2020 was supposed to be South Jersey’s comeback year. Gambling was supposed to resume its upward trajectory, and Atlantic City was looking to see gross operating profits increase from 2019 levels. The pandemic changed all that. Not only from actual dollars but also from the employment picture that was showing signs of recovery for the first time since 1984.
Right now Atlantic County is being hard hit by this pandemic recession that is affecting individuals with a 1 in 3 unemployment ratio at the end of May 2020. Even as the governor whimsically allowed for a July 2nd reopening at 25%, this clearly would never make the difference that was necessary in the region.
Gaming revenue for land-based operations increased last January through November to $2.47 billion, representing a 7.1% increase year-over-year. In addition, Internet gambling and sports betting in Atlantic City was really starting to get some traction, representing over $3 billion.
There was even a hiring frenzy, if you can imagine that, at the Hard Rock and Ocean Casino.
But now the state’s unemployment rate at 16.6% and unemployment in some counties coming in as high as 19%, it’s hard to swallow.
Hard-hit counties like Camden are struggling with unemployment rates around 20%.
Currently in Atlantic County the unemployment rate is 24%, but this is a significant improvement from what it was just a few months ago, which is better than the 34.4% rate recorded in June of 2020.
Commercial Real Estate in South Jersey
Burlington and Camden County office space was coming in with a vacancy rate of almost 16% at mid-year, representing 187,737 square feet.
Suburban offices and single story individual office buildings are expected to do well due to the fact that the renters and tenants don’t have to manage elevators and crowded stairways.
South Jersey’s 69.4 million square feet of warehouse and industrial space is doing quite well due to two major tenants: Target leasing 913,000 square ft and Amazon leasing 494,000 sq ft.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
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