Almost half of all leases signed during the first three months of 2010 consisted of renewals, including seven of the top ten deals. Larger transactions--75,000 square feet and up--accounted for 45% of leasing during the first quarter, including four deals in excess of 100,000 square feet. In comparison, there were 10 such deals signed during 2009. Leasing was down when compared to the previous quarter, falling below the quarterly average of the last two years, JLL's Jon Meisel tells GlobeSt.com. "Approximately two-thirds of all leases signed in the last three months occurred within class A buildings as tenants continued their flight to quality, getting exceptional value in quality space." The most active industries during the first quarter included manufacturing, insurance, communications and pharmaceutical firms.

Since the close of 2009, the class A asking rental rate fell at a slower rate than in previous quarters, slipping 0.5% to $26.80. While there were price adjustments by landlords, the addition of some higher-priced large blocks of space kept the rate from dipping substantially. The class B average rental rate climbed during the same time--it now stands at $21.87--due to price adjustments coupled with a decline in less expensive sublease space. Quarter-over-quarter, six of the 17 submarkets in New Jersey recorded declines in the overall asking rental rates, however none substantial.