2017 Report Shows Retail Vacancy Rate Decreases & Continues Improving

2017 Report Shows Retail Vacancy Rate Decreases & Continues Improving
22 Retail Corridors

PARAMUS, N.J. (OCTOBER 16, 2017) – The retail vacancy rate has decreased by nearly 1% since last years survey done in July 2016, according to the results of The Goldstein Group’s survey of 22 retail corridors in Northern and Central New Jersey. The survey, the most extensive retail vacancy report for New Jersey, totals over 4,250 properties and over 100 million square feet of retail space.  The retail vacancy rate is now at 6.6 percent.  Retailers – both existing and new, coming to New Jersey for the first time – continue to lease retail space at a steady pace. New Jersey is still doing better in filling retail spaces, compared to the rest of the United States, where vacancies still average closer to 10% nationwide.

“Despite the fact that there are reports of retail problems throughout the country, we are finding in New Jersey that leasing activity has picked up over the past year,” noted Chuck Lanyard, President of the Goldstein Group. “There is a transformation in retail today, as landlords and retailers are working through a process of the impact of downsizing the stores, internet sales, and the increasing effort on retailers to create that unique experience to still drive people into traditional brick-and-mortar stores.”

In New Jersey, supermarket activity has been very strong, as new supermarkets are opening up, and others are in the planning stages. Restaurants have been very active, many expanding their units due to the success of their prior New Jersey locations. Urgent care facilities and other types of medical services continue to expand, and numerous types of furniture and home furnishings accessory stores are either expanding or coming to the New Jersey marketplace for the first time. Entertainment concepts, notably trampoline centers, indoor sky diving facilities, restaurant and entertainment facilities such as Dave & Busters are coming to New Jersey in a big way. Top Golf opened in Edison this year. Sky Zone has opened additional locations. I Fly will open in Paramus next year, and there are gun and pistol ranges planned in Union, Wayne and Woodland Park within the next 12 months. And of course, the ultimate in entertainment centers, the opening of the Meadowlands American Dream complex, which is now slated to open its doors as it heads toward its completion in the spring of 2019.

 tgg_2014_midyear_vacancyrate

Strongest & Weakest Submarkets

The strongest retail markets with the lowest availability rates include:  Route 3 – Clifton (.4%); Route 22 – Union/Springfield (2.9%); Route 1 – Woodbridge/Edison (3.4%); Route 22 – Scotch Plains/Bridgewater (3.7%); Route 46 – Montville/Rockaway (3.8%)

Markets with the highest vacancy rates include: Route 18 – East Brunswick (14.1%); Route 10 – Morris Plains/Ledgewood (13.6%); Route 70 – Brick (9.6%); Route 35 – Hazlet/Middletown (8.5%); Route 9 – Sayreville/Howell (8.4%)

tgg_2017_midyear_highslows

“There was a continued increase in leasing activity throughout 2017 with several markets having minimal space available in corridors such as Route 3 Clifton, Route 22 Union/Springfield, Route 1 Woodbridge/Edison, Route 22 Scotch Plains/Bridgewater, and Route 46 Montville/Rockaway area,” said Lanyard.  “Both national and regional retailers that continue to expand in the state include 24 Hour Fitness, Chipotle, Aldi, Costco, Dollar General, Jersey Mike’s, T-Mobile, Quick Chek, Panera Bread, and Wawa.”

Leasing velocity in this current report totaled over 2.7 million square feet. Additionally, there’s over 1 million square feet of space currently being built and other projects in the planning stages throughout various communities in New Jersey including Paramus, Rochelle Park/Rutherford, Totowa/Fairfield, Wayne/Butler, Livingston/East Hanover, Morris Plains/Ledgewood, Montville/Rockaway, Union/Springfield, Scotch Plains/Bridgewater, North Brunswick/Lawrence Township, East Brunswick, Sayreville/Howell, Shrewsbury/Ocean, and Brick.

The Goldstein Group Vacancy Survey Matrix

tgg_2017_midyear_table

Although the retail market has substantially improved from the recession that hit in 2008 and 2009, we still continue to see vacant space due to closings of Radio Shack, K-Mart, Macaroni Grill, Payless, Ruby Tuesday, Sears, and Staples. We’re also seeing banks such as Capital One, Wells Fargo, and Valley National Bank announce closings of branches.

Active Retailers in the Marketplace

The majority of leasing activity continues to be driven by retailers opening small stores in the under 5,000 square feet range. However, there was a continued spike in big box retailers taking advantage of favorable market conditions and rental rates, especially those who have filled or are looking to fill the A&P, Pathmark and Sports Authority locations that closed in 2016. Aldi in Bloomfield, East Brunswick, Freehold, Neptune, Old Bridge & Hackensack, Bob’s Discount Furniture in Union, Burlington Coat Factory in East Brunswick, Clifton, Garfield & Newark, Hmart in Paramus, DSW in Brick, East Brunswick & Holmdel, Floor & Décor in Paramus, Hobby Lobby in Springfield & Holmdel, Home Goods in Hanover, Shrewsbury & East Brunswick, Lidl in Garfield, Hazlet, Eatontown, Union, Mantua, Lacey, Hazlet, Lawrence, Burlington Township, Millville, Ocean City, Vineland & Hanover, Marshalls in Paramus, Michaels in Brick, Raymour & Flannigan in East Hanover, Riverdale & East Brunswick, The Tile Shop in Oakhurst, Trader Joe’s in Hoboken & North Brunswick, Target in Parsippany & Closter, Wegmans in Hanover, Montvale, & Middletown, and Whole Foods in Bridgewater, Closter & Newark.

Many of the retailers we are so familiar with continue to expand their presence in New Jersey. Those who have recently opened locations or plan to open include: 7-Eleven in East Rutherford, Paterson, Rochelle Park & River Edge, Advance Auto in Ledgewood & Freehold, CVS in Clifton, Eatontown, Metuchen, Parsippany & Westfield, Dollar General in Garfield, Elizabeth, Plainfield, Toms River, Bayone & Belmar, GNC in Teterboro, Planet Fitness in Clinton, East Hanover, Newark, Wayne, Fairfiled & Fairview, Quick Chek in Butler, Hanover, Garfield, Toms River, Somerville, North Brunswick, Monroe & Wayne, Sherwin Williams in East Windsor, North Brunswick & Oakland, Walgreens in Irvington, Millburn & Paterson, and Wawa in Sayreville, Maplewood, Fairfield & Lakewood.

Many retailers continue to expand in the very desirable NJ retail markets. Some of those include:

  • Wegman’s
  • Shop Rite
  • T-Mobile
  • Starbucks
  • TJ Maxx
  • Top Golf
  • LA Fitness
  • Marshalls
  • Taco Bell
  • Pet Supplies Plus
  • Quick Chek
  • Michael’s
  • Dave & Busters
  • CVS
  • Home Goods
  • Chase Bank

Retail & Restaurant Trends

New Jersey’s long list of restaurant choices and eating establishments continues to grow as new restaurant concepts and established ones have opened or announced planned openings. Blaze Pizza in Teterboro and Livingston, Chipotle in Closter, Hackensack, Morris Plains, Bloomfield, Teterboro, Watchung & Bloomfield, Buffalo Wild Wings in Flemington, Princeton & Marlboro, Five Guys in East Brunswick, Halal Guys in Union & Teterboro, IHOP in Hanover, Longhorn Steakhouse in Springfield, McDonald’s in Newark, Panera in Teterboro, North Brunswick & Wall, Popeye’s in Howell, Jersey City, Newark, Rockaway, Tinton Falls, Haledon & Toms River, Playa Bowls in Millburn, Brick, Montclair, Red Bank & Ridgewood, Shake Shack in Wayne and Livingston, Starbucks in East Brunswick, Hanover, Mahwah, Parsippany, Rochelle Park & Edison, Taco Bell in Newark, White Castle in South Brunswick and Zin Burger in Edison & Jersey City.

The fast casual dining segment, which includes restaurants such as Chipotle, B Good, Shake Shack, Habit Burger, Buffalo Wild Wings, Qdoba, Blaze Pizza and Smash Burger will continue to expand throughout the state. People enjoy the fast service along with the much higher food quality and healthier food choices that fast casual provides in comparison to fast food, and as a result, fast casual dining is flourishing.

Fast Food operations are not taking all this competition lightly and just lying down. Fast food operators are improving on the quality of their menus and more recently are making big efforts in reconfiguring their stores to make them more comfortable, user-friendly, and appealing to the younger crowd looking to eat quickly and get out. We’re also seeing some unique and specialty dessert food operations opening for the first time. Vanillamore, a specialty café and dessert shop, recently opened up in Montclair.

Health and Wellness industry retailers continue to flourish in the Garden State. 24 Hour Fitness in Hanover & Ramsey, CKO Kickboxing in East Hanover, Crunch in Franklin Township, Club Metro in Old Bridge, Club Pilates in Westfield, Ramsey, Short Hills & Wyckoff, Fit 26 in Waldwick, Livingston & Midland Park, LA Fitness in Clifton, KoKo Fit Club in West Caldwell, and Cycle Bar in Livingston.

Medical storefronts continue to flourish. City MD, AFC Urgent Care, MedExpress, Kinderpeds Pediatric Care, and PM Pediatrics and others continue to open new locations throughout New Jersey.

