The Central New Jersey marketplace experienced a more severe decline in asking lease rates (nine cents to $4.65 per square foot) compared to properties located in Northern New Jersey (seven cents to $6.27 per square foot). As the gap between the asking rent versus the taking rent continues to narrow, the report predicts that asking lease rates will bottom out in the near future.

Average asking sale prices also trended downward in the third quarter, with Central New Jersey experiencing a 5.3% decline compared to properties in Northern New Jersey, which reported just a 1.9% decrease. As average asking prices continue to decline, cash-flush companies are well-positioned to take advantage of the opportunity to own.

Despite consistent sale and lease velocity, the report also reported a significant increase in the overall availability rate, which closed the quarter at 12.2%, or 30 basis points higher than last quarter's 11.9%. The negative absorption rate, which remains in negative territory for the tenth consecutive quarter, was most notably impacted by the newly available space of 15 large assets to the New Jersey marketplace (11 of which were located in Central New Jersey), each totaling more than 100,000 square feet.

"Construction activity remained flat in the third quarter, with six active projects currently under construction totaling 258,800 square feet, two of which are located along Central New Jersey's Route 287/Exit 10 submarket," comments Mindy Lissner, senior vice president of CBRE. "As rental and sale rates continue to decline, the current buyer's market will allow for significant opportunities to arise for investors and user/buyers to continue to take advantage of, which will ultimately lead to an increase in leasing and sales velocity."