By Joshua Burd
Food and beverage users are expanding across northern and central New Jersey — with more moves likely to follow — as part of a series of newly announced lease deals by JLL.
According to the brokerage team, the transactions include two new commitments by the ice cream chain Van Leeuwen. The operator, known for its artisanal dairy and dairy-free options, has taken 1,200 square feet each at 35 Main St. in Millburn and at Kushner’s new Monmouth Square project in Eatontown.
JLL’s David Townes and Alana Friedman arranged the deals, while also representing Bad Ass Coffee of Hawaii in the lease of 1,908 square feet at the newly developed 14 Lincoln Place in Madison. They noted that, 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.
“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,” said Townes, a managing director for retail brokerage in New Jersey with JLL. “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.”
According to JLL, service-based tenants are projected to lease more retail space than goods-based tenants in 2025, with food and beverage leading the charge. From January to November 2024, the F&B category accounted for 21 percent of retail leasing activity in the U.S., followed by fitness and health care.
It comes as 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, Townes said. He added that users such as McDonald’s are focused on maximizing ownership of prime locations.
Towns and Friedman also represented developer Kamson Corp. in a new lease at 764 New Bridge Road in Teaneck, where California-based Déjà vu Bakery & Café will occupy 1,474 square feet. The ground-floor retail space was fully built out as part of the development of the mixed-use River Commons townhouse development.
In Kearny, the brokers represented Hugo Neu Realty in a 3,500-square-foot deal to bring the Dry Dock Deli & Café to its modern coworking space at Kearny Point. Other deals include a 4,226-square-foot lease by locally owned Spice at a former Friendly’s in Wantage, at 455 Route 23, as well as a new 2,300-square-foot commitment by Alfalfa at a former bagel shop at Edgewater Marketplace in Edgewater.
“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,” said Friedman, a vice president with JLL. “This, in turn, is impacting asking rents, which are rising significantly.”
Townes and Friedman last year represented multinational doughnut company Krispy Kreme in a deal to lease a shuttered McDonald’s in Lakewood, they added. The move was part of a strategic expansion by the chain across the Garden State.
“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,” Townes said. “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 fueled by a rebound in foot traffic, mixed-use developments, and adaptive retail strategies.”
