Demand Offsets Dispositions as NJ Office Market Rebounds in Second Quarter

Andrew Judd, left, and Jason Price, of Cushman & Wakefield

EAST RUTHERFORD, NJ—After a setback during the first quarter when large dispositions in some key market segments led to negative absorption, the Northern and Central New Jersey office market stabilized during the second quarter, according to Cushman & Wakefield. While leasing remained below the historic levels of 2015 and 2016, class-A demand rebounded somewhat while vacancy remained flat. Furthermore, asking rents in some key market segments continued to climb, specifically in the Hudson Waterfront.

“As long as the current economic cycle in the state continues and office jobs are created, demand for space should remain steady and even pick up in some key Northern and Central New Jersey submarkets,” says Andrew Judd, Cushman & Wakefield’s New Jersey market leader. “We anticipate that leasing throughout the second half of 2017 will offset some large dispositions on the immediate horizon in the Waterfront, Morris County, Bergen County, and the I-78 Corridor, keeping vacancy in check. However, well-located, upgraded, and amenity-rich class-A assets will likely continue to outperform the market.”