July 22, 2019
The New Jersey office market recorded its fifth consecutive quarter of positive net absorption, driving the state’s average asking rent to an historical peak of $27.22-per-square-foot, says Transwestern. Vacancy rates statewide have continued to improve, reaching a 10-year low, according to Transwestern Commercial Services’ (TCS) Second-Quarter 2019 Office Market Report.
“Continued demand for high-quality office space is supporting both successful repositioning of existing assets within prime locales and this cycle’s first speculative ground-up office development,” said Matthew McDonough, TCS managing director. “These factors are putting upward pressure on overall market rents. The steady success of the New Jersey commercial real estate market is encouraging investors to move forward with new development plans throughout the state, in both urban and suburban areas.”
Multiple submarkets throughout the state are experiencing higher than 5% year-over-year growth in rents including Woodbridge/Metropark, Edison South, Parsippany Region, Hudson Waterfront, Wayne/Paterson and Somerset/Interstate 78 East.
Pictured: 200 Greene St. in Jersey City
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