4B — November 9 - 22, 2018 — New Jersey — M id A tlantic
Real Estate Journal
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N ew J ersey
Activity and prospecting both take a dip WCRE Third Quarter Report: Summer slowdown slightly cools Southern NJ &Philly CREmarkets
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from outside of the region, and economic inflows to support local expansion. “A lot of the positive trends we’ve been tracking for several quarters are still in place, so there are reasons to stay bull- ish,” said Jason Wolf, found- er and managing principal of WCRE. “But activity did cool off noticeably, at least in part due to summer.” There were approximately 274,931 s/f of new leases and renewals executed in the three counties surveyed (Burlington, Camden and Gloucester), which was down about 10.5% com-
pared to the previous quarter. The sales market stayed active, with about 1.43 million s/f on the market or under agreement. This metric was essentially un- changed. New leasing activity ac- counted for approximately 32% of all deals. Overall, gross leasing absorption for the quarter was in the range of approximately 194,282 s/f. Other office market highlights from the report: • Overall vacancy in the mar- ket is now approximately 11.3%, which is nearly one point higher than the previous quarter.
• 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 stayed near this range for most of 2018. • Vacancy in Camden Coun- ty increased to 12.3% for the quarter. • Burlington County vacancy was up more than a full point to 10.4%, after falling during the first half of the year. WCRE has expanded into southeastern Pennsylvania,
ARLTON, NJ — Commercial real es- tate brokerage WCRE
and the firm’s quarterly reports now include a section on trans- actions, rates, and news from Philadelphia and the suburbs. Highlights from the first quarter in Pennsylvania include: • The vacancy rate in Phila- delphia’s office market inched up to 8.1% in the third quarter. It stood at 7.9% in Q2 2018. Demand for office space contin- ues to be strong, and the office vacancy rate is a full point below the national average. • Net office space absorption in Philadelphia was down com- pared to Q2, but still positive, at 443,032 s/f for the quarter. • The industrial sector is as strong as ever in Philadelphia. The third quarter saw a further decrease in vacancy rates, to 5.4%, net absorption in the range of 6.1 million s/f, and av- erage rents at $5.36 per square foot. All of these figures were improvements over the previous quarter. • Philadelphia retail was largely flat in Q3. The vacancy rate ticked up a tenth of a point, to 4.4%, while net absorption was negative after three consec- utive quarters of very positive absorption. Net absorption was -273,875 s/f. This number was impacted by large stores such as Sears and Bon-Ton shuttering locations. WCRE also reports on the SouthernNew Jersey retail mar- ket. The third quarter saw con- sumer confidence inch upward in September after dramatic improvement in August. It is in the range of 18-year highs. The job market is remarkably strong, supporting consumer spending and reverberating through other indicators. Other highlights from the retail section of the report include: • Retail vacancy in Camden County stood at 7.4%, with average rents in the range of $15.38/sf NNN. • Retail vacancy in Burling- ton County stood at 8.2%, with average rents in the range of $13.84/s/f NNN. • Retail vacancy in Glouces- ter County stood at 7.6%, with average rents in the range of $14.77/s/f NNN. The full report is available upon request. WCRE is a full-service commercial real estate bro- kerage and advisory firm specializing in office, re- tail, medical, industrial and investment properties in Southern NJ and the Phila- delphia region.
reported in its latest quar- terly analy- sis that the S o u t h e r n New Jersey market took an expected pause in the third quar-
Jason Wolf
ter of 2018. Leasing and sales dropped off somewhat from their earlier pace, but the market still shows overall solid fundamen- tals, continued new investments
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