Chart of the Week-Competitive rental rates encourage interest in New Jersey’s Class A office product

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  • A flight-to-quality emerged in the Northern and Central New Jersey office market during the first half of 2015, as tenant requirements led to nearly 580,000 square feet of Class A space being absorbed, compared to more than 1.0 million square feet of negative net absorption witnessed in the Class B market.
  • This was in contrast to the 2012-2014 period, when consolidations and sluggish demand in the Class A office market led to negative absorption figures.
  • Competitive rental rates for Class A product, especially in submarkets overshadowed by elevated vacancy rates, will keep the door open for tenants looking to lock in financially favorable leases, while upgrading their spacing needs.

Source: JLL Research

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