The problem for real estate, explained Thomas V. Giannone senior director at Cushman & Wakefield of NJ, East Rutherford, is that the overall office vacancy rate in Northern and Central New Jersey is 20%. With growth in high-end office jobs lagging, it's going to be tough to bring that number down.
On the one hand, "office leasing activity has picked up by 30%, which is great news, and there were several very large transactions last year," Giannone told the group. "The problem is that some of the largest transactions were tenant movement and not tenant expansion, so the activity doesn't translate into net absorption. Net absorption was actually down a little."
Even so, office properties remain a target in terms of investment sales. "Activity has picked up substantially - a 25% increase this past year over the year before," Giannone said. "If you're on the investment sales side, you've had a very good two years. If you're on the leasing side, it's been tough."
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