According to Dolly, another bright spot has been recent activity in Newark, which continues to gain interest from both in-state and out-of-state companies. One reason is the Transit Hub Tax Credit Program signed into law earlier this year. And according to Dolly, "a half-dozen large-scale space requirements" are under consideration there right now.

Tenant retention is another trend. "New Jersey's retention ratio is currently higher than in the past," Dolly says. "Fuel prices are having an effect on tenants' requirements for office buildings, and easy access to rail services is quickly becoming much more important."

Concession packages may have something to do with both the retention and overall velocity trends. "Contrary to recent years, where concession offerings were minimal, landlords have now begun enticing tenants with full concession packages or early renewals," says Gil Medina, executive managing director of Cushman & Wakefield's New Jersey operations, East Rutherford. "This seems to be their preference over lowering asking rents."

And while the state experienced a slow-job-growth expansion leading into the current national economic downturn, "we can take consolation in the fact that the commercial real estate markets haven't collapsed," Medina says. "In fact, each sector of the market seems to have at least one positive highlight.

"In Northern New Jersey, the office sector continues to enjoy strong growth in rental rates, for example," he says, "and in Central New Jersey, office leasing remains strong."