Union County Business Reports Union County Real Estate Report Prepared by UCEDC For Union County Board of Chosen Freeholders, Bruce H. Bergen, Chairman 75 Chestnut Street Street, Cranford, NJ 07016 908-527-1166 / info@ucedc.com www.ucedc.com July 2016
W elcome to the first edition of the Union County Real Estate Report. This report is intended to provide business owners with a sound overview of commercial real estate availability and pricing throughout the County. Choosing where to locate a business and whether to buy or lease are critical decisions; the data in this report offer a big picture view of the current commercial stock by municipality and establish an informed starting point for further exploration with a professional realtor. All of the data presented in this report are from LoopNet, the largest online commercial real estate service (www.loopnet.com) to ensure the greatest degree of accuracy. However, as properties come on and go off the market continuously, readers are encouraged to do further research on LoopNet after they have focused their search parameters. In each edition, the Report will include a market overview written by a top-tier commercial realtor with extensive experience in Union County. Their remarks provide another level of insight into the commercial real estate market and are offered to better prepare you in your search. Other Resources: UCEDC s Realtor Roundtable: you ll find past editions of this Q &A format exploration of key issues in the commercial real estate market. Learn what to look for in a lease agreement and review the many nuances of dealing with environmental issues as a buyer or seller. https://ucedc.com/realtor-roundtable-2/ LoopNet Commercial Real Estate Market Trends: see availability, price, and days on market trends for the past three years for selected municipalities in Union County. Comparisons with state, county, and region are also presented. http://www.loopnet.com/markettrends/ Cushman and Wakefield Real Estate Market Reports: the leading global real estate services firm offers regional snapshots of the industrial, office and retail markets. http://www.cushmanwakefield.com/en/research-and-insight/
Insights By Ian Grusd, Principal GreenGate Capital To better understand the Union County Commercial Real Estate market it is important to analyze the sub-market categories, i.e. Industrial, Office and Retail as opposed to the overall/macro market. The reason for this is at different times, product sectors performance can vary greatly. The Industrial market remains the "shining" star for the County in both the leasing and sales sectors. The primary reason for this is lack of quality inventory, demand for this area due to proximity to the Port/Airport, Turnpike coupled with a very low interest rate climate. The typical space user requires 10-50,000 SF with, ceilings heights of 20'+ and loading and drive in doors. Demand is strong along all major corridors: Route 22, Route 1/9, Route 78, GSP corridor and NJ Turnpike. The Office market remains active primarily with tenants looking for 3-5,000 SF for sales/service related businesses and medical use. There is not as much competition as the Industrial market with companies having many more options. However, finding a smaller office building for sale, less than 20,000 SF, is as competitive as the Industrial market. The Retail market performed surprisingly well in light of the growth of e-commerce. Demand is strong for quality modern well located space in established grocery anchored shopping centers and strip malls. Activity is brisk along the Route 22 and Route 1/9 corridors as well as secondary arteries with strong demographics and "downtown" retail (i.e. Route 28 corridor Elizabeth to Scotch Plains). Tenant types active in the market include fast food casual (Panera Bread, Starbucks), fitness/personal training, discount retail and drugstores. Ian Grusd is a Principal with GreenGate Capital a real estate advisory and property management company. He has more than 25 years of Commercial Real Estate experience representing hundreds of companies across a diverse group of industries with the acquisition, disposition and consulting transactions in excess of 7,000,000 square feet. Ian can be reached at 732-763-6330 or via email ian@greengatecapital.com
Commercial Properties at a Glance Inventory & Pricing Industrial, Retail & Office
Commercial Properties at a Glance Available Industrial Properties (as of 6/1/2016) Westfield Union Summit Springfield Scotch Plains Roselle Park Roselle Rahway Plainfield New Providence Mountainside Linden Kenilworth Hillside For Lease For Sale note: no properties reported in Clark or Fanwood Garwood Elizabeth Cranford Berkeley Heights 0 5 10 15 20 25 30 35
Commercial Properties at a Glance Available Office Properties (as of 6/1/2016) Westfield Union Summit Springfield Scotch Plains Roselle Park Roselle Rahway Plainfield New Providence Mountainside Linden Kenilworth Hillside For Lease For Sale Note: no properties reported in Garwood Fanwood Elizabeth Cranford Clark Berkeley Heights 0 20 40 60 80 100
