6B — January 2024 — Southern New Jersey — M id A tlantic Real Estate Journal
www.marej.com
S outhern N ew J ersey
Uncertainty in the office market, robust demand in industrial and retail WCRE 4 th Quarter 2023 Report: Southern NJ & Philadelphia Markets prove mostly resilient a year.
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faced since the pandemic and its aftermath, a gradual easing of both inflation and the poli- cies aimed at taming it may be cause for optimism there, too. “Earlier in 2023, the CRE market was negatively im- pacted by the Fed’s anti-in- flation measures, with rising interest rates leading to tight- ening credit. But by Q4, signs of easing inflation, combined with strong consumer spend- ing and favorable market con- ditions, strengthened at least the retail and industrial sec- tors in our region,” said Jason Wolf , founder and managing
principal of WCRE. In the fourth quarter of 2023, 297,206 s/f of new leases and renewals were executed in Burlington, Gloucester, and Camden Counties. New ten- ant leases accounted for ap- proximately 171,689 s/f, while renewals and expansions made up about 125,517 s/f. Prospecting remains on track, with a pipeline of 500,000 s/f of pending lease deals expected to close in the near term. Other office market high- lights from the report: • Overall vacancy in the mar - ket is now 20.25%, a major
setback compared with the previous quarter, which saw 14.9% vacancy. • The quarter saw $54,285,000 in completed sales, comprising 488,376 s/f of space. • New leasing activity repre - sented 58% of all deals in Q4. • Average rents for class A & B product remain unchanged, as they continue to show strong support in the range of $10.00- $15.00/s/f NNN or $20.00- $25.00/s/f gross for the deals completed during the quarter. These averages are essentially unchanged and have hovered near this range for more than
ARLTON, NJ — Commercial real estate brokerage
WCRE has expanded into southeastern Pennsylvania, and the firm's quarterly reports include a section on transac- tions, rates, and news from Philadelphia and the suburbs. Highlights from the fourth quarter in PA include: • Philadelphia’s office leasing market is faring better than similar markets, but there is still a long road ahead. The area’s office vacancy rate of 11% for Q4 is unchanged from the previous quarter, and still the second lowest among the top 15 markets. • The industrial sector in Philadelphia dipped some- what in Q4, but it is still quite strong. Over the past 12 months, industrial saw net absorption of 6.9 million s/f even as new deliveries (22 million s/f) continued to rise. • Retail has shown particular resiliency in the region, espe- cially in the suburbs. Retail vacancy for Philadelphia held steady at 4.2% for the quarter. Average retail net absorption in Philadelphia fell somewhat to 1.1 million s/f for the 12 months just concluded. WCRE also reports on the South- ern New Jersey retail market. Retail highlights from the report include: • Retail vacancy in Camden County shot up to 8.7% from 6.3, while average rents inched up, to $16.48/s/f NNN. • Burlington County retail va - cancy lost ground, at 6.9% , while average rents rose slightly, to the range of $16.09/s/f NNN. • Gloucester County retail va - cancy rose to 10% with average rents unchanged at $18.22/s/f NNN. About WCRE WCRE l CORFAC Inter- national provide a complete range of real estate services to commercial property owners, companies, banks, commercial loan servicers, and investors seeking the highest quality of service, proven expertise, and a total commitment to client-focused relationships. Through our intensive focus on our clients’ business goals, our commitment to the community, and our highly personal ap- proach to client service, WCRE is creating a new culture and a higher standard. We go well beyond helping with property transactions and serve as a strategic partner invested in your long-term growth and success. MAREJ
WCRE re- ported in its analysis of the fourth quarter that the commer- cial real es- tate sector - powered largely by re-
Jason Wolf
tail and industrial - seems to have weathered the challeng- ing economy for now. Although the office market remains ham- strung by the same forces it has
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