“New kids on the block” include numerous retailers and restaurants that have decided to come to New Jersey for the first time to get into its very lucrative marketplace. Chopt, Elevation Burger, The Green Turtle, Homesense, Design Within Reach, Pie Five Pizza, Sierra Trading Post, Which Wich, Wok the Walk, Hurricane BTW, At Home, Zoup, and Goldfish Swim School all have either opened or will soon open New Jersey locations.

The ever-changing and expanding supermarket business in New Jersey continues to be very compelling. It’s been over three years since A&P and Pathmark closed their doors and the impact on New Jersey food shopping continues to evolve. New operations like Uncle Giuseppe’s in Ramsey or the continuing expansion of HMart, which will be opening a Paramus store in 2018, The Gourmet Market opening in Paramus, and 99 Ranch which opened in Edison and Hackensack, are all taking advantage of the opportunities in northern and central New Jersey. They’re competing with the likes of Shop Rite, Stop & Shop and Acme. The much-anticipated openings of the two Wegman’s in New Jersey, one in Montvale and the other in Hanover, will add greatly to the competition. European competitors Aldi and newcomer Lidl are getting ready to open up numerous stores in New Jersey within the next few years having already secured locations which will soon be under construction. Trader Joe’s hasn’t been idle either, having recently opened a store in Hoboken and of course food shoppers continue to go to Costco and other warehouse stores for their supplemental bulk food shopping.

Going Forward

Leasing activity in the Garden State the past 12 months is still quite brisk and a lot of the quality space is being leased. This is especially true in the stores sizes 10,000 sf feet and under. Many restaurant and traditional retailers are taking quality space when they can grab it. We anticipate seeing the vacancy rate improve going forward. New Jersey, fortunately, continues to be one of the most desired state for retailers to do business in, with all its favorable demographics.

We are going to see some interesting times ahead for retail as the consumer has numerous options in their pursuit of purchasing their retail needs.

About The Goldstein Group

The Goldstein Group, New Jersey’s leading full-service commercial real estate brokerage firm, specializes in owner representation, retailer representation, investment sales and management services. The firm, founded in 1986, represents over 12,000,000 square feet of retail space and numerous national and regional retailers and restaurants. The Company is the New Jersey member of the Retail Brokers Network. As an RBN affiliate, The Goldstein Group provides clients assistance throughout the United States with qualified retail specialists in over 65 offices in the United States and Canada.

For more information on the Retail Brokers Network, visit www.retailbrokersnetwork.com.

For more information, contact Chuck Lanyard at (201) 703-9700, extension 115 or visit the Company’s website at www.thegoldsteingroup.com.

2016 Report Shows Retail Vacancy Rate Rises Due to Recent Big Box & Supermarket Closings

22 Retail Corridors, Totaling Over 4,250 Properties Surveyed

PARAMUS, N.J. (OCTOBER 17, 2016) –The retail vacancy rate has increased by just 1% since last years survey done in July 2015, according to the results of The Goldstein Group’s survey of 22 retail corridors in Northern and Central New Jersey. The survey, the most extensive retail vacancy report for New Jersey, totals over 4,250 properties and over 100 million square feet of retail space. The retail vacancy rate is now at 7.2 percent. Retailers – both existing and new, coming to New Jersey for the first time – continue to lease retail space at a steady pace. New Jersey is still doing better in filling retail spaces, compared to the rest of the United States, where vacancies still average closer to 10% nationwide.

“Despite this increase over last year, there are many circumstances that attributed, but fortunately we see this change to be short lived, minimal, and we expect considerable improvement in the coming year,” noted Chuck Lanyard, President of The Goldstein Group. “Absorption or leasing of vacant space continues at a strong pace.”

 tgg_2016_midyear_vacancyrate

Strongest & Weakest Submarkets

The strongest retail markets with the lowest availability rates include: Route 17 – Rochelle Park-Rutherford (2.59%); Route 1 – Woodbridge-Edison (4.01%); Route 17 – Ramsey-Mahwah (4.04%); Route 22 – Scotch Plains-Bridgewater (4.16%); Route 3 – Clifton Area (4.28%)

Markets with the highest vacancy rates include: Route 10 – Morris Plains-Ledgewood (15.13%); Route 70 – Brick (11.9%); Route 17 – Paramus (11.32%); Route 18 – East Brunswick (10.68%); Route 9 – Sayreville-Howell (8.79%)

tgg_2016_midyear_highslows

“There was a continued increase in leasing activity throughout 2016 with several markets having minimal space available in corridors such as Route 17 Rochelle Park/Rutherford, Route 1 Woodbridge/Edison, Route 17 Ramsey/Mahwah, Route 22 Scotch Plains/Bridgewater, and the Route 3 Clifton Area,” said Lanyard. “Retailers that continue to expand in the state include LA Fitness, Chick-Fil-A, Costco, Dunkin Donuts, Wawa, Quick Chek, Target, Marshall’s, Home Goods, TJ Maxx, Starbucks and Verizon.”

Leasing velocity in this current report totaled over 2.9 million square feet. Additionally, there’s over 1 million square feet of space currently being built and other projects in the planning stages throughout various communities in New Jersey including Paramus, Mahwah, Maywood, Rutherford, Wayne, Livingston, Ledgewood, Union, Springfield, Bridgewater, Woodbridge, Edison, North Brunswick, Sayreville, Howell, Hazlet, Old Bridge, Jersey City, Parsippany, Hanover, Eatontown, Middletown, Ocean Township, and Brick.

The Goldstein Group Vacancy Survey Matrix

tgg_2016_midyear_table

Although the retail market has substantially improved from the recession that hit in 2008 and 2009, we still continue to see vacant space due to some closings of Office Depot and Staples stores, the recent closings throughout the state of Sports Authority and the remaining Pathmark and A&P stores that haven’t been leased. Sears, Cups, Joyce Leslie, Subway, Staples, and Office Depot have also closed or announced planned closings of locations. We’re also seeing banks such as TD Bank, Valley National Bank, and Capitol One announce closings of branches.

Active Retailers in the Marketplace

The majority of leasing activity continues to be driven by retailers opening small stores in the under 5,000 square feet range. However, there was a substantial spike in big box retailers taking advantage of favorable market conditions and rental rates, especially those who have filled or are looking to fill the A&P and Pathmark locations that recently closed. Acme Supermarkets took advantage of the recent closings and availabilities and filled 33 locations. In addition, Super Fresh in Edison, Irvington, Paterson, Bloomfield, Landing and Jefferson, Foodtown in Bloomfield, Old Tappan, Washington Township, Elizabeth, and Bloomfield, Shop Rite in South Plainfield and Newark, Stop & Shop in Closter, Kinnelon, and South Orange, also took advantage of the recent big box availabilities. Other big box deals include Cost Plus World Market in Shrewsbury, Woodland Park and Paramus, Aldi in North Bergen, Edison, Freehold and Bloomfield, Bob’s Discount Furniture in Wharton, Hobby Lobby in Woodbridge, DSW in East Brunswick, and Raymour & Flanigan in Paramus and East Brunswick.

Many of the retailers we are so familiar with continue to expand their presence in New Jersey. Those who have recently opened locations or plan to open include: 7-Eleven in Jersey City, Little Ferry, and River Edge, Auto Zone in Wayne, Dollar Tree in Howell, Brick, Toms River, Green Brook and Fort Lee, Home Goods in Closter and Shrewsbury, and Sherwin Williams in West Windsor, Lacey, Butler, Shrewsbury, Hillsboro and Gillette, TJ Maxx in West Milford, Middletown and Woodbridge, and Whole Foods in Closter, Morristown, Newark and Metuchen.

Many retailers continue to expand in the very desirable NJ retail markets. Some of those include:

  • Verizon
  • Advance Auto
  • LA Fitness
  • CVS
  • Panera Bread
  • Crunch Fitness
  • Nordstrom Rack
  • Hand & Stone
  • Sherwin Williams
  • TJ Maxx
  • Investors Bank
  • Marshall’s
  • Carters
  • DSW
  • Pet Supplies Plus
  • Petsmart

Retail & Restaurant Trends

New Jersey’s long list of restaurant choices and eating establishments continues to grow as new restaurant concepts and established ones have opened or announced planned openings. Bare Burger in Closter, Buffalo Wild Wings in Marlboro and Flemington, Chick-Fil-A in Woodbridge, Jersey City, Chipotle in Holmdel, Habit Burger in Eatontown, West Windsor, River Edge and Parsippany, Jersey Mikes in Rutherford, Ledgewood, Pompton Plains, Raritan, and New Brunswick, McDonald’s in West Windsor, Panera Bread in Somerset, Englewood and East Hanover, Qdoba in Woodbridge, Starbucks in Edison, Park Ridge, Ridgewood and New Brunswick, Anthony’s Coal Fired Pizza in Englewood, and Zin Burger in Parsippany and Edison.

The fast casual dining segment, which includes restaurants such as Panera Bread, Chipotle, Habit Burger, and Smashburger will continue to expand throughout the state. People enjoy the fast service along with the much higher food quality and healthier food choices that fast casual provides in comparison to fast food, and as a result, fast casual dining is flourishing. Other restaurants, such as Buffalo Wild Wings, Texas Roadhouse and Red Robin continue to open up new sites in strategic locations in New Jersey.

