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Q1 Contraction in Office, Industrial Markets

EAST RUTHERFORD, NJ-Rents have dropped and office tenants up north are gaining the upper hand in negotiations, reports Cushman & Wakefield in its Q1 overview of the New Jersey office and industrial markets.

By Maria Wood | Updated on April 22, 2009

EAST RUTHERFORD, NJ-With rents decreasing, tenants have the upper hand in office space negotiations in the northern portion of the state. That was one of the findings of the Q1 Cushman & Wakefield Inc. overview of the Garden State commercial real estate market.

In Northern New Jersey, overall weighted average asking office rents fell from $26.91 per square foot at the end of 2008 to $26.45 per square foot currently. Overall vacancy rates, however, did improve slightly, decreasing from 16.5% in December to a present level of 16.3%.

“As the office market continues to fluctuate, landlords are choosing to offer more flexibility to tenants,” says Gil Medina, executive managing director of C&W’s New Jersey operations. “We are seeing many owners marketing space as ‘negotiable,’ instead of quoting rental rates. This, in turn, is empowering tenants to achieve smarter deal terms.”

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