Newark, NJ, is one of just 20 cities in the running to be home to the planned second headquarters of Amazon. "We have the amenities of New York without the problems of New York," said Newark Mayor Ras Baraka.

December 7, 2018 Comments Off on NJ Office Deals Keep Getting Smaller Views: 2235 New York News, Tri-State Area New York

NJ Office Deals Keep Getting Smaller

New Jersey has transformed into an office market characterized primarily by small office deals below 10,000 square feet, says CBRE.

Last year marked a five-year low in the number of large-size transactions, and given leasing activity through the third quarter, 2018 is likely to see the total number of big leases decline even further. One byproduct has been an overabundance of large blocks of space.

Conversely, the number of small transactions has been on a strong upswing since 2013 and shows no sign of abating. As Q3 ended, the total number of small leases in 2018 had already reached 581, surpassing the previous year-end total and setting a new high-water mark.

“The combined impact of too many large blocks and not enough large-block demand suggests that the market is likely to see the current availability and rent levels persist,” said Rémy P. deVarenne Jr., SVP, CBRE. “Changing the trajectory of the market will require reducing the oversupply of space and realigning available inventory to better meet the demands of current and future tenants in the market.”

Connect With CBRE’s deVarenne

Subscribe to Connect Daily New York

For comments, questions or concerns, please contact Paul Bubny

Tags: , ,

Comments are closed.