real estate
Real Estate

New Jersey Office Market Posts Lowest Availability Rate In 10 Years

According to CBRE’s fourth quarter 2018 office market report, leasing activity in New Jersey increased year-over-year by approximately 113,000 square feet, although annual activity was down by about eight percent compared to 2017. Moreover, with 1.6 million square feet of net absorption, the market recorded its highest annual total since 2005. In fact, absorption was positive in 2018 in three of the four quarters.

“The year ended on a high note with many encouraging signs for the New Jersey economy and office market, including the lowest unemployment rate since 2001,” said Rémy P. deVarenne Jr., senior vice president, CBRE. “Although we have seen positive momentum during the past few years, we are cautiously optimistic about the future.”

During the fourth quarter, the New Jersey market posted an availability rate of 20.4 percent, while the average asking lease rate ended the year at $26.45 per square foot This was the second highest average rate recorded since the first quarter of 2002.

Major leases during the quarter included Phillips-Van Heusen’s 224,000 square foot renewal at 1001 Frontier Road in Bridgewater; Sumitomo Mitsui Banking’s 74,000 square foot renewal and 36,000 square foot expansion at Harborside Plaza 2; and First Data Corp.’s renewal for more than 48,000 square feet and addition of nearly 32,000 square feet at 101 Hudson Street, both owned by Mack-Cali.

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