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C&W 4Q16 Market Report: Strong Leasing, Falling Vacancies in Southern NJ Office Market

| February 22, 2017 | 0 Comments

 

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PHILADELPHIA, March 29, 2017 – Leasing activity remained healthy and overall vacancy dropped to its lowest point since 2003 in the Southern New Jersey office market, according to Cushman & Wakefield’s fourth-quarter 2016 Office Marketbeat report for the region. The commercial real estate services firm’s Philadelphia research team also projects continued increases in absorption and an uptick in rental rates by the end of 2017.

The Southern New Jersey office market’s overall vacancy rate declined to 11.7 percent in the fourth quarter of 2016, a decline of 260 basis points year-over-year and the lowest vacancy in Southern New Jersey since 2003.

“Absorption was positive for 2016, with 321,095 square feet compared to 98,910 square feet in 2015,” said Jared Jacobs, Cushman & Wakefield Research Manager. “Contributing to the increase were multiple tenants that signed leases in 2015 and took occupancy in 2016. These included Chicago Bridge & Iron Company taking occupancy of 74,565 square feet at 228 Strawbridge Drive in Moorestown, Freedom Mortgage Company moving into 48,718 square feet at 3 Executive Campus in Cherry Hill, and Comcast’s occupancy at 401 White Horse Road in Voorhees for 42,000 square feet.”

Direct asking rents for Class A office space decreased by 1.7 percent year-over-year to $24.16 per square foot. However, Cushman & Wakefield expects overall rental rates to move northward by year-end 2017.

While no sizable leases were inked in the Southern New Jersey market in 2016, small to mid-sized leasing activity was particularly robust. In Burlington County, the bulk of the activity took place in Mount Laurel and Marlton. Notable leases in Mount Laurel included Persante Health Care leasing 19,889 square feet at 200 East Park Drive, Altegra Health taking 12,458 square feet at 1000 Atrium Way, and Annie Mac Mortgage leasing 11,894 square feet at 700 East Gate Drive. In Marlton, Abundant School Corporation inked the largest

lease at 2 Greentree Center for 19,487 square feet, followed by Harbor Linens leasing 17,976 square feet at 4B Eves Drive, and Paychex, Inc. taking 14,307 square at 8000 Lincoln Drive.

In Camden County, Newspaper Media Group and Innovare signed new leases at 2 Executive Campus in Cherry Hill for 15,127 square feet and 13,923 square feet, respectively. In Cherry Hill, AmeriQuest Business Services renewed for 10,458 square feet at 457 Haddonfield Road.

Absorption is projected to remain positive in 2017, as several tenants who signed leases in 2016 are expected to take occupancy. With the drop in overall vacancy as well as declines in unemployment rates in Burlington and Camden Counties in fourth quarter 2016, new construction is expected to pick up over the next 12 to 24 months.

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About Cushman & Wakefield

Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop, and live. Our 43,000 employees in more than 60 countries help investors optimize the value of their real estate by combining our global perspective and deep local knowledge with an impressive platform of real estate solutions. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $5 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. To learn more, visit or follow @CushWake on Twitter.

 

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Category: Cushman & Wakefield Philadelphia, News Releases, Newswire: Latest News

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