Real Estate Journal — New Jersey — January 12 - 25, 2018 — 9B
M id A tlantic
N ew J ersey
ommercial real estate brokerage WCRE re- ported in its latest 210,525 s/f of new leases and renewals executed in Burlington, Camden and Gloucester Southern New Jersey & Philly CRE markets finish a strong 2017with strong fundamentals butmixed results C online retailers gaining 18.1 percent. Other highlights from the retail section of the report include:
southeastern Pennsylvania, 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 quar- ter in Pennsylvania include: • Philadelphia's office mar- ket saw increasing vacancy in the Central Business Dis- trict during 2017, as several large tenants emphasized efficiency and returned large blocks to the market. Still, we see increasing employment and new construction, both of which bode well for continued strength.
• The Philadelphia retail sector continues to struggle. It has been affected by the same challenges facing retail busi- nesses everywhere. Namely, the shift to online retailing. Still, there were some positive signs amid the announced store closings and bankrupt- cies. Community shopping centers remain an area of strength in the market, with vacancy rates nearly half the national average. • The Philadelphia industrial market continues its hot streak, and the outlook is positive. Va- cancy rates for flex and indus-
trial properties in Philadelphia are well below the regional and national averages, and this is expected to continue. Industrial vacancy in Philadelphia is cur- rently at 7 percent, and net absorption was in the range of 1.7 million s/f . WCRE also reports on the Southern New Jersey and Philadelphia retail market, noting that holiday spending reached the highest levels since 2011, with both online and brick-and-mortar retailers reaping gains. Overall holiday retail sales posted gains of 4.9 percent over last year, with
q u a r t e r l y analysis that the Southern New Jersey market is in largely good shape , de - spite a sea- sonal drop i n l ea s i ng activity.
• Retail vacancy in Camden County stood at 8.5 percent, with average rents in the range of $12.75/sf NNN. • Retail vacancy in Burl- ington County stood at 9.9 percent, with average rents in the range of $13.83/sf NNN. • Retail vacancy in Glouces- ter County stood at 7.2 percent, with average rents in the range of $14.64/sf NNN. The full report is available upon request. n
“Aside from an expected leas- ing slow-down in the fourth quarter, 2017 was a strong year for our market,” said Jason Wolf, founder and managing principal of WCRE. “All the elements for success are in place, including a labor market that is heating up, record gains in the financial markets, and continued deal and prospecting activity and enthusiasm.” There were approximately 210,525 s/f of new leases and renewals executed in the three counties surveyed (Burling- ton, Camden and Gloucester), which was about half the total compared with the previous quarter. While leasing slowed considerably, the sales market stayed active, with more than 1.88 million s/f on the market or under agreement and an additional 205,364 s/f trading hands. New leasing activity ac- counted for approximately 25.7 percent of all deals. Overall, net absorption for the quarter was in the range of approxi- mately 65,250 s/f . Other office market high- lights from the report: • Overall vacancy in the market is now approximately 10.1 percent, which is an uptick of a third of a point from the previous quarter. • Average rents for class A & B product continue to show strong support in the range of $10.00-$14.50/sf NNN or $20.00-$24.50/sf gross for the deals completed during the quarter. These averages have stayed within this range for most of this year. • Vacancy in Camden County improved throughout the year, standing at 11.7 percent for the quarter, up a bit from the third quarter, but down from 13.3 percent at the beginning of the year. • Burlington County vacancy was at 8.5 percent, a slight increase in a year that saw marked improvement overall. WCRE has expanded into
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