6B — April 22 - May 19, 2022 — Southern New Jersey — M id A tlantic Real Estate Journal
www.marej.com
S outhern NJ
Retail makes a surprising run, industrial maintains its hot streak, total CRE sales were double Q4 WCRE 1 st Qtr. 2022 Report after a pause, Southern NJ & Philly markets appear to have overcome Omicron
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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 first quar- ter in Pennsylvania include: • Vacancy in Philadelphia’s of - fice leasing market is still 20% below the three-year average before the pandemic. There were modest gains in 2021, but those have been all but erased in the past few months. Net absorption was negative 1.3 million for the past 12 months. • As expected, the industri - al sector in Philadelphia led all sectors. Over the past 12 months, 14.8 million new s/f of inventory became available, and the sector saw 15.6 million s/f in net absorption. Rents grew an average 12.3%. • 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 continues to improve and was at 1.6 million s/f for the 12 months just concluded. Average rents grew at 2.1%. WCRE also reports on the Southern New Jersey retail market. Retail highlights from the report include: • Retail vacancy in Camden County posted an improvement to 9.7%, while average rents jumped $1.70, in the range of $13.13/sf NNN. • Burlington County retail va - cancy improved to 8.2% in Q1, giving back improvements from the previous quarter. Average rents fell slightly, to the range of $14.31/sf NNN. • Gloucester County stayed un - changed at 11.3%, building on a solid improvement last year, with average rents inching up further, to the range of $16.38/ sf NNN. About WCRE WCRE is a full-service com- mercial real estate brokerage and advisory firm specializing in office, retail, medical, indus- trial and investment properties in Southern New Jersey and the Philadelphia region. We provide a complete range of real estate services to commercial property owners, companies, banks, commercial loan ser- vicers, and investors seeking the highest quality of service, proven expertise, and a total commitment to client-focused relationships. MAREJ
impacts on many CRE sectors. “What a difference one quar- ter canmake. Just a fewmonths ago, the Omicron variant was dampening demand, increasing vacancy, and generally creating uncertainty. Now, we’re seeing a CRE market that is much improved on many indicators, and continuing to strengthen.” said Jason Wolf , founder and managing principal of WCRE. “Employment, retail sales, and industrial production all expanded throughout Q1, and CRE is in a strong position as a result.” In the first quarter there were
479,886 s/f of new leases and renewals executed in the three counties surveyed (Burlington, Camden and Gloucester). New tenant leases comprised 296,152 s/f, or about 62% of all deals for the three counties. These to- tals represent more than 50% improvements over the fourth quarter of 2021, which itself had improved significantly over the third quarter. Other office market high- lights from the report: • Overall vacancy in the mar - ket is now 12.15%, a signifi- cant improvement over the previous quarter.
• The sales market maintained momentum, with 1,167,321 s/f actively on the market or under agreement. • Both the total dollars and s/f of completed sales were more than double the totals for the fourth quarter, with $78,365,469 in completed sales comprising 956,596 s/f. • Average rents for class A & B product remain unchanged, as they 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 have hovered
ARLTON, NJ — Comme r c i a l r e a l e s t a t e br oke rage
WCRE r e - p o r t e d i n its analysis of the f irst quarter that the post-pan- demic recov- ery is back o n t r a c k . Now that the
Jason Wolf
highly transmissible Omicron variant of COVID-19 is finally declining, there has been a rapid expansion of economic activity that has had positive
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