Adam Englander, senior vice president, CBRE, East Brunswick, NJ
EAST BRUNSWICK, NJ—A flurry of leasing by life sciences companies and law firms spurred the market to 1.5 million square feet in total leasing — the strongest activity recorded in the first quarter since 2014 and an increase of 38% over the same quarter a year earlier, according to CBRE's Q1 2019 New Jersey office market report.
Another bright spot was the availability rate, which has trended downward since 2016. The availability rate ended the first quarter at 20.1%, 30 basis points below Q4 2018 and down 110 bps since the second quarter of last year.
“Life sciences companies and law firms largely sustained the New Jersey office market in the first quarter,” says Adam Englander, senior vice president, CBRE. “In addition, capital investment continues to drive rental growth and leasing activity. Owners who have invested wisely are experiencing positive results from base building and amenity upgrades, as they capture improved leasing activity.”
Despite the strong leasing and declining availability rate, New Jersey's office market posted 150,000 square feet of negative absorption. In fact, absorption was more than 430,000 square feet below Q4 2018. In addition, after increasing for two consecutive quarters, the average asking lease rate fell by $0.24 per square foot quarter-over-quarter to $26.21, the same as Q1 2018.
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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].
