Northern New Jersey market shows retail strength.Marcus & Millichap Real Estate Investment Brokerage Company recently released its National Retail Research Report for 2004, which indicates that Northern New Jersey's demographics The attributes of people in a particular geographic area. Used for marketing purposes, population, ethnic origins, religion, spoken language, income and age range are examples of demographic data. and fundamentals point to a strong year ahead for the retail market. Also included in the report is the firm's annual National Retail Index, a snapshot analysis that ranks 40 retail markets based on a series of 12-month forward-looking supply and demand indicators. Northern New Jersey falls one place in this year's 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 to No. 12, based on forecasts for strong rent growth and low vacancy yet a relatively nigh nigh adv. nigh·er, nigh·est 1. Near in time, place, or relationship: Evening draws nigh. 2. Nearly; almost: talked for nigh onto two hours. level of completions. "Traditionally, retail investors Retail Investor Individual investors who buy and sell securities for their personal account, and not for another company or organization. Notes: Retail investors buy in much smaller quantities than larger institutional investors. shop Paramus and Hackensack in Bergen county for properties, drawn by the area's many retailing destinations along Routes 4 and 17," said Mitchell R. LaBar, senior vice president and regional manager of Marcus & Millichap's New Jersey office. "This region will continue to provide strong returns resulting from low vacancies and high retail sales volume. We also anticipate many strong investment opportunities on the periphery periphery /pe·riph·ery/ (pe-rif´er-e) an outward surface or structure; the portion of a system outside the central region.periph´eral pe·riph·er·y n. 1. of Northern New Jersey." The report indicates the following for the Northern New Jersey retail market in 2004: Nearly 23,000jobs will be added to the Northern New Jersey economy in 2004, a 1.2% expansion. Education and health services health services Managed care The benefits covered under a health contract positions will lead the increase, although financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. employment is becoming more prevalent in Jersey City. Construction in Northern New Jersey is slowing. Developers plan to deliver only 2.9 million s/f in 2004, a 13% drop from 2003. The Meadowlands Xanadu This article or section contains information about expected future buildings or structures. Some or all of this information may be speculative, and the content may change as building construction begins. project will include 594,000 s/f of retail space. Vacancy will decline by 40 basis points in 2004, to 5.1%. Tenant demand is strong in this region, producing less than 3% vacancy rates in Essex, northern Morris and northern Bergen counties. Northern New Jersey has posted three consecutive years of rent growth above 3% since 2000. In 2004, rents will climb to $24.58 per s/f, a 3.5% gain. In Passaic and Bergen counties, rents will exceed the regional average. High prices in Manhattan will prompt some retail investors to seek out properties in New Jersey. The area's low vacancies and strong absorption levels will provide investors long-term steady returns. Strong retail investment opportunities will be found in storefront properties in dense urban areas, including Union, Newark and Elizabeth as affordability attracts younger people to these cities. |
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