The study, conducted in January, counted shopping centers and freestanding buildings over 2,000-sf on Routes 4, 10, 17, 22, 23 and 46, along with certain intersecting arteries in Bergen, Essex, Morris, Passaic, Somerset and Union counties.
"Our findings quantify northern New Jersey's standing as one of the most desirable retail real estate markets in the entire U.S., and 2004 was no exception," said Richard J. Brunelli, president of the firm. "The market banked on its suburb demographics and lack of developable land to weather the departures of major chain retailers."
Five of the six major highways has declined; Route 23 has the lowest vacancy rate of the six major highways, with a mere 1.4%. Route 10 had its best year in a decade, dropping to a 1.5% vacancy. Route 46 dropped to 2.7%, down from 3.4% the year before. Route 22 dropped to 2.8% from 3.7% in 2003. Route 17 dropped to 3.2%, down from 3.7% last year.
The one exception is Route 4, which rose from 1.8% to 10.6%. A recently closed Huffman Koos outlet on Route 4 skewed the vacancy numbers for that highway, with the single vacant 100,000-sf store accounting for over 90% of that percentage.
"The bankruptcy of the parent company of furniture retailer Huffman Koos threw five large showrooms onto the market along the region's roads. At the time of our survey, all but a location on Route 4 were taken," said Brunelli. Other large retail vacancies – by Kids 'R' Us, Frank's Nursery and Amazing Savings – are anticipated to be absorbed by other retailers, such as Office Depot by the end of 2005, if they haven't been so already.
"We anticipate that the Huffman Koos store should not be on the market for long," Brunelli said.
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