10B — January 15 - 28, 2016 — New Jersey — M id A tlantic
Real Estate Journal
www.marejournal.com
S outhern N ew J ersey Pace of transactions slows down, but investment market activity provides optimism WCRE fourth quarter report: An overall strong 2015 in SNJ ends with a note of caution M ARLTON, NJ – Commercial real estate brokerage s/f of total activity. Vacancy rates continued to improve, as well.
market continues to drop, and is now down to approxi- mately 11.6%. This is a major improvement from a year ago. •Average rents for class A & B product continue to show strong support in the range of $10.00-$14.00/sf NNN or $21.00-$25.00/sf gross for the deals completed during the fourth quarter. •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 mixed results there, as well. Highlights from the retail section of the report include: •Overall retail vacancy in the tri-county area is hover- ing around 10.53%, marking an uptick from 2014, but still remarkable 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/sf NNN. •The pace of retail sales growth in our area has slowed, but nationwide re- tail sales are up, sparking many planned expansions and store openings for 2016 and beyond. 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 com- plete range of real estate ser- vices 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. Through our intensive focus on our clients’ business goals, our commit- ment to the community, and our highly personal approach to client service, WCRE is creating a new culture and a higher standard. We go well beyond helping with property transactions and serve as a strategic partner invested in your long term growth and success. n
overall market still showed gradual improvement and expansion, and bellwether companies remained active. The fourth quarter featured amixed bag of results, some of which may have been caused by the Fed’s recent decision to raise interest rates for the first time in nearly a decade, and/or by volatility in the financial markets. Positive news included several large leases and renewals above 40,000 s/f, signs of increasing new construction for the first time in years, and new inves- tors entering the market. In
less encouraging news, there were approximately 384,906 s/f of new leases and renewals executed in the three counties surveyed, which represents a drop of +/- 20% compared with the fourth quarter of 2014. Along with a slower pace of transactions, there has been a drop in prospect- ing, with about 250,000 s/f of lease deals in the pipeline and expected to close in the near term. However, even with the drop in transactions, positive absorption continued, making up approximately 130,202
WCRE re- ported in its latest quar- terly analy- sis that the fourth quar- ter of 2015 saw the mar- ket tap the brakes a bit
“2015 was a strong year for our market, although we began to see more caution amid the optimism during the fourth quarter,” said Jason Wolf , founder and managing principal of WCRE. “The question for 2016 will be whether our market has rebounded to a point where it can ride out some short-term changes and remain strong.” Other office market high- lights from the report: •Overall vacancy in the
Jason Wolf
for the first time in an other- wise strong year in Southern New Jersey. The report noted that there were hints of a slow-down, even while the
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