NJ Office Sector Fell Hard for Class A Assets in Q4

Sean Morley, left, and Jeff Babikian, of CBRE

SADDLE BROOK, NJ—New Jersey office tenants fell hard and fast for top quality, class-A assets in the fourth quarter, according to CBRE Group’s Q4 2015 New Jersey Office MarketView Report.  While class A product accounts for 54.9 percent of the state’s total inventory, New Jersey’s class A properties attracted more than their fair share of office demand, capturing almost two-thirds of the state’s total leasing velocity.

“Clients are looking at the aging inventory and increasingly appreciating the class A product type,” Jeff Babikian, executive vice president, CBRE, tells GlobeSt.com exclusively. “We see a number of tenants prioritizing what’s important to employees and clients. There are certain submarkets within New Jersey that do attract Millennials, that do attract densification, that do create a nice environment. Those few markets that are out there are doing exceedingly well.”