The South Jersey commercial real estate market experienced solid growth in 2013, despite some moderation in leasing activity in the fourth quarter, indicating an even stronger market in 2014, according to a new quarterly market analysis from Wolf Commercial Real Estate, a leading Southern New Jersey commercial real estate brokerage firm that specializes in South Jersey commercial real estate listings and services for South Jersey industrial space and other South Jersey commercial properties.

The Southern New Jersey commercial real estate market experienced many positive trends during the fourth quarter and the year, again proving its resiliency the South Jersey 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. “As exciting as it is to report this surge, based on the conditions in place, we expect 2014 to be even stronger.”

It was a busy fourth quarter for the South Jersey commercial real estate market, with further stabilization of rents, a pending mega-deal for a 24-building portfolio of South Jersey office space and South Jersey flex space, 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 fourth quarter report from Wolf Commercial Real Estate, a Southern New Jersey commercial real estate broker that specializes in South Jersey commercial real estate listings and services.

South Jersey industrial space and other South Jersey commercial properties saw approximately 374,121 square feet of new leases and renewals executed in the three counties surveyed, a drop of nearly 1.7% compared to the fourth quarter 2012. But for the year, the report said, there was +/-1,625,190 square feet of total Southern New Jersey commercial real estate market activity, 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.

In part, the continuing nationwide economic rebound powered the strong demand in the South Jersey commercial real estate market, the Southern New Jersey commercial real estate brokerage firm reported. The stock market achieved several record high closes, ending the year up 26%, and both New Jersey’s and the nation’s unemployment rates improved. New Jersey’s unemployment rate dropped nearly two full points during 2013, ending the fourth quarter at 7.8%. The national unemployment rate stood at 7% at year-end 2014.

The two most noteworthy developments in the quarterly report were the further reduction of the region’s vacancy rate for South Jersey industrial space and other South Jersey commercial properties, which now is down to approximately 15%, and Liberty Property Trust’s (NYSE: LRY) announcement that its entire portfolio of South Jersey office space and South Jersey flex space in the region was put under agreement. The portfolio of South Jersey office space and South Jersey flex space comprises 1,188,285 square feet in 24 buildings.

Among the Southern New Jersey office space market highlights reported by Wolf Commercial Real Estate, a South Jersey commercial real estate brokerage firm specializing in South Jersey commercial real estate listings and services:

• Average rents for Class A & B South Jersey office space 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.

• Moorestown, Marlton and Mount Laurel (3M) continued to show strength, while Voorhees, Pennsauken, and the west side of Cherry Hill carried a large share of the region’s vacancies. Overall, Burlington County’s vacancy rate in the Southern New Jersey commercial real estate market was significantly lower than Camden County’s.

• A very active pipeline of deals for Southern New Jersey office space was in place at the end of 2013 and will be completed soon, covering approximately 400,000 sf.

• 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.

In addition, the Southern New Jersey commercial real estate broker reported cautious optimism among owners in the South Jersey retail space market as the result of strong leasing activity even amid weak holiday sales figures. Highlights include:

• Overall retail vacancy in the tri-county area stands around 10.7%, a tremendous improvement from the 17-18% range at year-end 2012.

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

• Class B product for South Jersey retail space 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 South Jersey commercial real estate brokerage firm specializing in South Jersey commercial real estate listings and services.

For more information about South Jersey industrial space or any South Jersey commercial properties, please contact Jason Wolf (856-857-6301; jason.wolf@wolfcre.com), Leor Hemo (856-857-6302; leor.hemo@wolfcre.com), Christina Del Duca (856-857-6304; christina.delduca@wolfcre.com), Todd Levin (856-857-6319; todd.levin@wolfcre.com) or Scott Seligman (856-857-6305; scott.seligman@wolfcre.com) at Wolf Commercial Real Estate, the foremost Southern New Jersey commercial real estate broker.

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