According to CBRE’s Q1 2019 New Jersey office market report, a flurry of leasing by life sciences companies and law firms spurred the market to 1.5 million sq. ft. in total leasing – the strongest activity recorded in the first quarter since 2014 and an increase of 38 percent over the same quarter a year earlier.
Another bright spot was the availability rate, which has trended downward since 2016. The availability rate ended the first quarter at 20.1 percent, 30 basis points (bps) below Q4 2018 and down 110 bps since the second quarter of last year.
“Life sciences companies and law firms largely sustained the New Jersey office market in the first quarter,” said Adam Englander, Senior Vice President, CBRE. “In addition, capital investment continues to drive rental growth and leasing activity. Owners who have invested wisely are experiencing positive results from base building and amenity upgrades, as they capture improved leasing activity.”
Despite the strong leasing and declining availability rate, New Jersey’s office market posted 150,000 sq. ft. of negative absorption. In fact, absorption was more than 430,000 sq. ft. below Q4 2018.In addition, after increasing for two consecutive quarters, the average asking lease rate fell by $0.24 per sq. ft. quarter-over-quarter to $26.21, the same as Q1 2018.
To view the full report, click here.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
