Maintaining the momentum it experienced in fourth quarter 2014, the South Jersey commercial real estate market started 2015 on a strong note, according to a new market report from Wolf Commercial Real Estate, a premier Philadelphia commercial real estate broker that specializes in South Jersey and Philly commercial real estate listings and services, including Philly office space and other Philadelphia commercial properties.

The latest quarterly analysis by the Philly commercial real estate brokerage firm found that some challenges remain in the marketplace, but that the Garden State’s overall office space market has been bolstered in the first quarter by major healthcare institutions, investors and large tenants.

“The moves we’ve seen this quarter signal significant business expansion and job growth,” said Jason Wolf, founder and managing principal of Wolf Commercial Real Estate, a leading  Philly commercial real estate brokerage firm. “This has helped to boost commercial real estate confidence and lending conditions, leading to a more optimistic atmosphere that is expected to continue throughout 2015.”

The report underscores significant moves announced and/or anticipated by key players in the South Jersey office market, including Virtua’s plan to relocate to a 62,000-square-foot office this fall and the sale of two Brandywine Realty Trust trophy assets to out-of-market investors — Libertyview and 1000 Atrium Way. The two buildings totaled 221,405 square feet, selling for an average of about $134/sf.

The first quarter saw a 7% increase in new leases and renewals, according to the report issued by Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm with expertise in South Jersey and Philadelphia commercial real estate listings and services, including Philadelphia office space and other Philly commercial properties.  Executed transactions rose from 441,141 square feet in the first quarter a year ago to approximately 472,154 square feet in this first quarter 2015, the firm said.

New tenant leases amounted to approximately 186,427 square feet, while renewals and expansions stood at approximately 285,727 square feet in the state’s southern office market, the Philly commercial real estate broker said.  New leasing activity represented approximately 39.5% of deals in the first quarter. Overall, gross absorption for first quarter was in the range of approximately 255,161 square feet. Beyond the closed transactions, a pipeline of approximately 450,000 square feet of noteworthy South Jersey lease deals stood ready to close in the near future.

Other office market highlights in the analysis from Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm that specializes in South Jersey and Philly commercial real estate listings and services, including Philly office space and other Philadelphia commercial properties:

• GROW NJ continues to draw businesses to the state, the Philly commercial real estate broker said.  In the first two months of 2015 alone, 10 projects were approved for $84.6 million in funding.
• Overall vacancies in the South Jersey commercial real estate market continued to decrease, and are now down to approximately 13.6 percent, an improvement over the fourth quarter 2014.
• Average rents for Class A & B product in the office market continue to show strong support in the range of $10.00-$14.00/sf NNN or $21.00-$24.00/sf gross, with an overall market average showing strong support in the $10.00-$12.00/sf NNN or $20.00-$22.00/sf gross for the deals completed during the first quarter. Rents remained stable.
• All major private owners and REITS showed moderate leasing and prospect activity for the quarter.  As vacancies tightened in Burlington County, many larger vacancy opportunities are also shifting toward Camden County, which is not controlled by these ownership entities.

The retail section of the report from the Philadelphia commercial real estate broker that specializes in South Jersey and Philadelphia commercial real estate listings observed that consumer confidence had reached its highest monthly level since the start of the recession and was likely to strengthen more as the year goes on.  Highlights from the retail section include:

• Overall retail vacancy in South Jersey’s tri-county area was lingering at about 10.5%, a slight increase from the previous quarter, but still encouraging in comparison to recent years.
• Class A retail product rental rates maintained strong support in the range of $30.00-$40.00/sf NNN, as rents remained steady.
• National chains experiencing growth were responsible for much of the demand for local space, while smaller retailers and local based retailers continued to struggle.

The full report is available upon request from Wolf Commercial Real Estate, a Philly commercial real estate brokerage firm with expertise in South Jersey and Philly commercial real estate listings and services, including Philadelphia office space and other Philadelphia commercial properties.

For more information about Philly office space or any Philly commercial properties, please contact Jason Wolf (856-857-6301; jason.wolf@wolfcre.com), Leor Hemo (856-857-6302; leor.hemo@wolfcre.com), Christina Del Duca (856-857-6304; christina.delduca@wolfcre.com), Todd Levin (856-857-6319; todd.levin@wolfcre.com), Scott Seligman (856-857-6305; scott.seligman@wolfcre.com) or Christopher Henderson (856-857-6337; chris.henderson@wolfcre.com at Wolf Commercial Real Estate, a Philadelphia commercial real estate broker.

Wolf Commercial Real Estate is a premier Philly commercial real estate broker that provides a full range of South Jersey and Philadelphia commercial real estate listings and services that include Philadelphia office space and other Philadelphia commercial properties.  Wolf Commercial Real Estate markets commercial offices, medical properties, industrial properties, land properties, retail buildings and other South Jersey and Philly commercial properties for buyers, tenants, investors and sellers.  Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.