Health and Wellness industry retailers continue to flourish in the Garden State. 24 Hour Fitness in Wayne and Avenel, Anytime Fitness in Somerset, Crunch Fitness in Old Bridge, Franklin Township, North Bergen and Morris Plains, Cycle Bar in Fort Lee and Closter, CKO Kickboxing in Marlboro and Ledgewood, LA Fitness in Union, Clifton and Kearny, Orange Theory Fitness in West Windsor, North Brunswick, Middletown and Bedminster, Planet Fitness in Marlboro and Brick, and Quest Fitness in Rutherford.

Medical storefronts continue to flourish. City Med, Doctor’s Office, Dr. Express, Eyes 1st Vision, The Joint, Kessler Rehab, and others continue to open new locations throughout New Jersey.

“New kids on the block” include numerous retailers and resturants that have decided to come to New Jersey for the first time to get into its very lucrative marketplace. 99 Ranch, Honeygrow, Primark, Seasons Kosher Market, Uncle Maddio’s Pizza, McAlisters Deli, Zoe’s Restaurant, B Good Restaurant, Amazing Lash, Bar Louie, Huddle House, The Halal Guys, and Top Golf all have opened New Jersey locations or have plans to.

Going Forward

Leasing activity in the Garden State the past 12 months is still quite brisk and a lot of the quality space is being leased. This is especially true in the stores sizes 10,000 sf feet and under. And many restaurant and traditional retailers are taking quality space when they can grab it. Although the vacancy rate crept up during mid-year, it was primarily a result of the big boxes that are still available. This is mostly due to the longer time period that it takes for a tenant to secure and open a large space. Thus, we are seeing big boxes gradually leasing up, even with all the big boxes spaces which were made vacant by the A&P/Pathmark bankruptcy, along with the Sport Authority closings in the summer and the additional closings of some Office Depot and Staples stores.

These spaces are being leased by new food market chains as well as the independent operators. Also there are many traditional hard goods, entertainment, and furniture retailers pursuing most of the vacant NJ Sports Authority sites and we expect to see most leased and opened within the next 12 months. We anticipate seeing the vacancy rate improve going forward. New Jersey, fortunately, continues to be one of the most desired state for retailers to do business in, with all its favorable demographics.

About The Goldstein Group

The Goldstein Group, New Jersey’s leading full-service commercial real estate brokerage firm, specializes in owner representation, retailer representation, investment sales and management services. The firm, founded in 1986, represents over 12,000,000 square feet of retail space and numerous national and regional retailers and restaurants. The Company is the New Jersey member of the Retail Brokers Network. As an RBN affiliate, The Goldstein Group provides clients assistance throughout the United States with qualified retail specialists in over 65 offices in the United States and Canada.

For more information on the Retail Brokers Network, visit www.retailbrokersnetwork.com.

For more information, contact Chuck Lanyard at (201) 703-9700, extension 115 or visit the Company’s website at www.thegoldsteingroup.com.

2015 Mid Year Vacancy Report Shows Retail Vacancy Rate Remains the Same

22 Retail Corridors, Totaling Over 4,250 Properties Surveyed

PARAMUS, N.J.(OCTOBER 5, 2015) –The retail vacancy rate has basically stayed the same for the first half of 2015 compared to our last survey done at the end of 2014, according to the results of The Goldstein Group’s end of year survey of 22 retail corridors in Northern and Central New Jersey. The survey, the most extensive retail vacancy report for New Jersey, totals over 4,250 properties and over 100 million square feet of retail space.  The retail vacancy rate is at 6.2 percent after the first half of 2015.  Retailers – both existing and new, coming to New Jersey for the first time – continue to lease retail space at a steady pace. New Jersey is still doing better in filling retail spaces, compared to the rest of the United States, where vacancies still average closer to 10% nationwide.

“With very little change in the vacancy rate for the past year, the 6.2% level is a welcome consistency,” noted Chuck Lanyard, President of The Goldstein Group. “Compared to the last recession when rates were close to 8-10%, and a lot more volatile, now the outlook continues to be promising.”

  tgg_2015_midyear_vacancyrate

Strongest & Weakest Submarkets

The strongest retail markets with the lowest availability rates include:  Route 17 – Rochelle Park-Rutherford (1.8%); Route 46 – Totowa-Fairfield (2.1%); Route 17 – Ramsey-Mahwah (2.8%); Route 1 – Woodbridge-Edison (3.4%); Route 35 – Hazlet-Middletown (4.3%)

Markets with the highest vacancy rates include: Route 10 – Morris Plains-Ledgewood (12.5%); Route 17 – Paramus (11.4%); Route 18 – East Brunswick (10.6%); Route 9 – Sayreville-Howell (8%); Route 70 – Brick (7.7%)

tgg_2015_midyear_highslows

“There was a continued increase in leasing activity through mid year of 2015 with several markets having minimal space available in corridors such as Route 17 Rochelle Park/Rutherford, Route 46 Totowa/Fairfield, Route 17 Ramsey/Mahwah, Route 1 Woodbridge/Edison, and Route 35 Hazlet/Middletown markets,” said Lanyard.  “Retailers that continue to expand in the state include Costco, Dollar Tree, CVS, Quick Chek, Panera Bread, Starbucks, Home Goods, WaWa, Walmart, T-Mobile, TJ Maxx, Marshall’s and Chipotle.”

Leasing velocity through mid 2015 totaled over 1.4 million square feet. Additionally, there’s nearly 1 million square feet of space currently being built and other projects in the planning stages throughout various communities in New Jersey including Paramus, Mahwah, Rochelle Park, Wayne, Livingston, Morris Plains, Ledgewood, Springfield, Edison, North Brunswick, East Brunswick, Sayreville, Howell, Eatontown, Ocean Township, Brick, Toms River, Montvale, Teterboro, Newark, Middletown and East Rutherford.

The Goldstein Group Vacancy Survey Matrix

tgg_2015_midyear_table

Although the retail market continues to improve after the recession that hit in 2008 and 2009, we still continue to see space become vacant due to closings throughout the state. Radio Shack, K-Mart, A&P, Pathmark, Gap, Valley National Bank, Staples and Marburn Curtains have all closed or announced planned closings of locations.

Active Retailers in the Marketplace

The majority of leasing activity continues to be driven by retailers opening small stores in the under 5,000 square feet range. However, there continues to be a substantial increase in big box retailers taking advantage of favorable market conditions and rental rates. Examples of this include Costco in Teterboro, Home Goods in Clark, Lord & Taylor Outlet in Paramus, Michael’s in Clark and Secaucus, Modell’s in Clark, Nordstrom Rack in Lawrence, Rockaway and Eatontown, Petsmart in Garfield and Kearny, REI in Lawrence, Walmart in Teterboro, and TJ Maxx in Linden and Woodbridge.

Many of the retailers we are so familiar with continue to expand their presence in New Jersey. Those who have recently opened locations or plan to open include: Aldi in Edison, Auto Zone in East Brunswick, Capital One in Edison, CVS in Howell, Dollar Tree in Colonia, Family Dollar in Newark, Hallmark in Clark, Great Clips in Brick and Parsippany, Mavis Tire in South Plainfield, Sherwin Williams in Hillsborough, Union City and Gillette, Payless in Bayonne, Quick Chek in Howell, Sprint in Linden, and Hand & Stone in Livingston, Pompton Lakes, Clifton, Woodbridge and Piscataway.

Many retailers continue to expand in the very desirable NJ retail markets. Some of those include:

  • Ulta
  • Costco
  • Verizon
  • Stop & Shop
  • Marshall’s
  • Vitamin Shoppe
  • Nordstrom Rack
  • CVS
  • BJ’s Wholesale Club
  • Aldi
  • WaWa
  • McDonald’s
  • Sherwin Williams
  • Shop Rite
  • Panera Bread
  • Dollar Tree
  • Whole Foods
  • Capital One
  • Modell’s
  • Quick Chek

Retail & Restaurant Trends

New Jersey’s long list of restaurant choices and eating establishments continues to grow as new restaurant concepts and established ones have opened or announced planned openings. Applebee’s in Clark, Blaze Pizza in Clark and Wayne Buffalo Wild Wings in Linden and Flemington, Chick Fil-A in Woodbridge, Anthony’s Coal Fired Pizza in Englewood, Chipotle in Howell, Clark and Lodi, Jersey Mike’s in Union and Wayne, Jimmy John’s in Ramsey, Longhorn Steakhouse in Kearny, Moe’s Southwest Grill in South Brunswick, Noodles & Company in Clark, Panera Bread in Clark, Parsippany, East Hanover Englewood and Old Bridge, Qdoba in Woodbridge, Smashburger in Clark, Englewood and Lodi, Starbucks in Newark, Subway in Edison, Hazlet and Wayne, Roy Rogers in Franklin and Flemington, Shake Shack in Bridgewater and Livingston, and Taco Bell in Kearny, Shrewsbury and Franklin.

The fast casual dining segment, which includes restaurants such as Panera Bread, Chipotle, Moe’s Southwest Grill, Blaze Pizza, Habit Burger, Noodles & Company, Pocket Pita and Smashburger will continue to expand throughout the state. People enjoy the fast service along with the much higher food quality and healthier food choices that fast casual provides in comparison to fast food, and as a result, fast casual dining is flourishing. Family dining, such as Anthony’s Coal Fired Pizza, Buffalo Wild Wings, and Applebee’s, also continue to open up new sites in strategic locations in New Jersey.

