Propelled by fourth quarter 2014’s growing momentum, the South Jersey commercial real estate market kicked off the year on a robust note, according to a new quarterly market report from Wolf Commercial Real Estate, a leading Philly commercial real estate brokerage firm with expertise in South Jersey and Philadelphia commercial real estate listings and services, including Philadelphia retail space and other Philadelphia commercial properties.

The latest analysis by the Philadelphia commercial real estate broker found that while challenges still persist in the marketplace, New Jersey’s overall office space market was strengthened in the first quarter by major healthcare institutions, investors and large tenants.

“The moves we’ve seen this quarter signal significant business expansion and job growth,” said Jason Wolf, founder and managing principal of Wolf Commercial Real Estate, a premier  Philly commercial real estate broker. “This has helped to boost commercial real estate confidence and lending conditions, leading to a more optimistic atmosphere that is expected to continue throughout 2015.”

The analysis notes major moves announced and/or planned by notable players in the South Jersey office market, including Virtua’s plan to move to a 62,000-square-foot office this fall and the sale of two Brandywine Realty Trust trophy assets to out-of-market investors. The two buildings — Libertyview and 1000 Atrium Way — represented 221,405 square feet and sold for an average of about $134/sf.

New leases and renewals were up 7% in the first quarter 2015, according to the report from Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm that specializes in South Jersey and Philly commercial real estate listings and services, including Philly retail space and other Philly commercial properties.  Completed transactions grew from 441,141 square feet in the first quarter a year ago to approximately 472,154 square feet in the first quarter 2015, the company noted.

The South Jersey office market had approximately 186,427 square feet of new tenant leases and approximately 285,727 square feet of renewals and expansions, the Philadelphia commercial real estate broker reported.  Approximately 39.5% of first quarter transactions were for new leasing activity.  Gross absorption for first quarter was in the range of approximately 255,161 square feet, the company said.  In addition to the finalized deals, a solid pipeline of approximately 450,000 square feet of significant South Jersey lease transactions were ready to close in the near future, the report noted.

The Philly commercial real estate brokerage firm, which specializes in South Jersey and Philadelphia commercial real estate listings, also reported on the Southern New Jersey retail market, noting that consumer confidence attained its highest monthly level since the recession started and was likely to strengthen more as the year continues.  Highlights from the retail section of the report include:

• The overall retail vacancy for the tri-county area of South Jersey’s was at about 10.5%, representing only slight growth from the previous quarter, but still heartening in comparison to the recent past.
• Class A retail product rental rates maintained strong support in the range of $30.00-$40.00/sf NNN, as rents remained stable.
• National chains that experienced growth were behind much of the demand for local space, while smaller retailers and locally based retailers still struggled.

Also in the office section of the report from Wolf Commercial Real Estate, a Philly commercial real estate broker with expertise in South Jersey and Philly commercial real estate listings and services, including Philadelphia retail space and other Philadelphia commercial properties:

• GROW NJ continues to entice businesses to relocate to New Jersey, the Philadelphia commercial real estate brokerage firm said.  A notable $84.6 million in funding was earmarked for 10 projects in the first two months of 2015 alone.
• The South Jersey market’s overall vacancies continued to decline, dropping to a current level of approximately 13.6 percent, an improvement over the rate in the fourth quarter 2014.
• Average rents for Class A & B product in the office market maintained strong support in the range of $10.00-$14.00/sf NNN or $21.00-$24.00/sf gross, with an overall market average of strong support in the $10.00-$12.00/sf NNN or $20.00-$22.00/sf gross for deals closed during the first quarter. Rents remained steady.
• The quarter saw all major private owners and REITS reporting moderate leasing and prospect activity.  With vacancies tightening in Burlington County, many larger vacancy opportunities shifted toward Camden County, which is not controlled by these ownership entities.

The complete report is available upon request to Wolf Commercial Real Estate, a Philly commercial real estate broker that specializes in South Jersey and Philadelphia commercial real estate listings and services, including Philly retail space and other Philly commercial properties.

For more information about Philadelphia retail space or any Philadelphia commercial properties, please contact Jason Wolf (856-857-6301; jason.wolf@wolfcre.com), Leor Hemo (856-857-6302; leor.hemo@wolfcre.com), Christina Del Duca (856-857-6304; christina.delduca@wolfcre.com), Todd Levin (856-857-6319; todd.levin@wolfcre.com), Scott Seligman (856-857-6305; scott.seligman@wolfcre.com) or Christopher Henderson (856-857-6337; chris.henderson@wolfcre.com) at Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm.

Wolf Commercial Real Estate is a premier Philadelphia commercial real estate broker that provides a full range of South Jersey and Philly commercial real estate listings and services that include Philly retail space and other Philly commercial properties.  Wolf Commercial Real Estate markets commercial offices, medical properties, industrial properties, land properties, retail buildings and other South Jersey and Philly commercial properties for buyers, tenants, investors and sellers.  Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale through our Philly commercial real estate brokerage firm.