There are a few New Jersey market CRE trends that we saw at the end of 2016, that we expect to see continue in 2017.
- Among the submarkets posting the largest quarterly rent increases was the Hudson Waterfront, where the asking Class A rental rate eclipsed $42.50 per square foot, which was the highest recorded rent in this market.
- Continuing a trend seen last quarter, information/technology companies remained active through the fourth quarter of 2016. This sector again accounted for nearly one-third of leasing activity in the Northern and Central New Jersey office markets.
- Northern and Central New Jersey’s industrial market expected to flourish with vacancy falling to 4.5 percent, an all-time low.
- The 100,000 to 250,000-square-foot size range continued to be the sweet spot for warehouse product in 2016. However, several large requirements still loom in the market and are expected to help drive absorption over the next six to twelve months.
* Data from JLL Research’s Q4 2016 Market Reports