Philadelphia Retail Space Vacancy Rate Near Steady

research-information-graphic-phlThe Philadelphia retail space vacancy rate changed only slightly in the second quarter 2014, ending the quarter with a 5.9% vacancy rate for retail space in Philly, a new market report from the CoStar Group says.

The Philly retail space vacancy rate was at 6.0% at the end of the first quarter, CoStar reported.  Net absorption stood at positive 551,992 square feet in the second quarter, compared to positive 979,455 square feet in the first quarter.  Vacant sublease space in the market for retail space in Philadelphia dropped by 20,121 square feet in the quarter, CoStar reported in its Second Quarter 2014 Market Report.

Among tenants moving into large blocks of retail space in Philly in 2014 were: ShopRite, moving into 90,000 square feet of Philadelphia retail space at 1817 Mount Holly Road; Giant Food, moving into 66,472 square feet of Philly retail space at 852 East Main Street; and Acme, moving into 58,785 square feet of retail space in Philadelphia at 21-31 West Ridge Pike.

Quoted rental rates for Philly retail space ended the second quarter 2014 at $14.05 per square foot per year, an increased from first quarter rates, according to the report.

The second quarter saw a total of eight retail buildings with 66,506 square feet of retail space in Philadelphia delivered, CoStar said.  Another 203,783 square feet of retail space in Philly was still under construction at the end of the second quarter, CoStar reported.

In comparison to second quarter results in the Philadelphia retail space, the U.S. National Retail vacancy rate decreased to 6.4% from the first quarter, with net absorption at positive 23.39  million square feet in the second quarter, according to the CoStar report.  Average rental rates for the national market rose to $14.81, and 522 retail buildings totaling more than 10.8 million square feet were delivered to the market.

For more information about Philly retail space or any Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) at Wolf Commercial Real Estate, a premier Philadelphia commercial real estate broker that specializes in retail space in Philadelphia.

Wolf Commercial Real Estate is a Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm that specializes in Philadelphia commercial real estate listings and services, provides unparalleled expertise in matching companies and individuals seeking new retail space in Philly with the Philadelphia commercial properties that best meets their needs.  As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for retail space in Philadelphia for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

Please visit our websites for a full listing of South Jersey and Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

WCRE REPORT: NEW INVESTMENT, SMALL BUSINESS EXPANSION STRENGTHEN SOUTHERN NEW JERSEY COMMERCIAL REAL ESTATE MARKET

July 8, 2014 – Marlton, NJ – The Southern New Jersey office market seems to have shifted from recovery mode toward the first steps of real growth, according to the latest analysis by Wolf Commercial Real Estate (WCRE). The firm’s quarterly market report finds a mix of mostly positive trends during the second quarter, making for an overall bullish tone in the market for 2014. The CRE market was very busy during the quarter, bouncing back from the setbacks imposed by the harsh winter to reclaim another portion of vacancy and set up a healthy pipeline of deals that are expected to close later in the year.

There were approximately 310,493 square feet of new leases and renewals executed in Burlington, Camden, and Gloucester Counties during the second quarter, including several large spaces, ranging in size from 6,000 to 44,000 square feet. Notably, expansions and new deals remained strong this quarter, representing 52 percent of all transactions. Net absorption for the quarter was approximately 112,368 sf, and prospect activity was extremely active, with a pipeline of approximately 350,000 square feet of pending deals expected to close during the third quarter.

“Vacancy rates continue to fall, and conditions in our region have improved to the point where we expect to see them fall even further,” said Jason Wolf, founder and principal of WCRE. “We’re seeing lower unemployment, including gains in office jobs, and a general boost in small business confidence, which is fueling expansion.”

The report noted that for the second straight quarter, many of the subject properties were located in prime 3M locations within Burlington County, and that the tightening of those areas was causing demand to shift toward vacancies in Camden County.

