B — July 27 - August 16, 2012 — Brokerage Directory — Mid Atlantic Real Estate Journal
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Indicators point to cautious optimism Wcre: South Jersey office market shows positive signs during second quarter
V
oorhees, NJ —Sev- eral commercial real estate market indica-
and a new crop of landlords investing in improvements to attract or retain tenants. However the market, though improving, is not yet thriv- ing. “In general the market is ac- tive, but this year’s presiden- tial election and the European financial crisis will continue to influence business decisions, which could impact the timing of real estate decisions,” said Jason Wolf, founder and prin- cipal of WCRE. “Improvement in the real estate market will still hinge on whether more jobs can be added locally and nationally,” he added.
According to the report, there were more than 450,000 s/f in renewals and new lease transactions in Southern New Jersey during the quarter, with renewals comprising most of the transactions. Other high- lights from the report: • Average rental rates have increased for two quarters in a row, and are now higher than they were at this point in 2011. The overall market average is $11.00/sf, NNN with class A and B product trading in the range of $10-$14.00/sf, NNN. • Positive absorption for the quarter was in the range of 125,000 s/f of new deals and/or
expansions. • Moorestown, Marlton and Mount Laurel are showing strength, while a large share of the region’s vacancies is in Voorhees, Pennsauken, and the west side of Cherry Hill. • Though vacancy is at nearly 20 percent, the market has stabilized. • Both the financial and mortgage services and health- care sectors continue to be very active, with companies like TRG, PHH, and others expanding rapidly in the area, and the Cooper, Lourdes, and Virtua health systems procur- ing highly visible sites along
major traffc corridors. “Construction, absorption, and the lending climate are all positive signs that herald not only job growth, but the fact that companies are show- ing the confidence to expand, invest, and relocate to this region,” Wolf added. n Colliers Int’l. arranges $13m sale for Hartz Mountain Hanover, NJ — Colliers International has arranged the sale of 110 Algonquin Parkway in Hanover for $13.0 million or ±$114 psf for Hartz Mountain Industries. Colliers Interna- tional also procured the buyer Griffn Capital. 110 Algonquin Parkway is an 114,265 s/f “class A” indus- trial property and is leased to General Electric Aviation Systems. “Both buyer and seller must be commended for their hard work in closing this sale, which included a protracted loan as- sumption,” said Jeffery Oram an executive managing director of Colliers International’s In- vestment Services Group who, along with Jonathan Ortiz an associate director with Colliers International, represented both the buyer and the seller in the transaction. “Hartz is always a reluctant seller – especially of a great asset with a solid tenant,” said Emanuel Stern, president and COO for Hartz Mountain. “Col- liers brought us an opportunity that lets Griffn enjoy the in- come stream and we can real- locate the capital to something more entrepreneurial.” n Wi-Fi, and more. We believe that over the next decade, Newark will come to be recognized as one of New Jersey’s most exciting urban communities. While we await the anticipated resurgence of residential development, the current uptick in the city’s commercial real estate market, particularly offce, will provide the foundation for that accom- plishment. Miles Berger is chairman and chief executive officer of The Berger Organization in Newark, NJ. n continued from page 2B Office market continues to fuel Newark . . .
tors pointed in the right direction in S o u t h e r n New Jersey during the second quar- ter, leading to cautious optimism, ac-
Jason Wolf
cording to a report this week by Wolf Commercial Real Es- tate. The positive signs include increased deal activity and construction, interest rates remaining near historic lows,
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