Retail: Garden State Vacancies Rise

With the rash of recent retailer bankruptcies and downsizings adding to an inventory of unclaimed spaces, the vacancy factor in retail properties along Northern New Jersey’s six major shopping corridors jumped to 6.6% during 2008, up from 3.6% in 2007, according to a newly released study from R.J. Brunelli & Co. Inc.

The firm’s 2008 study reviewed shopping centers and freestanding buildings exceeding 2,000 square feet along State Highways 4, 10, 17, 22, 23 and 46/3, and certain intersecting arteries in Bergen, Essex, Morris, Passaic, Somerset and Union counties. Freestanding restaurants and auto service facilities are also included, while enclosed regional malls and centers under construction or redevelopment are excluded. Stores running going-out-of-business sales earlier this year were accounted for as vacancies.

The study found 1.84 million square feet of vacancies out of 28 million square feet of space, with availabilities seen in 118 of the 808 properties evaluated. By contrast, the firm’s 2007 study reported one million square feet of vacancies in 27.6 million square feet of space. Routes 4 and 23 were the only roadways to show an improvement from 2007.