M id A tlantic Real Estate Journal — Southern New Jersey — January 2025 — 7A
www.marej.com
S outhern N ew J ersey
Positive trends in Q4 presage a bright outlook for the new year WCRE Fourth Quarter 2024 Report: Regional CRE markets post strong close to the year
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now approximately 15.7 per- cent, which is essentially unchanged from Q3. • All major private owners and REITs in the market re- ported moderate leasing and prospecting activity in the fourth quarter. • The office sector showed signs of long-awaited stabi- lization during the fourth quarter, with the “flight to quality” trend driving leasing activity. • Retail vacancy rates re - mained stable for the eighth consecutive quarter, seeing a consistent pace of absorption
bolstered by experiential cat- egories like fitness, health, and beauty. • The industrial sector regained momentum in the latter half of the year, after opening 2024 sluggishly. Bur - lington County, NJ, posted 3.2 million s/f of net for the year, leading the region. • The Philadelphia office market continues to struggle, averaging 25 percent lower annual leasing volumes in 2024 than for the three-year period prior to the pandemic. The quarterly report also covers notable transactions
across property types and mar- kets. For the fourth quarter, these include: • In northern New Jersey, Urban Edge Properties pur- chased The Shops at Ledge - wood Commons for $83.3 million. This 11-property portfolio includes national brands, such as Walmart, Marshalls, DSW, and Ulta. • Hennick & Company acquired a 123,000 s/f retail property at 410 E 60th Street in Manhattan for $153 mil- lion, or $1,242/SF. This fully leased asset, home to ten- ants like Home Depot and
Starbucks, previously sold for $73 million in 2017. • Philadelphia developer Alterra purchased 1701 Market Street, a 304,000 s/f office building in Center City, for $26.3 million ($86/ SF), a 61.5% discount from its 2005 sale price of $68.3 million ($257/SF). • Parky’s signed a lease for a 100,000 s/f entertainment center at the Moorestown Mall in southern New Jersey. • Morgan Stanley pur - chased a $217.5 million industrial portfolio in East Hanover, NJ. MAREJ
ARLTON, NJ — In its latest quar- terly report on the
performance of commer- cial real estate mar- kets across Southern New Jersey, Southeast- ern Pennsyl- vania, and
Jason Wolf
the New York metro area, commercial real estate bro- kerage WCRE found that the markets had a solid fourth quarter and seemed poised for more as 2025 gets underway. “Market fundamentals were strong this quarter despite the ongoing chal- lenge of persistently higher financing costs,” said Jason Wolf , founder and managing principal of WCRE. “As in the third quarter, consumer spending drove a resilient macroeconomic environment, and the effects helped to buoy CRE markets.” In the three Southern New Jersey counties surveyed (Burlington, Camden and Gloucester), approximately 347,356 s/f of new leases and renewals were executed dur- ing the fourth quarter. New tenant leases accounted for 222,292 s/f and renewals/ex- pansions comprised 124,364 s/f. New leasing activity constituted about 64% of all deals, underscoring the adaptability of businesses navigating the higher-interest- rate environment. The conditions that con- tributed to Q4 success seem to point to a solid 2025, too, but the commercial real estate market faces both challenges and opportunities resulting from the incoming presidential administration. New economic and social policies will shape the land- scape in the coming years. Regulatory frameworks, tax policy, tariffs, and immigra- tion policy may all change. Proposed policies suggest a near-term environment of higher inflation and slower growth. However, longer- term effects, such as tax cuts and a more lenient regula- tory climate, could lead to accelerated economic activity and stronger demand. Select highlights from the report: • Overall office vacancy in Southern New Jersey is
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