Real Estate Journal — Southern New Jersey — July 14 - 27, 2017 — 9B
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S outhern N ew J ersey
WCRE Q2 2017 report: Southern NJ market shows strong fundamentals, appears poised for growth continue to meet demand.
WCRE r e - ported in its latest quar- terly analy- sis that the S o u t h e r n N e w J e r - sey market, which started off 2017 on a M
3.9 percent higher this year compared to 2016. Highlights from the retail section of the report include: • Retail vacancy in Camden County stood at 9.4 percent, with average rents in the range of $11.33/sf NNN. • Retail vacancy in Burling- ton County stood at 10.5 per- cent, with average rents in the range of $13.35/sf NNN. • Retail vacancy in Glouces- ter County stood at 7.1 percent, with average rents in the range of $13.78/sf NNN. The full report is available upon request. n
percent in the first quarter. WCRE has expanded into southeastern Pennsylvania, and the firm's quarterly re- ports now include a section on transactions, rates, and news from Philadelphia and the suburbs. Highlights from the second quarter in Pennsylvania include: • The Philadelphia industrial market remains very healthy, 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 the expectation is that supply will
Namely, the massive shift to online retailing and away from brick-and-mortar. Still, there were some positive signs amid the spate of announced store closings. Community shop- ping centers remain an area of strength in the market, with vacancy rates nearly half the national average. WCRE also reported on the Southern New Jersey retail market, noting that e-com- merce sales were high and moving higher still, while brick- and-mortar retail sales were growing at a modest two per- cent. Overall retail sales were
arlton, NJ — Comme r c i a l r ea l es tat e brokerage
• Philadelphia's office mar- ket continues to gain strength across the board, with far lower vacancy rates than regional and national averages for both Class A and Class B properties in the Central Business Dis- tricts and around the suburbs. Conditions are in place that seem to bode well for continued growth, including increasing employment and new construc- tion. • The Philadelphia retail sector has not been immune to the systemic challenges facing retail businesses everywhere.
Jason Wolf
cautiously optimistic note, continued picking up steam through the second quarter. “The overall mood of the market seems to be positive, riding a wave of steady mod- erate growth in the national economy, increasing expansion locally, and investor interest from outside the region” said Jason Wolf, founder and man- aging principal of WCRE. “Of- fice occupancy needs increased during the quarter, and we have been seeing increased capital spending and construc- tion hiring this year for the first time in years.” There were approximately 395,155 s/f of new leases and renewals executed in the three counties surveyed (Burling- ton, Camden and Gloucester), which represents an increase of approximately 24 percent compared with the previous quarter, and a remarkable 58 percent increase over the sec- ond quarter last year. While leasing showed this notable rise, the sales market had a dip in volume during the second quarter, with some 554,590 s/f worth more than $46.1 million trading hands. New leasing activity ac- counted for approximately 43.4 percent of all deals. Overall, gross leasing absorption for the quarter was in the range of ap- proximately 85,000 s/f. Other office market high- lights from the report: • Overall vacancy in the market is now approximately 10.4 percent, which is a solid improvement over the previous quarter's 11.05 percent. • 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. This is essentially unchanged from the previous two quarters. • Vacancy in Camden County improved dramatically, stand- ing at 11.7 percent for the second quarter, down from 13.3
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