M id A tlantic Real Estate Journal — Southern New Jersey — October 2024 — 19
www.marej.com
S outhern N ew J ersey
upon request. Though challenges remain, most property sectors performed well in Q3 WCRE Third Quarter 2024 Report: Regional CRE markets show early signs of stabilization past year.
M
McDonald’s, and CVS, sold for $42 million. • Morgan Stanley renewed its 31,832 s/f office lease in Mount Laurel, NJ. • In New York, DSV leased 355,000 s/f, and JW Fulfill - ment, leased 342,000 s/f. • TD Bank sold its multi- building 255,708 s/f office portfolio in Cherry Hill for $10,995,444. • Bain & Co. leased 235,000 s/f at 22 Vanderbilt in Man- hattan, a recently renovated building adjacent to Grand Central Station. The full report is available
1.1 million s/f, which is a marked improvement from the five-year average of 1.3 million s/f. • After a cool-down during the first half of the year, in - dustrial leasing in New York saw a 20% increase in Q3. The quarterly report also covers notable transactions across property types and markets. For the third quar- ter, these include: • Plainsboro Plaza, a 230,000 s/f retail center in Princeton, NJ, anchored by tenants like Asian Food Markets, Planet Fitness,
ARLTON, NJ — Commercial real estate brokerage
• Southern New Jersey has led the region in industrial leasing in recent years. As of Q3 2024, Burlington County posted the highest annual net absorption at 3 million s/f, followed by New Cas- tle County, Delaware with 1.2 million s/f, and Bucks County, Pennsylvania with 900,000 s/f. • The Philadelphia office market continues to struggle, but even this sector may be showing signs of stabiliz- ing. Net negative absorption for the third quarter was
About WCRE WCRE is a full-service com- mercial real estate brokerage and advisory firm specializing in office, retail, medical, in - dustrial and investment prop- erties in Southern New Jersey and the Philadelphia region. We provide a complete range of real estate services to com- mercial property owners, com- panies, banks, commercial loan servicers, and investors seeking the highest quality of service, proven expertise, and a total commitment to client- focused relationships. MAREJ
WCRE has expanded its quarterly reporting to include the New York metro area in addition to Southern New Jersey and South-
Jason Wolf
eastern Pennsylvania. The firm’s analysis of the third quarter of 2024 indicates that these markets largely seem to be stabilizing, driven by the mid-September interest rate cut, the anticipation of further cuts, and their effects on the broader economy. “We have noted steady eco- nomic growth, which has fu- eled increased demand for commercial real estate across several property types,” said Jason Wolf , founder and managing principal of WCRE. “I am especially encouraged by improving vacancy rates and retail absorption - both of which can be ascribed to con- tinued consumer spending.” Several indicators in addi- tion to absorption suggest the CRE market may be stabiliz- ing. Property prices have risen modestly, and transaction volumes recorded their first quarterly gain since 2022. Additionally, fewer banks are tightening lending stan- dards for CRE loans, and loan originations have improved in recent months. In the three Southern New Jersey counties surveyed (Bur- lington, Camden and Glouces- ter), 219,129 s/f of new leases and renewals were executed during the third quarter. New tenant leases account- ed for 76,175 s/f and renewals/ expansions comprised 142,954 s/f. New leasing activity con- stituted about 35% of all deals, indicating consistent market activity despite cooling-off periods driven by inflation and high interest rates. Other highlights from the report: • Overall office vacancy in Southern New Jersey is now approximately 15.65 percent, which is an improvement of about 0.85 points from Q2. • Smaller retail spaces (1,000–3,000 s/f) remain in high demand, accounting for 85% of all completed Phila - delphia retail leases over the
FULL SERVICE COMMERCIAL REAL ESTATE ADVISORY & PROPERTY MANAGEMENT FIRM
Landlord Representation Tenant Representation
Investments Property Management Appraisal & Advisory Services Construction Services
Research & Marketing Information Corporate Real Estate Representation
For more information, visit WolfCRE.com or call 856-857-6300. Building Successful Relationships TM
Marlton, NJ l Philadelphia, PA
Made with FlippingBook interactive PDF creator