Smaller Leases Drive Velocity, While Deals in Excess of 100K SF Prove Elusive

Stephen Jenco, vice president and director of suburban tri-state office research, Jones Lang LaSalle

EAST RUTHERFORD, NJ—Leasing activity in the Northern and Central New Jersey office market was down approximately 45 percent in 2017 compared with deal volume recorded in 2016, according to Jones Lang LaSalle. The state registered 7.1 million square feet in transactions in 2017, compared with 12.9 million square feet in deals the year before.

“Much of the demand for office space in 2017 was fueled by smaller leases, rather than the 100,000-square-foot and larger transactions needed to put a significant dent in the office vacancy rate,” says Stephen Jenco, vice president and director of suburban tri-state office research. “Less than five percent of the leases completed in 2017 were larger than 100,000 square feet, compared with 15 percent of transactions during the same period last year.”