PARSIPPANY, NJ—After being robust for several quarters, office leasing “stalled” in the first quarter of 2016, but industrial properties continued to set new records – including rental rate increases that could reach twice the level of previous lease deals, according to research by Colliers International's John Obeid and David Simon.
“Deals were getting done, but it was the lack of the large transactions that really pushed activity levels lower this quarter,” Obeid, Colliers senior director of research for New Jersey, tells GlobeSt.com exclusively, regarding office. Transactions in excess of 100,000 square feet last year were not replicated in the same quarter this year. “That turned absorption negative for the quarter, but that can be pointed toward to the densification trend. We're seeing lots of clients relocate into more efficient class A space, and leaving behind some large blocks of class B.”
There was more than 300,000 square feet of positive absorption in class A space, which has been positive in six of the last seven quarter, he says. “We've been seeing that for the past several quarters, a flight to quality trend,” he says.
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Steve Lubetkin
Steve Lubetkin is the New Jersey and Philadelphia editor for GlobeSt.com. He is currently filling in covering Chicago and Midwest markets until a new permanent editor is named. He previously filled in covering Atlanta. Steve’s journalism background includes print and broadcast reporting for NJ news organizations. His audio and video work for GlobeSt.com has been honored by the Garden State Journalists Association, and he has also been recognized for video by the New Jersey Chapter of the Society of Professional Journalists. He has produced audio podcasts on CRE topics for the NAR Commercial Division and the CCIM Institute. Steve has also served (from August 2017 to March 2018) as national broadcast news correspondent for CEOReport.com, a news website focused on practical advice for senior executives in small- and medium-sized companies. Steve also reports on-camera and covers conferences for NJSpotlight.com, a public policy news coverage website focused on New Jersey government and industry; and for clients of StateBroadcastNews.com, a division of The Lubetkin Media Companies LLC. Steve has been the computer columnist for the Jewish Community Voice of Southern New Jersey, since 1996. Steve is co-author, with Toronto-based podcasting pioneer Donna Papacosta, of the book, The Business of Podcasting: How to Take Your Podcasting Passion from the Personal to the Professional. You can email Steve at [email protected].
