EAST RUTHERFORD, NJ—Despite sluggish leasing velocity and additional vacancies generated by consolidations in the New Jersey office market, the state's class A rental rate rose 7.2 percent from $27.40 per square foot, according to Jones Lang LaSalle.
The state's office market posted less than two million square feet in completed transactions in the first quarter of 2017, marking the lowest quarterly volume recorded since mid-2009. The overall office vacancy rate subsequently increased to 24.9 percent compared to 24.5 percent at year-end 2016.
“Most of the recent demand was fueled by smaller-sized leases rather than the 100,000-square-foot plus transactions needed to put a significant dent in the state's vacancy rate,” says Stephen Jenco, vice president, suburban research with JLL. “However, the diminished leasing volume witnessed in early 2017 is expected to be temporary in nature, as nearly five million square feet of requirements were navigating the state's office market.”
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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].
