CBRE: Parkway Corridor Ranks First in Office Leasing Activity in Central New Jersey
SADDLE BROOK, N.J. (June 22, 2012) -- The Parkway Corridor ranks number one in office leasing activity in Central New Jersey and second in the entire state, according to a recent report by CBRE Group, Inc., New Jersey’s largest commercial real estate brokerage firm.
The 9.4M square-foot Parkway Corridor market, which stretches from Route 78 down to Route 287 along the Garden State Parkway has seen its largest first-quarter leasing velocity since 2006 and is recovering at a rate significantly faster than the market as a whole.
The submarket, which includes Union, Kenilworth, Cranford, Clark, Iselin, Woodbridge, and Edison, has shed 4.29 percentage points since the third quarter of 2009, while New Jersey’s overall availability rate dropped less than one percentage point during that same span.
“Much of the activity in the submarket is in Class A buildings, following the ‘flight-to-quality’ trend,” said Jeremy Neuer, senior vice president, CBRE. “However there is also a ‘flight-to-quality-location- trend going on. Since the beginning of 2011, more than seventy-five percent of the activity in the Parkway Corridor submarket occurred in MetroPark.”
Further evidence of the market’s health is the asking rents, added Mr. Neuer. The average asking rents in the submarket currently sit at $26.85 per sq. ft., approximately 10.2 percent higher than New Jersey’s average asking rent of $24.37 per sq. ft. The Class A rents in the Parkway Corridor are at $31.39 per sq. ft., a 17-percent premium above the state’s Class A rents. Recently, MetroTop II, MetroPark’s newest Class A building, raised its asking rate to $38.00 per sq. ft., the highest in the submarket.
“MetroPark has regained its luster as one of the top markets in New Jersey,” said Mr. Neuer. “Given the steady influx of activity over the last twelve months, new construction and renovated buildings have led the charge with over 500,000 square feet of positive absorption in the three million-sq.-ft. micro market.”
Recent notable deals include:
o Ansell’s lease of 59,000 sq. ft. at MetroTop II in a relocation from Red Bank
o McDonald’s 20,000 sq. ft. lease in the same building in a relocation from Roseland
o Investors Savings’ 40,000 sq. ft. lease at 101 Wood Avenue South
o Hampshire has also commenced leasing at Centra, filling the first floor with Network Applications and 1-800-Doctors
Positive absorption is anticipated to continue as two firms are focusing on Class A office space in MetroPark; both expected to lease 75,000 sq. ft. or more as they consolidate into the region.
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.