Limited new construction and tenant demand boosts NJ market.Low vacancy rate, moderate rent growth and limited new construction will characterize the Northern New Jersey retail market in 2007, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Marcus & Millichap Real Estate Investment Brokerage Company's 2007 National Retail Report. Employment growth in the market's Hudson River Hudson River River, New York, U.S. Originating in the Adirondack Mountains and flowing for about 315 mi (507 km) to New York City, it was named for Henry Hudson, who explored it in 1609. Dutch settlement of the Hudson valley began in 1629. waterfront counties and across the river in Manhattan will bolster retail spending by local residents and sustain a vigorous level of retail tenant demand. Also included in the report is the firm's annual National Retail Index (NRI NRI Nomura Research Institute (Tokyo, Japan) NRI Non-Resident Indian NRI Natural Resources Institute NRI National Resources Inventory NRI Networked Readiness Index NRI Natural Resources Inventory NRI National Research Institute ), a snapshot analysis that ranks 42 retail markets based on a series of 12-month forward-looking supply and demand indicators. Northern New Jersey falls three places this year to #19. "Northern New Jersey vacancy will tighten in 2007, and in populous Hudson County, vacancy could fall more significantly to the low-5 percent range as new housing projects in Jersey City stimulate retailer demand," states Michael Fasano, regional manager of Marcus & Millichap's New Jersey operations. Following are some of the most significant aspects of the Northern New Jersey Retail Research Report: * Approximately 16,000 positions will be created in 2007, a 0.8 percent increase, compared with 9,000 new jobs last year. * Consistent demand from retailers will lower the vacancy rate 30 basis points to 4.4 percent by year end. * A healthy rate of rent growth will persist this year, with asking rents expected to advance 3.8 percent to $27.96 per square foot and effective rents forecast to rise 3.9 percent to $26.13 per square foot. * Retail projects totaling 800,000 square feet are scheduled for completion in 2007, down from last year's total of 1.6 million square feet. * With regard to investments, underperforming strip centers in any of the market's several prime locations and value-add opportunities will draw a large pool of willing buyers. New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. advanced three places to claim the #1 spot in the 2007 NRI, surpassing last year's leader, San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. , which dropped five spots to #6. With limited new supply slated to come online this year, New York's already low vacancy rate is forecast to tighten further, supporting the third-highest rent growth in the nation. Fort Lauderdale Fort Lauderdale (lô`dərdāl), residential, commercial, and resort city (1990 pop. 149,377), seat of Broward co., SE Fla., on the Atlantic coast; settled around a fort built (c.1837) in the Seminole War, inc. 1911. , which scored high marks for employment, household and retail sales growth, jumped seven places to #2. Phoenix gained two places to rank #3, while Oakland fell one spot to #4 and Seattle moved up three positions to #5. Orange County, Calif., (#7), San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden (#8), Washington, D.C., (#9) and San Jose San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif., (#10) round out the top 10. |
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