SADDLE BROOK, NJ—New Jersey's office market is showing signs of improvement driven by growing demand in the market, according to CBRE's First Quarter 2015 New Jersey Office MarketView Report.

“Though New Jersey's office market statistics point to a moderate start for 2015, there were signs in the first quarter that bode well for the market in the near term. Several of the state's most notable occupiers expanded their real estate footprints in Q1 and, during this same period, we saw a number of large requirements engage the market,” Rob Norton, vice president, CBRE, tells GlobeSt.com exclusively. “Overall, activity in the first quarter was reflective of the continued confidence and fervor that we're seeing in the office sector and beyond.”

Leasing velocity in New Jersey amounted to 1.36 million square feet in the first quarter, representing a 9.1 percent decline compared to Q4 2014. However, the list of companies that expanded their real estate occupancy in New Jersey this quarter was especially notable:

• Dun & Bradstreet renewed and expanded by an additional 62,666 square feet in the Chatham/Millburn/Short Hills submarket.
• Regus added two locations to its expanding inventory of office suites.
• Chugai Pharmaceutical more than doubled its office occupancy in the Route 287/78 corridor.

New Jersey's core office markets continued to attract the majority of leasing activity. The Parsippany, Chatham/Millburn/Short Hills and Morristown submarkets accounted for 69.5 percent of velocity in the northern portion of the state, while Princeton and Parkway Corridor accounted for 70.4 percent of velocity in the central portion. Insurance and pharmaceutical companies dominated activity during the first quarter, led by transactions from Arthur J. Gallagher & Co., Cigna Insurance and Taiho Pharmaceutical Co.