While last year’s activity was largely driven by expansions, 2016 is starting out with tenants staying the course. More than half (53.8%) maintained their current occupancy this quarter, rather than expanding. But that hasn’t tempered landlord optimism.
Rents increased 3.2% on average nationwide—the highest quarterly rent growth of this cycle. Bolstered by strong tenant demand and unshaken by concerns over the strength of the economy, landlords continued to push rates in the most supply-constrained markets.
Compare New Jersey market performance across key categories and download the Q1 2016 US Office Report and Statistics.