According to CBRE’s fourth quarter 2018 office market report, leasing activity in New Jersey increased year-over-year by approximately 113,000 sq.ft., although annual activity was down by about eight percent compared to 2017. Moreover, with 1.6 million sq. ft. of net absorption, the market recorded its highest annual total since 2005. In fact, absorption was positive in 2018 in three of the four quarters.
“The year ended on a high note with many encouraging signs for the New Jersey economy and office market, including the lowest unemployment rate since 2001,” said Rémy P. deVarenne Jr., Senior Vice President, CBRE. “Although we have seen positive momentum during the past few years, we are cautiously optimistic about the future.”
During the fourth quarter, the New Jersey market posted an availability rate of 20.4 percent, while the average asking lease rate ended the year at $26.45persq.ft. This was the second highest average rate recorded since the first quarter of 2002.
Major leases during the quarter included Phillips-Van Heusen’s 224,000sq.ft. renewal at 1001 Frontier Road in Bridgewater; Sumitomo Mitsui Banking’s 74,000sq.ft. renewal and 36,000sq.ft. expansion at Harborside Plaza 2; and First Data Corp.’s renewal for more than 48,000 sq. ft. and addition of nearly 32,000 sq. ft. at 101 Hudson Street, both owned by Mack-Cali.
To view the full report, click here.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates) and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
