Food and beverage deals powering New Jersey retail leasing momentum

PARSIPPANY, N.J., March 25, 2025 – JLL announced today it has leased over 24,000 square feet of New Jersey retail space to food and beverage concepts as the sector leads a historic shift in the real estate market.

According to JLL, service-based tenants are projected to lease more retail space than goods-based tenants in 2025, with food and beverage (F&B) leading the charge. From January to November 2024, F&B accounted for 21% of retail leasing activity in the US, followed by fitness (12%) and healthcare (6%).

David Townes, JLL Managing Director, Retail Brokerage, in New Jersey, said rising construction costs and low availability have created a game of musical chairs as both established and growing food and beverage concepts scout both new construction and fully built-out space being vacated by entities such as Red Lobster and TJI Fridays, and those, such as McDonald’s, focused on maximizing ownership of prime locations.

Said Townes, “While no one likes to see vacancies come to market through distress, the current environment is creating opportunities for enterprising restaurant operators and property owners who are working strategically with varied types of tenants. Developers with new construction want to add value to the property, whether office, mixed-use, or residential, with a retailer or restaurant concept that serves as an amenity.”

Among recent food and beverage leases arranged by Townes and Friedman were two new deals for the popular ice-cream chain Van Leeuwen, including a 1,200-square-foot store at 35 Main St., Millburn. Known for its artisanal dairy (and dairy-free) creations, Van Leeuwen also leased 1,200 square feet at Monmouth Square, Eatontown.

The pair represented Bad Ass Coffee of Hawaii in the lease of 1,908 square feet at the newly developed 14 Lincoln Place on Madison, N.J. With a focus on technology, the franchise has enjoyed explosive growth and now has nearly 40 U.S. franchise locations and over 100 additional shops in various stages of development.

The pair represented developer Kamson Corp. in leasing 1,474 square feet at 764 New Bridge Rd., Teaneck, to Calif.-based Déjà vu Bakery & Cafe. That ground floor retail space was fully built out as part of development of the mixed-use River Commons townhouse development.

In Kearny, Townes and Friedman represented Hugo Neu Realty bringing the Dry Dock Deli & Café to its modern co-working space at Kearny Point in the historic Kearny shipyard (3,500 square feet); the locally-owned Spice leased a former Friendly’s at 455 Route 23, Wantage (4,226 square feet); Hoboken-born Alfalfa opened its newest location in a one-time bagel shop at Edgewater Marketplace, Edgewater (2,300 square feet); and Shah’s Halal Food signed two leases for former pizzerias in Bergenfield and West Haverstraw, NY.

Said Friedman, “With a dearth of new retail construction, demand for existing space has expanded, as it creates tremendous efficiencies in terms of installation and buildout costs. This, in turn, is impacting asking rents, which are rising significantly.”

Townes and JLL Vice President Alan Friedman last year represented multinational doughnut company Krispy Kreme in a deal to lease a shuttered McDonald’s in Lakewood, N.J. That lease was part of a strategic expansion by the home of the ‘Original Glazed Doughnut’ across the Garden State.

Added Townes, “Evolving consumer preferences, demand for experiential dining, and the sector’s post-pandemic resilience are all driving tremendous momentum in the food and beverage sector. With more people prioritizing unique dining experiences and convenience, both established brands and emerging concepts are expanding aggressively. We expect this trend will continue near-term fuelled by a rebound in foot traffic, mixed-use developments, and adaptive retail strategies."