8B — July 23 - August 19, 2021 — Southern New Jersey — M id A tlantic Real Estate Journal
www.marej.com
S outhern NJ As the COVID-19 threat recedes, good economic news helps shore up CRE WCRE 2 nd Qtr. 2021 Report: Southern NJ &Philly Markets focus on light at the end of the tunnel
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in a positive direction, and while various challenges remain, con- ditions are in place that point to a return to pre-pandemic CRE performance,” said JasonWolf , founder and managing principal of WCRE. There were approximately 233,544 s/f of new leases and renewals executed in the three counties surveyed (Burlington, Camden and Gloucester), and while this figure is not indica- tive of a rebound, it marks the return of net positive absorp- tion. New tenant leases com- prised approximately 123,358 s/f, or about 53% of all deals for the three counties. During the
previous quarter, this figure was only 8% of the total. Other office market highlights from the report: • Overall vacancy in the mar - ket is now approximately 13.6 percent, virtually unchanged from the previous quarter, and holding steady two points high- er than at this point last year. • The sales market picked up momentum, with 1,257,385 s/f actively on the market or under agreement.
$25.00/s/f gross for the deals completed during the quarter. These averages have hovered near this range for more than a year. 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 second quarter in Pennsylvania include: • The vacancy rate in Phila - delphia’s office market ticked upward again in Q2, and now stands at 10.3%, after hovering near a 20-year low for months.
Nearly 15% of the total office space in Philadelphia is listed for sale or lease. • The industrial sector in Philadelphia remained the bright spot, buoyed by its in- tegral role in the new types of commerce necessitated by the health and safety measures. The last year saw a staggering 9.9 million s/f of net absorption and 10.1% rent growth. • Retail remains the sector most responsive to market con- ditions, but it has also proved to be the most adaptable. Some essential categories of retail thrived by innovating at the point-of-sale. Average retail net absorption went into free fall during the pandemic, but for the 12 months just concluded, it is -991,000 s/f. While this is a large negative number, it indi- cates an improvement of several hundred s/f for Q2. WCRE also reports on the Southern New Jersey retail market. Highlights from the re- tail section of the report include: • The Consumer Confidence Index has been rising steadily since it turned around in February. • Retail vacancy in Camden County jumped more than three points to 14.3 percent after posting a large increase in the middle of 2020. While average rents rose more than one dollar, in the range of $12.86/sf NNN. • Burlington County retail va - cancy dropped to 9.6 percent, an improvement of more than three quarters of a point. But it is still well above 7.6 percent, where it stood a year ago. Average rents increased slightly, to the range of $14.59/s/f NNN. • Gloucester County saw an - other quarterly increase, to 16.5 after increasing throughout last year, with average rents virtu- ally unchanged in the range of $14.08/sf NNN. The full report is available upon request. About WCRE WCRE is a full-service com- mercial real estate brokerage and advisory firm specializ- ing in office, retail, medical, industrial and investment properties in Southern New Jersey and the Philadelphia region. We provide a complete range of real estate services to commercial property owners, companies, banks, commercial loan servicers, and investors seeking the highest quality of service, proven expertise, and a total commitment to client- focused relationships. MAREJ
ARLTON, NJ – Com- mercial real estate brokerage WCRE
reported in its analysis of the second quarter that t he Sou t h - e r n N e w Jer sey and Southeastern Pennsylvania markets are
Jason Wolf
cautiously entering the post- pandemic recovery. Although there are still lingering issues, CRE seems to be rebounding along with the broader economy. “Fundamentals are tracking • Average rents for class A & B product remain unchanged, as they continue to show strong support in the range of $10.00- $15.00/s/ f NNN or $20.00- FULL SERVICE COMMERCIAL REAL ESTATE BROKERAGE & ADVISORY FIRM
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