CHATHAM, NJ–Rents increased in Northern New Jersey in 2014, but availability also rose, according to DTZ's Fourth Quarter 2014 Office Market Snapshot for Northern and Central New Jersey. In Central New Jersey, rents eased slightly, but availability also declined.
“Looking back over 2014, there were many bright spots, but there is still room to grow,” said Raymond Trevisan, managing principal of DTZ. “We expect to see continued improvement in the office market sector in 2015, as many of the positive economic factors are indicating.”
Availability in Northern New Jersey rose to 24.7%, and 613,762 square feet of negative absorption was recorded in the fourth quarter. Although activity appeared a bit sluggish, asking rents increased slightly to $27.54 per square foot, up from $27.48 in the third quarter. The three submarkets mainly responsible for the retreat of the Northern NJ office market last quarter were Hudson Waterfront, Morristown, and Passaic, with increases in availability of 100 basis points, 260 basis points, and 330 basis points, respectively. Each market experienced a major tenant either vacating space or putting a sizable property on the market, causing a jump in availability.
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