Northeast Real Estate Business

MAY 2018

Northeast Real Estate Business magazine covers the multifamily, retail, office, healthcare, industrial and hospitality sectors in the Northeast United States.

Issue link: https://northeastrealestatebusiness.epubxp.com/i/978140

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M A R K E T H I G H L I G H T: N E W J E R S E Y 22 • May 2018 • Northeast Real Estate Business The New Jersey retail market is off to a strong start in 2018, as tenants and landlords adapt and reinvent them- selves to meet changing times the re- tail sector. For context, our marketplace re- corded 1.3 million square feet in net absorption last year, bringing New Jersey's retail vacancy rate to a low 4.6 percent. So, while national headlines continue to report store closures, good things are happening here. Our re- gion is attracting tenants across many sectors and the most successful are providing consumers with more ex- periences while shopping — whether in-store cafés and cooking classes at supermarkets, new services at beauty products stores, or more pure enter- tainment concepts leasing space. Developers are creating new inven- tory via exciting infill redevelopments and by repositioning vacant, out-of- date stores as mixed-used properties that provide welcoming, socially ori- ented atmospheres. Grocery Leads the Charge The grocery sector in New Jersey is gaining a lot of attention and for good reason. From a 100,000-square-foot lease renewal by BJ's Wholesale Club at 1000-1130 Route 1 in Edison, to a 14,000-square-foot Trader Joe's com- mitment at 1350 Willow Ave. in Hobo- ken, over the past year New Jersey has attracted major brands with a range of space requirements. Additionally, ethnic grocers have been making a big push recently to expand into New Jersey. Eastern European grocer Gour- manoff opened on Route 4 in Paramus and 99 Ranch, an Asian market, contin- ues to grow with new locations in Jer- sey City and Edison. A 59,519-square- foot lease by 99 Ranch in Hackensack is also slated to open this spring. Many of New Jersey's larger new de- velopments involve grocery anchors: Whole Foods at both Waterview Mar- ketplace in Parsippany and Chimney Rock Crossing in Bridgewater, Shop- Rite at North Village in Sparta, BJ's in Morris Plains, and Wegmans in East Hanover. Grocers also are contributing to some smaller, yet highly distinctive projects. For example, Whole Foods opened its first Newark location at the Hahne & Company mixed-use rede- velopment project, which is bringing a new, high-end vibrancy to its CBD neighborhood. Entertainment, Fitness and Dining Enhance Experience Movement among tenants that make shopping social and fun while boosting traffic is also worth noting. Dave & Busters, which was among the first in the hybrid dining/amuse- ment space, has finally come to New Jersey. The chain recently opened loca- tions at the Woodbridge Center Mall in Woodbridge and Willowbrook Mall in Wayne. Urban Air Adventure Park and Altitude Trampoline Park repre- sent the rapidly growing recreation segment, with new locations in Mill- town and Woodbridge, respectively. Eat-in movie theater Cinemex also is actively seeking sites in the New Jer- sey market. On the purely dining front, active restaurant tenants range from higher- end concepts like Ruth's Chris Steak- house, which recently signed a lease in Jersey City and is actively growing in the state, to a huge number of fast- casual chains like Habit Burger, Blaze Pizza and Mighty Quinn's to name a few. Gym tenants are also bringing a range of sizes and price points, with regionally expanding brands that in- clude LA Fitness on the larger side, to specialty fitness centers like Orangeth- eory Fitness, Pure Barre and SoulCycle on the smaller scale. Game Changers It is impossible to talk about New Jersey retail without mention of two market-changing developments. Tri- ple Five Development's high-profile, 2 million-square-foot American Dream mega-mall retail/entertainment com- plex in East Rutherford is gaining sig- nificant traction and will reportedly