WCRE: SOUTH JERSEY OFFICE MARKET SHOWED POSITIVE SIGNS
DURING SECOND QUARTER
Indicators Point to Cautious Optimism
July 12, 2012 – Voorhees, NJ – Several commercial real estate market indicators pointed in the right direction in Southern New Jersey during the second quarter, leading to cautious optimism, according to a report this week by Wolf Commercial Real Estate. The positive signs include increased deal activity and construction, interest rates remaining near historic lows, and a new crop of landlords investing in improvements to attract or retain tenants. However the market, though improving, is not yet thriving.
“In general the market is active, but this year’s presidential election and the European financial crisis will continue to influence business decisions, which could impact the timing of real estate decisions,” said Jason Wolf, founder and principal of WCRE. “Improvement in the real estate market will still hinge on whether more jobs can be added locally and nationally,” he added.
According to the report, there were more than 450,000sf in renewals and new lease transactions in Southern New Jersey during the quarter, with renewals comprising most of the transactions. Other highlights from the report:
- Average rental rates have increased for two quarters in a row, and are now higher than they were at this point in 2011. The overall market average is $11.00/sf, NNN with Class A and B product trading in the range of $10-$14.00/sf, NNN.
- Positive absorption for the quarter was in the range of 125,000sf of new deals and/or expansions. • Moorestown, Marlton and Mount Laurel are showing strength, while a large share of the region’s vacancies is in Voorhees, Pennsauken, and the west side of Cherry Hill.
- Though vacancy is at nearly 20 percent, the market has stabilized.
- Both the financial and mortgage services and healthcare sectors continue to be very active, with companies like TRG, PHH, and others expanding rapidly in the area, and the Cooper, Lourdes, and Virtua health systems procuring highly visible sites along major traffic corridors.
“Construction, absorption, and the lending climate are all positive signs that herald not only job growth, but the fact that companies are showing the confidence to expand, invest, and relocate to this region,” Wolf added. The full report is available upon request.
WCRE is a full-service commercial real estate advisory firm specializing in office, retail, industrial and investment properties. We provide a complete range of real estate services to commercial property owners, companies, and investors seeking the highest quality of service, proven expertise, and a total commitment to client-focused relationships. Through our intensive focus on our clients’ business goals, our commitment to the community, and our highly personal approach to client service, WCRE is creating a new culture and a higher standard. We go well beyond helping with property transactions and serve as a strategic partner invested in your long term growth and success.