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Q2 shows positive signs for S. Jersey office market, WCRE says

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Jason Wolf, founder and managing principal, Wolf Commercial Real Estate.
Jason Wolf, founder and managing principal, Wolf Commercial Real Estate. - ()

In its latest southern New Jersey quarterly market analysis, commercial real estate firm Wolf Commercial Real Estate reported a 24 percent increase in lease executions and a rise in sales volume worth $46.1 million during the second quarter of 2017.

“The overall mood of the market seems to be positive, riding a wave of steady, moderate growth in the national economy, increasing expansion locally and investor interest from outside the region,” Jason Wolf, founder and managing principal of WCRE, said. “Office occupancy needs increased during the quarter, and we have been seeing increased capital spending and construction hiring this year for the first time in years.”

The increase in new lease and renewals executed accounted for approximately 359,155 square feet in Burlington, Camden and Gloucester counties, and represented a 58 percent increase from 2016’s second quarter, the firm said.

New leasing activity accounted for 43.4 percent of all deals, and overall net absorption for the quarter was approximately 85,000 square feet.

“Overall vacancy in the market is now approximately 10.4 percent, which is a solid improvement over the previous quarter's 11.05 percent,” WCRE said in a news release. “Average rents for Class A & B product continue to show strong support, in the range of $10 to $14.50 per square foot (triple net) or $20 to $24.50 per square foot gross for the deals completed during the quarter. This is essentially unchanged from the previous two quarters.

“Vacancy in Camden County improved dramatically, standing at 11.7 percent for the second quarter, down from 13.3 percent in the first quarter.”

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Mario Marroquin

Mario Marroquin

Mario Marroquin covers real estate. A native of El Salvador, Mario is bilingual in English and Spanish. He graduated from Penn State University and worked in Pennsylvania before moving to New Jersey. His email is mariom@njbiz.com.

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