Aided by increased confidence among area businesses, and further boosted by positive financial news, the South Jersey commercial real estate market exceeded expectations in the third quarter, according to a new quarterly market analysis issued by Wolf Commercial Real Estate, a leading South Jersey and Philadelphia commercial real estate brokerage firm that specializes in South Jersey and Philadelphia commercial real estate listings and services.
During what has traditionally been the slowest quarter of the year, Wolf Commercial Real Estate, a South Jersey and Philly commercial real estate broker, identified approximately 443,173 sf of new leases and renewals executed in the South Jersey commercial real estate market – a gain of nearly 48% compared to the third quarter of 2012. New leasing activity in the office and retail markets accounted for approximately 57% of the total transactions, a sign that the regional commercial real estate market is truly in recovery mode.
“Instead of a summer slow-down we found many signs that optimism and confidence have returned,” said Jason Wolf, founder and principal of Wolf Commercial Real Estate, a South Jersey and Philadelphia commercial real estate broker that specializes in South Jersey and Philly office space and South Jersey and Philly retail space. “There were several large lease transactions, slight improvement in the state’s unemployment rate, repositioning projects commenced or have been announced, and near the end of the quarter, a new state law was signed that is expected to retain and attract many new businesses to the region.”
The new law is the Economic Opportunity Act of 2013, which created Grow New Jersey (GrowNJ) and the Economic Redevelopment and Growth Program (ERG). These programs are designed to incentivize growth and investment by large and small companies across several industries.
Wolf Commercial Real Estate, a South Jersey and Philadelphia commercial real estate broker that specializes in South Jersey and Philly commercial real estate listings and services, reported encouraging news about the Southern New Jersey office space market, even in areas that had been vulnerable, particularly CamdenCounty. Vacancy rates continued to fall slowly, coming in at 17% for the region, with CamdenCounty at 21% and BurlingtonCounty stronger at 13%. “This market is still challenged by a surplus of vacant space, but we have seen steady progress in positive absorption for several consecutive quarters, and the conditions are in place to potentially speed up the pace,” Wolf said.
The research conducted by Wolf Commercial Real Estate, a South Jersey and Philly commercial real estate brokerage firm specializing in Philadelphia commercial real estate listings and services, includes snapshots of the office and retail markets and details on the major deals being consummated or planned.
The regional office market highlights from the report issued by Wolf Commercial Real Estate, a South Jersey and Philly commercial real estate broker:
• Total leasing activity for the quarter comprised 443,173 sf of new leases and renewals executed.
• New lease and expansion deal activity comprised approximately 252,631 square feet. This is a 37% increase over Q2 figures, according to the report from this premier South Jersey and Philadelphia commercial real estate brokerage firm that specializes in South Jersey and Philly commercial real estate listings and services.
• Positive absorption for the second quarter was in the range of 148,000+/-sf of new deals and/or expansions.
• Average rents for Class A & B product in were up by 5% over the previous quarter. Rents continue to show strong support in the range of $11.00-$14.00/sf NNN or $21.00-$24.00/sf gross, with an overall market average showing strong support in the $11.60/sf NNN or $21.60/sf gross for the deals completed during the third quarter.
• The unemployment rate in New Jersey ticked down from 8.6 percent at the end of Q2 to 8.5 percent at the end of Q3. It has dropped steadily over the past year, and is now at the lowest point since March 2009. Figures continue to improve, but the state rate remains above the national rate of 7.3%.
The regional retail market highlights from South Jersey and Philadelphia commercial real estate brokerage firm report include:
• Area retail businesses and landlords did experience the expected summer slow-down in the form of slower growth, but growth remained positive.
• Overall vacancy has continued to drop. It hovered around 10.5% for the quarter, compared to 15% in the previous quarter.
• Average rents for upscale lifestyle centers continue to show strong support in the range of $30-$40.00/sf NNN, and average rents for neighborhood and strip shopping centers remain in the range of $15-$23/sf NNN.
The full report, including details about several key deals, is available upon request from Wolf Commercial Real Estate, a South Jersey and Philly commercial real estate broker specializing in South Jersey and Philadelphia commercial real estate listings and services.
For more information about South Jersey or Philly office space, South Jersey or Philly retail space or any South Jersey or Philadelphia commercial properties, please contact Jason Wolf (215-799-6900-office; 215-588-8800-cell; jason.wolf@wolfcre.com) at Wolf Commercial Real Estate, the foremost South Jersey and Philly commercial real estate brokerage firm that specializes in South Jersey and Philly office space and South Jersey and Philly retail space.
Wolf Commercial Real Estate is a premier South Jersey and Philadelphia commercial real estate broker that provides a full range of South Jersey and Philly commercial real estate listings and services, marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other South Jersey and Philadelphia commercial properties for buyers, tenants, investors and sellers. Please visit our websites for a full listing of South Jersey and Philadelphia commercial properties for lease or sale through our South Jersey and Philly commercial real estate brokerage firm.
