Availability Drops Below 20 Percent for the First Time Since Q4 2008
According to CBRE, New Jersey’s office market remained steady in the second quarter of 2019, despite lackluster leasing activity. Among the bright spots was the 359,100 sq. ft. of net absorption, a turnaround of approximately 510,000 sq. ft. from the previous quarter. As a result, net absorption for the first half of 2019 now stands at a positive 209,000 sq. ft.
In addition to positive net absorption, the availability rate and the average asking lease rate also improved during Q2 2019. In fact, the market’s availability rate fell 20 basis points (bps) quarter-over-quarter to 19.9 percent - the first time it has dipped below 20 percent since Q4 2008. Additionally, both the overall average asking lease rate and the Class A rate increased by $0.25-per-sq.-ft. quarter-over-quarter. At $43.79-per-sq.-ft., the Waterfront submarket again posted the highest average of any submarket, but remained flat compared with the preceding quarter.
In contrast, leasing activity was down quarter-over-quarter by roughly 307,000 sq. ft., to 1.2 million sq. ft. Major leases in the second quarter included a 90,697-sq.-ft. new lease by General Services Administration at 3 Gateway Center in Newark and a 62,795 sq. ft. lease by Bohler Engineering at 30 Independence Boulevard in Warren Township.
“The New Jersey office remained steady in the second quarter when looking at the availability, asking rents and net absorption metrics,” said Ed DaCosta, Executive Vice President, CBRE. “Given strong market fundamentals and an unemployment rate of just 3.8 percent - the lowest recorded since April 2001 – we anticipate that the office market will continue to post positive results through the end of the year.”
To view the full report, click here.
According to CBRE, New Jersey’s office market remained steady in the second quarter of 2019, despite lackluster leasing activity. Among the bright spots was the 359,100 sq. ft. of net absorption, a turnaround of approximately 510,000 sq. ft. from the previous quarter. As a result, net absorption for the first half of 2019 now stands at a positive 209,000 sq. ft.
In addition to positive net absorption, the availability rate and the average asking lease rate also improved during Q2 2019. In fact, the market’s availability rate fell 20 basis points (bps) quarter-over-quarter to 19.9 percent - the first time it has dipped below 20 percent since Q4 2008. Additionally, both the overall average asking lease rate and the Class A rate increased by $0.25-per-sq.-ft. quarter-over-quarter. At $43.79-per-sq.-ft., the Waterfront submarket again posted the highest average of any submarket, but remained flat compared with the preceding quarter.
In contrast, leasing activity was down quarter-over-quarter by roughly 307,000 sq. ft., to 1.2 million sq. ft. Major leases in the second quarter included a 90,697-sq.-ft. new lease by General Services Administration at 3 Gateway Center in Newark and a 62,795 sq. ft. lease by Bohler Engineering at 30 Independence Boulevard in Warren Township.
“The New Jersey office remained steady in the second quarter when looking at the availability, asking rents and net absorption metrics,” said Ed DaCosta, Executive Vice President, CBRE. “Given strong market fundamentals and an unemployment rate of just 3.8 percent - the lowest recorded since April 2001 – we anticipate that the office market will continue to post positive results through the end of the year.”
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 2019 revenue). The company has more than 100,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 530 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.
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 2019 revenue). The company has more than 100,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 530 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.
