The retail submarkets with the lowest availability rates according to the new survey are Route 4/ Paramus with 6.4% vacancy, Route 46/ Parsippany-Rockaway with 5.8%, Route 1 /Woodbridge-Edison with 6.3%, and Route 37/ Toms River with 6.3%.

The retail corridor that had the highest vacancy rate at the end of 2011 was New Brunswick along Route 18, with 17.8% vacancy. Route 10 running through Livingston and East Hanover had a 12.9% retail vacancy rate.

In terms of the type of lease deals being made, the trend is toward fewer big-box stores and more specialty retailers gobbling up space, Lanyard says. Leasing is primarily dominated by retailers looking for less than 5,000 square feet, according to survey results.

“For the first time in years, retailers who have clamored to enter New Jersey but were unable due to higher rental and operating costs and are now considering

and opening stores in the state due to decreased rental rates and attractive leasing terms being offered by landlords,” says Lanyard. He named Hobby Lobby, JoAnn Fabrics, Lord & Taylor Home, The Tile Shop, and Harbor Freight & Tool as examples.

“Sometimes national tenants are not able to move as quickly,” he notes, “but some smaller retailers are getting some fantastic deals in great locations. As the market grows stronger and rents begin to increase, that window of opportunity is inevitably going to close.”

“There has not been a huge jump forward with the leasing market,” he adds, “and we don’t expect that for the next few years. However, we are seeing steady improvement in absorption, even with some of the bigger box locations,” he said, “and the overall retail landscape is definitely improving all the time.”