According to newly released statistics from Cushman & Wakefield, the numbers really haven't budged for three months now. That's pretty good, considering that some major space has returned to the market, including Lucent Technologies placing 248,884 sf on the Parsippany market and AT&T surrendering 154,167 feet in Short Hills.
Much of the slack is being taken up with class B absorptions as well as a few major deals that were inked in the first three months of the year. As a result, says C&W, net absorption still hovered around 2.35 million sf.
If there is a cautionary note in the report, it is that concessions are on the rise, and building owners are now using such terms as incentives, free rent and liberal work letters in their negotiations. The report indicates that all of this is in a major move to "reduce risk and close deals promptly."
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
John Salustri
John Salustri has covered the commercial real estate industry for nearly 25 years. He was the founding editor of GlobeSt.com, and is a four-time recipient of the Excellence in Journalism award from the National Association of Real Estate Editors.
