- After less than 2.0 million square feet of leasing transactions were completed in the Northern and Central New Jersey office market during the first quarter, leasing velocity ticked upward to just over 2.4 million square feet three months later.
- However, demand remained below the more than 3.0 million square feet of leases completed on a quarterly basis in 2015.
- More than 60.0 percent of the leases signed during the second quarter of 2016 were concentrated in Northern New Jersey, as office occupiers were active in the Hudson Waterfront, Parsippany and Route 280 Corridor submarkets.
- Approximately 326,700 square feet was absorbed in the Northern and Central New Jersey office market during the second quarter, which helped put a dent in the 562,300 square feet of negative net absorption witnessed in early 2016.
- Nearly three-quarters of absorption was traced to the Northern New Jersey office market, as the Hudson Waterfront and Route 280 Corridor submarkets each posted more than 75,000 square feet of positive net absorption in the second quarter.
- The Northern and Central New Jersey average asking Class A rental rate for direct space increased $0.20 from the first quarter to $28.10 per square foot in mid-2016. Additional availabilities marketed with higher asking rents contributed to the recent uptick in the Class A rental rate.
- With an average asking Class A rental rate of nearly $38.00 per square foot, the Hudson Waterfront maintained the highest rental rate in Northern and Central New Jersey.
- The Metropark submarket’s nearly $31.00 per square foot Class A rental rate remained the highest rental rate among the Central New Jersey submarkets.
Download JLL’s Q2 2016 New Jersey Office Statistics report.