C&W’s senior economist in New York, Ken McCarthy, suggested that the suburbs will eventually feel the effect of Manhattan’s revitalized office market, probably a while after conditions improve on New Jersey’s waterfront. He cited SJP Properties' new building going up in Hoboken for the Pearson publishing company as an example of the beginning of a positive trend for the state.

“As office gets more expensive, suburban locations will start to become a more viable location,” McCarthy said, “but it’s not there yet.”

The industrial sector is not precisely robust either, according to C&W’s analysis. There were
no reported closed transactions in the first quarter in northern New Jersey, despite its ranking as the country’s third-largest market. In fact, no significant transactions have occurred since last October.

Average rents remained at record lows – but stable - for warehouse space up and down the NJ
Turnpike, Gabriel said. Vacancy rates improved somewhat, however, returning to pre-recession levels and getting down to 10% in the Meadowlands submarket.

“Large spaces are becoming hard to find,” he said, “and landlord pricing power is coming back
into the market." Interest is starting to stir in land available for future construction, Gabriel said.