The South Jersey office market ended last year hard hit by the pandemic and came into 2022 with a litany of troubling signs.
Its 17 million square feet had an overall vacancy rate of 19.1% and 1 million square feet of sublease space had flooded the market. Average rents were down by $1 a square foot with Class A rents standing at $23 and Class B in the high teens, off from $20 a square foot. The velocity of lease deals stood at about half of what they had been prior to the pandemic.
Though too early to call it a bottom, first quarter data showed a few nascent, promising signs the South Jersey office market may be on the rebound. The market experienced positive absorption for the first time in five quarters, several leases were signed and space was filled, nudging the vacancy rate down a tad to 18.7%. Average asking rent remained unchanged.
“This quarter made me optimistic and I’m seeing the market come back to life,” said Jason Wolf of Wolf Commercial Real Estate. “I’m definitely more optimistic now then I was a year ago.”
*Article courtesy of Philadelphia Business Journal
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