Health and Wellness industry retailers continue to flourish in the Garden State. Blink Fitness in Linden, CKO Kickboxing in Hillsborough, LA Fitness in Clark and West Orange, Planet Fitness in Hillsborough, and Title Boxing in Holmdel and Hackensack. Also, 24 Hour Fitness will soon open new sites in Wayne and Ramsey.

Medical storefronts continue to flourish. City Med, Doctor’s Express, The Doctor’s Office, Dr. Dental, Riverside Medical and others continue to open new locations throughout New Jersey.

“New kids on the block” include numerous tenants that have decided to come to New Jersey for the first time to get into its very lucrative marketplace. Macy’s Backstage, Pirch, Huddle House, Mellow Mushroom, Speedway Gas, Thomaston Feed, and Tim Horton’s all have opened New Jersey locations or have plans to.

Going Forward

“Although leasing activity has not been as robust as it once was, we are still seeing a continuous improvement in the marketplace year after year,” noted Lanyard.  “Retailers are still cautious as many continue to close underperforming locations throughout the state. However, retailers are continuing to expand, and fortunately, retail is still going strong in the garden state.”

One important segment of retail real estate continues to play out in New Jersey. The state’s larger big box stores will see considerable activity with the advent of big box spaces coming available when the A&P/Pathmark/Food Basics stores change hands. Acme and Stop & Shop, recently announced through bankruptcy approval that they have been awarded certain stores. The next round of bankruptcy approvals is scheduled for October. Fortunately, most of these New Jersey locations will probably be leased in a short time due to their prime locations in densely populated communities.

About The Goldstein Group

The Goldstein Group, New Jersey’s leading full-service commercial real estate brokerage firm, specializes in owner representation, retailer representation, investment sales and management services. The firm, founded in 1986, represents over 12,000,000 square feet of retail space and numerous national and regional retailers and restaurants. The Company is the New Jersey member of the Retail Brokers Network. As an RBN affiliate, The Goldstein Group provides clients assistance throughout the United States with qualified retail specialists in over 65 offices in the United States and Canada.

For more information on the Retail Brokers Network, visit www.retailbrokersnetwork.com.

For more information, contact Chuck Lanyard at (201) 703-9700, extension 115 or visit the Company’s website at www.thegoldsteingroup.com.

2014 Year End Vacancy Report Shows Retail Vacancy Rates at their Lowest in 5 Years

VACANCY RATE DROPS TO 6.2% IN REMAINING HALF OF 2014
22 RETAIL CORRIDORS, TOTALING OVER 4,250 PROPERTIES SURVEYED

PARAMUS, NJ (MARCH 31, 2015) – The retail vacancy rate continued to drop in 2014 according to the results of The Goldstein Group’s end of year survey of 22 retail corridors in Northern and Central New Jersey. The survey, the most extensive retail vacancy report for New Jersey, totals over 4,250 properties and over 100 million square feet of retail space.  The retail vacancy rate dropped to 6.2 percent in the 2nd half of 2014, which was similar to the decline in the first half of the year.  Retailers – both existing and new, coming to New Jersey for the first time – continue to lease retail space at a strong pace. This continued improvement is especially significant considering the average retail vacancy rates across the country are still hovering in the 10% range.

“The continued lowering of vacancy rates is good news for New Jersey’s economy. As the national economy continues to thrive, along with improving consumer confidence, national retail space vacancies have diminished, but not at the rate that New Jersey has experienced,” noted Chuck Lanyard, President of The Goldstein Group. “Hopefully this trend will continue throughout 2015. Over the past 6-7 years, no one enjoyed seeing so many store closings like we did. In addition, we were surprised when so many familiar retailers disappeared, such as Linen N’ Things, Circuit City, Borders Books & Music, Blockbuster Video, and Fortunoff’s. We finally are seeing stores leasing up at a very brisk pace—even spaces that were empty for over 5 years. In New Jersey, quality space is becoming a premium and as a result, we are seeing leasing rates creeping back up. It’s becoming somewhat of a landlords market again with landlords being more selective about which tenants they are choosing, and because of that tenants are not getting the same generous concessions like they did even just a year or two ago.”

 tgg_2014_endofyear_vacancyrate

Strongest & Weakest Submarkets

The strongest retail markets with the lowest availability rates include:  Route 17 – Ramsey-Mahwah (3.8%); Route 1 – Woodbridge-Edison (2.8%); Route 46 – Totowa-Fairfield (4.1%); Route 17 – Rochelle Park-Rutherford (1.9%); Route 37 – Toms River (3.9%).

Markets with the highest vacancy rates include: Route 18 – East Brunswick (11.6%); Route 17 – Paramus (11.3%); Route 10 – Morris Plains-Ledgewood (10.3%); Route 4 – Paramus (9.5%); Route 70 – Brick (7.8%).

tgg_2014_endofyear_highslows

“There was a continued increase in leasing activity throughout 2014 with several markets having minimal space available in corridors such as Route 17 Ramsey/Mahwah, Woodbridge/Edison Route 1, and the Rochelle Park/Rutherford Route 17 market,” said Lanyard.  “Retailers that continue to expand in the state include Sherwin Williams, 7-Eleven, Hobby Lobby, Whole Foods, Verizon, Auto Zone, Chipotle, CVS, Dick’s, Costco, McDonald’s, Raymour & Flanigan, Sherwin Williams, ShopRite, Starbucks, Target, T-Mobile, Panera Bread, Nordstrom Rack, WaWa, QuickChek, Advance Auto and Walmart.”

Leasing velocity throughout 2014 totaled over 5.2 million square feet. Additionally, there is over 1 million square feet of space currently being built and other projects in the planning stages throughout various communities in New Jersey including Paramus, Mahwah, Rochelle Park, Totowa, Livingston, Hanover, Montville, Union, Bridgewater, Woodbridge, North Brunswick, Lawrence, East Brunswick, Sayreville, Howell, Eatontown, Brick, and Toms River.

The Goldstein Group Vacancy Survey Matrix

tgg_2014_endofyear_table

Although the retail market continues to improve after the recession that hit in 2008 and 2009, we still continue to see space become vacant due to closings throughout the state. K-Mart, Acme, KFC, JC Penney’s, Sears, Let’s Yo Yogurt, Staples, Radio Shack, Citibank, and Mandee have all closed or announced planned closings of locations.

Active Retailers in the Marketplace

The majority of leasing activity continues to be driven by retailers opening small stores in the under 5,000 square feet range. However, there continues to be a substantial increase in big box retailers taking advantage of favorable market conditions and rental rates. Examples of this include BJ’s Wholesale Club in Howell, Dick’s Sporting Goods in Wayne, Costco in Raritan Township and Teterboro, DSW in Livingston, Foodtown in Bloomfield and Elizabeth, Harbor Freight in Eatontown, Huffman Koos in Freehold, Marshall’s in Hackettstown, Nordstrom Rack in Wayne, Princeton, Livingston and Eatontown, Raymour & Flanigan in Bridgewater and North Brunswick, REI in Lawrence, Sports Authority in Ramsey, ShopRite in Wallington, Buy Buy Baby in Livingston, and Whole Foods in Morristown.

Many of the retailers we are so familiar with continue to expand their presence in New Jersey. Those who have recently opened locations or plan to open include: 7-Eleven in River Edge and Livingston, AAA in Lawrence Township and Middletown, Auto Zone in Old Bridge, Sherwin Williams in Fair Lawn, Ledgewood, Hackensack and Hillsdale, Capital One in Fort Lee, Dollar General in Hackettstown and Howell, Gap in North Bergen, Hand & Stone in Pompton Lakes, Clifton and Livingston, Kay Jewelers in East Windsor and Paramus, Ulta in Livingston, UPS in East Brunswick, Verizon in Ledgewood and Old Bridge, Walgreens in Tinton Falls, and Zales Jewelry in Paramus.

Many retailers continue to expand in the very desirable NJ retail markets. Some of those include:

  • Whole Foods
  • Target
  • DSW
  • WaWa
  • Panera Bread
  • Shop Rite
  • UPS
  • Sherwin Williams
  • TJ Maxx
  • Modells
  • Hobby Lobby
  • Nordstrom Rack
  • REI
  • QuickChek
  • Marshall’s
  • Kay Jewelers
  • Dunkin Donuts
  • Costco
  • T-Mobile
  • CVS

Retail & Restaurant Trends

New Jersey’s long list of restaurant choices and eating establishments continues to grow as new restaurant concepts and established ones have opened or announced planned openings. Buffalo Wild Wings in Toms River, Chipotle in Brick, Newark, West Orange, and Lodi, Chocolate Works in Upper Montclair, Dunkin Donuts in Clark, Clifton, Livingston and Roseland, Firehouse Subs in Wayne, Five Guys in Rockaway, Hardee’s in Franklin Township, Jersey Mike’s in East Hanover, West Orange, Warren, Wayne, Ramsey and Northvale, Jimmy John’s in Parsippany, Union and Upper Montclair, McDonald’s in Lawrence Township, Miller’s Ale House in Woodbridge, Shake Shack in Bridgewater, Starbucks in Green Brook, Wayne, Howell, Old Bridge and Rutherford, Smashburger in Lawrence, East Windsor, Piscataway, Toms River and Totowa, 16 Handles in Livingston and Fort Lee, and Tilted Kilt in South Brunswick and Bloomfield.

