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New Jersey Office Leasing: Redefined

SADDLE BROOK, NJ-Many of the market adjustments in commercial real estate are not normal cyclical changes, but rather new standards.

By Alyson Grala | Updated on September 30, 2009

SADDLE BROOK, NJ-As the economic downturn continues to impact real estate, a new paradigm has been established for assessing office leasing markets, particularly in the state of New Jersey, finds a recently released white paper, issued by CB Richard Ellis.

“The New Jersey market is in the midst of a dynamic shift as a result of the economic environment, and while opinions are plentiful as to the depth, duration and impact of the current economic downturn, one fact is crystal clear: this is not like any other change we have ever experienced during previous down cycles,” CBRE senior vice president Kevin Welsh tells GlobeSt.com. “The bottom line is that the New Jersey commercial real estate marketplace is being re-segmented and redefined, with new rules and trends being established, creating what we have termed the new normal.”

According to the white paper’s findings, this new normal can be traced back to a structural shift in supply and demand dynamics and a change in tenant profiles, including a flight to quality and a slow migration of larger corporate tenants out of the state. More specifically, because New Jersey’s economy is more diverse now than in past down cycles, there has been an influx in smaller, growth-oriented companies to the state, which has shifted the size of the space requirements demanded by this new tenant base.

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