Colliers International, a global commercial real estate firm, released its Year End Research and Forecast reports on Tuesday, which highlights key trends in regional office, industrial and retail markets in South Jersey for the fourth quarter of 2018.
In the office market:
Vacancy rates in the office market increased in the fourth quarter to 13.6 percent. Burlington County’s vacancy rate increased to 12 percent and remained stable all year. Camden County’s rate also was up at 15.9 percent.
Colliers said although the vacancy rate is down, it should improve in 2019, especially if the former Subaru headquarters in Cherry Hill is acquired for non-office use.
In the retail market:
South Jersey continues to show a sharp divide between successful shopping corridors and struggling centers.
The vacancy rates in the retail market increased from 11.2 percent to 12 percent. The spike, Colliers said, was due to Gloucester County’s vacancy spike.
Camden and Burlington counties had vacancy decreases in the second half of 2018. Colliers said this happened because areas around the Cherry Hill and Moorestown malls increased their tenant occupancy.
In the industrial market:
South Jersey’s industrial vacancy rate of 4.8 percent was impacted by Nine West’s warehouse operations shutdown.
Annual absorption was above 3.7 million square feet, with Amazon’s build-to-suits accounting for about 45 percent of the occupancy increase.
New construction demand was strong, Colliers said, with at least two speculative buildings being pre-leased in Burlington County.