Philly Retail Space Vacancy Rate Stable

research-information-graphic-phlThe Philly retail space vacancy rate remained stable at 6.3% in the fourth quarter 2013 with little change in market conditions, according to a new market trend report from the CoStar Group.

The vacancy rate for retail space in Philadelphia was unchanged over the previous quarter, CoStar said.  Net absorption totaled a positive 616,052 square feet in the fourth quarter, compared to positive 416,003 square feet in the third quarter 2013.  Vacant sublease space in the Philadelphia retail space market decreased by 109,997 square feet., according to CoStar’s Fourth Quarter 2013 Market Report.

Tenants moving into large blocks of retail space in Philly in 2013 included: Wegmans, moving into 125,047 square feet at 500 Montgomery Mall; Restaurant Depot, moving into 72,643 square feet at 2950 Roberts Avenue; and ShopRite, moving into 71,900 square feet at 3450 Fox Street.

CoStar also noted that quoted rental rates for retail space in Philadelphia dropped from third quarter 2013 levels, ending the fourth quarter at $13.75 per square foot per year.

In all, 15 retail buildings with 252,369 square feet of retail space in Philly were delivered to the market in the fourth quarter 2013, the report said, with 282,479 square feet of retail space in Philadelphia remaining under construction at the end of the quarter.

In comparison to the fourth quarter 2013 results from the Philadelphia retail space market, the U.S. National Retail vacancy rate dropped to 6.6% from the third quarter, with net absorption at positive 21.28 million square feet in the fourth quarter.  Average rental rates for the national market rose to $14.59, and 563 buildings were delivered to the market totaling more than 10.4 million square feet.

For more information about retail space in Philly or any Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker that specializes in Philly retail space.

Wolf Commercial Real Estate is a Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker that specializes in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly retail space with the Philadelphia commercial properties that best meets their needs.  As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philadelphia retail space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

Please visit our websites for a full listing of South Jersey and Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

Fourth Quarter Report: Strong South Jersey Commercial Real Estate Market Predicted for 2014

research-information-graphic-phlThe South Jersey commercial real estate market experienced an overall strong year in 2013 despite moderation in leasing activity in the fourth quarter, an achievement that positions the market segment for an even stronger 2014, according to a new quarterly market analysis from Wolf Commercial Real Estate, a premier Philadelphia commercial real estate broker that specializes in South Jersey and Philadelphia commercial real estate listings and services, including Philadelphia retail space and other Philadelphia commercial properties.

Many positive trends in the fourth quarter and the year again proved the resiliency of South Jersey’s commercial real estate market, the Philly commercial real estate brokerage firm reported.

“Total leasing activity was slightly off this quarter compared with the fourth quarter of 2012, but we saw 14.5% growth in activity in our market in 2013,” said Jason Wolf, founder and principal of Wolf Commercial Real Estate, a premier Philadelphia commercial real estate brokerage firm. “As exciting as it is to report this surge, based on the conditions in place, we expect 2014 to be even stronger.”

The area’s commercial real estate market was very active in the fourth quarter, with further stabilization of rents, a pending mega-deal for a 24-building office/flex portfolio, and a great deal of prospecting setting up a high number of transactions that will consummate in the early part of the new year, according to the report issued by Wolf Commercial Real Estate, a Philly commercial real estate broker that specializes in South Jersey and Philly commercial real estate listings and services, including Philly retail space and other Philadelphia commercial properties.

New leases and renewals executed in the three counties surveyed totaled approximately 374,121 square feet, a decline of nearly 1.7%, compared to the fourth quarter 2012. But the Philadelphia commercial real estate broker reported +/-1,625,190 square feet of total activity for the year in the same geographic region, compared to +/-1,419,276 square feet in 2012. Notably, expansions and new deals remained strong this quarter, with net absorption at approximately 102,294 sf.

The continuing nationwide economic rebound, in part, fueled the strong demand in the region’s commercial real estate market, the report said. The stock market achieved several record high closes, finishing up 26% for the year, and both the state and the national unemployment rates improved. New Jersey’s unemployment rate closed the fourth quarter at 7.8%, falling nearly two full points over the year. The national unemployment was 7% at year end.

The two most notable developments in the quarterly report were the continuing reduction of the region’s vacancy rate, which has now dropped to approximately 15%, and Liberty Property Trust’s (NYSE: LRY) announcement that its entire office/flex portfolio in the region was put under agreement. The portfolio comprises 1,188,285 square feet in 24 buildings.

Other office market highlights in the report from Wolf Commercial Real Estate, a Philly commercial real estate broker that specializes in South Jersey and Philadelphia commercial real estate listings and service, including Philadelphia retail space and other Philadelphia commercial properties:

  • Average rents for Class A & B product continue to show strong support in the range of $11.00-$14.00/sf NNN or $21.00-$24.00/sf gross, with an overall market average showing strong support in the $11.00-$11.50/sf NNN or $21.00-$21.50/sf gross for the deals completed during the fourth quarter. This is essentially unchanged from the previous quarter, the Philly commercial real estate brokerage firm said.

 

  • Burlington County maintained a significantly lower office vacancy rate than Camden County.  Moorestown, Marlton and Mount Laurel (3M) continued to show strength, while a large share of the region’s vacancies remained in Voorhees, Pennsauken, and the west side of Cherry Hill.

 

  • A very active pipeline of deals covering approximately 400,000 sf was in place and will be completed soon.

 

  • All of the major private owners and REITS showed a significant increase in prospect activity for the quarter, and are all cautiously optimistic for 2014.

 

For the retail market, the Philadelphia commercial real estate brokerage firm that specializes in South Jersey and Philly commercial real estate listings noted that despite weak holiday sales figures, owners were cautiously optimistic as the result of robust retail leasing activity in the region. Highlights from the retail section of the report include:

 

  • The overall retail vacancy rate in the tri-county area showed tremendous improvement, hovering at about 10.7% in comparison to the 17-18% range at the end of 2012.

 

  • Class A retail product rental rates continue to show strong support in the range of $30.00-$40.00/sf NNN.

 

  • Class B product shows support in the range of $15.00-$23.00/sf NNN.

 

The full quarterly report is available upon request from Wolf Commercial Real Estate, a Philly commercial real estate brokerage firm that specializes in South Jersey and Philadelphia commercial real estate listings and services, including Philly retail space and other Philadelphia commercial properties.

For more information about Philadelphia office space or any Philadelphia commercial properties, please contact Jason Wolf (215-799-6900, jason.wolf@wolfcre.com) or Leor Hemo (215-799-6900, leor.hemo@wolfcre.com) at Wolf Commercial Real Estate, a Philadelphia commercial real estate broker.

Wolf Commercial Real Estate is a premier Philly commercial real estate broker that provides a full range of South Jersey and Philly commercial real estate listings and services that include Philly retail space and other Philadelphia commercial properties.  We market commercial offices, medical properties, industrial properties, land properties, retail buildings and other South Jersey and Philadelphia commercial properties for buyers, tenants, investors and sellers.  Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.