8B — October 22 - November 18, 2021 — Southern NJ — M id A tlantic Real Estate Journal
www.marej.com
S outhern NJ
ARLTON, NJ — Comme r c i a l r ea l estate brokerage M Investment activity & large transactions regained steam, while industrial continued to lead the way WCRE 3 rd Qtr. 2021: SouthernNJ &PhillyMarkets’ Anticipated Comeback Delayed By Delta Variant
recent months. At the beginning of 2021, with vaccines and optimism becoming widespread, many employers looked ahead to the week after Labor Day as the beginning of the official return to the office. The emergence of the Delta variant and break- through infections pushed the return date into 2022. The ef- fects of this shift have reverber- ated throughout the economy, including the office and retail CRE markets. “A few months ago, CRE performance was trending in a positive direction and seemed poised for a return to pre-pan-
demic levels,” said JasonWolf, founder and managing prin- cipal of WCRE. “While we are in a very positive investment transaction market, the Delta variant has put the office and retail markets into a holding pattern, but a comeback should still be on the horizon.” In the third quarter there were approximately 225,717 s/f of new leases and renewals executed in the three counties surveyed (Burlington, Camden and Gloucester), a bit below the previous quarter. New tenant leases comprised approximately 119,213 s/f, or about 53% of all deals for the
three counties. Other office market high- lights from the report: ● Overall vacancy in the market is now approximately 12.75% , an improvement of .85 of a point from the previous quarter. ● The sales market main - t a i ned momen t um, wi t h 1,200,393 s/f actively on the market or under agreement. ● There were $70,164,500 in completed sales comprising 709,032 s/f during Q3.
range of $10.00-$15.00/sf NNN or $20.00-$25.00/sf gross for the deals completed during the quarter. These averages have hovered near this range for more than a year. WCRE has expanded into southeastern Pennsylvania, and the firm's quarterly reports now include a section on trans- actions, rates, and news from Philadelphia and the suburbs. Highlights from the third quar- ter in Pennsylvania include: ● The vacancy rate in Phil - adelphia’s office market re- mained unchanged in Q3, still at 10.3% after hovering near a 20-year low for months. For the past few months, nearly 15% of the total office space in Philadelphia has been listed for sale or lease. ● As in many recent reports, the industrial sector in Phila- delphia continued its impres- sive run, buoyed by its integral role in e-commerce. The last year saw a remarkable 15.8 million s/f of net absorption and 11.7% rent growth. ● Retail remains the sector most responsive to market con- ditions, but it has also proved to be the most adaptable. Average retail net absorption in Phila- delphia went into a tailspin when the pandemic began, but for the 12 months just concluded, it is back in positive territory, at 273,000 s/f. WCRE also reports on the Southern New Jersey retail market. Highlights from the re- tail section of the report include: ● The Consumer Conf i - dence Index declined steadily throughout the third quarter after posting five consecutive months of increases. ● Retail vacancy in Camden County posted a huge improve- ment of more than three points to 10.7%, while average rents fell more than one dollar, in the range of $11.81/sf NNN. ● Burlington County retail vacancy improved more than a point to 8.3%. But it is still above 7.6%, where it stood a year ago. Average rents dropped to the range of $13.93/sf NNN. ● Gloucester County posted a decrease of two points, to 14.5 after increasing throughout last year, with average rents virtually unchanged in the range of $14.04/sf NNN. The full report is available upon request. WCRE is a full-service commercial real estate brokerage and advisory firm. MAREJ
WCRE r e - p o r t e d i n its analysis of the third quarter that the Southern New Jersey and South- e a s t e r n Pennsylvania
Jason Wolf
markets will have to wait a bit longer for the post-pandemic recovery. While CRE seemed to rebound along with the broader economy earlier this year, the Delta variant caused havoc in
● Average rents for class A & B product remain un- changed, as they continue to show strong support in the FULL SERVICE COMMERCIAL REAL ESTATE BROKERAGE & ADVISORY FIRM
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