Though there was some moderation in leasing activity in the fourth quarter of 2013, the overall year for the South Jersey commercial real estate market was a strong one that likely paved the way for an even better 2014, according to a new quarterly market analysis issued by Wolf Commercial Real Estate, a leading South Jersey commercial real estate broker that specializes in South Jersey commercial real estate listings and services.
The report by the Southern New Jersey commercial real estate brokerage firm noted many positive trends during the fourth quarter and the year, with the South Jersey commercial real estate market again proving its resiliency.

“Total leasing activity was slightly off this quarter compared with the fourth quarter of 2012, but we saw 14.5% growth in activity in our market in 2013,” said Jason Wolf, founder and principal of Wolf Commercial Real Estate. “As exciting as it is to report this surge, based on the conditions in place, we expect 2014 to be even stronger.”

The fourth quarter featured a very busy Southern New Jersey commercial real estate market, with further stabilization of rents, a pending mega-deal for a 24-building office/flex portfolio, and a great deal of prospecting setting up a high number of transactions that will consummate in the early part of the new year, according to the report from Wolf Commercial Real Estate, a South Jersey commercial real estate brokerage firm that specializes in South Jersey commercial real estate listings and services.

There were approximately 374,121 square feet of new leases and renewals for South Jersey office space and other South Jersey commercial properties executed in the three counties surveyed, which was a decline of nearly 1.7% compared to the fourth quarter of 2012. But for the year, the Southern New Jersey commercial real estate brokerage firm reported +/-1,625,190 square feet of total activity in the South Jersey commercial real estate market, compared to +/-1,419,276 square feet in 2012. Notably, expansions and new deals remained strong this quarter, with net absorption at approximately 102,294 sf.
The report noted that strong demand in the Southern New Jersey commercial real estate market has been powered in part by the continuing nationwide economic rebound. The stock market achieved several record high closes, finishing the year up 26%, and both New Jersey’s and the nation’s unemployment rates improved. New Jersey’s unemployment rate closed the fourth quarter at 7.8%, falling nearly two full points over the course of the year. The national unemployment rate stood at 7% as the year ended.

The two most noteworthy developments in the quarterly report were the further reduction of the region’s vacancy rate for South Jersey office space and other South Jersey commercial properties, which now is down to approximately 15%, and Liberty Property Trust’s (NYSE: LRY) announcement that its entire office/flex portfolio in the region was put under agreement. The portfolio comprises 1,188,285 square feet in 24 buildings.
Other Southern New Jersey office space market highlights noted in the report from Wolf Commercial Real Estate, a South Jersey commercial real estate broker that specializes in South Jersey commercial real estate listings and services:

• Average rents for Class A & B South Jersey office space 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 $11.00-$11.50/sf NNN or $21.00-$21.50/sf gross for the deals completed during the fourth quarter. This is essentially unchanged from the previous quarter.

• Moorestown, Marlton and Mount Laurel (3M) continue to show strength, while a large share of the region’s vacancies remain in Voorhees, Pennsauken, and the west side of Cherry Hill. Burlington County continued to maintain a significantly lower vacancy rate in the Southern New Jersey commercial real estate market than Camden County.

• There was a very active pipeline of deals for Southern New Jersey office space that will be completed soon, covering approximately 400,000 sf.

• All of the major private owners and REITS showed a significant increase in prospect activity for the quarter, and are all cautiously optimistic for 2014.

The Southern New Jersey commercial real estate brokerage firm also reported on the South Jersey retail space market, noting that even amid weak holiday sales figures, retail leasing activity in the region was strong, with owners cautiously optimistic. Highlights from the retail section of the report include:

• Overall South Jersey retail space vacancy in the tri-county area is hovering around 10.7%, marking tremendous improvement from the end of 2012, when it was hovering in the 17-18% range.

• Class A retail product rental rates for South Jersey retail space continue to show strong support in the range of $30.00-$40.00/sf NNN.

• Class B product for South Jersey retail space shows support in the range of $15.00-$23.00/sf NNN.

The full report is available upon request from Wolf Commercial Real Estate, a South Jersey commercial real estate broker specializing in South Jersey commercial real estate listings and services.
For more information about Southern New Jersey office space, South Jersey retail 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) or Scott Seligman (856-857-6305; scott.seligman@wolfcre.com) at Wolf Commercial Real Estate, the foremost South Jersey commercial real estate brokerage firm.
Wolf Commercial Real Estate is a premier South Jersey commercial real estate broker that provides a full range of South 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.