6B — April 10 - 23, 2015 — New Jersey — M id A tlantic
Real Estate Journal
www.marejournal.com
S outhern N ew J ersey Southern NJ CRE market buoyed by shifts in healthcare, corporate HQ relocations WCRE first quarter report: 2015 started off strong M ARLTON, NJ — Commerc ial real estate brokerage highlights from the re- port:
healthcare institutions, in- vestors, and large tenants. “The moves we’ve seen this quarter signal significant business expansion and job growth,” said Jason Wolf , founder and managing prin- cipal of WCRE. “This has helped to boost commercial real estate confidence and lending conditions, leading to a more optimistic atmo- sphere that is expected to continue throughout 2015.” The quarterly report de- tails big moves announced and/or anticipated by major players, including Virtua’s
planned 62,000 s/f office relocation later in the fall and the sales of two of Bran- dywine Realty Trust’s tro- phy assets to out of market investors. The two build- ings, Libertyview and 1000 Atrium Way, total 221,405 s/f, and sold for an average of approximately $134/s/f. According to WCRE, the first quarter posted approxi- mately 472,154 of new leas- es and renewals executed. This is a 7% increase in executed transactions over the 441,141 s/f that closed during the first quarter a
year ago. New tenant leases consisted of approximately 186,427 s/f and renewals and expansions made up approx- imately 285,727 s/f. New leasing activity represented approximately 39.5% of all deals for the first quarter. Overall, gross absorption for Q1 is in the range of approxi- mately 255,161 s/f. In ad- dition to the consummated deals, there is a pipeline of approximately 450,000 s/f of significant pending lease deals expected to close in the near term. Other office market
• GROW NJ continues to draw interested companies to the state, with ten proj- ects approved for $84.6 mil- lion in funding in January and February alone. • Overall vacancy in the market continues to drop, and is now down to ap- proximately 13.6%, an im- provement over the previous quarter. • 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 market 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 first quarter. Rents have remained stable. • All of the major private owners and REITS showed moderate leasing and pros- pect activity for the 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 confidence reached its highest monthly level since the start of the recession. The firm believes this level will further im- prove as the year moves on. Highlights from the retail section of the report include: • Overall retail vacancy in the tri-county area is hover- ing around 10.5%, which is up slightly from the previous quarter, but is still encour- aging compared to recent years. • Class A retail product rental rates continue to show strong support in the range of $30.00-$40.00/s/f NNN, as rents have re- mained stable. • Much of the demand for space locally is from national chains, which are experienc- ing growth. Smaller and lo- cally-based retailers are still struggling comparatively. 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 New Jersey and the Philadelphia region. n
WCRE re- ported in its latest quar- terly anal- y s i s t h a t 2 0 1 5 h a s c on t i nued the momen- t um s e e n during the
Jason Wolf
fourth quarter of 2014. The firm noted that some chal- lenges remain, but that the market has been lifted by a busy quarter among major
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