In particular, "many investors with class A holdings have witnessed unprecedented levels of leasing activity in their buildings, making these properties ripe for disposition," suggests Matthew Schnrr, senior vice president of the Investment Services Group for G&E. "Through portfolio dispositions, opportunity funds and institutional investors could realize healthy rates of return on their holdings."

At the same time, "sellers will need to be sensitive to pricing levels in the marketplace, as many are discovering that their pricing expectations are in excess of what buyers will pay," he continues. "Sellers will have to adjust their expectations, or simply keep the assets in their portfolios."

Some of the office properties that changed hands toward the latter part of 2000 might be an indication of what lies ahead, however. Indeed, Dusseldorf, Germany-based CommerzLeasing und Immobilien's purchase of the 622,000-sf 95 Christopher Columbus Dr. in Jersey City came in at $241 per sf, a number that's unusually high for the New Jersey market.