MARLTON, NJ — Commercial real estate brokerage WCRE reported in its analysis of the third quarter of 2019 that the Southern New Jersey and Southeastern Pennsylvania markets continued to show modest gains, continued investments, and overall solid fundamentals. Sales volume and prospecting activity held steady, leasing was up in Camden County, and especially in Cherry Hill, but dipped for the region overall. Gross leasing absorption was positive but trending lower quarter over quarter.
“We are in a continuing period of a strong economy with low unemployment. This has supported a long streak of slow, steady growth supported by strong fundamentals,” said Jason Wolf, founder and managing principal of WCRE. “Although a given indicator might fluctuate one quarter to the next, commercial real estate in this region remains strong, and there is reason to stay optimistic.”
There were approximately 266,867 s/f of new leases and renewals executed in the three counties surveyed (Burlington, Camden and Gloucester), which was a decrease of seven percent compared to the previous quarter. The sales market increased, with about 1.67 million s/f on the market or under agreement. However, completed sales slowed to approximately 329,769 s/f trading hands, less than half the previous quarter, which had been notably active.
New leasing activity accounted for approximately 36% of all deals for the three counties surveyed. Overall, gross leasing absorption for the third quarter was in the range 70,000 s/f, down from 150,000 in the second quarter.