“The economic downturn is far from over and retailers will move cautiously forward in opening new stores,” Lanyard tells GlobeSt.com. “Consumer confidence remains rather low, unemployment hovers at the 10% mark and there’s no question that consumers are spending less, as they decide to allocate dollars in different ways. Fortunately, New Jersey continues to be one of the strongest retail markets in the Northeast, with other states reporting retail vacancy rates from 12% to 15 %.”

“We anticipate some retailers will close their stores or file for bankruptcy over the coming months,” says Lanyard. “However, the silver lining in all this is the entrepreneurial retailer looking to open a business. They are being given opportunities to secure prime locations that weren’t available to them before and can take advantage of very favorable rent deals as well. Also, we are beginning to see some of the national and regional tenants showing interest in expansion again.”

A majority of the leasing deals being made are by tenants taking 20,000 square feet or less and many of these are independent retail stores owners who may have one or two locations, as well as franchised chains. “As an example, we recently completed a deal with an independent farmer’s market on Route 10 in Livingston making it their ninth location,” says Lanyard. “One of the most active retailers in the region, 7-Eleven, has already signed seven new deals this year and continues their expansion plans in pursuing over 40 new sites in New Jersey over the next few years. Pet Valu, a chain with over 375 locations, recently signed deals for space in Wall, Mendham and Madison.” Other retailers that have signed deals include Dollar General (Newton and Bayville), Great Clips (Riverdale), T Mobile (Rochelle Park and Paramus), Massage Envy (Waldwick) and Apple Computer (Paramus).

The recession has also opened up opportunities for big box tenants not located in the area to come into the market and the Goldstein Group is working with several of them. “A&P/Pathmark recently announced the closing of nine additional New Jersey locations, which should put additional big box space on the market,” Lanyard tells GobeSt.com. Big box retailers that have opened new stores, or recently signed deals, include Dick’s Sporting Goods (Paramus), Best Buy (Riverdale), Ashley Furniture (Phillipsburg), P.C. Richard (Brick, East Brunswick, Lawrenceville and Wayne), Electronics Expo (Wayne), Homegoods (Lawrenceville), National Wholesale Liquidators (Jersey City) and Burlington Coat (North Bergen). “New chains to the market scouring for sites include HH Gregg (Lawrenceville), Ultimate Electronics and Fresh Market while Walmart, Costco, Marshalls, TJ Maxx, LA Fitness, Staples, Kohl’s and AJ Wright continue looking for fill-in sites,” he says,

As for restaurants, Smashburger, a new high-quality hamburger concept has signed three new deals and expects to have six locations open by the end of the year. Restaurants searching for sites include: Sonic, Chipotle and Musclemaker Grill. And a new Mexican restaurant, called Panchero’s Mexican Grill Restaurant, which the Goldstein Group represents, is looking for sites throughout Northern and Central New Jersey to add to its Flemington and Woodbridge locations.

Banks are also coming back to the market. PNC Bank, another of our representations, has initiated a new program to open locations in the northern New Jersey market. Chase Bank, TD Bank, Clifton Savings Bank and Oritani Bank have all secured new locations and are looking for additional sites.

As for the future, “We expect to see continued activity in the market but not to the extent of several years ago,” says Lanyard “Unfortunately, it will probably be quite some time before we see the leasing activity that we experienced prior to 2008. But new retailers and concepts are looking for space and they will eventually fill up the existing spaces that are available in the market.”