The overall year for the Southern New Jersey commercial real estate market showed mostly solid growth that portends well for 2014, even with some moderation in leasing activity in the fourth quarter 2013, according to a new quarterly market analysis issued by Wolf Commercial Real Estate, a leading South Jersey commercial real estate brokerage firm that specializes in South Jersey commercial real estate listings and services for South Jersey medical space and other South Jersey commercial properties.

 
Many positive trends during the fourth quarter and the year again proved the resiliency of the South Jersey commercial real estate market, the Southern New Jersey commercial real estate broker reported.

“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 Southern New Jersey commercial real estate market was busy in the fourth quarter, 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 fourth quarter report from Wolf Commercial Real Estate, a South Jersey commercial real estate broker that specializes in South Jersey commercial real estate listings and services.

Approximately 374,121 square feet of new leases and renewals for South Jersey medical space and other South Jersey commercial properties were executed in the three counties surveyed, a decline of nearly 1.7% compared to the fourth quarter of 2012. But for the year, the report said, there was +/-1,625,190 square feet of total South Jersey commercial real estate market activity, 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.

Strong demand in the Southern New Jersey commercial real estate markets was in part powered by the continuing nationwide economic rebound, the South Jersey commercial real estate brokerage firm reported. The stock market saw several record high closes, closing the year up 26%, and both New Jersey’s and the nation’s unemployment rates improved. New Jersey’s unemployment rate dropped to 7.8% at the end of the fourth quarter, falling nearly two full points over the year. The national unemployment rate was 7% at the year’s end.

The two most noteworthy developments in the quarterly report were the further reduction of the region’s vacancy rate for South Jersey medical space, Southern New Jersey retail 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.

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

• Average rents for Class A & B Southern New 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 third quarter 2013.

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

• A very active pipeline of deals covering approximately 400,000 sf of Southern New Jersey office space was in the works and will be completed soon.

• 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 South Jersey commercial real estate broker also reported that leasing for Southern New Jersey retail space was strong, with owners cautiously optimistic, despite weak holiday sales figures. Highlights of the Southern New Jersey retail space market in the report include:

• Southern New Jersey retail space in the tri-county area showed tremendous improvement, with vacancies hovering around 10.7%, up from the 17-18% range at the end of 2012.

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

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

The full quarterly report is available upon request from Wolf Commercial Real Estate, a Southern New Jersey commercial real estate broker specializing in South Jersey commercial real estate listings and services.

For more information about South Jersey medical 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 broker.

Wolf Commercial Real Estate is a premier Southern New 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.