Search
 

Northern NJ's Office Market Continues Sluggish Pace in Q2

PARAMUS, NJ-Employment declines continue to depress demand for office space in Northern New Jersey, says a Q2 report from CresaPartners.

By Maria Wood | Updated on August 06, 2009

PARAMUS, NJ-As corporations continue to shed space and employees, Northern New Jersey’s office market registered a sluggish second quarter. A report from CresaPartners found that both rents and leasing activity slid downward in Q2.

In the class A sector, leasing volume tallied up to 950,000 square feet, down from 1.8 million square feet in Q1. Along with that decrease came a reduction in rents, which went from $27.13 a square foot in the first quarter to $26.98 at the close of Q2.

The class B segment didn’t fare much better. Approximately 460,000 square feet in that category was leased in Q2 versus 500,000 square feet in the previous quarter. Net absorption totaled 75,000 square feet, down from Q1′s tally of 140,000 square feet. Rents declined slightly, ending the second quarter at $21.71 a square foot, a nine-cent dive from Q1.

“There will continue to be an element of uncertainty in the market over the next few months, as the unemployment rate continues to increase and maturing loans prove difficult to refinance,” says Robert D. Rencarge, a senior advisor in CresaPartner’s office here, in a statement. “In addition, large corporations will be forced to dispose of significant excess capacity, and many small business owners will experience sustained financial distress, further depressing demand for office space.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 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.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.