July 31, 2017
The average asking rent for office space in suburban New Jersey averaged $26.42 per square foot in the second quarter. That’s nearly $2 higher than it was just five years ago. It’s also the highest mid-year level since 2001, according to Transwestern’s “Second-Quarter 2017 Office Market Report.”
“The quality of New Jersey’s suburban office stock has dramatically improved, and property owners are now reaping the benefits of their repositioning initiatives,” said Matt McDonough, managing director at Transwestern.
The percentage of vacant office space improved slightly to 15% in the second quarter from 15.1%. Over the last 12 months, companies have absorbed more than 2.7 million square feet of space, marking the second-highest year-over-year total since 2006.
“Although the younger population wants to live downtown, many employers remain inclined to choose a location that suits its existing employee base, which means finding suitable space in the suburbs.”
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