Rosy outlook for NJ retail.

Marcus & Millichap Real Estate Investment Brokerage Company recently released its National Retail Report for 2005, which indicates that Northern New Jersey's retail market will see an increase in transaction activity in 2005.

Also included in the report is the firm's annual National Retail Index (NRI), a snapshot analysis that ranks 41 retail markets based on a series of 12-month forward-looking supply and demand indicators.

Northern New Jersey drops four places to No. 16, as forecasts call for a minor up tick in vacancy.

"As asset prices readjust to sustainable levels, transaction activity in Bergen County and Hudson County should pick up in 2005," comments Mitchell R. LaBar, managing director of Marcus & Millichap and regional manager of the firm's New Jersey office.

"Investors may also consider properties in neighboring Passaic, Essex and Union counties, where the demographic profile is similar to the waterfront submarkets and properties trade at a 17 percent discount to the market."

San Diego topped the 2005 index, rising two places to overcome last year's number one ranked Orange County, Calif..

Orange County was this year's runner-up, posting the nation's lowest vacancy rate.

Washington, D.C. (No. 3) also fell one position due to the lack of vacancy improvement forecast.

South Florida markets rounded out the top five with Fort Lauderdale finishing at No. 4 and West Palm Beach at No. 5.

The report indicates the following for the Northern New Jersey retail market in 2005: Employment growth of 1.9 percent, or 37,000 positions, is forecast for 2005;

Payrolls in the professional and business services sector will expand by 8,500 workers. The local economy added 34,400 jobs in 2004, a 1.8 percent gain;

Investors will look for compelling values in the high-density Hudson waterfront submarkets.