South Jersey Commercial Real Estate Market Well Positioned for Strong 2015

research information graphicWith improvements in key indicators across the board and plans for several large employers to relocate to Camden, NJ, the South Jersey commercial real estate market ended 2014 on a strong note and was well-positioned for continued growth in 2015, according to the latest quarterly market report from Wolf Commercial Real Estate, a premier South Jersey commercial real estate brokerage firm that specializes in Southern New Jersey commercial real estate listings and services, including South Jersey office space.

The South Jersey commercial real estate market was a busy one in the fourth quarter 2014, as deal activity rose 20 percent over the third quarter and 30 percent over the fourth quarter 2013, the market analysis noted.  There also was a high volume of transactions expected to consummate in the early part of the new year, the report said.

New leases and renewals totaling approximately 481,761 square feet were executed in Burlington, Camden and Gloucester counties, the report said.  Positive absorption spiked, comprising approximately 222,618 square feet of total activity.

The sales market also experienced robust activity in the fourth quarter, with eight significant sales transactions taking place, totaling approximately $95 million in value and in excess of 1.25 million square feet, according to the report issued by Wolf Commercial Real Estate, a South Jersey commercial real estate broker that specializes in Southern New Jersey commercial real estate listings and services, including Southern New Jersey office space.

The tightening of the 3M markets in Burlington County, coupled with incentives offered under the GROW NJ initiative, caused greater demand for space in Camden County, particularly in the city of Camden, the analysis said.

“Burlington and Camden have been in a horse race, with Burlington moving ahead the past few quarters, but on the strength of GROW NJ, Camden County clearly won this round,” said Jason Wolf, founder and managing principal of Wolf Commercial Real Estate, a leading South Jersey commercial real estate brokerage firm.

With a combined $525 million in tax incentives, Subaru, Holtec, Lockheed Martin, and Cooper Health all announced decisions to relocate corporate headquarters to the city of Camden. The four major companies joined the Philadelphia 76ers ownership organization, which had previously announced plans to build a new team headquarters and practice facility in Camden.  In addition, a new 20-acre retail center anchored by a supermarket has been announced for 2016.

Other highlights for the South Jersey office space market in the report from Wolf Commercial Real Estate, a South Jersey commercial real estate broker that specializes in Southern New Jersey commercial real estate listings:

  • Overall vacancy in the market for Southern New Jersey office space continues to decrease, and is now down to approximately 14.3%.
  • Average rents for Class A & B retail product 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 fourth quarter.
  • Despite strides made in the city of Camden, Burlington County continued to maintain a significantly lower vacancy rate than Camden County in the market for Southern New Jersey office space. Burlington County’s vacancy rate sits at 9.8 percent, while Camden County’s is at 18.8 percent.
  • All of the major private owners and REITS showed moderate leasing and prospect activity for the fourth quarter – with Burlington County vacancies tightening up, many larger vacancy opportunities are also shifting toward Camden County, which is not controlled by these ownership entities.

Wolf Commercial Real Estate’s report on South Jersey retail space said consumer confidence reached a nearly seven-year high, and retail sales activity was up. Highlights from the South Jersey retail space section of the report include:

  • Overall vacancies in the market for South Jersey retail space in the tri-county area is hovering around 10.3%, a significant improvement from year end 2012, when it stood at the 17-18% range.
  • Class A retail product rental rates continue to show strong support in the range of $30.00-$40.00/sf NNN.
  • Several new development projects are ongoing or have been announced for the tri-county area.

The full report on the South Jersey commercial real estate market is available upon request from Wolf Commercial Real Estate.

For more information about South Jersey office space or any South Jersey commercial properties, please contact Jason Wolf (856-857-6301; jason.wolf@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 South Jersey commercial real estate broker.

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