LEASING HOLDS STEADY
For the second straight quarter, a flurry of incentive-driven leases boosted leasing, pushing activity to 2.0 million square feet (msf). Larger tenants continued to take advantage of ample space options and extensive incentives. Tenants have leased 6.0 msf in the four most recent quarters.
AVAILABILITY RATE FALLS
The flurry of larger leases completed in the last two quarters appears to have had some impact. The market’s overall availability rate fell by 140 basis points to 24.2%. The Class A availability rate decreased by 170 basis points to 25.7%.
RENT DOWN SLIGHTLY
Average asking rent for the region dropped by 0.9%, falling to $27.53. The Class A asking rent fell by 1.4% to $28.18. Class A asking rent has fallen by 4.4% year-on-year.
WEAKER SALES
Office property sales during the first seven months of the year totaled $914 million, a 45% decrease compared to the first seven months of 2017.
“Tenants have capitalized on tax credits granted via the Grow NJ incentive program as well as generous concessions from landlords. Steady leasing has made a slight dent in availability in select areas, but companies still have ample options to consider.”
Savills Studley Research