NJ Office Market is Breaking Records

How hot is the New Jersey office market? Record rents are on the horizon (currently averaging $22 a foot, but hitting the mid-$30s in prime locations) and availability is rushing toward single digits (currently in the 12% range, according to most estimates, but mostly in small blocks and in class B and C space). In the northern and central regions, which make up half of the Garden State’s land area but three-quarters of its population and constitutes the country’s fourth largest real estate market, absorption in the office market was almost 1.3 million sf in the first quarter of 2000 alone, according to a new report by Newmark & Co. Real Estate of New Jersey.

“We can’t build the space fast enough,” legendary metro area developer and New Jersey waterfront savior Sam LeFrak tells GlobeSt.com. Indeed, most spec properties are finding a major tenant-often for the entire building-within weeks after their announcement.

“The Northern New Jersey office market is as tight as it’s ever been,” comments Seena Stein, president of Newmark-NJ, Rutherford. “The waterfront is leading the way-leases are out on the next two buildings to be built at Newport Office Center and major corporations are fighting for space in future buildings.”