LEASING DOWN SLIGHTLY
Leasing activity fell from 1.2 million square feet (msf) in the fourth quarter of 2017, to 1.1 msf in the first quarter. Tenants have leased 4.9 msf in the four most recent quarters, 50.5% below the long-term market average.
OVERALL AVAILABILITY FALLS
The market’s overall availability rate decreased by 40 basis points from 22.8% to 22.4%. The Class A availability rate increased by 40 basis points to 24.3%.
RENTS RISE
Average asking rent for the region rose by 2.9%, to $29.78. Rent has increased as the availability of quality Class A space in submarkets such as Hudson Waterfront remains elevated, and older obsolete properties are removed from inventory.
SALES DOWN
Office property sales in the last six months (through February of 2018) decreased by 33%—totaling $1 billion, down from $1.5 billion in the previous six months.
“Demand has slipped well below longterm averages in Northern New Jersey. Tenants have a lot of leverage across the market. Landlords in some areas continue to repurpose obsolete office product as industrial or residential product when and where it is feasible."
Chip Conklin, Senior Managing Director