Commercial Properties at a Glance Available Retail Properties (as of 6/1/2016) Westfield Union Summit Springfield Scotch Plains Roselle Park Roselle Rahway Plainfield New Providence Linden Kenilworth Hillside Garwood For Lease For Sale Note: no properties reported in Mountainside Fanwood Elizabeth Cranford Clark Berkeley Heights 0 5 10 15 20 25 30 35 40
Commercial Properties at a Glance Price Range Per Square Foot: Industrial Properties for Sale (for municipalities with sufficient data) 500 450 400 350 Dollars 300 250 200 150 100 50 0 High Low Price Range per Square Foot: Industrial Properties for Lease ( for munipalities with sufficient data) 35 30 25 Dollars 20 15 10 5 0 high low
Commercial Properties at a Glance Price Range Per Square Foot: Office Properties for Sale (for municipalities with sufficient data) 300 250 200 Dollars 150 100 50 High Low 0 Price Range Per Square Foot: Office Properties for Lease (for municipalities with sufficient data) Dollars 50 45 40 35 30 25 20 15 10 5 0 High Low
Commercial Properties at a Glance Price Range Per Square Foot: Retail Properties for Sale (for municipalities with sufficient data) Dollars 700 600 500 400 300 200 100 0 High Low Price Range Per Square Foot: Retail Properties for Lease (for municipalities with sufficient data) 700 600 500 Dollars 400 300 200 100 0 High Low
Commercial Properties: a closer look Inventory and Pricing by Municipality
Berkeley Heights Industrial for purchase 0 Industrial for lease 5 $9 - $12 Office for purchase 0 Office for lease 12 $18 - $25 Retail for purchase 0 Retail for lease 6 $20 - $28
Clark Industrial for purchase 0 Industrial for lease 0 Office for purchase 0 Office for lease 11 $19.50 - $28.50 Retail for purchase 0 Retail for lease 6 Not disclosed
Cranford Industrial for purchase 2 Not disclosed Industrial for lease 5 $5 - $24 Office for purchase 5 $163 - $285 Office for lease 28 $6 - $26 Retail for purchase 0 Retail for lease 10 $18 - $25
Elizabeth Industrial for purchase 4 $125 Industrial for lease 19 $5.50 - $12 Office for purchase 12 $85 - $250 Office for lease 25 $12 - $30 Retail for purchase 18 $68 - $266 Retail for lease 15 $23 - $52
Fanwood Industrial for purchase 0 Industrial for lease 0 Office for purchase 0 Office for lease 2 $19 - $22 Retail for purchase 1 $812 Retail for lease 0
Garwood Industrial for purchase 2 Not disclosed Industrial for lease 3 Not disclosed Office for purchase 0 Office for lease 0 Retail for purchase 0 Retail for lease 3 Not disclosed
Hillside Industrial for purchase 9 $88 - $182 Industrial for lease 17 $6.50 - $20 Office for purchase 0 Office for lease 4 $8 - $16 Retail for purchase 5 $194 - $266 Retail for lease 10 $8 - $20
Kenilworth Industrial for purchase 8 $116 Industrial for lease 14 $5.25 - $14 Office for purchase 0 Office for lease 4 $9 - $14 Retail for purchase 0 Retail for lease 3 $12 - $16
Linden Industrial for purchase 18 $69 - $241 Industrial for lease 32 $6.50 - $23 Office for purchase 3 $228 Office for lease 5 $10 - $18 Retail for purchase 9 $88 - $182 Retail for lease 12 $7 - $18
Mountainside Industrial for purchase 4 Not disclosed Industrial for lease 4 Not disclosed Office for purchase 3 Not disclosed Office for lease 16 $12 - $25 Retail for purchase 0 Retail for lease 0
New Providence Industrial for purchase 7 Not disclosed Industrial for lease 6 $5.25 - $15 Office for purchase 7 $129 - $237 Office for lease 23 $15 - $42 Retail for purchase 9 $139 - $231 Retail for lease 30 $15 - $42
Plainfield Industrial for purchase 6 $55 - $89 Industrial for lease 1 $14 Office for purchase 2 $75 - $127 Office for lease 19 $12 - $46 Retail for purchase 20 $67 - $152 Retail for lease 12 $12 - $21
Rahway Industrial for purchase 4 $84 - $116 Industrial for lease 16 $3.25 - $10.50 Office for purchase 0 Office for lease 4 $9 - $21 Retail for purchase 4 $85 - $135 Retail for lease 0
Roselle Industrial for purchase 8 $43 - $169 Industrial for lease 5 $7 - $12 Office for purchase 2 $62 Office for lease 2 $8.50 Retail for purchase 4 $70 - $100 Retail for lease 0
Roselle Park Industrial for purchase 1 $57 Industrial for lease 2 $12 Office for purchase 4 $102 - $230 Office for lease 5 $14 - $30 Retail for purchase 6 $127 Retail for lease 6 $15 - $30
Scotch Plains Industrial for purchase 1 $200 Industrial for lease 0 Office for purchase 0 Office for lease 4 $18.50 - $36 Retail for purchase 5 $166 - $331 Retail for lease 6 Not disclosed
Springfield Industrial for purchase 2 Not disclosed Industrial for lease 8 $7.75 - $14 Office for purchase 7 $139 - $231 Office for lease 23 $15 - $42 Retail for purchase 9 $139 - $231 Retail for lease 30 $15 - $42
Summit Industrial for purchase 0 Industrial for lease 4 Not disclosed Office for purchase 0 Office for lease 22 $10 - $30 Retail for purchase 3 Not disclosed Retail for lease 12 $10 - $51
Union Industrial for purchase 6 $62 - $433 Industrial for lease 9 $7 - $12 Office for purchase 12 $77 - $208 Office for lease 78 $9 - $30 Retail for purchase 7 $125 Retail for lease 16 $12 - $20
Westfield Industrial for purchase 2 Not disclosed Industrial for lease 5 $5 - $24 Office for purchase 3 Not disclosed Office for lease 28 $6 - $29 Retail for purchase 6 $236 - $664 Retail for lease 34 $18 - $25