Marcus & Millichap recently released its second-quarter New Jersey Retail investment market report, which showed record-low vacancy rates and robust rent growth, driven by strong tenant demand and limited new supply.
The findings provide vital insight and analysis on the current state of the retail market sector including:
- New Jersey is on track to set a new record-low vacancy rate for the third consecutive year, with the marketwide rate expected to drop to 3% by year-end.
- New retail space deliveries in New Jersey are projected to hit an all-time low, with only 270,000 square feet expected to be completed.
- The average asking rent in New Jersey is forecasted to rise by over 5% for the third time in four years, reaching $28.60 per square foot.
- Affluent areas like Morris County are seeing strong demand from home goods, leisure and fitness retailers, with local vacancy dropping to a record low of 4.7% in March. The area is expected to see an additional 200,000 square feet of move-ins in 2024.
- Investor interest is high in well-leased single-tenant properties, especially in Morris and Bergen counties. Bergen County’s tight vacancy rate and rising prices are positioning it for a resurgence in multitenant trading.
“New Jersey’s combination of low vacancy, limited new supply and strong rent growth makes it one of the most competitive retail markets in the country,” Alan Cafiero, senior managing director investments in Marcus & Millichap’s New Jersey office, said.
