HACKENSACK, N.J. – A decline in rental rates in 2013 has created attractive opportunities for retailers in Bergen County, according NAI James E. Hanson’s 2013 Retail Market Overview.
Since the fourth quarter of 2012, average retail rental rates in Bergen County have declined by $2.78. The decrease corresponds with 97,324 square feet of positive absorption in the first half of 2013 — a significant improvement from year-end 2012, when net absorption totaled negative 6,316 square feet.
To date, there has been a total of 135,153 square feet of lease transactions completed this year, with gyms, personal service companies and new food retailers serving as major contributors to the market’s stable condition.
“Bergen County continues to be New Jersey’s shopping mecca,” stated William C. Hanson, SIOR, president of NAI James E. Hanson. “In 2013, the market has experienced a decrease in vacancy, from 6.9 percent at the end of last year to 6.3 percent today. We anticipate that rental rates will continue to decline throughout the remainder of 2013 and into 2014, driving even more interest from retailers that are looking to expand.”
Gyms that have recently opened locations in Bergen County include Lifetime Fitness, which is leasing a 130,000-square-foot facility at 295 W. Grand Avenue in Montvale, and Equinox, which opened a 30,000-square-foot location at 774 Route 17 North in Paramus.
The report also notes that personal service company Hand and Stone is currently seeking a Bergen location for its rapidly expanding franchise, and that several new food retailers including Bareburger and Shake Shack have plans to expand into the county.
According to the report, there is currently nearly 800,000 square feet of retail space available for lease in Bergen County. Large blocks of space over 25,000 square feet available are:
· 64,730 square feet at Paramus Towne Square in Paramus
· 59,515 square feet at 450 Hackensack Avenue in Hackensack
· 57,325 square feet at 165 State Route 4 in Paramus
· 55,116 square feet at Lodi Shopping Center in Lodi
· 32,000 square feet at Ramsey Square in Ramsey
· 44,000 square feet at 545 State Route 17 in Paramus
Other highlights of NAI Hanson’s 2013 Retail Market Overview include:
· The largest retail leases completed this year in Bergen County include Ulta Cosmetics’ 28,000-square-foot lease at 491 E. Crescent Avenue in Ramsey; Dollar Tree’s 10,529-square-foot lease at 450 Hackensack Avenue in Hackensack; Total Wine’s 12,000-square-foot lease at River Edge Shopping Center in River Edge; and CVS’s 10,000-square-foot lease at River Edge Shopping Center in River Edge.
· The amount of vacant sublease space has slightly trended upwards, from 13,169 square feet at the end of 2012 to 14,169 square feet currently.
· A total of six retail centers have traded during 2013, totaling 115,689 square feet and nearly $50 million in sales volume. The average price ranged from $250 to $350 per square foot, and cap rates were between 6 and 7 percent.
To download the 2013 Retail Market Overview, visit www.naihanson.com/flyers/bergencountyretailreport2Q.pdf.
About NAI James E. Hanson
Since 1955, NAI James E. Hanson has been a leading independent full-service brokerage commercial real estate and property management firm serving a diverse client list. NAI Hanson offers its clients strategic solutions and provides comprehensive value-added services such as office, industrial and retail brokerage, investment sales, land sales, management, government services and financing expertise.
NAI Hanson is also one of the original members of NAI Global, an international commercial real estate network with over 350 offices spanning the globe. For more information on NAI James E. Hanson, contact William C. Hanson, SIOR, at the company’s Hackensack office at 201-488-5800 or visit www.naihanson.com.