Retail Vacancy Rate at 5.4% for Route 1 Corridor
The Goldstein Group's 2012 year-end report details strong and weak markets in Central Jersey.
The North Brunswick-Lawrenceville Route 1 corridor's retail vacancy rate made it one of Central Jersey's stronger markets at the end of 2012, according to a report issued by The Goldstein Group.
“The Northern and Central New Jersey retail real estate market continues to improve but it is still a ‘tenants’ market,” said President Chuck Lanyard of The Goldstein Group via release. “Opportunistic retailers are leasing at attractive rental rates and securing locations by taking advantage of market conditions.”
The report surveyed 22 markets and over 4,250 retail properties in Northern and Central New Jersey in December 2012. The 5.4 percent vacancy in the North Brunswick-Lawrenceville Route 1 retail real estate market made it the 6th strongest. Of the 9.1 million square feet of retail space in 202 properties in the North Brunswick-Lawrenceville Route 1 corridor, about 500,000 square feet were vacant, according to the report.
The overall vacancy rate of the areas studied in the report was 7.8 percent, a press release issued by The Goldstein Group stated.
In recent years, South Brunswick as a whole went from about 10 million square feet of unoccupied warehouse space down to less than 2 million square feet of unoccupied space.
Other areas of Middlesex County showed mixed results in the rental market, with East Brunswick showing the highest vacancy rate.
The East Brunswick Route 18 corridor had an 18.3 percent vacancy rate, with 614,225 square feet vacant out of about 3.5 million square feet of available space from 158 properties.
The Route 1 corridor from Woodbridge to Edison came in with the third best vacancy rate at 3.8 percent. Out of 201 retail properties with about 5.8 million square feet of available space, only 220,290 square feet was unoccupied.
While leasing activity continues to be driven by retailers opening stores in the 1,000- to 5,000-square-foot range, large box retailers are taking advantage of market conditions favorable to renters, the press release stated.
The report noted construction and redevelopment projects are moving forward currently in Sayreville, Newark, North Plainfield, East Brunswick, Wayne, Fort Lee and North Brunswick.
"With the opportunities that have come up along the various retail highways, new to New Jersey retailers such as Fairway Market, Harbor Freight, Uniglo, Millers Ale House, Hobby Lobby, and numerous others have opened, or will soon open new locations in New Jersey," Lanyard said.
"Well established retailers that continue to expand in the state include Home Goods, Trader Joe’s, Dollar General, Big Lots, Family Dollar, Panera Bread, Planet Fitness, 7-Eleven, Sherwin Williams, Smashburger, Great Clips, and Five Guys, which all opened up new locations. New Jersey has no shortage of retailers wanting to take advantage of its strong demographics, which is near the top nationally.”