OLD BRIDGE, N.J. (11/4/04)-Northern and Central New Jersey’s primary retail corridors are heading into the critical holiday shopping season with minimal changes in their vacancy rates from earlier this year, according to R.J. Brunelli & Co., Inc.

In an update of the annual study it conducts each January, the retail real estate brokerage today reported that the vacancy factor along the six roadways it tracks in Northern New Jersey edged down to 3.0% in late September from the 3.2% found in the 2003 annual study, which was conducted in January 2004. Vacancies along the four Central New Jersey corridors surveyed by the firm held steady at 3.8%.

The Old Bridge, N.J.-based firm’s studies evaluate shopping centers and freestanding buildings exceeding 2,000 square feet along a total of 10 roadways and certain intersecting arteries in Bergen, Essex, Morris, Passaic, Somerset, Union, Middlesex, Monmouth, Mercer and Ocean counties. Freestanding restaurants and auto service facilities are also included, while enclosed regional malls and centers under construction or redevelopment are excluded.

“Overall, this update revealed little change from our 2003 annual surveys, underscoring the resiliency of the two regions,” said Richard J. Brunelli, president of the firm. “Vacancy factor increases ranging from 0.2 points to 0.7 points on four of the roadways were countered by improvements ranging from 0.1 to 1.2 points on five corridors and an unchanged rate on another. This all adds up to a very healthy, desirable market.”

Beginning with Northern New Jersey, results for the individual roadways are as follows:

Route 17. The vacancy rate rose to 4.4% in September from 3.7% in the 2003 annual survey, due largely to closings of an 18,200-square-foot Drexel Heritage showroom in Paramus and a 10,000-square-foot Gateway Computer store, also in Paramus. The firm’s update reviewed 4.49 million square feet of space along the 15-mile section from Paramus to Mahwah. Vacancies were found in 15 of the 142 properties studied.

Route 4. With 1.05 million square feet surveyed, the vacancy factor remained unchanged at 1.8% along the three-mile segment between Paramus and Fairlawn. Vacancies were found in three of the 47 properties studied.

Route 23. The vacancy rate along this corridor’s 10-mile Wayne-to-Butler segment escalated to 2.3% in September from 1.6% earlier this year, triggered by the departure of a 20,000-square-foot Michaels in Wayne. The arts & crafts retailer relocated to a new center, nearby in Wayne. Brunelli’s latest survey covered a total of 1.71 million square feet in 54 properties, with vacancies found in five centers. Meanwhile, construction continues on a new Wal-Mart-anchored center in Riverdale and a Lowe’s Home Improvement Center, also in Riverdale.

Route 46. Vacancies inched down to 3.3% from 3.4% earlier this year in the 6.0 million square feet studied along this roadway. The firm found vacancies in 19 of the 161 properties surveyed in the 21-mile Dover to West Paterson corridor, along with adjoining sections of Route 3 in Clifton, and a major power center just behind Beltway Mall in Wayne.

Route 10. This 20-mile corridor between Livingston to Ledgewood saw its vacancy factor dwindle to 1.5% in September from 2.4% earlier this year. The decline was keyed by MJM Shoes’ takeover of the vacant 28,000-square-foot space previously leased to Today’s Man in East Hanover; and Golfsmith’s absorption of 14,700 square feet of space previously occupied by Zany Brainy and a soccer store in Livingston. All told, the firm’s September study found availabilities in 11 of 127 properties. Total inventory along the roadway increased to 4.68 million square feet, thanks to the addition of 60,000 square feet of new space for Babies ‘R’ Us and Thomasville Furniture in East Hanover.

Route 22. The vacancy factor along Northern New Jersey’s most heavily-retailed corridor receded to 3.3% in September from 3.7% in January. The survey reviewed 7.89 million square feet along a 21-mile stretch ranging from Union to Somerville, as well as nearby space along intersecting Route 202/206 from the Somerville traffic circle north into Bridgewater, plus the nearby Route 28/287 intersection in Bridgewater. Vacancies were uncovered in 23 of the 233 properties.

Route 35. Vacancies fell to 4.0% from 4.7% earlier this year along the 25-mile corridor extending from Aberdeen to Brielle. With 7.95 million square feet surveyed, Route 35 has the most retail space of any of the 10 roadways reviewed by R.J. Brunelli. Vacancies were found in 23 of the 233 properties along the corridor and an adjoining section of Route 36 in Eatontown and West Long Branch. The improvement in the vacancy factor was triggered by the absorption of 14,500 square feet of space at the Middletown center anchored by Shop-Rite; Fortunoff’s Outdoor Store’s lease of a 17,000-square-foot portion of the former Toys ‘R’ Us at the Eatontown Circle; and redevelopments at two long-troubled centers in Middletown and Ocean Township, with Whole Foods and Wegman’s, respectively, taking major anchor positions.

