Surging Class A Demand Pulls Northern, Central New Jersey Vacancy Rates Lower

Jonathan Meisel, managing director, Jones Lang LaSalle

EAST RUTHERFORD, NJ—Following a sluggish first half of the year that was defined by 235,610 square feet of negative net absorption, a rebound in leasing velocity led to more than 1.5 million square feet of positive net absorption in the Northern and Central New Jersey office markets during the third quarter, according to new research by Jones Lang LaSalle.

JLL says the overall vacancy rate declined from 24.4% at mid-year to 24% in the third quarter—its  lowest level since early 2009.

“Information and technology clients have ramped up their presence in the Northern and Central New Jersey office markets,” says Jonathan Meisel, JLL managing director. “While banking, financial services sectors and pharmaceutical and life sciences industries have historically accounted for a large portion of office demand, information and technology sectors made up nearly one-third of leasing activity during the third quarter of 2016, compared with less than 10 percent of transactions one year ago.”