s gross absorption was in the range of approximately 255,161 square feet, the South Jersey commercial real estate broker’s report noted. Beyond the closed deals reported, there is approximately 450,000 square feet of significant pending lease deals still pending and anticipated to close soon in the South Jersey commercial real estate market, which includes Southern New Jersey retail space.
In examining the market for retail space in South Jersey, the report noted that consumer confidence had attained its highest monthly level since the recession started. The South Jersey commercial real estate brokerage firm said consumer confidence levels are expected to improve further into the year.
Highlights from the report’s section on Southern New Jersey retail space include:
- Overall South Jersey retail space vacancies in the tri-county area remained in the area of 10.5%, a slight increased from the fourth quarter, but is still encouraging in comparison to recent years.
- Class A rental rates in the market for retail space in South Jersey continue to show strong support in the range of $30.00-$40.00/sf NNN, as rents remained steady.
- Much of the demand for retail space in South Jersey is coming from national chains, which are experiencing growth. In comparison, smaller retailers and locally based retailers are still struggling in the marketplace..
Other highlights from the section of the report on South Jersey office space were:
- GROW NJ continues to draw companies to New Jersey. In the first two months alone, 10 projects totaling $84.6 million in funding were approved.
- Overall vacancies in the local commercial real estate market continue to decline, now down to approximately 13.6 percent, an improvement over the fourth quarter 2014.
- Average rents for Class A & B product experienced ongoing 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 transactions closed in first quarter 2015. Rents remain stable.
- All major private owners and REITS are showing moderate leasing and prospect activity in the first quarter. As vacancies in Burlington County have tightened, the larger vacancy opportunities are shifting to Camden County, which is not controlled by these ownership entities.
The full quarterly report is available upon request from Wolf Commercial Real Estate.
For more information about Southern New Jersey retail space or any South Jersey commercial properties, please contact Jason Wolf (856-857-6301; email@example.com), Leor Hemo (856-857-6302; firstname.lastname@example.org), Christina Del Duca (856-857-6304; email@example.com), Todd Levin (856-857-6319; firstname.lastname@example.org), Scott Seligman (856-857-6305; email@example.com) or Christopher Henderson (856-857-6337; firstname.lastname@example.org) at Wolf Commercial Real Estate, a South Jersey commercial real estate broker.
Wolf Commercial Real Estate is a leading South Jersey commercial real estate brokerage firm that provides a full range of Southern New 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 South Jersey commercial real estate brokerage firm.