December 11, 2014 [Mount Laurel, NJ] – The Southern New Jersey office market continues to evolve, according Evan Zweben, Senior Vice President with Colliers International. Many building owners are still recovering from the side effects of the recession, including increased vacancy and downward pressure on rental rates. Numerous local/regional medical systems that were forced to consolidate practices into new facilities have left behind many functionally obsolete facilities.
According to Zweben, who will celebrate his eleventh year with Colliers in February, “By offering concessions, namely free rent, higher tenant improvement (build-out) allowances, and lower rental rates, institutional ownership has been able to “buy back” increased occupancy by incentivizing tenants to relocate to their buildings.”
This sounds like good news for the region. However, Zweben cautions, “The jury is still out for what the long term effects of the NJ Opportunity Act of 2013 will have on the buildings that are not in the areas with the highest incentives. Although we have seen some traction with companies relocating from one location to another outside of Camden, most of the focus in the region has been Camden and Pennsauken,” said Zweben. “Our clients in Cherry Hill, Voorhees, and the 3M (Marlton, Moorestown, Mount Laurel) markets are concerned with the relocation of existing jobs to Camden,” he added.
In light of the market’s ambiguity, Zweben completed over 50,000-square-feet of transactions in the SNJ market during the second half of 2014.
- CenterPoint Group, Mount Laurel
- Control Point Associates, Mount Laurel
- Cordua Pastore, Cherry Hill
- Core Title, Mount Laurel
- Henderson Engineering, Marlton
- LabCorp, Delran and Woolwich
- Royal Group, Marlton
- Planned Parenthood, Atlantic City and Delran
- Rizzieri Management, Mount Laurel
- SNJ Perinatal Cooperative, Camden