1-17-20

Real Estate Journal — Southern New Jersey — January 17 - 30, 2020 — 7B

www.marej.com

M id A tlantic

S outhern NJ

ARLTON, NJ — Comme r c i a l r ea l es tate brokerage Favorable economic conditions expected to continue into 2020 WCRE FourthQuarter 2019 Report: Year ends on a high note in SouthernNJ&Philly CREMarkets M ington County ticked up very slightly, to 7.7%, with average rents in the range of $12.52/s/f NNN. delphia’s office market rose slightly to 8.7%. The office vacancy rate is still near a 20-year low, and below that of comparable major cities. few large blocks of space to the market.

ing retail spending, buoying the CRE market. The vacancy rate inched up to 4.8%, while net absorption was negative 98,300 s/f over the last twelve months. This represents a positive swing of more than 450,00 S/f for Q4. WCRE also reports on the Southern New Jersey retail market. Highlights from the retail section of the report include: ● Retail vacancy in Camden County fell to 6% from 6.9% in Q3. While average rents stayed in the range of $17.00/s/f NNN. ● Retail vacancy in Burl-

● Burlington County's va- cancy also stood at 12%. Bur- lington's vacancy rate also jumped earlier in the year due to several large blocks of space returning to the market. WCRE has expanded into southeastern Pennsylvania, and the firm's quarterly re- ports now include a section on transactions, rates, and news from Philadelphia and the suburbs. Highlights from the fourth quarter in Pennsylvania include: ● The vacancy rate in Phila-

WCRE r e - ported in its analysis of t he f our t h qua r t e r o f 2 0 1 9 t h a t the Southern New Jersey and South- e a s t e r n

● Retail vacancy in Glouces- ter County jumped to 11.7 from 7.4%, with average rents in the range of $13.27/s/f NNN. The full report is available upon request. About WCRE WCRE is a full-service com- mercial real estate brokerage and advisory firm specializing in office, retail, medical, indus- trial and investment proper- ties in Southern New Jersey and the Philadelphia region. 

● The industrial sector in Philadelphia remains very strong. Q4 saw vacancy rates at 5.4%, while net absorption was at 5.4 million S/f. Rent growth of 4.8% has far ex- ceeded the long-term average of 1.7%. ● Philadelphia retail is so far avoiding a major spike in vacancy due to the shift toward e-commerce. Rising wages and low unemployment are fuel-

Jason Wolf

Pennsylvania markets contin- ued their years-long overall steady performance. Sales vol- ume and prospecting activity held steady, and although leas- ing activity was down, vacancy rates remain low across the region for all property types. Gross leasing absorption was positive, but trending lower quarter over quarter. “CRE performance was good by almost every measure as the year wound down,” said Jason Wolf , founder and managing principal of WCRE. “It seems like when one sector or part of the region underperforms, the rest of the market keeps mov- ing in the right direction.” There were approximately 204,077 s/f of new leases and renewals executed in the three counties surveyed (Burling- ton, Camden and Gloucester), which was down compared to the previous quarter. But the sales market stayed active, with about 1.5 million s/f on the market or under agree- ment. Completed sales more than doubled from the previ- ous quarter, at approximately 781,130 s/f trading hands. New leasing activity account- ed for approximately 65% of all deals for the three counties surveyed. Overall, gross leas- ing absorption for the fourth quarter was in the range 85,000 s/f, up about 20% over the third quarter. Other office market high- lights from the report: ● Overall vacancy in the mar- ket is now approximately 12%, which is up half a point from the previous quarter. This is still near a 20-year low. ● Average rents for class A & B product continue to show strong support in the range of $10.00-$15.00/s/f NNN or $20.00-$25.00/s/f gross for the deals completed during the quarter. These averages have hovered near this range for more than a year. ● Vacancy in Camden County rose to 12% for the quarter, due in part to the return of a

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