The fast casual dining segment, which includes restaurants such as Chipotle, Panera Bread, Shake Shack, Smash Burger, Qdoba and Corner Bakery, will continue to expand throughout the state. People enjoy the fast service along with the much higher food quality and healthier food choices that fast casual provides in comparison to fast food, and as a result, fast casual dining is flourishing.

Health and Wellness industry retailers continue to flourish in the Garden State. Blink Fitness in Clifton, CKO Boxing in Wayne, East Brunswick and Springfield, Planet Fitness in Belleville, East Orange, Hillsborough and Plainsboro, LA Fitness in West Orange, and Retro Fitness in Jersey City, Kenvil, Parsippany and Rockaway.

Medical tenants continue to open facilities in traditional retail spaces and shopping centers although we have seen this market start to hit a plateau compared to the steady increase we had seen in recent years. City Med, Doctor’s Express, MedExpress, and PM Pediatrics all have opened stores in the past year or are about to open stores in New Jersey as landlords have become more receptive to their tenancy than in the past.

“New kids on the block” include numerous tenants that have decided to come to New Jersey for the first time to get into its very lucrative marketplace. Price Right supermarkets, a division of Shop Rite, Spavia Day Spa, Habitat Burger, Texas Roadhouse, Zounds, Choice Pets, BJ’s Brewhouse, Blaze Pizza, and Firebirds restaurants all have opened New Jersey locations or home plans.

Going Forward

“While we still have a ways to go before the market returns back to its original healthy strength before the economic downturn that hit retailers in 2008, the continuous drop in the New Jersey vacancy rate is reassuring and confirms consumer confidence is back as national retailers continue their ongoing expansion plans.” noted Lanyard.  “There are a variety of reasons New Jersey continues to be one of the most desired states for retailers to expand and open up shop. With qualities like affluent demographics and densely populated marketplaces, these are just a few of the main reasons things are continuing to look up for New Jersey as far as retail goes. We saw over a half percent drop in the NJ vacancy rate from just 1 year ago and hope to see this rate gradually decline in 2015 as well.”

About The Goldstein Group

The Goldstein Group, New Jersey’s leading full-service commercial real estate brokerage firm, specializes in owner representation, retailer representation, investment sales and management services. The firm, founded in 1986, represents over 12,000,000 square feet of retail space and more than 50 national and regional retailers. The Company is the New Jersey member of the Retail Brokers Network. As an RBN affiliate, The Goldstein Group provides clients assistance throughout the United States with qualified retail specialists in over 65 offices in the United States and Canada.

For more information on the Retail Brokers Network, visit www.retailbrokersnetwork.com.

For more information, contact Chuck Lanyard at (201) 703-9700, extension 115 or visit the Company’s website at www.thegoldsteingroup.com.

Northern & Central NJ Vacancy Rate Continues to Drop as Job Market Continues to Rise

VACANCY RATE DROPS BELOW 6.5%
22 RETAIL CORRIDORS, TOTALING OVER 4,250 PROPERTIES SURVEYED

PARAMUS, NJ (SEPTEMBER 3, 2014) – The retail vacancy rate is at its lowest for the first time in 5 years according to the results of The Goldstein Group’s mid-year survey of 22 retail corridors in Northern and Central New Jersey. The survey, the most extensive retail vacancy report for New Jersey, totals over 4,250 properties and over 100 million square feet of retail space.  The retail vacancy rate dropped to 6.38 percent, a sixth of a percentage point drop from the previous vacancy report in January 2014.  Retailers – both existing and new, coming to New Jersey for the first time – continue to lease retail space at a strong pace. This continued improvement is especially significant considering the average retail vacancy rates across the country are still hovering in the 10% range.

“This is the lowest retail vacancy percentage we’ve seen in the Northern and Central New Jersey markets in over 5 years,” noted Chuck Lanyard, President of The Goldstein Group.

 tgg_2013_endyear_vacancy

Strongest & Weakest Submarkets

The strongest retail markets with the lowest availability rates include:  Route 3 – Clifton (1.9%); Route 1 – Woodbridge-Edison (2.2%); Route 17 – Rochelle Park-Rutherford (2.8%); Route 37 – Toms River (3.5%); Route 35 – Hazlet-Middletown (4.52%).

Markets with the highest vacancy rates include: Route 18 – East Brunswick (11.7%); Route 4 – Paramus (10.7%); Route 10 – Morris Plains-Ledgewood (8.8%); Route 17 – Paramus (8.7%); Route 70 – Brick (8.2%).

tgg_2013_endyear_highlow

“As expected, there was a continued increase in leasing activity throughout the first half of 2014 with several markets having minimal space available in corridors such as Clifton Route 3, Woodbridge/Edison Route 1 and the Route 17 Rochelle Park/Rutherford market,” said Lanyard.  “Well established retailers that continue to expand in the state include Whole Foods, Verizon, Vitamin Shoppe, 7-Eleven, Advance Auto, Chipotle, Bob’s Discount Furniture, Sherwin Williams, GNC, Dunkin Donuts, CVS, Costco, Hobby Lobby, IHOP, Planet Fitness, Sleepy’s, Subway, Walgreens and Target.”

Leasing velocity throughout 2014 totaled over 3.7 million s.f., with over 1.8 million s.f. of space currently being built in various communities such as Paramus, Ramsey, Mahwah, Rochelle Park, Rutherford, Totowa, Fairfield, Morris Plains, Ledgewood, Montville, Rockaway, Union, Springfield, Woodbridge, Edison, North Brunswick, Lawrence Township, East Brunswick, Sayreville, Howell, Shrewsbury, Ocean, Brick and Toms River.

The Goldstein Group Vacancy Survey Matrix

tgg_2013_endyear_table

While the retail market continues to improve after the recession that hit in 2008 and 2009, we continue to see space become vacant due to closings throughout the state. Staples, Thomasville Furniture, Dots, Ashley Stewart, Brookstone, Family Dollar, Loehman’s, Mandee, Marty’s, Office Depot, Pearle Paint, Rent-a-Center, White Castle, Arby’s, and Crumbs have all closed or announced planned closings of locations.

Active Retailers in the Marketplace

The majority of leasing activity continues to be driven by retailers opening small stores in the under 5,000 s.f. range. However, this has been a substantial increase in big box retailers taking advantage of favorable market conditions and rental rates. Examples of this include Ashley Furniture in Green Brook, Costco in North Brunswick, Bob’s Discount Furniture in Freehold, Bloomingdale’s Furniture in Wayne, Big Lots in Ocean and North Bergen, BJ’S Wholesale Club in Howell, Aldi in Lodi, DSW in Livingston, Ethan Allen in Marlboro, Hobby Lobby in Howell, Phillipsburg, Totowa and Woodbridge, Nordstrom Rack in Livingston, Pet Supplies Plus in Rockaway and Wall, Petsmart in Edison, Price Rite Supermarket in Garfield, Target in North Brunswick, and Shop Rite in Howell, Belleville, Union and Wallington.

Many of the retailers we are so familiar with continue to expand their presence in New Jersey. Those who have recently opened locations or plan to open include: 7-Eleven in Toms River, AAA in East Brunswick and Ledgewood, Advance Auto in South Plainfield, Middletown and Parsippany, Dollar Tree in Elizabeth, CVS in Ocean, South Orange and West Orange, GNC in Union, Goodwill in Elmwood Park, Guitar Center in Ocean, Hand & Stone in Howell, Five Below in Howell, Investors Bank in Garfield, Massage Envy in Fair Lawn, QuickChek in Wayne and Ocean, Sally Beauty Supply in Howell, Staples in North Brunswick, Verizon in Fair Lawn and Marlboro, Vitamin Shoppe in Marlboro, Walgreens in Manchester and Wawa in Garfield, Lawrence and Howell.

Many retailers continue to expand in the very desirable NJ retail markets. Some of those include:

  • Whole Foods
  • Target
  • DSW
  • Petco
  • Sherwin Williams
  • Shop Rite
  • Mavis Tire
  • CVS
  • TJ Maxx
  • Joseph A Bank
  • REI
  • Ethan Allen
  • GNC
  • Sleepy’s
  • 7-Eleven
  • Advance Auto
  • AC Moore
  • Enterprise
  • Costco
  • Walgreens

Retail & Restaurant Trends

New Jersey’s long list of restaurant choices and eating establishments continues to grow as new restaurant concepts and established ones have opened or announced planned openings. Anthony’s Coal Fired Pizza in Wayne, Livingston and Fair Lawn, Bonefish Grill in Manalapan, Buffalo Wild Wings in Toms River and Woodbridge, Chipotle in Parsippany, Chocolate Works in Millburn and Livingston, Cups in Fair Lawn and Manalapan, Dunkin Donuts in Holmdel, Golden Corral in Freehold, Houlihan’s in Parsippany, Jersey Mike’s in Ramsey and Northvale, Jimmy John’s in Roseland, Lodi, Union and Montclair, Just Salad in Wayne, Let’s Yo in Parsippany, Noodles & Company in Fair Lawn, Qdoba in Woodbridge and Fair Lawn, Quaker Steak & Lube Restaurant in Edison and Phillipsburg, Red Robin in Brick, Shake Shack in Paramus, Smashburger in Edison, Toms River, Totowa, Lawrence and Neptune, Starbucks in Cranford, Fair Lawn and Toms River, Subway in Woodbridge, Taco Truck in Morristown, Texas Roadhouse in Holmdel, and Tilted Kilt in Hamilton.

