10B — October 16 - 29, 2020 — Southern New Jersey — M id A tlantic Real Estate Journal
www.marej.com
S outhern NJ
ARLTON, NJ — Commerc ial real estate brokerage Economic recovery lost steam through the quarter, but leasing activity was strong The Southern NJ & Philly CRE markets heat up quicker than expected after pandemic-fueled challenges M
the economy and daily life, quarterly CRE indicators throughout the region showed resiliency and even some cause for muted optimism. “Uncertainty is high, of course, and will remain high unfortunately, but an econo- my that seemed to be recover- ing delivered some good news in our markets,” said Jason Wolf , founder and managing principal of WCRE. There were approximately 596,873 s/f of new leases and renewals executed in the three counties surveyed (Burlington, Camden and
Gloucester), which was more than double the total for the previous quarter. The jump was driven by Lockheed Mar- tin’s four renewals totaling approximately 320,000 s/f. Even without those transac- tions, Q3 leasing was about equal to the total for Q2. New tenant leases comprised approximately 93,544 s/f, or approximately 16% of all deals for the three counties surveyed. Other office market high- lights from the report: • Overall vacancy in the market is now approximately
12.95 percent, which is a jump from the previous quarter’s 11.5 percent. • 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 third quarter. These averages have hovered near this range for more than a year. • Vacancy in Camden Coun - ty increased to 14.9 percent for the quarter. • Burlington County's va - cancy increased to 11 percent
after dropping more than a point during the first quarter. 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 Phila - delphia’s office market rose more than half a point, to 9.1 percent, after having hovered near a 20-year low and below the vacancy rates of compa- rable major cities at the onset of the pandemic. • The industrial sector in Philadelphia led the market, as it generally does. During Q3 vacancy rates ticked down to 5.3 percent, a slight drop from the previous quarter. Al- though net absorption turned negative for flex and special- ized space, it increased by 167,035 s/f for logistics space. • As vulnerable as retail CRE may be due to unprec- edented job loss and busi- nesses temporarily shuttering and/or reducing capacity, the vacancy rate held steady at 5.1 percent, representing a very small increase over Q2. Net absorption returned to positive territory at 284,752 s/f for the quarter, but is at negative 1.2 million s/f over the last twelve months. WCRE also reports on the Southern New Jersey retail market. Highlights from the retail section of the report include: • Retail vacancy in Camden County jumped to 9.7 percent from 5.4 percent in Q2. While average rents fell by nearly a third to the range of $11.68/s/f NNN. • Retail vacancy in Burl - ington County held steady at 7.6 percent, with average rents increasing to the range of $13.82/s/f NNN. • Retail vacancy in Glouces - ter County ticked up half a point to 12.9 from after post- ing a major increase in Q1, with average rents down in the range of $13.13/s/f NNN. The full report is available upon request. WCRE is a full-service commercial real estate brokerage and advisory firm specializing in office, retail, medical, industrial and investment proper- ties in Southern New Jer- sey and the Philadelphia region. MAREJ
WCRE re - p o r t e d i n its analysis of the third quar t er o f 2 0 2 0 t ha t the South- e r n N e w Jersey and Southeast -
Jason Wolf
ern Pennsylvania markets out-performed expectations tempered by the ongoing coro- navirus pandemic. While the crisis reverberated through
FULL SERVICE COMMERCIAL REAL ESTATE BROKERAGE & ADVISORY FIRM
WE’RE WIRED DIFFERENTLY
l Landlord Representation l Tenant Representation l Research & Marketing Information l Corporate Real Estate Representation l Investments l Property Management l Appraisal & Advisory Services l Construction Services
For more information, visit WolfCRE.com or call 856-857-6300.
Building Successful Relationships TM
Marlton, NJ l Philadelphia l King of Prussia, PA
Made with FlippingBook - Online catalogs