Leasing activity in New Jersey office buildings reached its highest first-quarter level since 2007 during the first three months of 2011, according to a report from CB Richard Ellis today, though activity was down from where it was during the fourth quarter of 2010. Lease renewals accounted for 47.1 percent of those transactions.
Half of all new office leases were signed in New Jersey’s waterfront and Route 287/78 submarkets, CBRE said, but outside those areas, new space is still flooding the market more quickly than it is being absorbed. At the end of this year’s first quarter, there was 33.96 million square feet of office space on the market, up from 33.93 million square feet at the end of last year.
Asking rents also increased during this time, up by an average of 34 cents to $24.46 per square foot statewide.
“While challenges remain, our markets continue to show signs of improvement,” said Jeff Hipschman, senior managing director at CBRE. “Companies are choosing to remain in New Jersey and they have been hiring.”
Today, it was reported that Panasonic has opted to take more than $102 million in subsidies in exchange for adding 250 employees over 10 years and relocating within New Jersey. TRD