Other office market highlights from the report:

  • Both Burlington County and Camden County saw significant decreases in vacancy this quarter, though Burlington continued to maintain a markedly lower vacancy rate than Camden, at 9.1 percent compared with Camden’s 18.1 percent.
  • Average rents for Class A & B product continue to show strong support in the range of $11.00-$14.00/sf NNN or $21.00-$24.00/sf gross, with an overall market average showing strong support in the $10.00-$12.00/sf NNN or $20.00-$22.00/sf gross for the deals completed during the first quarter. This is essentially unchanged from the previous quarter.
  • New lease activity for Q1 is in the range of approximately 161,316 square feet of new deals and/or expansions and approximately 149,177 square feet of renewals.
  • All of the major private owners and REITS showed a significant increase in prospect activity for the quarter, and all continue to remain cautiously optimistic for 2014.

WCRE also reported on the local retail market, where the news is quite bright for Center City Philadelphia, but less so for Southern New Jersey. Highlights from the retail section of the report include:

  • Several major retailers are moving into large Center City spaces, including Nordstrom Rack, Forever 21, and American Eagle Outfitters.
  • Southern New Jersey welcomed a new Whole Foods and saw a new outlet center break ground in Deptford, but there are some troubled centers amid those still experiencing growth.
  • Overall retail vacancy in the tri-county area is at 15.7%, up for the second straight quarter.
  • Class A retail product rental rates continue to show strong support in the range of $30.00-$40.00/sf NNN, which is essentially unchanged from the previous several quarters.
  • Class B product shows support in the range of $15.00-$25.00/sf NNN, which is also unchanged.

The full report is available upon request. 

About WCRE

WCRE is a full-service commercial real estate brokerage and advisory firm specializing in office, retail, medical, industrial and investment properties in Southern New Jersey and the Philadelphia region. We provide a complete range of real estate services to commercial property owners, companies, banks, commercial loan servicers, and investors seeking the highest quality of service, proven expertise, and a total commitment to client-focused relationships. Through our intensive focus on our clients’ business goals, our commitment to the community, and our highly personal approach to client service, WCRE is creating a new culture and a higher standard. We go well beyond helping with property transactions and serve as a strategic partner invested in your long term growth and success.

Learn more about WCRE online at www.wolfcre.com,on Twitter @WCRE1, and on Facebook at Wolf Commercial Real Estate, LLC. Visit our blog pages at www.southjerseyofficespace.com,www.southjerseyretailspace.com, and www.southjerseymedicalspace.com.

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Philly Retail Space Vacancy Rate Drops

research-information-graphic-phlMarket conditions improved slightly in the Philly retail space market in the first quarter 2014 as the vacancy rate for retail space in Philadelphia dropped to 6.0%, according to the latest market report from the CoStar Group.

The vacancy rate for retail space in Philly had been 6.2% in the fourth quarter 2013, CoStar reported.  Net absorption totaled a positive 1,175,336 square feet in the first quarter, compared to positive 629,439 square feet in the fourth quarter 2013.  Vacant sublease space in the Philadelphia retail space market decreased by 8,554 square feet in the first quarter, according to CoStar’s First Quarter 2014 Market Report.

Tenants moving into large blocks of retail space in Philadelphia in 2014 included: ShopRite, moving into 90,000 square feet of retail space in Philly at Wishing Well Plaza; LA Fitness moving into 52,248 square feet of Philadelphia retail space at Collegetown Shopping Center; and Lehigh Hospital moving into 50,041 square feet of Philly retail space at 1309 Blue Valley Drive.

Quoted rental rates for retail space in Philly rose in the first quarter 2014, ending the quarter at $13.90 per square foot per year, the report said.

A total of nine retail buildings with 140,422 square feet of Philadelphia retail space were delivered to the market in the first quarter, CoStar noted.  There was 209,580 square feet of retail space in Philadelphia still under construction at the end of the quarter, according to the report.

