WCRE 2nd Qtr. 2021 Report: Southern NJ & Philly Markets focus on light at the end of the tunnel
- MAREJ
- Aug 11, 2021
- 2 min read
Marlton, NJ – Commercial real estate brokerage WCRE reported in its analysis of the second quarter that the Southern New Jersey and Southeastern Pennsylvania markets are cautiously entering the post-pandemic recovery. Although there are still lingering issues, CRE seems to be rebounding along with the broader economy.
“Fundamentals are tracking in a positive direction, and while various challenges remain, conditions are in place that point to a return to pre-pandemic CRE performance,” said Jason Wolf, founder and managing principal of WCRE.
There were approximately 233,544 s/f of new leases and renewals executed in the three counties surveyed (Burlington, Camden and Gloucester), and while this figure is not indicative of a rebound, it marks the return of net positive absorption. New tenant leases comprised approximately 123,358 s/f, or about 53% of all deals for the three counties. During the previous quarter, this figure was only 8% of the total.
Other office market highlights from the report:
• Overall vacancy in the market is now approximately 13.6 percent, virtually unchanged from the previous quarter, and holding steady two points higher than at this point last year.
• The sales market picked up momentum, with 1,257,385 s/f actively on the market or under agreement.
• Average rents for class A & B product remain unchanged, as they continue to show strong support in the range of $10.00-$15.00/s/f NNN or $20.00-$25.00/s/f gross for the deals completed during the quarter. These averages have hovered near this range for more than a year.
WCRE has expanded into southeastern Pennsylvania, and the firm's quarterly reports now include a section on transactions, rates, and news from Philadelphia and the suburbs. Highlights from the second quarter in Pennsylvania include:
• The vacancy rate in Philadelphia’s office market ticked upward again in Q2, and now stands at 10.3%, after hovering near a 20-year low for months. Nearly 15% of the total office space in Philadelphia is listed for sale or lease.
