Northern New Jersey Retail Market Report
A Plethora of Entrants Filter into Retail Spaces, Driving Vacancy to New Lows
Rapid recovery in core, with overall leasing robust. Discount retailer Burlington recently inked a 55,000-square-foot lease in downtown Newark, a marked departure from the chain's recent shift into smaller physical locations. The franchise is not alone in trying to bid for the metro's more desirable spaces. As of this year's first quarter, Essex, Hudson and Union counties each reported double-digit year-over-year growth in multi-tenant asking rents, well in excess of the segment's marketwide 5.4 percent increase. However, leasing has not been restricted to the area's denser zones . As of March 2022, Morris and Passaic counties both reported year-over-year declines in vacancy exceeding 100 basis points . Availability in Passaic County currently sits under the 2019 equivalent, positioning the submarket for a full rent recovery in the near term.