Commercial real estate specialists in the Atlantic City area are pleased by the slow but steady growth pattern the market experienced in 2012 and are hoping it continues into 2013.
Vacancy rates for industrial, retail, and office properties are expected to decline further over the next 12 months and the National Association of Realtors is predicting market conditions will follow this trend across the United States.
In the third quarter of 2012, commercial real estate agents reported an improvement in the Atlantic County market. The sale of some large properties also helped to boost numbers during this period.
One noteworthy transaction was the sale of a 30,000 square foot mixed use healthcare property located at Fire Road in Egg Harbor Township. Levin Commercial Real Estate in Atlantic City handled the sale. The purchase price was $2.65 million, and there was no change to the businesses leasing space in the facility.
Another local sale of note was a 90,000 square-foot warehouse/industrial property that was bought by Jersey Construction. The previous owner was Caesars Atlantic City.
Richard Baehrle, of Prudential Fox & Roach in Northfield, stated that 2012 had been a good year for commercial real estate. Sales had been completed or were pending on 280,000 square feet of transactions. Most of the properties involved office or retail space.
Demand for office space has also grown and has now begun to outstrip supply. The idea that there is an oversupply of office supply is a misconception, according to Baehrle.
The local office vacancy rate is 11 per cent, which is much lower than the national average rate of close to 17 per cent that has been reported by the National Association of Realtors. This organization anticipates demand for office vacancies to remain above 15 per cent through 2013 and into next year.
Office property owners can expect to realise a two percent increase in rents this year and slightly more in 2013. Rents for industrial properties are expected to increase by two per cent this year. Retail space rent will rise by one per cent in 2013.
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