Other office market highlights from the report:

Overall vacancy in the market continues to drop, and is now down to approximately 12.9 percent, an improvement of more than half a point over the previous quarter.

Average rents for class A & B product continue to show strong support in the range of $10-$14 per square foot on a triple-net basis, or $21-$24 per square foot gross, with an overall market average showing strong support in the $10-$13 per square foot triple-net, or $20-$23 per square foot gross for the deals completed during the quarter. Rents have remained stable.

All of the major private owners and REITS showed moderate leasing and prospect activity for the quarter – with Burlington County vacancies tightening up, many larger vacancy opportunities are also shifting towards Camden County, which is not controlled by these ownership entities.

Enticed by low interest rates that make the cost of ownership more attractive than leasing, many mid-size businesses are acquiring properties and becoming owner-occupants.

WCRE also sees an improving job market and lending environment contributing to a retail development renaissance, bringing new restaurants, healthcare facilities, banks, and stores to many of the major markets across the Philadelphia-Southern New Jersey region.

“Retail sales, consumer confidence, and employment figures are all on an upswing, and all of these factors have positively influenced the retail CRE market in Philadelphia and South Jersey,” says Leor Hemo, executive vice president of WCRE.

Overall retail vacancy in the tri-county area is hovering around 10.5 percent, unchanged from the first quarter, but is still encouraging compared to recent years.

Class A retail product rental rates continue to show strong support in the range of $30-$40 square foot triple net, as rents have remained stable.

Instant Insights /

Wolf CRE 2Q Report: 2015 Continues Hot Streak

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