Rt. 18 Has Highest Retail Vacancy Rate In New Jersey

EAST BRUNSWICK, NJ — Which traffic corridor has the highest retail vacancy rate in New Jersey right now? That would be Rt. 18 in East Brunswick, a real estate trade group confirmed with a new study.

Markets with the highest retail 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%), according to a brand-new report released this November by the Goldstein Group, a commercial real estate brokerage firm in New Jersey.

The Goldstein Group looked at 22 retail corridors in Northern and Central New Jersey. New Jersey's overall retail vacancy rate is now at 6.6%. Retailers – both existing and new, coming to New Jersey for the first time – continue to lease retail space at a steady pace, they found. 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.”

Where are the strongest markets? The markets that have 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%)

According to the study: 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.

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.

Read the full report here: http://www.thegoldsteingroup.c...