Lowe's and others keep retail vacancy rate low
Studies detail changes along Rts. 18, 1 and 9 in Middlesex, Monmouth

EAST BRUNSWICK - Large retail companies absorbed vacant retail space along Route 18 over the past year, demonstrating a high demand to locate along the busy corridor.

This was the finding of retail real estate brokerage firm The Goldstein Group, Glen Rock, which recently completed its annual Route 18 retail vacancy report. The survey analyzed more than 150 properties along the highway in East Brunswick between New Jersey Turnpike Interchange 9 and Main Street. The area encompasses approximately 2.9 million square feet of retail space. The Brunswick Square Mall was excluded from the survey because it is an enclosed mall.

In 2006, more than 314,000 square feet of retail space was absorbed along the corridor by tenants such as Lowe's Home Improvement Center, Linens 'N Things, Electronics Expo, Staples, Jembro Stores, Route 18 Farmers Market and Loehmann's Shoes. Additional new tenants include TDC Doors, Dunkin' Donuts/Baskin Robbins, Starbucks, Voi Salon & Spa, Home Style Furniture, Wine World, Furs by Guarino and Wieder Furniture, according to the report.

Future new developments expected along Route 18 include Summerhill Square, a 140,000-square-foot shopping center at the former Meyer's property; a 28,000-square-foot expansion at the A&P Shopping Center; and a 5,000-square-foot free-standing multi-tenant building near Cranbury Road.

Additionally, Toll Brothers is proposing the Marketplace at Regency Square, a "transit village" with a retail component of over 200,000 square feet of retail space, according to The Goldstein Group.

"The Route 18 corridor has undergone some reconstruction and new development activity," said Chuck Lanyard, principal and director of brokerage services for The Goldstein Group. "Many prestigious national and local retailers continue to be attracted to the Route 18 corridor for the region's outstanding demographics, excellent highway system and continued housing growth."

The study showed there remains a 4.71 percent vacancy rate along Route 18 in East Brunswick.

Some of the 136,000 square feet of available retail space includes the 32,000-square-foot former Office Max; the 20,000-square-foot former Seaman's, which has township approval for a Golfsmith golf and tennis store; the 20,000-square-foot former Pelican Pools; 10,000 square feet at the PetSmart center; the 7,700-square-foot former W. Berman Decorators; and over 7,000 square feet at the Loehmann's Shopping Center.

A separate survey of Route 9 between Sayreville in Middlesex County and Howell, Monmouth County, showed there is more than 435,000 square feet of retail space available, comprising a 4.25 percent vacancy rate.

Among the largest blocks of vacant space along Route 9 include the former Kmart in Old Bridge, the study noted. Meanwhile, some 509,000 square feet of new retail space is being developed along the corridor, including the 100,000-square-foot Shoppes at Old Bridge, which is fully pre-leased.

A study of the Route 1 corridor in Woodbridge, Edison and New Brunswick showed just a 2.22 percent vacancy rate across 5.2 million square feet of retail space. Some 185,000 square feet of retail space was absorbed last year along Route 1, and 120,000 square feet is currently available.

Lanyard described the Route 1 corridor "a stable market," with a demand for space that has created redevelopment opportunities.

"The Route 1 market will continue to experience strong conditions for the foreseeable future," he said.

The Goldstein Group, which is celebrating its 20th anniversary, provides a wide array of services including landlord and tenant representation focused on leasing, sales, development, property management and financial services.