Marcus & Millichap recently published its 2024 Northern New Jersey Retail Commercial Real Estate Market Forecast report, which found that North Jersey’s high median income — surpassing $100,000 in 2024 — has been one of the several factors supporting the local retail sector through the recent inflationary period.
“In response to the strong economic activity, the northern retail sector is experiencing a boom, with accelerating demands from affluent consumer base and strategic expansion in regions experiencing high job growth and urbanization,” Alan Cafiero, senior managing director, investments, said.
Marcus & Millichap’s forecast provides investors with vital insight and analysis on the current state of the Northern New Jersey retail market sector, including:
- Northern New Jersey will see a net gain of 15,000 jobs in 2024 in traditional office-using firms;
- Developers are set to expand inventory by 0.1%, with nearly 60% of space split between two projects in Union County;
- Low speculative development will prompt tenants to seek out existing floor plans, lowering vacancy to 3.4%, the lowest rate since at least 2006;
- Historically low vacancy will lead to steadily climbing rents, reaching a mean marketed rate of $26.42 per square foot; and
- Despite notable vacancy compression, the sluggish household growth positions the metro below the NRI midpoint.
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