The fast casual dining segment, which includes restaurants such as Panera Bread, Chipotle, Smash Burger, Noodles & Company, and Shake Shack will continue to expand throughout the state. People enjoy the fast service along with the much higher food quality and healthier food choices that fast casual provides in comparison to fast food, and as a result, fast casual dining is flourishing.

Health and Wellness industry retailers continue to flourish in the Garden State. 24 Hour Fitness in Ramsey, Blink Fitness in Clifton and Lodi, CKO Boxing in Green Brook, LA Fitness in East Brunswick, Planet Fitness in East Orange and Somerset, Powerflow Yoga in Wayne, and Title Boxing in Hillsdale.

Medical tenants continue to open facilities in traditional retail spaces and shopping centers although we have seen this market start to hit a plateau compared to the steady increase we had seen in recent years. Med Express, PM Pediatrics, Doctors Express and City MD all have opened stores in the past year or are about to open stores in New Jersey as landlords have become more receptive to their tenancy than in the past.

Going Forward

“Though consumer confidence continues to improve, we still have a ways to go before the market returns back to its original healthy strength before the economic downturn that hit retailers in 2008.” noted Lanyard.  “We will still see cautious optimism on behalf of many national retailers in their plans to continue opening stores in New Jersey. However, fortunately New Jersey continues to be one of the most desired states for retailers due to its strong demographics. Things are really looking up for New Jersey as far as retail goes. 2014 has continued to shape up to be a great year for retail space being leased with desirable retail locations now reaching a new premium.”

Going forward

“Consumer confidence continues to rise with our improving economy as results have shown a continuing decrease in New Jersey’s retail vacancy rate.” noted Lanyard.  “These numbers confirm that the retail climate is improving. We will still have some retailers who will conservatively wait for a more sustained improvement, but, all in all, 2014 looks to be another good year for retail space being leased, and as a result, desirable retail locations will soon be at a premium.”

About The Goldstein Group

The Goldstein Group, New Jersey’s leading full-service commercial real estate brokerage firm, specializes in owner representation, retailer representation, investment sales and management services. The firm, founded in 1986, represents over 12,000,000 square feet of retail space and more than 50 national and regional retailers. The Company is the New Jersey member of the Retail Brokers Network. As an RBN affiliate, The Goldstein Group provides clients assistance throughout the United States with qualified retail specialists in over 65 offices in the United States and Canada.

For more information on the Retail Brokers Network, visit www.retailbrokersnetwork.com.

For more information, contact Chuck Lanyard at (201) 703-9700, extension 115 or visit the Company’s website at www.thegoldsteingroup.com.

Retail Real Estate Market in Northern & Central NJ Continues to See Drop in Retail Vacancy

VACANCY RATE DROPS UNDER 7%
22 RETAIL CORRIDORS, TOTALING OVER 4,250 PROPERTIES SURVEYED

PARAMUS, NJ (APRIL 21, 2014) – The retail vacancy rate has dropped under 7% for the first time in 5 years according to the results of The Goldstein Group’s year end survey of 22 retail corridors in Northern and Central New Jersey. The survey, the most extensive retail vacancy report for New Jersey, totals over 4,250 properties and over 100 million square feet of retail space.  The retail vacancy rate dropped to 6.9 percent, a .3 percent decrease from what we saw in the 2013 midyear report.  Retailers – both existing and new, coming to New Jersey for the first time – continue to absorb retail space. This continued improvement is especially significant considering the average retail vacancy rates across the country are still in the 10-12% range.

“This is the lowest retail vacancy percentage we’ve seen in the Northern and Central New Jersey markets in over 5 years,” noted Chuck Lanyard, President of The Goldstein Group.

 tgg_2013_endyear_vacancy

Strongest & Weakest Submarkets

The strongest retail markets with the lowest availability rates include:  Route 3 – Clifton (1.9%); Route 1 – Woodbridge-Edison (2.8%); Route 17 – Rochelle Park-Rutherford (2.99%); Route 37 – Toms River (3.79%); Route 46 – Montville-Rockaway (4.72%).

Markets with the highest vacancy rates include: Route 10 – Livingston-East Hanover (12.39%); Route 18 – East Brunswick (11.4%); Route 4 – Paramus (10.89%); Route 17 – Paramus (10.22%); Route 35 – Shrewsbury-Ocean (9.1%).

tgg_2013_endyear_highlow

“There was a substantial increase in leasing activity throughout 2013 with several markets having minimal space available in corridors such as Clifton Route 3, Woodbridge/Edison Route 1 and the Route 46 Montville/Rockaway market,” said Lanyard.  Well established retailers that continue to expand in the state include Costco, Marshalls, Whole Foods, Walmart, Big Lots, Hobby Lobby, Target, Stop & Shop, Petsmart, GNC, Home Goods, Dollar Tree, Planet Fitness, Ethan Allen, and Harbor Freight.”

Leasing velocity through 2014 totaled over 1.5 million s.f., with over 800,000 s.f. of space currently being built in various communities such as Paramus, Ramsey, Mahwah, Rochelle Park, Rutherford, Morris Plains, Ledgewood, Montville, Rockaway, Union, Springfield, North Brunswick, Lawrence Township, East Brunswick, Sayreville, Howell, Shrewsbury, Ocean Township, and Brick Township.

The Goldstein Group Vacancy Survey Matrix

tgg_2013_endyear_table

The market has continued to rise over the past two years from the downturn that hit retailers in 2008 and 2009. However, we still continue to see space become vacant due to closings throughout the state. Shop Rite, Rite Aid, Capital One, Children’s Place, Lenscrafters, Loehman’s, Sleepy’s, Staples, Stop & Shop, Radio Shack, Dots, and Thomasville Furniture have all closed or announced planned closings of locations and these vacated spaces are generating strong interest from retailers.

Active Retailers in the Marketplace

Leasing activity continues to be driven by retailers opening shops in the 1,000 to 5,000 s.f. range. However, we have seen a substantial increase in big box retailers taking advantage of favorable market conditions and rental rates. Examples of this include Ashley Furniture in Toms River, Buy Buy Baby in Livingston, Costco in Plainfield and North Brunswick, Home Goods in Philipsburg and Flemington, Marshalls in Garfield and Philipsburg, Petsmart in Edison, TJ Maxx in Totowa, Walmart in East Brunswick and Old Bridge, Big Lots in Woodbridge, Bob’s Discount Furniture in Freehold, Hobby Lobby in Lawrence, Philipsburg and Totowa, and Whole Foods in Newark, Cherry Hill, Closter, Clark, Morristown, Parsippany and Marlboro.

Other active retailers include: Auto Zone in East Brunswick, Ethan Allen in Marlboro, Guitar Center in Ocean Township, Ace Hardware in Chatham, Advance Auto Parts in Old Bridge, Fortunoff Backyard in Brick Township, Buddy’s Small Lots in Oakhurst and Mansfield, Hand & Stone in Allendale, Pet Supplies Plus in Rockaway, and Rent-a-Center in Hazlet.

Many retailers continue to expand in the very desirable NJ retail markets. Some of those include:

  • Walmart
  • Wawa
  • Auto Zone
  • Costco
  • Marshall’s
  • TJ Maxx
  • Starbucks
  • Buy Buy Baby
  • Stop & Shop
  • Big Lots
  • AT&T
  • Hobby Lobby
  • Dollar Tree
  • CVS
  • Walgreens
  • QuickChek
  • GNC
  • Harbor Freight
  • Hand & Stone
  • Massage Envy

Retail & Restaurant Trends 

New Jersey’s long list of restaurant choices and eating establishments continued to grow as new restaurant concepts and established ones have opened or announced planned openings. Chipotle in Lodi, Newark and West Orange, Buffalo Wild Wings in Secaucus and Parsippany, Moe’s Southwest Grill in Florham Park, Joe’s Crab Shack in Newark, Starbuck’s in Cranford, Fair Lawn, New Providence, Somerville and Toms River, Panera Bread in Wayne and Riverdale, Qdoba in Fair Lawn and Watchung, Red Robin in Paramus and Secaucus, Shake Shack in Paramus, Bonefish Grill in Manalapan, Noodles & Company in Eatontown, and IHOP in Howell.

Health and Wellness industry retailers continue to flourish in the Garden State. Blink Fitness in Union and Parsippany, Crunch Fitness in Woodbridge and North Brunswick, LA Fitness in East Brunswick, Lifetime Fitness in Montvale, Retro Fitness in West Orange, 24 Hour Fitness in Ramsey, Anytime Fitness in Oak Ridge and Planet Fitness in Linden, Somerset, and South Plainfield.

