2012 New Jersey Office Market Activity Off to Slow Start
SADDLE BROOK, N.J. (June 18, 2012) –While the New Jersey office market is off to a relatively slow start with declining leasing and renewal activity, a few patterns have emerged that could set the stage for the rest of the year, according to CBRE.
Through the end of May, there have been only four transactions over 100,000 sq. ft., down from eight from the same time last year. Total, there were 23 total lease and renewal transactions in properties larger than 100,000 sq. ft. in 2011, but CBRE forecasters don’t expect the number will be that high for 2012 based on the time needed to complete transactions of this size and the current demand in the New Jersey marketplace.
“With over 33 million square feet of office space available, the New Jersey market can accommodate most space requirements. We do see that the market in 2012 is being carried by small-to-mid-size deals in the range of 10,000 to 50,000 square feet,” saidLeo Paytas, senior vice president, CBRE New Jersey. “This could mean smaller companies who have been sitting on the sidelines are now looking to capitalize on new opportunities.
So far this year 54.4% of all transactions 10,000 sq. ft. and greater were completed in the 10,000-20,000 sq. ft. range while 20.2% of the transactions were 40,000 sq. ft. and greater, compared to 49.4% and 27.0% last year at this time respectively.
Through the end of April, the market activity was down, returning to levels not seen since 2009. While the leasing velocity was slightly less than 2011 and 2010, 4.9% and 12.6% respectively, it was renewal activity that widened the gap between the previous years. The renewal activity in the first four months of the year was considerably less that the two prior years, although three of the four top deals year to date were renewals. The combined leasing and renewal activity in 2012 were 26.0% less than 2011 and 19.6% less than 2010.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm (in terms of 2011 revenue). The Company has approximately 34,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our Web site at www.cbre.com.