Real Estate Journal — Southern New Jersey — October 14 - 27, 2016 — 9B
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S outhern N ew J ersey
ARLTON, NJ –Com- mercial real estate brokerage WCRE re- Investments, sales, and Philadelphia remain areas of strength WCRE 3Q report: Southern NJ office leasing rebounds, still lags behind 2015 levels M
Burlington County vacancies tightening up, many larg- er vacancy opportunities are also shifting towards Camden County, which is not controlled by these ownership entities. •On the sales and invest- ment side, about 416,050 s/f of properties worth a total of more than $52 million were traded. 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 Pennsylvania include:
•Aramark signed a lease at 2400 Market St. in Philadel- phia for a new headquarters. The 280,000+/- s/f space will be state-of-the-art with unparal- leled views of the Schuylkill River. This international entity looked elsewhere in the region for space but chose to remain in Center City, which bodes well for the future of the market. •Five Below chose the Lits Building for its new Center City headquarters. The com- pany also plans on leasing 180,000 s/f of office space and 15,000 s/f of retail space at 701 Market St.
•Strong demand continues in the industrial market, as evidenced by increasing prices and rental rates. Though much of the institutional activity ap- pears to be in central Pennsyl- vania and the Lehigh Valley, pricing for non-institutional as- sets, especially in Philadelphia and the surrounding counties, is stronger than ever. WCRE also reported on the Southern New Jersey retail market, noting mixed results there. Highlights from the retail section of the report include: continued on page 10B
•Philadelphia and the sur- rounding suburbs continue on an upward trajectory in terms of construction for multi-family and repositioning of older Class B/C assets to core Class A prop- erties. Despite these trends, we are witnessing some hesitation from the banking community regarding the viability of these extraordinarily high pricing levels. With thousands of units either under construction or slated for development in the Philadelphia region, the ques- tion regarding rental rates and vacancy levels is coming to the forefront of many deals.
ported in its latest quar- terly analy- sis that the S o u t h e r n New Jersey office market has bounced back nicely from the slow-
Jason Wolf
down in commercial leasing ac- tivity that began late last year. Office leasing totals for the third quarter were the stron- gest they have been all year, though they are still off from the same time last year. The investment and sales market continued its hot streak, and the city of Camden is seeing progress from the Grow New Jersey program. “The Brexit vote was some- thing of a shock to the system during the second quarter, but this region showed its resilience and the strength of its fundamentals,” said Jason Wolf , founder and managing principal of WCRE. “The up- coming election means more uncertainty in the near term, but the overall tone is one of cautious optimism.” There were approximately 365,224 s/f of new leases and renewals executed in the three counties surveyed (Burling- ton, Camden and Gloucester), which represents an incredible improvement of 44% compared with the second quarter of the year. The quarter saw a slight decrease in prospecting, with about 225,000 s/f of lease deals in the pipeline and expected to close in the near term. Still, the trend of positive absorption continued, making up approxi- mately 195,000 s/f of total ac- tivity. Overall market vacancy dropped as well, with Camden County leading the way. Other office market high- lights from the report: •Overall vacancy in the market is now approximately 10.65%. •Average rents for Class A & B product continue to show strong support in the range of $10.00-$14.00/s/f NNN or $20.00-$24.00/s/f gross for the deals completed during the quarter. This is essentially unchanged from the previous several quarters. •All of the major private owners and REITS showed moderate leasing and prospect activity for the quarter – with
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