Real Estate Journal — Southern New Jersey — April 14 - 27, 2017 — 13B
M id A tlantic
S outhern N ew J ersey
Increased capital spending, construction hiring, and expansions WCREReport: SouthernNJmarket isweathering global uncertainties with characteristic strength M is at its highest level since 2000. arlton, NJ — Comme r c i a l r e a l e s t a t e b r oke r age significant demand is putting further upward pressure on overall pricing.
urbs. Rental rates have either remained relatively stable or decreased slightly. Concessions are becoming commonplace at many apartment communities. • While much of the pricing for commercial real estate ac- counts for increasing interest rates, many purchasers are showing signs of hesitation and fears of potential decreases in market fundamentals. • The industrial market in the City of Philadelphia and its suburbs is fetching price points never experienced in the marketplace. The lack of available product coupled with
and the firm's quarterly re- ports now include a section on transactions, rates, and news from Philadelphia and the suburbs. Highlights from the first quarter in Pennsylvania include: • Office demand in Center City is still exceptionally strong, as rental rates continue on an upswing and vacancy levels are compressing to all-time lows. • There is a significant amount of inventory of multi-family, including recently developed, under construction, and pro- posed, in both the City of Phila- delphia and Philadelphia sub-
• Nine retailers filed bank- ruptcy in the first quarter, which is the same as the total for all of 2016. • Retail vacancy in Camden County stood at 6.4% , with average rents in the range of $12.92/sf NNN. • Retail vacancy in Burlington County stood at 11.1% , with average rents in the range of $12.31/sf NNN. • Retail vacancy in Glouces- ter County stood at 5% , with average rents in the range of $12.01sf NNN. n
WCRE also reported on the Southern New Jersey retail market, noting an incongruous mix of consumers earning more and showing a willingness to spend, and a high number of retailers declaring bankruptcy. The report attributes this to a growing shift to online shop- ping and other changes in spending habits. Highlights from the retail section of the report include: • The Conference Board re- ports that consumer confidence
WCRE r e - ported in its latest quar- terly analysis that despite political un- certainty at h o m e a n d around the wo r l d , t he
Southern New Jersey market has started off 2017 on a cau- tiously optimistic footing. “Even with an expected win- ter slowdown affecting office leasing activty, and added anxiety with the transfer of political power in Washing- ton, the overall mood of the market seems to be positive,” said Jason Wolf, founder and managing principal of WCRE. “As we've seen the past couple of years, several business sectors increased their occu- pancy needs during the first quarter, and we continue to see increased capital spend- ing, construction hiring, and expansions.” There were 317,886 s/f of new leases and renewals ex- ecuted in the three counties surveyed (Burlington, Cam- den and Gloucester), which represents a decrease of 18% compared with the previous quarter, but is essentially un- changed from the first quarter last year. While leasing slowed a bit, the sales market doubled in volume during the first quarter, with some 767,988 s/f worth more than $133.5 mil- lion trading hands. New leas- ing activity accounted for half of all deals – a big increase over the fourth quarter. Overall, net absorption for the quarter was in the range of 122,572 s/f. Other office market high- lights from the report: • Overall vacancy in the mar- ket is now 11.05% , which is a nominal increase from the previous quarter. • Average rents for class A & B product continue to show strong support in the range of $10.00-$14.50/sf NNN or $20.00-$24.50/sf gross for the deals completed during the quarter. This is essentially unchanged from the previous two quarters. • New Jersey’s unemployment rate moved down to 4.4% , put- ting it below the national rate of 4.7% . WCRE has expanded into southeastern Pennsylvania,
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