Search
 

Vacancy Remains Flat Despite Large Blocks Added

HASBROUCK HEIGHTS, NJ-Almost half of all leases signed during the first three months of 2010 consisted of renewals, finds JLL.

By Alyson Grala | Updated on April 06, 2010

HASBROUCK HEIGHTS, NJ-The New Jersey office market showed evidence of having reached bottom, as vacancy remained relatively flat since the end of 2009, only climbing by 0.1%, according to first quarter figures from locally based Jones Lang LaSalle. This occurred despite the addition of four blocks of space in excess of 100,000 square feet and a handful of medium-sized blocks, as leasing activity was healthy enough to offset the new space. The class A vacancy rate fell by 0.2 percentage points since last quarter to 24.9%. Conversely, class B vacancy rose quarter-over-quarter to 28.2% due to a slow quarter of leasing activity coupled with an up-tick in direct available space, says JLL. Sublease space in the market fell since the close of 2009, diminishing by around 170,000 square feet.

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.

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.