In comparison to first quarter 2014 results in the Philly retail space market, the U.S. National Retail vacancy rate dropped to 6.5% from the fourth quarter, with net absorption at positive 24.41 million square feet in the first quarter, CoStar said.  Average rental rates for the national market increased to $14.63, and 779 buildings totaling almost 12.5 million square feet were delivered to the market.

For more information about Philadelphia retail space or any Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker that specializes in retail space in Philly.

Wolf Commercial Real Estate is a Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker that specializes in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly retail space with the Philadelphia commercial properties that best meets their needs.

As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.

If you are looking for retail space in Philadelphia for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

Please visit our websites for a full listing of South Jersey and Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

Top Lease Signings for Philly Retail Space

research-information-graphic-phlThe select top lease signed in the fourth quarter 2013 in the Philly retail space market was for Wishing Well Plaza in the North Burlington County submarket, where ShopRite leased 90,000 square feet, according to a market trend report from the CoStar Group.  Fameco Real Estate represented the landlord for this significant deal in the Philadelphia retail space market, the report said.

CoStar’s Fourth Quarter 2013 Market Report also said other notable leases for retail space in Philly included:

— Giant Food’s lease of Philly retail space at Ephrata Marketplace in the LancasterCounty submarket. Colliers International represented the landlord in this deal for 66,472 square feet of Philadelphia retail space.

— A lease executed by LA Fitness for 52,248 square feet of retail space in Philly at Collegetown Shopping Center in New Jersey.  Brixmor Property Group represented the landlord in this deal for retail space in Philadelphia’s Gloucester County submarket.

— Philly Service Center’s lease of Philadelphia retail space at 6729 Essington Avenue in the South Philadelphia submarket.  Binswanger represented the landlord in this direct deal for 39,000 square feet in the Philly retail space market.

— Habitat for Humanity’s 25,690-square-foot lease for retail space in Philly at 530 Route 38 East in the North Burlington County submarket.  The landlord in this deal for retail space in Philadelphia was represented by NAI Mertz.

In comparison to the trends in the Philadelphia retail space market, the U.S. national retail market’s select largest new lease signings in the fourth quarter 2013 included a 230,000-square-foot deal by Wal-Mart in the Hampton Roads market; a 151,128-square-foot lease by Mariano’s Fresh Market in the Chicago market; and a 78,962-square-foot lease by Food 4 Less in the Los Angeles Market, the report said.  In addition, in the third quarter 2013, BJ’s Wholesale Club signed a lease for 240,448 square feet of retail space in the Boston market, Costar said.

For more information about retail space in Philadelphia or any Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker that specializes in Philadelphia retail space.

Wolf Commercial Real Estate is a Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm that specializes in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new retail space in Philly with the Philadelphia commercial properties that best meets their needs.  As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philly retail space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

Please visit our websites for a full listing of South Jersey and Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

Philly Retail Space Deliveries, Construction and Inventory

research-information-graphic-phlPhilly retail space grew by 252,369 square feet in the fourth quarter 2013 as 15 Philadelphia retail buildings were completed, according to a market trend report from the CoStar Group.

That increase brings the total retail space in Philly completed over the past four quarters to 1,008,403 square feet, according to CoStar’s Fourth Quarter 2013 Market Report.  In addition to the current quarter, 17 Philadelphia retail buildings with 436,926 square feet were completed in third quarter 2013.  At the end of the fourth quarter 2013, another 282,479 square feet of Philadelphia retail space was under construction, the report said.

Some of the notable 2013 deliveries of Philadelphia retail buildings include: Wegmans, a 125,000-square-foot facility that delivered in fourth quarter 2013 and is now 100% occupied, and 3450 Fox Street, a 124,900-square-foot building that delivered in third quarter 2013 and is now 90% occupied, CoStar said.

Total Philly retail space inventory amounted to 490,015,456 square feet in 39,257 buildings and 2,552 centers at the end of the fourth quarter 2013, Costar reported.

