In its third quarter analysis, Wolf Commercial Real Estate finds the Southern New Jersey and Southeastern Pennsylvania markets continue to show overall solid fundamentals, with modest gains and continued investments.
In the report released Tuesday, WCRE said that sales volume and prospecting remained steady while gross lease absorption was positive – though it trended lower quarter over quarter – and despite an overall dip in the region, leasing was up in Camden County.
In Camden, Burlington and Gloucester counties, WCRE reported 1.67 million square feet on the market or under agreement for Q3.
New leasing accounted for about 36 percent of all deals for the quarter, WCRE said, with approximately 266,867 square feet in new leases and renewals, down 7 percent compared to Q2. Gross leasing absorption for Q3 was in the range of 70,000 square feet, below Q2’s 150,000 square feet.
Completed sales also came in lower than the previous quarter – at less than half of what they were for an approximately 329,769 square feet changing hands.
Trending up slightly from Q2, but still near a 20-year low, WCRE said vacancy rates were at about 11.5 percent. In Burlington County, WCRE indicated vacancy was at 11.9 percent, up 40 basis points.
According to WCRE, rent for Class A and B properties showed strong support in the range of $10 – $15 per square foot, triple net or $20 – $25 per square foot, gross for Q3 – averages that are on par with what has been reported for more than a year.
“Although a given indicator might fluctuate one quarter to the next, commercial real estate in this region remains strong, and there is reason to stay optimistic,” Jason Wolf, founder and managing principal of WCRE, said in a prepared statement.
In highlights from Southern New Jersey retail sector, WCRE said the retail vacancy rate was up in Camden and Burlington counties – to 6.9 percent and 7.6 percent, respectively – and down in Gloucester County to 7.4 percent.
WCRE has offices in Marlton and Philadelphia and King of Prussia, Pa.