Scaled down transactions drive N.J.’s office market
New Jersey’s office market showed positive momentum in the first half of the year, thanks to an increasing number of small- and mid-sized deals, according to a CBRE report cited by the Paramus Post. In the initial six months of 2012 the New Jersey office market experienced growth in leasing activity — reaching nearly 1.9 million square feet — diminished availability and 450,818 square feet of net absorption.
Industries such as financial services, law and accounting were responsible for the increased leasing velocity, representing 26.8 percent, 7.7 percent and 6.7 percent of all transaction activity, respectively.
The growth comes even as New Jersey’s office market saw the fewest number of transactions greater than 100,000 square feet in two years and despite the fact that renewals accounted for just 32 percent of transactions in the second quarter. But overall average asking rents fell $0.19 to $24.18 per square-foot, reaching their lowest mark since 2010’s fourth quarter.
“The first half of the year saw small- to mid-size Deals Drive the increased activity and we expect that trend to continue with all the economic and political uncertainty,” David Opper, CBRE New Jersey senior vice president, said. “These smaller firms are willing to make the leap now and seize on existing opportunities, while some of the bigger players are waiting in the wings to see how things shake out.” [Paramus Post] – Christopher Cameron