In comparison to the trends in the Philadelphia retail space market, the U.S. national retail market saw 563 buildings totaling 10.42 million square feet complete construction, with an additional 46.5 million square feet of retail space under construction at the end of the fourth quarter 2013, the CoStar report said.  The Northern New Jersey market welcomed a 747,500-square-foot retail facility that delivered in the fourth quarter at 75 W. Rte 59, while the Phoenix market got a 628,000-square-foot building that delivered in the third quarter, according to CoStar.  Total retail inventory in the U.S. market was 12.4 billion square feet in more than 1.05 million buildings at the end of the fourth quarter 2013, including almost 97,000 shopping centers, CoStar reported.

For more information about retail space in Philly or any Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker that specializes in Philadelphia retail space.

Wolf Commercial Real Estate is a Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm that specializes in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new retail space in Philly with the Philadelphia commercial properties that best meets their needs.  As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philly retail space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

Please visit our websites for a full listing of South Jersey and Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

Philly Retail Space Vacancy Rate Stable

research-information-graphic-phlThe Philly retail space vacancy rate remained stable at 6.3% in the fourth quarter 2013 with little change in market conditions, according to a new market trend report from the CoStar Group.

The vacancy rate for retail space in Philadelphia was unchanged over the previous quarter, CoStar said.  Net absorption totaled a positive 616,052 square feet in the fourth quarter, compared to positive 416,003 square feet in the third quarter 2013.  Vacant sublease space in the Philadelphia retail space market decreased by 109,997 square feet., according to CoStar’s Fourth Quarter 2013 Market Report.

Tenants moving into large blocks of retail space in Philly in 2013 included: Wegmans, moving into 125,047 square feet at 500 Montgomery Mall; Restaurant Depot, moving into 72,643 square feet at 2950 Roberts Avenue; and ShopRite, moving into 71,900 square feet at 3450 Fox Street.

CoStar also noted that quoted rental rates for retail space in Philadelphia dropped from third quarter 2013 levels, ending the fourth quarter at $13.75 per square foot per year.

In all, 15 retail buildings with 252,369 square feet of retail space in Philly were delivered to the market in the fourth quarter 2013, the report said, with 282,479 square feet of retail space in Philadelphia remaining under construction at the end of the quarter.

In comparison to the fourth quarter 2013 results from the Philadelphia retail space market, the U.S. National Retail vacancy rate dropped to 6.6% from the third quarter, with net absorption at positive 21.28 million square feet in the fourth quarter.  Average rental rates for the national market rose to $14.59, and 563 buildings were delivered to the market totaling more than 10.4 million square feet.

For more information about retail space in Philly or any Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker that specializes in Philly retail space.

Wolf Commercial Real Estate is a Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker that specializes in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly retail space with the Philadelphia commercial properties that best meets their needs.  As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philadelphia retail space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

Please visit our websites for a full listing of South Jersey and Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

Fourth Quarter Report: Strong South Jersey Commercial Real Estate Market Predicted for 2014

research-information-graphic-phlThe South Jersey commercial real estate market experienced an overall strong year in 2013 despite moderation in leasing activity in the fourth quarter, an achievement that positions the market segment for an even stronger 2014, according to a new quarterly market analysis from Wolf Commercial Real Estate, a premier Philadelphia commercial real estate broker that specializes in South Jersey and Philadelphia commercial real estate listings and services, including Philadelphia retail space and other Philadelphia commercial properties.

Many positive trends in the fourth quarter and the year again proved the resiliency of South Jersey’s commercial real estate market, the Philly commercial real estate brokerage firm reported.

“Total leasing activity was slightly off this quarter compared with the fourth quarter of 2012, but we saw 14.5% growth in activity in our market in 2013,” said Jason Wolf, founder and principal of Wolf Commercial Real Estate, a premier Philadelphia commercial real estate brokerage firm. “As exciting as it is to report this surge, based on the conditions in place, we expect 2014 to be even stronger.”

