Retail

The central theme of the Northern New Jersey retail market heading toward 2015 can be captured in three words: flight to quality. Strong tenant demand, driven by the region’s diverse inventory of well-located existing and new high-end supply, is translating to tightening vacancies and upward pressure on rents. As more young professionals choose to live in urban centers and densely populated communities along transit lines, downtown retail, in particular, is benefiting from the momentum. Millennials are starting families and are creating the need for larger living spaces and full-service, family-focused neighborhood amenities. As such, many national and regional concepts that traditionally have targeted regional malls are now entering these markets. Daycare centers, schools, grocery stores and fitness centers also are actively targeting quality downtown locations. In response, developers and owners are adding new supply and renovating existing properties to accommodate this new generation of tenants in the space-constrained Northern New Jersey region. Mixed-use projects containing retail, residential, office and/or hospitality components in infill locations continue to gain traction. Along the Hudson Waterfront and downtown, mixed-use projects illustrating this trend include Shuster Development’s project at 360 Ninth Street in the Hamilton Park neighborhood of Jersey City, which will add approximately 29,000 …