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Real Estate Journal — Spring Preview —April 26 - May 9, 2019 — 17C
M id A tlantic
CRE B roker Another solid quarterly performance despite ongoing political uncertainty WCRE 1st Quarter 2019 Report: Modest gains continue in Southern NJ & Philly CRE markets
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ommercial real estate brokerage WCRE re- ported in its analysis
the fourth quarter. • Burlington County's va- cancy jumped to 12.1% after two straight quarters at 10.4%. Burlington was impacted by several large blocks of space returning to the market. WCRE has expanded into southeastern PA, and the firm's quarterly reports now include a section on transactions, rates, and news from Philadelphia and the suburbs. Highlights from the first quarter in Penn- sylvania include: • The vacancy rate in Phila- delphia’s office market moved to 9%, up from 7.8% at the end
of the year. The market’s va- cancy rate is at a 17-year low and below that of other major market. Despite this cooling off, demand for office space remains strong, and vacancy in Philadelphia is still below other major cities. • Net office space absorption in Philadelphia was 1.1 million s/f for the quarter. • The industrial sector in Philadelphia remains very strong, though there may be signs of slowing down a bit. The first quarter saw a further decrease in vacancy rates, to 5.1%, but net absorption was
off, at 4.7 million s/f. • Philadelphia retail is tread- ing water to avoid a major spike in vacancy. The vacancy rate ticked down two tenths of a point, to 4.3%, while net absorption was positive at 161,406 s/f after two straight quarters in negative territory. WCRE also reports on the Southern New Jersey retail market. Highlights from the retail section of the report include: • Retail vacancy in Camden County dropped to 5.8%, with average rents in the range of $16.25/sf NNN.
• Retail vacancy in Burling- ton County increased to 7.9%, with average rents in the range of $13.10/sf NNN. • Retail vacancy in Glouces- ter County stood at 8.1%, with average rents in the range of $13.75/sf NNN. The full report is available upon request. WCRE is a full-service commercial real estate bro- kerage and advisory firm specializing in office, retail, medical, industrial and investment properties in Southern New Jersey and the Philadelphia region.
of the first quar t e r o f 2 0 1 9 t h a t the Southern New Jersey and South- e a s t e r n Pennsylva- nia markets c on t i nued
Jason Wolf
to show overall solid fun- damentals, buoyed by new investments from outside the region and economic inflows to support local expansions. Leasing, net absorption, and prospecting activity all were up in the first quarter, while sales dipped slightly. “We've been in this cycle for several years at this point, with steady growth supported by strong fundamentals,” said Jason Wolf, founder and man- aging principal of WCRE. “The financial markets and political climate have been somewhat less predictable, but commer- cial real estate has performed very reliably, and we believe will continue to do so.” There were 373,362 s/f of new leases and renewals ex- ecuted in the three counties surveyed (Burlington, Camden and Gloucester), which was an increase of 10% over the previ- ous quarter. The sales market stayed active, too, with about 1.59 million s/f on the market or under agreement. Sales were active, with $24.7 million total- ing approximately 186,000 s/f. New leasing activity ac- counted for 50% of all deals for the three counties surveyed. Overall, gross leasing absorp- tion for the first quarter was in the range 411,000 s/f, an increase of 30% over the fourth quarter. Other office market high- lights from the report: • Overall vacancy in the market is now 11.60%, which is 65 basis points higher the previous quarter. • Average rents for class A & B product continue to show strong support in the range of $10.00-$15.00/sf NNN or $20.00-$25.00/sf gross for the deals completed during the quarter. These averages stayed near this range throughout 2018 and have remained there into 2019. • Vacancy in Camden County dropped to 11.1% for the quar- ter, which is an improvement of 40 basis points compared to
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