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WTC-Related Office Space Leases Estimated at 3.4 Mil SF

JERSEY CITY-Companies desperately seeking space in the wake of the World Trade Center disaster have taken at least 2.4 million sf of vacant office space and a million sf of backfill space, much of it once destined for the sublet market.

By Eric Peterson | Updated on October 02, 2001

JERSEY CITY-The run on office space in the Garden State continues. GlobeSt.com estimates, based on data provided by several real estate firms, including Insignia/ESG, Newmark JGT, SJP Properties, online brokerage service TenantWise, and others, that companies displaced by the terrorist attack of September 11 have taken control of 2.4 million sf of vacant space in New Jersey. Others have backfilled an estimated one million sf, much of which, until three weeks ago, was destined for the sublet market in a shrinking economy.

Put another way, 3.4 million sf of mostly prime office space is no longer available in New Jersey. And of the total, more then one-third, 1.2 million sf, has been taken off the market here in Jersey City. Also, fully two-thirds of the total amount has been taken by just five organizations.

The largest amount in New Jersey has been grabbed by the most aggressive of the post-tragedy space hunters, American Express. The credit card and financial services company has taken nearly 700,000 sf of unoccupied space in Parsippany, Short Hills and Jersey City. A close second is Merrill Lynch, which has taken a total of 675,000 sf at three different locations in Franklin Twp., Somerset County, plus a 30,000-sf block of space in Weehawken, which is just north of Jersey City.

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