WCRE says there was net absorption of 112,368 square feet.

“Vacancy rates continue to fall, and conditions in our region have improved to the point where we expect to see them fall even further,” Wolf said. “We're seeing lower unemployment, including gains in office jobs, and a general boost in small business confidence, which is fueling expansion.”

The report noted that for the second straight quarter, many of the subject properties were located in prime locations within Burlington County, and suggested that market tightening in that areas was causing demand to shift toward vacancies in Camden County.

Other highlights from the report:

• Both Burlington County and Camden County saw significant decreases in vacancy this quarter, though Burlington continued to maintain a much lower vacancy rate than Camden, at 9.1% compared with 18.1%.
• Average rents for Class A & B product were in the range of $11-$14 per square foot for triple net or $21-$24 per square foot gross.

Retail

WCRE also reported on the local retail market, where the news is quite bright for Center City Philadelphia, but less so for Southern New Jersey. Several major retailers are moving into large Center City spaces, including Nordstrom Rack, Forever 21, and American Eagle Outfitters.

Southern New Jersey gained a new Whole Foods and ground was broken for an outlet center in Deptford, but there are some troubled centers amid others only beginning to grow, the report says.

Overall retail vacancy in the tri-county area is at 15.7%, up for the second straight quarter.