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14C— February 27 - March 12, 2015 — Commercial Office Spotlight — Mid Atlantic Real Estate Journal
NAI M ertz
By Rebecca Ting, SIOR & Julie Kronfeld | NAI Mertz Southern New Jersey stakes its claim in the commercial real estate office market
S
outhern New Jersey is staking its claim in the commercial real estate
of 2014 with a vacancy rate of 11.6%, the southern New Jersey office market sat well
submarket, which comprises Marlton, Moorestown and Mount Laurel. NAI Mertz completed transactions in this burgeoning area, includ- ing the sale of two 50,000 SF Class A office buildings lo- cated at 5000 & 7000 Atrium Way within Horizon Corpo- rate Center in Mount Lau- rel. Our firm also completed seven leases within Eastgate Business Park in Mount Laurel, bringing new jobs to the area, and increasing the occupancy rate to nearly 90 percent. While the average office user in the region is seeking
smaller spaces with open floor plans within energy- efficient buildings, much larger transactions are tak- ing place in neighboring Camden County, specifically in the city of Camden, as a result of the impressive tax incentives being offered by the state through its Eco- nomic Opportunity Act and GROW NJ programs. The incentives being of- fered in Camden are unpar- alleled to the rest of the state due to the city’s classification as both a distressed commu- nity and mass transit hub. Camden County is creating
perfect opportunities for high-headcount businesses to follow in the footsteps of companies like Subaru of America, Lockheed Mar- tin, Holtec International, the Philadelphia 76ers and Cooper Health, which all have received generous in- centive packages for their commitments to relocate to the city. Adding to the posi- tive growth of Camden, NAI Mertz is actively marketing a 10-acre mixed-use, transit- oriented redevelopment site along Haddon Avenue, which is located directly across from the Ferry Ave PATCO station. This redevelopment project aims to bring popula- tion growth, commerce and ratables to Camden. Cherry Hill Township, also in Camden County, is witnessing an increase in activity in the office sector. With its close proximity to major highways and Center City Philadelphia, Cherry Hill is a popular destination for businesses, retailers and residents alike. Already this year, our brokers have com- pleted two significant sale transactions just off the Rte. 70 corridor on Haddonfield Road — a 27,500 s/f office building and a 12,000 s/f office building. And we are also seeing an increase in leasing activity within Two Executive Campus and Four Executive Campus. In addition, there are sev- eral opportunities for Class A office users in the heart of Cherry Hill’s “Golden Tri- angle,” including an 80,000 s/f mid-rise office building — Riverview Corporate Plaza — located at 2339 Rte. 70; and a 30,000 s/f, three-story newly renovated office build- ing located along Rte. 38 at 523 Hollywood Ave. As more and more busi- nesses are being driven to the area because of the at- tractive incentive packages being offered by the state; its desirable location, which is accessible via many of the state’s major highways; and the strengthening of rental rates, we anticipate southern New Jersey to continue its trend of a stable and solid office market in 2015. Rebecca Ting, SIOR is is vice president of at NAI Mertz. Julie Kronfeld is a sales associate at NAI Mertz. n
market in 2015. With the region’s steady and cons i s tent gr owth i n leasing and sales activ- ity, and the cont inued
be l ow the national av- erage. Rent- al rates also had a slight i n c r e a s e of an esti- mated 1.6% percent to an average
Rebecca Ting
Julie Kronfeld
strength in average rental rates, we anticipate 2015 to be an impressive year for the office market in southern New Jersey. Ending the fourth quarter
of $16.40 - $22.50 psf. The bulk of activity in the southern New Jersey office market has been in Burling- ton County, particularly in the office parks of the ‘3M’
Opportunity Awaits...
Commercial real estate is more than just finding a new workspace — it’s about new possibilities . naimertz.com
Pictured: Riverivew Corporate Plaza | Cherry Hill, NJ | 80,000 SF Class A Office for Lease
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