Small and Mid-sized Tenants Continue to Lead Leasing Activity. GVA Williams New Jersey has released its second quarter market report, which provides an extensive analysis of conditions in the New Jersey office real estate market. According to GVA Williams New Jersey¹s research, overall the state experienced a slight increase in vacancy rates, especially due to new development in central New Jersey. However, in northern New Jersey, vacancy rates actually fell.
Additional highlights in New Jersey¹s office real estate marketplace during the second quarter of 2007 include:
* The overall office vacancy rate at the end of the second quarter was 18.14 percent, which was an increase from 17.95 percent last quarter, and 17.94 from this time last year. Northern New Jersey¹s vacancy rate was 16.59 percent, which was a decrease from 16.85 percent last quarter, and 16.86 percent second quarter 2006. Central New Jersey¹s vacancy rate was 20.42 percent, which was an increase from 19.58 percent last quarter, and 19.51 percent second quarter 2006.
* Sublease opportunities in New Jersey currently represent 17.80 percent of available space, decreasing from 19.28 percent last quarter and increasing from 15.17 at the same time last year. Sublease space decreased in four of the ten counties researched in the second quarter 2007.
* Statewide average asking rents are $24.29 per square foot gross, plus tenant electric, an increase from $24.13 in the second quarter 2006 and virtually unchanged from $24.30 in the first quarter 2007. Rents decreased in the northern part of the state to $24.47 from $24.52 in the first quarter and $24.53 in the second quarter 2006. Central New Jersey rents increased to $24.03 from $23.98 in the first quarter and $23.47 in the second quarter 2006.
³Our in-depth market analysis provides tenants, owners and investors with a comprehensive overview of the current trends we are witnessing in the New Jersey office real estate marketplace,² said Matt Dolly, director of research and marketing at GVA Williams. ³The market in New Jersey is a mixed bag with some areas of the state performing better than others. In particular, Morris and Somerset Counties have experienced increased leasing activity, evidence that a trend is occurring in which tenants may be migrating west. The office market in the legal, healthcare and education sectors are experiencing steady tenant demand with strong activity throughout the state. A positive development in the marketplace is that we are starting to see an increase in demand from business continuity users, which could be a strong driver for the second half of the year.²
This office market report is compiled by GVA Williams New Jersey¹s team of in-house research professionals. The firm is regarded as one of the most respected full-service brokerage, management and advisory firms in the commercial real estate industry.
About GVA Williams New Jersey
With headquarters in Parsippany, GVA Williams New Jersey is a full-service real estate firm fulfilling the needs of owners, investors and tenants, offering expertise in leasing, investment sales, mortgage brokerage, property, construction and asset management, as well as corporate services.
In the Tri-State region, GVA Williams currently employs more than 250 professionals and manages more than 175 commercial properties occupying 23.3 million square feet.
GVA Worldwide is an international organization of real estate industry leaders serving key markets in 20 countries. The organization comprises more than 3,500 real estate professionals in 90 markets worldwide. In 2006, GVA Worldwide partners collectively completed $26.5 billion in transactions and managed more than 150 million square feet of office, industrial, retail and specialized property.
A leading advisor in commercial real estate, GVA Worldwide optimizes client portfolios locally and around the world. It serves the real estate needs of clients including multinational corporations, major space users, developers, owners, institutions, lenders and investors.
For more information, please contact, Executive Managing Officer Jeffrey Schotz of GVA Williams New Jersey at 973-299-3000 or visit www.gvawilliams.com <http://www.gvawilliams.com> .
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