STRONG FOUNDATION IS KEY - The retail sectors in NJ and Philly are holding up.

One word that seems exemplify the retail sector in the Northeast is cautious. Some retailers are taking a pause and holding off on expansions, a few developers are putting new projects on the shelf for the time being, financial institutions have tightened their lending standards and consumers are tightening their grips on their wallets as prices rise. To get an even clearer picture of the retail market in the Northeast, we spoke with several brokers that work within two of the Northeast’s densest markets — Philadelphia and New Jersey.

New Jersey

In New Jersey, according to our panel of experts — Matt Harding, president and chief operating officer of Levin Management; Michael Fasano, regional manager of Marcus & Millichap’s New Jersey office; Matt Krauser, director of Integra Realty Resources’ Northern New Jersey office; and Anthony M. Graziano, director of Integra Realty Resources’ Coastal New Jersey office — the retail market has softened and leasing velocity has slowed some what due to the economic climate, but there is still a healthy amount of activity taking place because of the state’s attractive demographics and its high barriers to entry.

While some retailers have scaled back expansion, Harding says, “There are some retailers that are still expanding. We are regularly executing new leases with retail tenants throughout the state at our properties.”

Fasano concurs, noting that, “Good locations with strong foot traffic counts at signalized intersections in dense suburban markets such as Middlesex County in Northern New Jersey and other suburban markets in Essex, Morris and Bergen counties are still being sought after by retailers.”

Vacancy rates for retail centers have remained at a healthy rate, 5 percent in Bergen County, for example, but retail rates have flattened out, and some landlords have begun to offer concessions on space in Class B and C properties. . . . more