Route 9. The 35-mile corridor stretching from Woodbridge to Lakewood enjoyed the biggest decline in both regions, as the vacancy factor dropped to 4.2% in September from 5.4% in the 2003 annual survey. Brunelli’s update covered 7.08 million square feet in 128 properties, with openings found in 19. From north to south, the roadway’s brightened picture was fashioned by Club 9’s lease of the 18,000-square-foot former Nationwide Electronics store in Woodbridge; Home Depot’s takeover of the 100,000-square-foot former Kmart building in Marlboro’s Cambridge Square; the opening of TJX Co.’s Home Goods in the 30,000-square-foot former Wiz space at Manalapan Epicenter; the opening of a new 55,000-square-foot Acme at Ocean Plaza in Freehold; and Bed, Bath & Beyond’s takeover of the former Stop & Shop building and Drug Fair’s lease for half of the former Rx Place space at Aldrich Plaza in Howell.

Route 18. The vacancy rate increased to 5.1% from 4.9% earlier this year in the 2.22 million square feet of space studied in the five-mile East Brunswick corridor. Openings were found in eight of the 61 properties reviewed. Meanwhile, the dilapidated and long-vacant Meyers Shopping Center is under contract to be demolished and redeveloped as a lifestyle center, with R.J. Brunelli & Co. appointed exclusive leasing agent.

Route 1. Vacancies rose slightly to 2.7% in September from the 2.5% reported in the firm’s 2003 study. R.J. Brunelli reviewed 7.52 million square feet in a 30-mile-long area stretching from Woodbridge to Trenton. The update uncovered vacancies in 17 of the 107 properties studied.

Route 35. Vacancies fell to 4.0% from 4.7% earlier this year along the 25-mile corridor extending from Aberdeen to Brielle. With 7.95 million square feet surveyed, Route 35 has the most retail space of any of the 10 roadways reviewed by R.J. Brunelli. Vacancies were found in 23 of the 233 properties along the corridor and an adjoining section of Route 36 in Eatontown and West Long Branch. The improvement in the vacancy factor was triggered by the absorption of 14,500 square feet of space at the Middletown center anchored by Shop-Rite; Fortunoff’s Outdoor Store’s lease of a 17,000-square-foot portion of the former Toys ‘R’ Us at the Eatontown Circle; and redevelopments at two long-troubled centers in Middletown and Ocean Township, with Whole Foods and Wegman’s, respectively, taking major anchor positions.

Route 9. The 35-mile corridor stretching from Woodbridge to Lakewood enjoyed the biggest decline in both regions, as the vacancy factor dropped to 4.2% in September from 5.4% in the 2003 annual survey. Brunelli’s update covered 7.08 million square feet in 128 properties, with openings found in 19. From north to south, the roadway’s brightened picture was fashioned by Club 9’s lease of the 18,000-square-foot former Nationwide Electronics store in Woodbridge; Home Depot’s takeover of the 100,000-square-foot former Kmart building in Marlboro’s Cambridge Square; the opening of TJX Co.’s Home Goods in the 30,000-square-foot former Wiz space at Manalapan Epicenter; the opening of a new 55,000-square-foot Acme at Ocean Plaza in Freehold; and Bed, Bath & Beyond’s takeover of the former Stop & Shop building and Drug Fair’s lease for half of the former Rx Place space at Aldrich Plaza in Howell.

Route 18. The vacancy rate increased to 5.1% from 4.9% earlier this year in the 2.22 million square feet of space studied in the five-mile East Brunswick corridor. Openings were found in eight of the 61 properties reviewed. Meanwhile, the dilapidated and long-vacant Meyers Shopping Center is under contract to be demolished and redeveloped as a lifestyle center, with R.J. Brunelli & Co. appointed exclusive leasing agent.

Route 1. Vacancies rose slightly to 2.7% in September from the 2.5% reported in the firm’s 2003 study. R.J. Brunelli reviewed 7.52 million square feet in a 30-mile-long area stretching from Woodbridge to Trenton. The update uncovered vacancies in 17 of the 107 properties studied.