house up to 500 stores. In Holmdel, Somerset Development's Bell Works — combining retail, office, hospital- ity and residential — has more than 30,000 square feet in retail commit- ments to date. Looking ahead, we anticipate that 2018 will be another year of progress for retail projects statewide. We expect to see continued demand from a range of tenants, with national players leas- ing up space via expansions and flight- to-quality relocations. Developers will look for opportunities to build and re- build in tight infill markets. The rise of new concepts, mergers and bankrupt- cies will of course create the inevitable fluidity for which retail is known. Stay tuned. Nancy Erickson Executive Managing Director, Colliers International NEW JERSEY RETAIL OFF TO A STRONG START For additional information on these outstanding opportunities, please contact info@silbertrealestate.com • 908-604-6900 NEW JERSEY'S PREMIER NEW CONSTRUCTION FOR LEASE • Multi-phase mixed use development comprising 400 apts with 14,937 SF ground level retail and restaurant space; • Adjacent to and overlooking 25,000 seat Red Bull Arena VERMELLA HARRISON Mixed Use Urban Development Town of Harrison, Hudson County, New Jersey • Wegmans supermarket anchored; • 231,000 SF lifestyle center leased with national retailers as: Starbucks, Chipotle, Ulta Beauty, Habit Burger Grill, European Wax Center, AT&T, Vanilla Sky, Cycle Bar among others with limited retail remaining for lease THE SHOPPES AT DEPIERO FARM - WEGMANS ANCHORED 25+ Acre Premier Lifestyle Development Borough of Montvale, Bergen County, New Jersey • Phase I ±10,530 SF street retail; • Adjacent to Bayonne Bridge, Route 440, and 8th Street NJ; • Transit Hudson Bergen Light Rail Station, direct service into NYC; • Less than 3 miles from Newark Liberty Airport; • Tower 1 of a 2 tower interconnected, 340 total units APPROVED LUXURY APARTMENT MIXED USE HIGH RISE Prime Bayonne Redevelopment City of Bayonne, Hudson County, New Jersey • In the heart of downtown Metuchen, the borough's largest and most prominent development opposite new Whole Foods; • Two blocks from NJ Transit with service direct to NY Penn Station; • Ground level retail and restaurant space with 273 luxury apartments WOODMONT METRO AT METUCHEN STATION Brand New Luxury Mixed Use Transit Village Borough of Metuchen, Middlesex County, New Jersey • 70,000 SF brand new Class A, highly visible retail within award winning sister projects "40 Park and The Metropolitan"; • Morristown's largest most successful mixed use development; • 14,805 SF lower level retail for lease SHOPS ON THE GREEN 70,000 Square Foot Mixed-Use Development Town of Morristown, Morris County, New Jersey • The Metropolitan Lofts is the latest development in the heart of downtown Morristown, one block from Shops on the Green, on DeHart Street, intersecting South Street; • Ground level retail now leasing METROPOLITAN LOFTS Brand New Luxury Mixed Use Development Ground Level Retail Town of Morristown, Morris County, New Jersey • Supermarket anchored Transit Village opposite the NJ Transit rail line; • ShopRite anchored plus 100,000 SF of exciting pedestrian friendly retail including world-renowned Wolfgang's Steakhouse Grill, VintEdge Wine & Spirits, Starbucks, Chase Bank, Playa Bowls among others with upper floor luxury apartments; • Phase II Proposed luxury apartments plus 42,000 SF retail and restaurant space SOMERVILLE TOWN CENTER Somerset County's Largest Transit Village Redevelopment Borough of Somerville, Somerset County, New Jersey • Triboro Square offers a magnificent new hybrid lifestyle, crossing suburban and urban tastes within Bergen County's largest proposed mixed use redevelopment; • Proposed 430,000 SF of total project GLA, including 357 luxury apartments; • Coming summer 2019 TRIBORO SQUARE Proposed Luxury Mixed Use Redevelopment of Mercedes Benz N. America Opposite Wegmans Borough of Montvale, Bergen County, New Jersey Interested in advertising? Contact Scott France at scott@francemediainc.com or 404-832-8262.

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