Tenants take a breather in Q2, despite strong leasing demand in I-78 submarket

Tenants in Northern New Jersey took a breather in the second quarter of 2022, as economic uncertainty appears to have weighed on leasing decisions. Overall market leasing volume of 1.6 million square feet (msf) in Q2 was down 13.9% from a year ago and below the pre-pandemic five-year (2015-2019) Q2 average of 2.2 msf. Reversing the trend of last quarter, the I-78 submarket had strong leasing totaling 579,807 sf, which represented 35.9% of total market activity. This was highlighted by several large commitments, including PTC Therapeutics' relocation to 400-500 Warren Corporate Center Driver (349,828 sf) in Warren - a consolidation of three office elsewhere in New Jersey - and Cellares' new lease at 95 Corporate Drive (118,208 sf) in Bridgewater. However, these large deals were not enough to offset the weakness seen in submarkets such as Middlesex, the Meadowlands and Urban Essex.

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