6B — January 16 - 29, 2015 — New Jersey — M id A tlantic
Real Estate Journal
www.marejournal.com
S outhern N ew J ersey
Government incentives, big announcements from major players shore up 2014 WCRE fourth quarter report: 2014 ends on a high note, fueled by growth in Camden
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s/f of new leases and renew- als executed in the three counties surveyed. Positive absorption spiked, making up approximately 222,618 s/f of total activity. The sales market also was quite active during the fourth quarter, with eight significant sales transactions taking place, totaling approximately $95 million in value and in ex- cess of 1.25 million s/f. The report noted that the tightening of the 3M mar- kets in Burlington County, coupled with incentives of- fered under the GROW NJ
ARLTON, NJ – Commercial real estate brokerage
announcements by several large employers that they planned to relocate to Cam- den, NJ, and cited improve- ments in key indicators across the board. According to WCRE, the fourth quarter featured a very busy market, with a 20% increase in deal activ- ity over the third quarter, and a 30% increase over the fourth quarter of 2013, as well as a high volume of transactions expected to consummate in the early part of the new year. There were approximately 481,761
initiative, caused a surge of demand for space in Cam- den County, specifically in the city of Camden. “Bur- lington 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 manag- ing principal of WCRE. Taking a combined $525 million in tax incentives, Subaru, Holtec, Lockheed Martin, and Cooper Health all announced plans to relo-
cate corporate headquarters to the city of Camden. The Philadelphia 76ers owner- ship organization had pre- viously announced plans to build a new team headquar- ters and practice facility in Camden, and a new 20-acre retail center anchored by a supermarket has been an- nounced for 2016. Other office market high- lights from the report: • Overall vacancy in the market continues to drop, and is now down to approxi- mately 14.3%. • Average rents for class A & B product continue to show strong support in the range of $10.00-$14.00/s/f NNN or $21.00-$24.00/s/f gross, with an overall mar- ket average showing strong support in the $10.00- $12.00/s/f NNN or $20.00- $22.00/s/f gross for the deals completed during the fourth quarter. • Despite strides made in the city of Camden, Burl- ington County continued to maintain a significantly lower vacancy rate than Camden County. Burling- ton’s vacancy rate sits at 9.8%, while Camden Coun- ty’s is at 18.8%. • All of the major private owners and REITS showed moderate leasing and pros- pect activity for the fourth quarter – with Burlington County vacancies tightening up, many larger vacancy op- portunities are also shifting towards Camden County, which is not controlled by these ownership entities. WCRE also reported on the local retail market, noting that consumer con- fidence reached a nearly seven-year high, and retail sales activity was up. High- lights from the retail section of the report include: • Overall retail vacancy in the tri-county area is hover- ing around 10.3%, marking tremendous improvement from the end of 2012, when it was hovering in the 17- 18% range. • Class A retail product rental rates continue to show strong support in the range of $30.00-$40.00/s/f NNN. • Several new retail devel- opment projects throughout the tri-county area are un- derway or have been an- nounced. n
WCRE re- ported in its latest quar- terly analy- sis that the fourth quar- ter of 2014 saw the cul- m i n a t i o n of several
Jason Wolf
positive trends, adding up to an overall strong year in Southern New Jersey. The firm highlighted the suc- cess of GROW NJ leading to
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