Despite an uptick in available space due to some large blocks of space put on the market in recent months, transit hubs have maintained low vacancy rates over the year – 12.4% in Hoboken and Jersey City, 14% in New Brunswick – which compares to rates stuck in the mid-20-to-30% range in many suburbs, including Parsippany.

“The disparity between transit hub and suburban New Jersey asking rents has risen to more than $5 per square foot,” a 37% increase, said JLL’s in-depth report called “On Track,” which was a second annual study. “Despite an increase in quality space in areas such as Jersey City, we don’t anticipate any immediate downward pricing pressure on Class A asking rents,” it added.

In the past six months, the number of 100,000-square-foot deals has dwindled in the transit hub areas, Meisel noted. Smaller transactions, those in the 10,000 to 30,000-square-foot range, have become the driving force, accounting for more than 60% of all deals within transit areas.

The On Track study focuses on state-designated transit hubs and Transit Villages with train stations. Besides Hoboken, Jersey City and New Brunswick, these include Newark, the Metropark area in Iselin, Morristown, Summit and Trenton.

“We are really seeing the payoff of the Urban Transit Hub Tax Credit program as developers are finding ready-and-willing anchor tenants for high-profile locations,” Meisel says. “It is clear to us that the urban transit hubs and transit villages are on target to outperform its suburban markets for the foreseeable future, particularly when competing for tenants desiring top-of-the line new space with exceptional amenities and transportation choices.”

Meisel noted that a transit-oriented development in cities is assisting companies in hiring and retaining employees as well as lowering their carbon footprints.

He called the recent decision by Pearson Education to move to new space in Hoboken and Panasonic to relocate to a planned new headquarters in Newark “game changers.” “You will see more companies follow their lead and focus on transit areas due to the tremendous advantages such as the access to wider talent pool and greater sustainability.”

As for the plethora of older, “functionally obsolete” space building up in the suburbs, Meisel says, “I don’t think the solution will be found with the office user.” He tells GlobeSt.com that much of this space needs to be re-purposed for medical/health center, or college residential use.

A rundown on current office vacancy rates and per-square-foot rental rates from the new report includes:

• Newark, 20.5 % vacancy, $24.25 psf
• Hoboken, 12.4%, $33.78
• Jersey City, 12.4 %, $34.13
• Metropark, 26.5%, $29.57
• Morristown, 18.7%, $24.89
• New Brunswick, 14%, $23.39
• Summit, 33.7 %, $39.70
• Trenton, 2.7%, $18.95