Also, medical tenants continue to open facilities in traditional retail spaces and shopping centers more and more. Doctors Express, MedEx, The Doctors Office, PM Pediatrics, City MD, Dr. Dental, and Vein Clinics USA all have opened stores in the past year or are seeking sites as landlords are much more receptive to their tenancy than in the past.

Going forward

“Consumer confidence continues to rise with our improving economy as results have shown a continuing decrease in New Jersey’s retail vacancy rate.” noted Lanyard.  “These numbers confirm that the retail climate is improving. We will still have some retailers who will conservatively wait for a more sustained improvement, but, all in all, 2014 looks to be another good year for retail space being leased, and as a result, desirable retail locations will soon be at a premium.”

About The Goldstein Group

The Goldstein Group, New Jersey’s leading full-service commercial real estate brokerage firm, specializes in owner representation, retailer representation, investment sales and management services. The firm, founded in 1986, represents over 12,000,000 square feet of retail space and more than 50 national and regional retailers. The Company is the New Jersey member of the Retail Brokers Network. As an RBN affiliate, The Goldstein Group provides clients assistance throughout the United States with qualified retail specialists in over 76 offices in the United States and Canada.

For more information on the Retail Brokers Network, visit www.retailbrokersnetwork.com.

For more information, contact Chuck Lanyard at (201) 703-9700, extension 115 or visit the Company’s website at www.thegoldsteingroup.com.

Retail Real Estate Market in Northern & Central NJ Sees Biggest Drop in Retail Vacancy in Over 4 Years

VACANCY RATE DROPS OVER ½ PERCENT IN 6 MONTHS
22 RETAIL CORRIDORS, TOTALING OVER 4,250 PROPERTIES SURVEYED

PARAMUS, NJ (OCTOBER 21, 2013) – The retail vacancy rate has dropped over a half percent according to the results of The Goldstein Group’s midyear survey of 22 retail corridors in Northern and Central New Jersey. The survey, the most extensive retail vacancy report for New Jersey, totals over 4,250 properties and over 100 million square feet of retail space.  The retail vacancy rate dropped to 7.2 percent, a .6 percent decrease from what we saw in the 2012 year end report.  Retailers – both existing and new retailers coming to New Jersey for the first time – continue to absorb retail space. This improvement is especially significant considering the average retail vacancy rates across the country are still in the 10-12% range.

“This is the lowest retail vacancy percentage we’ve seen in the Northern and Central New Jersey markets in over 4 years,” noted Chuck Lanyard, President of The Goldstein Group.  “To have this number drop in a matter of six months provides an indication that our economy is improving, although very cautiously.”

Strongest & Weakest Submarkets

The strongest retail markets with the lowest availability rates include:  Route 3 – Clifton (2.27%); Route 17 – Rochelle Park-Rutherford (2.64%); Route 1 – Woodbridge-Edison (3.72%); Route 37 – Toms River (4%); Route 17 – Ramsey/Mahwah (4.7%).

Markets with the highest vacancy rates include: Route 18 – East Brunswick (11.9%); Route 10 – Livingston-East Hanover (11.3%); Route 17 – Paramus (10.53%); Route 35 – Shrewsbury-Ocean (10.35%); Route 46 – Totowa/Fairfield (8.73%).

tgg_2013_midyear_highlow

“There was a substantial increase in leasing activity through midyear of 2013 with several markets having minimal space available in corridors such as the Clifton Route 3 and Rochelle Park/Rutherford Route 17 markets,” said Lanyard.  “The Route 18 East Brunswick market alone dropped from 18.3% to 11.9%, a 6.4% decrease in retail vacancy within the span of 6 months. With the opportunities that have come up along the various retail highways, new to New Jersey retailers/restaurants such as Hobby Lobby, Gold & Williams Furniture, Brio Restaurants, Garbanzo Mediterranean Grill, Noodles & Co. Restaurant, Potbelly, Shake Shack Restaurant, Title Boxing, Seansons 52 Restaurant and numerous others have opened, or will soon open new locations throughout the state. Well established retailers that continue to expand in the state include Home Goods, Costco, Aldi, Advance Auto, Shop Rite, BJ’s Wholesale Club, TJ Maxx, Auto Zone, Joanne Fabrics, CVS, Walgreens, LA Fitness and 7-Eleven.”

Leasing velocity through midyear of 2013 totaled over 1.5 million s.f., with over 800,000 s.f. of space currently being built in various communities such as North Brunswick, Hanover, Newark, Old Bridge, North Plainfield, East Brunswick, Lodi, Wayne, Montvale, and West Windsor.

The Goldstein Group Vacancy Survey Matrix

tgg_2013_midyear_table

The market is continuing to rise up from the downturn that hit retailers in 2008 and 2009. However, we still continue to see space become vacant due to closings throughout the state. Sears Auto, Baja Fresh, Bank of America, Blockbuster, Clearview Cinemas, PNC Bank, and Radio Shack have all closed locations recently and these vacated spaces are generating strong interest from retailers.

Active Retailers in the Marketplace

Leasing activity continues to be driven by retailers opening shops in the 1,000 to 5,000 s.f. range. However, we have seen a substantial increase in big box retailers taking advantage of favorable market conditions and rental rates. Examples of this include Big Lots and Bob’s Discount Furniture in Freehold, BJ’s Wholesale Club in North Brunswick, Costco in North Plainfield, DSW Shoes in Eatontown, Foodtown in Bloomfield, Hobby Lobby in Lawrenceville and Marlboro, Boscov in Woodbridge, LA Fitness in Paramus, Whole Foods in Marlboro, Lowe’s Express in Wall, Steinmart in Watchung, Shop Rite in Hazlet and Union, TJ Maxx in Totowa, and Home Goods in Lyndhurst. Also in the planning stages, a new Target is slated to open in late 2014 in North Brunswick.

Some medium box deals so far this year include: Bottom Dollar in East Windsor, Dollar Tree in Elmwood Park, Fresh Market in Bedminster, Harbor Freight in Hasbrouck Heights, Joann Fabrics in Riverdale, Key Foods in Newark/South Amboy, and Lord & Taylor Outlet in Shrewsbury.

Many retailers continue to expand in the very desirable NJ retail markets. Some of those include:

  • 7-11
  • Advance Auto
  • Big Lots
  • Auto Zone
  • Chipotle
  • Blink Fitness
  • Harbor Freight
  • Costco
  • Pet Supplies Plus
  • QuickChek
  • LA Fitness
  • Dollar Tree
  • Walmart
  • Home Goods
  • Dollar General
  • Wawa
  • Massage Envy
  • Buddy’s Small Lots
  • Sherwin Williams
  • Verizon
  • CVS
  • Walgreens

Retail & Restaurant Trends 

New Jersey’s long list of restaurant choices and eating establishments continued to grow as new restaurant concepts and established ones have opened or announced planned openings. Red Robin in Paramus and Secaucus. Chipotle in Lawrenceville and Toms River. Qdoba in Jersey City, Freehold and Livingston. Bahama Breeze in Toms River and West Windsor. Bare Burger in Edgewater and Hoboken. Smashburger has opened in Brick and North Brunswick. Brio in Lawrenceville. Garbanzo Mediterranean Grill in Florham Park. Chick Fil-A in Woodbridge. Noodles & Company in East Brunswick. Panera Bread in Clifton. Potbelly Sandwich in Paramus and Jersey City. Quaker Steak & Lube in Edison and Brick. Starbucks in Eatontown. Outback Steakhouse in Lawrenceville. Bonefish Grill in Lawrenceville.

Convenience stores are also continuing their expansions throughout New Jersey. 7-Eleven in Carlstadt, Edison, Hackensack, North Arlington and West New York. Wawa in Elizabeth, Woodbridge, Lodi and Ramsey. QuickChek in Wayne, Jefferson Township and Hanover.

Health and Wellness industry retailers continue to flourish in the Garden State. Blink Fitness in Union, Lodi, Parsippany and Jersey City. Crunch Fitness in Stanhope and Garwood. Equinox in Paramus. Planet Fitness in Hazlet and Freehold. Retro Fitness in East Windsor. Nobody Denied Fitness opened in Morristown. Life Time Fitness in Montvale. Equinox in Paramus. Hackensack UMC Fitness & Wellness in Maywood.

Going forward

“The recovery of the retail market in New Jersey is continuing to grow at a fairly good pace,” noted Lanyard.  “These numbers confirm that the retail climate is improving. Road blocks to a faster recovery have been reluctance from some retailers to wait for a more sustained improvement. That coupled with the continued difficulty of securing the much needed financing to fund retailers along with the current U.S. Congress fiscal issues, will continue to be a deterrent to rapid retail growth as we saw before the recession. One thing is certain despite the roadblocks, good quality retail spaces are leasing up briskly and the desirable retail locations will soon be at a premium.”

About The Goldstein Group

The Goldstein Group, New Jersey’s leading full-service commercial real estate brokerage firm, specializes in owner representation, retailer representation, investment sales and management services. The firm, founded in 1986, represents over 12,000,000 square feet of retail space and more than 50 national and regional retailers. The Company is the New Jersey member of the Retail Brokers Network. As an RBN affiliate, The Goldstein Group provides clients assistance throughout the United States with qualified retail specialists in over 75 offices in the United States and Canada.

For more information on the Retail Brokers Network, visit www.retailbrokersnetwork.com.

