“There is great deal velocity,” Bansbach says, particularly for the larger users who serve the Eastern corridor, rather than smaller regions. But large spaces are filling up, resulting in development talk.

The average asking rental rate in the region remained flat for the second quarter at $4.44 per square foot compared to $4.45 in the previous quarter. Landlord concessions continue to be prevalent, with free rent and tenant improvements commonly offered in lease negotiations. Even so, the rate is an improvement from 18 months ago, when “panic deals” were signed at $2 per square foot, Bansbach says.

Northern New Jersey remains hampered by the lack of job growth and an older stock of properties, says Howard Weinberg, senior VP, principal. The region reported a vacancy rate of 7.6% for the quarter, up slightly from 7.5% in Q1. Activity has been relatively flat and the vacancy rate remains at historically high levels. “It’s jobs,” Weinberg says. “I don’t think there is a strong demand. There’s uncertainty in the marketplace.”

Some submarkets, such as the Meadowlands, remain appealing, Weinberg says. The 2.5 million-square-foot Mount Olive area saw a huge boost in leasing over the last six months due to extremely aggressive pricing, in the mid $3s to mid $4s per square foot for buildings that have 24-foot ceiling heights. But such modern facilities are much more rare in Northern New Jersey than farther south.

“Our inventory in Northern New Jersey is 30, 40 years old, and they typically have lower ceiling heights,” Weinberg says. “Those landlords will have to be extremely aggressive to get tenants, offering low rents and high tenant improvement funds.”