The overall first quarter 2010 availability rates and asking rents in Northern and Central New Jersey were both essentially flat compared with those from a year ago. Availability did increase from 23.87% last quarter to 23.96% in Q1 '10, although that was due in large part to Somerset County, where several large subleases expired and space was returned to the market. Excluding Somerset County, however, the overall availability rate drops to 22.5%, down from 23% in fourth quarter 2009. Meanwhile, overall asking rents decreased from $24.46 a year ago to $23.34.

"Activity is picking up as local businesses feel more confident in their operations than they did a year ago," says Matt Dolly, managing director of research and marketing at FirstService Williams' New Jersey office. "More tenants are out in the market, and landlords are responding. But the lack of job growth is hindering industry fundamentals. Until employment improves, the market will struggle on its way toward recovery."

Also, the report found that the new administration in Trenton appears to be more pro-business and focused in its approach to retain and attract business. But, on the federal front, it is still too early to tell the impact that new bills regarding healthcare and the financial sectors will have on the market.