PARAMUS, NJ—Retail vacancy rates in New Jersey were stable at just over six percent for the first half of 2015 vs. the end of 2014, according to Chuck Lanyard, president of The Goldstein Group, which conducts the survey of 22 retail corridors in Northern and Central New Jersey.

The survey, the most extensive retail vacancy report for New Jersey, covers more than 4,250 properties and more than 100 million square feet of retail space.  The retail vacancy rate is at 6.2 percent after the first half of 2015.  Retailers – both existing and new, coming to New Jersey for the first time – continue to lease retail space at a steady pace. New Jersey is still doing better in filling retail spaces, compared to the rest of the United States, where vacancies still average closer to 10 percent nationwide.

“With very little change in the vacancy rate for the past year, the 6.2 percent level is a welcome consistency,” says Chuck Lanyard, president of The Goldstein Group. “Compared to the last recession when rates were close to 8-10 percent, and a lot more volatile, now the outlook continues to be promising.”

“The good part is that we haven't had a lot of vacancies becoming available, even with the A&P situation,” Lanyard tells GlobeSt.com exclusively, referring to the big grocery chain's bankruptcy filing and massive liquidation of store locations. “The report is really reflecting that even when we have vacancies in a lot of major locations like Route 4 and Route 17, empty big boxes will be redeveloped. Space is being gobbled up. There will always be that space that's less desirable, but quality spaces are getting leased at higher rental numbers.”

Market power has evened out, too, says Lanyard.

“Landlords don't have to give as much away on the concession side of the deal, spaces being leased up at brisk enough pace, they are cutting strong and fair rental deals, but they don't have to go that extra mile as much,” he says. “That's compared with three or four years ago when the landlord really had to make a reach for that deal.”

Retailers are cutting down on store sizes, and increasing the amount of direct shipping to customers' homes. But even as smaller spaces are becoming popular for retail sites, Lanyard says, “In strong markets like Paramus, spaces under 10,000 square feet are leasing in the high $30 to mid-$40 per square foot range.”

Dropping gasoline prices have made consumers more willing to go shopping, Lanyard says. “People are going out shopping and they are not looking at the gas prices as much as they used to,” he says. “Internet sales will continue to increase, but people still want to kick the tires.”

Strongest & Weakest Submarkets

The strongest retail markets with the lowest availability rates include:  Route 17 – Rochelle Park-Rutherford (1.8 percent); Route 46 – Totowa-Fairfield (2.1 percent); Route 17 – Ramsey-Mahwah (2.8 percent); Route 1 – Woodbridge-Edison (3.4 percent); Route 35 – Hazlet-Middletown (4.3 percent)

Markets with the highest vacancy rates include: Route 10 – Morris Plains-Ledgewood (12.5 percent); Route 17 – Paramus (11.4 percent); Route 18 – East Brunswick (10.6 percent); Route 9 – Sayreville-Howell (8 percent); Route 70 – Brick (7.7 percent)

“Although leasing activity has not been as robust as it once was, we are still seeing a continuous improvement in the marketplace year after year,” says Lanyard.  “Retailers are still cautious as many continue to close underperforming locations throughout the state. However, retailers are continuing to expand, and fortunately, retail is still going strong in the Garden State.”