CB Richard Ellis Reports 4th Quarter of 2009 Has Highest Leasing Velocity in the New Jersey Office Market Since 2007
By Mel Fabrikant Wednesday, January 27, 2010, 04:13 PM EST
- CBRE completes 5 of the top 10 transactions in the 4th quarter of 2009 -
CB Richard Ellis, New Jersey’s largest commercial real estate brokerage firm, announced today that the fourth quarter of 2009 recorded the highest quarterly leasing velocity in New Jersey’s office market since 2007, with leasing velocity climbing to 2.1 million square feet. CBRE completed 5 of the top 10 transactions signed in the quarter.
“Both nationally and within the state of New Jersey, 2009 presented unique challenges in terms of completing transactions in the commercial real estate market, but the fundamentals and overall activity during the fourth quarter of 2009 are a positive sign for the coming year,” stated Jeff Hipschman, senior managing director at CBRE. “Going forward, it is our projection that leasing velocity will continue to increase, opening the gates to new opportunities for both property owners and tenants, as asking rates remain attractive and activity trends upward.”
In its most recent office MarketView report, released January 14th, CB Richard Ellis describes the positive inflections found across the office market sector throughout Northern and Central New Jersey. More specifically, at the close of the fourth quarter, leasing velocity increased by 863,371-square-feet since last quarter, a 666,221-square-foot increase from this time last year. The areas of New Jersey with the highest leasing velocity included the Waterfront (552,644), Morristown (240,790) and Parsippany (233,067). In addition, availability rates decreased to 21.6% from 22.0% in the third quarter, with the Route 17 Corridor (8.4%), the Waterfront (11.4%) and Western Route 78 (13.5%) submarkets recording the lowest availability rates in New Jersey for the quarter. And, for the first time since 2008, positive absorption was recorded at the close of the quarter, totaling 627,196-square-feet, an outstanding improvement from last quarter’s negative 893,600-square-feet.
The fourth quarter of 2009 also marked the year’s largest leasing transactions in New Jersey. Of the top 10 largest deals, CBRE completed 5 of these transactions which included the following:
• Samsung Electronics America, Inc.’s new North American headquarters lease of 193,916-square-foot at 85 Challenger Road in Ridgefield Park, New Jersey. CBRE represented the tenant in this transaction.
• Covanta Energy Corporation’s new 105,357-square-foot lease at 445 South Street in Morristown, New Jersey. CBRE completed this transaction on behalf of Covanta.
• Credit Suisse’s 284,000 square-foot build-to-suit facility in Clifton, New Jersey. CBRE completed this transaction on behalf of Credit Suisse.
“We have clearly turned a corner in the New Jersey market, with all indices pointing to a correction,” said David Gialanella, executive vice president and head of CBRE’s New Jersey operation. “We ended 2009 with clear strength in the leasing market, and see continued strong activity in the first quarter of 2010. Clearly corporate occupiers are once again making strategic business decisions; a very positive trend of New Jersey’s leasing markets.”
CB Richard Ellis, New Jersey’s largest commercial real estate brokerage firm, announced today that the fourth quarter of 2009 recorded the highest quarterly leasing velocity in New Jersey’s office market since 2007, with leasing velocity climbing to 2.1 million square feet. CBRE completed 5 of the top 10 transactions signed in the quarter.
“Both nationally and within the state of New Jersey, 2009 presented unique challenges in terms of completing transactions in the commercial real estate market, but the fundamentals and overall activity during the fourth quarter of 2009 are a positive sign for the coming year,” stated Jeff Hipschman, senior managing director at CBRE. “Going forward, it is our projection that leasing velocity will continue to increase, opening the gates to new opportunities for both property owners and tenants, as asking rates remain attractive and activity trends upward.”
In its most recent office MarketView report, released January 14th, CB Richard Ellis describes the positive inflections found across the office market sector throughout Northern and Central New Jersey. More specifically, at the close of the fourth quarter, leasing velocity increased by 863,371-square-feet since last quarter, a 666,221-square-foot increase from this time last year. The areas of New Jersey with the highest leasing velocity included the Waterfront (552,644), Morristown (240,790) and Parsippany (233,067). In addition, availability rates decreased to 21.6% from 22.0% in the third quarter, with the Route 17 Corridor (8.4%), the Waterfront (11.4%) and Western Route 78 (13.5%) submarkets recording the lowest availability rates in New Jersey for the quarter. And, for the first time since 2008, positive absorption was recorded at the close of the quarter, totaling 627,196-square-feet, an outstanding improvement from last quarter’s negative 893,600-square-feet.
The fourth quarter of 2009 also marked the year’s largest leasing transactions in New Jersey. Of the top 10 largest deals, CBRE completed 5 of these transactions which included the following:
• Samsung Electronics America, Inc.’s new North American headquarters lease of 193,916-square-foot at 85 Challenger Road in Ridgefield Park, New Jersey. CBRE represented the tenant in this transaction.
• Covanta Energy Corporation’s new 105,357-square-foot lease at 445 South Street in Morristown, New Jersey. CBRE completed this transaction on behalf of Covanta.
• Credit Suisse’s 284,000 square-foot build-to-suit facility in Clifton, New Jersey. CBRE completed this transaction on behalf of Credit Suisse.
“We have clearly turned a corner in the New Jersey market, with all indices pointing to a correction,” said David Gialanella, executive vice president and head of CBRE’s New Jersey operation. “We ended 2009 with clear strength in the leasing market, and see continued strong activity in the first quarter of 2010. Clearly corporate occupiers are once again making strategic business decisions; a very positive trend of New Jersey’s leasing markets.”