For more information, contact Chuck Lanyard at (201) 703-9700, extension 115 or visit the Company’s website at www.thegoldsteingroup.com.

Retail Real Estate Market in Northern & Central NJ See Small Increase in Leasing Velocity

RETAIL REAL ESTATE MARKET IN NORTHERN & CENTRAL NJ SEE SMALL INCREASE IN LEASING VELOCITY

Vacancy Rate Maintains Below 8%

22 Retail Corridors, Totaling Over 4,250 Properties Surveyed

PARAMUS, N.J. (March 1, 2013) – “Status Quo” characterizes the sustained minimal improvement of retail space leasing up in New Jersey. According to the results of The Goldstein Group’s year end survey of 22 retail corridors in Northern and Central New Jersey, totaling over 4,250 properties and over 98 million s.f of retail space. As of December 2012, the State’s retail vacancy rate remained at approximately 7.8 percent virtually the same as we saw in 2012 midyear report. Retailers – both existing and many new retailers setting-up shop in the State for the first time – continue to absorb retail space at a steady pace.

“The Northern and Central New Jersey retail real estate market continues to improve but it is still a ‘tenants’ market,” noted President Chuck Lanyard of The Goldstein Group. “Opportunistic retailers are leasing at attractive rental rates and securing locations by taking advantage of market conditions.”

Vacancy Rate

Strongest & Weakest Submarkets

The strongest retail markets with the lowest availability rates include: Route 3 – Clifton (2.3%); Route 17 – Rochelle Park-Rutherford (2.3%); Route 1 – Woodbridge-Edison (3.8%); Route 22 – Union-Springfield (4.5%); Route 37 – Toms River (4.7%); Route 1 – North Brunswick-Lawrence Township (5%); Route 17 – Ramsey-Mahwah (5%); Route 35 – Hazlet-Middletown (6%); Route 46 – Montville-Rockaway (6.4%); Route 9 – Sayreville-Howell (7.5%).

Markets with the highest vacancy rates include: Route 18 – East Brunswick (18%); Route 10 – Livingston-East Hanover (12.6%); Route 17 – Paramus (11.4%); Route 35 – Shrewsbury-Ocean (10.5%); Route 46 – Totowa/Fairfield (9%). Northern New Jersey markets historically continue to fare stronger in terms of demand and lower vacancy rates while several Central New Jersey markets continue to experience lackluster leasing velocity.

HIghsLows Slided

“The stronger submarkets saw a flurry of leasing activity in 2012 with several having little remaining space available in such corridors as the Paramus Route 4 and Clifton Area Route 3 markets. Larger blocks of space have been absorbed in these markets,” said Lanyard. “Also, the mix of tenants is changing. 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. 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.”

Leasing velocity through the end of 2012 totaled more than 3.1 million s.f., a considerable increase over prior years. Exciting construction and redevelopment projects are moving forward currently in Sayreville, Newark, North Plainfield, East Brunswick, Wayne, Fort Lee and North Brunswick.

The Goldstein Group Vacancy Survey Matrix

Vacancy rate chart overall Jan-Feb 2013

The market still appears to continue its slow recovery from the downturn that hit retailers in 2008 and 2009. However, we continue to see blocks of space become vacant, such as Electronics Expo, Loehmans, 6th Ave Electronics, Staples, A&P, Barnes & Noble, Daffy’s, Lord & Taylor Home Stores, Sleepy’s, Blockbuster Video and Fashion Bug. These all continue to impact on certain markets.

Active Retailers in the Marketplace

Leasing activity continues to be driven by retailers opening shops in the 1,000 to 5,000 s.f. range. However, large box retailers are taking advantage of favorable market conditions and rental rates. While A&P and Pathmark continue to close excess stores, this has given large box retailers and other grocers new large box opportunities to relet in New Jersey. Examples of this include the recently approved Costco in North Plainfield, ShopRite in Wyckoff, and Whole Foods in Morristown which we can expect to see open in the future. Two new Wegmans sites are going through the approval process in Morris Plains and Montvale. Also in the planning stages a new Whole Foods which is slated to open on Route 46 in Parsippany at a new shopping center site. Whole Foods is also under construction on Route 9 in Marlboro.

Other big box deals this year include: Pennsylvania based Weis Supermarkets in Hillsborough, a new ShopRite on Route 35 in Hazlet, Dicks Sporting Goods in South Plainfield and BJ’s Wholesale Club in North Brunswick.

Many retailers continue to expand in the very desirable NJ retail markets. Some of those include:

  • 7-11
  • Advance Auto
  • Big Lots
  • Chase Bank
  • Chipotle
  • Children’s Place
  • Corner Bakery
  • Ulta
  • Carters
  • Dollar Tree
  • Hand & Stone
  • Home Goods
  • Dollar General
  • Joe’s Crab Shack
  • Massage Envy
  • European Wax Center
  • Sherwin Williams
  • Verizon

Retail & Restaurant Trends

New Jersey’s long list of restaurant choices and eating establishments continued to grow as new restaurant concepts have opened while others expanded. Chipotle has opened locations in South Plainfield, Madison, Toms River and West Windsor. Joe’s Crab Shack will be opening in Newark and Brick. Smashburger, another of the fast casual restaurants and a client of The Goldstein Group, has recently opened a restaurant in East Brunswick. Zinburger, Subway, Sonic, Pot Belly, Popeyes, Quakersteak & Lube and Chick-Filet all also continue to expand.

Convenience stores continue to thrive in New Jersey. Convenience stores combined with gas pumps keep opening in New Jersey. A new QuickChek is under construction in Jefferson and Wawa has opened locations in Kearny and Woodbridge and has a new site in Old Bridge under construction. Wawa and QuickChek also have numerous new sites in for approval with anticipated openings in 2014. 7-Eleven, a client of The Goldstein Group, opened stores in East Brunswick, North Arlington, West Orange and North Plainfield.

Frozen yogurt establishments continue to open more locations in many markets in New Jersey. Cups opened new locations in Parsippany and South Plainfield and Paramus. Let’s Yo Yogurt is leasing space in Florham Park. Red Mango also recently opened in West Caldwell and Watchung. Hospitals, doctors, dentists, and therapists continue to locate closer to their customer base by opening in shopping centers, and make it more convenient for patients. We are seeing this new trend of shopping center spaces being now utilized by medical and dental practices. Prior to the recession, landlords were reluctant to lease space to the medical community, but having space leased is critical and landlords are now more receptive and these uses do create additional traffic to a retail center. Some of the new medical tenants utilizing retail space include Dr. Dental, PM Pediatrics, Doctors Express and Doctor’s Office Urgent Care.

Health and Wellness industry retailers continue to flourish in the Garden State. Fitness Equipment Superstore opened locations in Paramus, Wayne, Green Brook and East Brunswick. Massage salons continue to find their niche in the NJ marketplace, primarily catering to women clientele. Massage Envy opened in East Rutherford. Elements Salon opened in New Providence, and Hand and Stone, a client of The Goldstein Group, opened locations in both North Brunswick and Franklin Lakes. Boxing gyms, the newest entry into the ever growing gym business, have become widely popular with their combination facility providing boxing, kickboxing and mixed martial arts studios all in one. LA Boxing is now in Totowa, CKO Boxing opened in Eatontown, Edison, Lyndhurst and Middletown. Title Boxing has new gyms in Rutherford, Wayne, Parsippany and West Windsor. Weight Watchers is now in Riverdale and Tiger Schulman has opened a martial arts facility in Wayne.

Some new stores and restaurants have come to New Jersey for the first time in 2012 or will soon open include:

  • Uniglo
  • Garbanzo Mediterranean Grill
  • Millers Ale House
  • Tilted Kilt Restaurant
  • Pei Wei
  • Quaker Steak & Lube Restaurant
  • Brio Tuscan Grille
  • Kirklands
  • PGA Golf Store
  • Design Spree Furniture
  • Potbelly Sandwich Shop
  • Chick-fil-A
  • Firehouse Subs
  • The Tile Shop
  • Noodles & Company
  • Pet Supplies Plus

Going forward

“The recovery of the retail market in New Jersey is continuing at a slow, but steady pace with solid growth in leasing activity and decreasing vacancies,” noted Mr. Lanyard. “We expect this moderate pace of growth to continue throughout 2013 as much of the recession’s impact on the retail marketplace is appearing to be behind us. Fortunately, people are feeling a little better about our economy and consumer confidence has improved. We are still dealing with pockets of vacancies that remain due to past retail bankruptcies but New Jersey’s attractiveness as a retail market has made it more resilient than most major markets in the US. Expect continued retail leasing and new retail construction as we go into 2013 and beyond.”

About The Goldstein Group

The Goldstein Group, New Jersey’s leading full-service commercial real estate brokerage firm, specializes in owner representation, retailer representation, investment sales and management services. The firm, founded in 1986, represents over 12,000,000 square feet of retail space and more than 50 national and regional retailers. The Company is the New Jersey member of the Retail Brokers Network. As an RBN affiliate, The Goldstein Group provides clients assistance throughout the United States with qualified retail specialists in over 60 offices in the United States and Canada.

For more information on the Retail Brokers Network, visit www.retailbrokersnetwork.com.

For more information, contact Chuck Lanyard at 201-703-9700, extension 115 or visit the Company’s website at www.thegoldsteingroup.com.

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