The area’s commercial real estate market was very active in the fourth quarter, with further stabilization of rents, a pending mega-deal for a 24-building office/flex portfolio, and a great deal of prospecting setting up a high number of transactions that will consummate in the early part of the new year, according to the report issued by Wolf Commercial Real Estate, a Philly commercial real estate broker that specializes in South Jersey and Philly commercial real estate listings and services, including Philly retail space and other Philadelphia commercial properties.

New leases and renewals executed in the three counties surveyed totaled approximately 374,121 square feet, a decline of nearly 1.7%, compared to the fourth quarter 2012. But the Philadelphia commercial real estate broker reported +/-1,625,190 square feet of total activity for the year in the same geographic region, compared to +/-1,419,276 square feet in 2012. Notably, expansions and new deals remained strong this quarter, with net absorption at approximately 102,294 sf.

The continuing nationwide economic rebound, in part, fueled the strong demand in the region’s commercial real estate market, the report said. The stock market achieved several record high closes, finishing up 26% for the year, and both the state and the national unemployment rates improved. New Jersey’s unemployment rate closed the fourth quarter at 7.8%, falling nearly two full points over the year. The national unemployment was 7% at year end.

The two most notable developments in the quarterly report were the continuing reduction of the region’s vacancy rate, which has now dropped to approximately 15%, and Liberty Property Trust’s (NYSE: LRY) announcement that its entire office/flex portfolio in the region was put under agreement. The portfolio comprises 1,188,285 square feet in 24 buildings.

Other office market highlights in the report from Wolf Commercial Real Estate, a Philly commercial real estate broker that specializes in South Jersey and Philadelphia commercial real estate listings and service, including Philadelphia retail space and other Philadelphia commercial properties:

  • Average rents for Class A & B product continue to show strong support in the range of $11.00-$14.00/sf NNN or $21.00-$24.00/sf gross, with an overall market average showing strong support in the $11.00-$11.50/sf NNN or $21.00-$21.50/sf gross for the deals completed during the fourth quarter. This is essentially unchanged from the previous quarter, the Philly commercial real estate brokerage firm said.

 

  • Burlington County maintained a significantly lower office vacancy rate than Camden County.  Moorestown, Marlton and Mount Laurel (3M) continued to show strength, while a large share of the region’s vacancies remained in Voorhees, Pennsauken, and the west side of Cherry Hill.

 

  • A very active pipeline of deals covering approximately 400,000 sf was in place and will be completed soon.

 

  • All of the major private owners and REITS showed a significant increase in prospect activity for the quarter, and are all cautiously optimistic for 2014.

 

For the retail market, the Philadelphia commercial real estate brokerage firm that specializes in South Jersey and Philly commercial real estate listings noted that despite weak holiday sales figures, owners were cautiously optimistic as the result of robust retail leasing activity in the region. Highlights from the retail section of the report include:

 

  • The overall retail vacancy rate in the tri-county area showed tremendous improvement, hovering at about 10.7% in comparison to the 17-18% range at the end of 2012.

 

  • Class A retail product rental rates continue to show strong support in the range of $30.00-$40.00/sf NNN.

 

  • Class B product shows support in the range of $15.00-$23.00/sf NNN.

 

The full quarterly report is available upon request from Wolf Commercial Real Estate, a Philly commercial real estate brokerage firm that specializes in South Jersey and Philadelphia commercial real estate listings and services, including Philly retail space and other Philadelphia commercial properties.

For more information about Philadelphia office space or any Philadelphia commercial properties, please contact Jason Wolf (215-799-6900, jason.wolf@wolfcre.com) or Leor Hemo (215-799-6900, leor.hemo@wolfcre.com) at Wolf Commercial Real Estate, a Philadelphia commercial real estate broker.

Wolf Commercial Real Estate is a premier Philly 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 Philadelphia commercial properties.  We market commercial offices, medical properties, industrial properties, land properties, retail buildings and other South Jersey and Philadelphia 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 Philadelphia commercial real estate brokerage firm.