Northern New Jersey continued to capture steady demand from larger tenants. Firms capitalized on ample big block options and extensive incentives. Tenants have leased 7.1 msf in the four most recent quarters.
AVAILABILITY RATE FALLS
The market’s overall availability rate fell by more than a percentage point from 26.2% to 24.7%. The Class A availability rate decreased by 120 basis points to 25.6%.
Average asking rent for the region ticked down from $27.97 to $28.25. The Class A asking rent rose slightly from $29.00 to $29.08.
Office property sales during the first eleven months of the year totaled $1.5 billion, a 43% decrease compared to the first eleven months of 2017.
“Northern New Jersey registered steady demand during 2018. Expansion among firms already based in the region and the movement of a few businesses from New York and Pennsylvania (with the help of state incentives) supported a burst of 100,000-sf-plus transactions. Despite some tightening in spots, the market still fundamentally offers tenants a wealth of options.”Slava Vaynberg, Corporate Managing Director