Jason Wolf, founder and managing principal of WCRE

MARLTON, NJ— WCRE. WCRE Jason Wolf WCRE

Overall vacancy in the market continues to drop, and is now down to approximately 11.45 percent. This is a slight improvement over the previous quarter.
Average rents for class A and B product continue to show strong support in the range of $10.00-$14.00 per square foot triple-net leased or $21.00-$25.00 per square foot gross for the deals completed during the first quarter. This is essentially unchanged from the previous two quarters.
All of the major private owners and REITS showed moderate leasing and prospect activity for the first 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.
New Jersey's unemployment rate moved lower for the 13th consecutive month, down to 4.3 percent. It is down by two full points over the past year and is now at the lowest level since August 2007.

WCRE

The Philadelphia regional office market is continuing its positive trajectory from 2015 in terms of rental rate growth and decline in vacancy rates. While much of this is felt in the CBD core, some of the suburban markets are experiencing similar activity. Repositioning of older class B product to core class A assets coupled with the strong investor appetite for value-add deals is anticipated to continue through 2016.
Center City Philadelphia, specifically Market East, is experiencing a resurgence of activity including PREIT's “top-to-bottom” renovation at the Gallery at Market East. Rental rates in the CBD are at all-time highs while demand from both regional and national tenants continuing to flock to the market. In terms of the suburban markets, the appetite for core assets continues to be paramount from institutional investors with value-add plays on older center, similar to the office market. Target will be opening two of its TargetExpress-brand stores in Center City Philadelphia in the summer of 2016.
The Philadelphia regional industrial market is strong, with large distribution facilities continuing to hold the greatest demand from institutional players. Rental rates continue to increase while vacancy rates are holding steady. There have been a variety of transactions, specifically in the expanded market area with prices fetching all time high levels. Planned improvements at Philadelphia's port over the next three years should provide continued demand for warehouse space.
Philadelphia's expanding CBD is seeing new construction across all sectors. The Comcast Innovation and Technology Center and Cira South represent two of the largest office uses under construction. At 16^th & Chestnut, the 700-room, dual-brand W/Element hotel has broken ground and is expected to open in 2017. Major mixed-use projects are planned for the long-vacant, block-long parcels at Broad and Washington. Several Market East projects are underway, and Drexel University is planning to develop more than 6 million square feet in its University City Innovation Neighborhood.

Overall retail and food establishment sales dropped during the first quarter, which is expected post-holiday season.
Retail vacancy in Camden County stood at 11 percent, with average rents in the range of $12.12 per square foot triple-net leased.
Retail vacancy in Burlington County stood at 14.8 percent, with average rents in the range of $12.05 per square foot triple-net leased.
Retail vacancy in Gloucester County stood at 6.9 percent, with average rents in the range of $11.52 per square foot triple-net leased.

Jason Wolf MARLTON, NJ— New Jersey WCRE. Jersey Philadelphia WCRE The first quarter by the end of the quarter Jason Wolf WCRE approximately 326,533 square feet the first quarter of 2015 approximately 146,532 square feet over the previous quarter

Overall vacancy in the market continues to drop, and is now down to approximately 11.45 percent. This is a slight improvement over the previous quarter.
Average rents for class A and B product continue to show strong support in the range of $10.00-$14.00 per square foot triple-net leased or $21.00-$25.00 per square foot gross for the deals completed during the first quarter. This is essentially unchanged from the previous two quarters.
All of the major private owners and REITS showed moderate leasing and prospect activity for the first 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.
New Jersey's unemployment rate moved lower for the 13th consecutive month, down to 4.3 percent. It is down by two full points over the past year and is now at the lowest level since August 2007.

WCRE Pennsylvania Philadelphia from the first quarter Pennsylvania

The Philadelphia regional office market is continuing its positive trajectory from 2015 in terms of rental rate growth and decline in vacancy rates. While much of this is felt in the CBD core, some of the suburban markets are experiencing similar activity. Repositioning of older class B product to core class A assets coupled with the strong investor appetite for value-add deals is anticipated to continue through 2016.
Center City Philadelphia, specifically Market East, is experiencing a resurgence of activity including PREIT's “top-to-bottom” renovation at the Gallery at Market East. Rental rates in the CBD are at all-time highs while demand from both regional and national tenants continuing to flock to the market. In terms of the suburban markets, the appetite for core assets continues to be paramount from institutional investors with value-add plays on older center, similar to the office market. Target will be opening two of its TargetExpress-brand stores in Center City Philadelphia in the summer of 2016.
The Philadelphia regional industrial market is strong, with large distribution facilities continuing to hold the greatest demand from institutional players. Rental rates continue to increase while vacancy rates are holding steady. There have been a variety of transactions, specifically in the expanded market area with prices fetching all time high levels. Planned improvements at Philadelphia's port over the next three years should provide continued demand for warehouse space.
Philadelphia's expanding CBD is seeing new construction across all sectors. The Comcast Innovation and Technology Center and Cira South represent two of the largest office uses under construction. At 16^th & Chestnut, the 700-room, dual-brand W/Element hotel has broken ground and is expected to open in 2017. Major mixed-use projects are planned for the long-vacant, block-long parcels at Broad and Washington. Several Market East projects are underway, and Drexel University is planning to develop more than 6 million square feet in its University City Innovation Neighborhood.

New Jersey

Overall retail and food establishment sales dropped during the first quarter, which is expected post-holiday season.
Retail vacancy in Camden County stood at 11 percent, with average rents in the range of $12.12 per square foot triple-net leased.
Retail vacancy in Burlington County stood at 14.8 percent, with average rents in the range of $12.05 per square foot triple-net leased.
Retail vacancy in Gloucester County stood at 6.9 percent, with average rents in the range of $11.52 per square foot triple-net leased.

Instant Insights /

South Jersey CRE Firm Sees Seasonal Slow-Down, Shaky Financial Markets, But Areas Of Strength, Especially in Philadelphia

Related Stories

Recommended For You