NAI Hanson Releases Northern New Jersey Q1 2012 Market Report
NAI HANSON RELEASES NORTHERN NEW JERSEY MARKET REPORT FOR FIRST QUARTER OF 2012
- Industrial and Office Sectors Lead Recovery With Positive Net Absorption -
NAI Hanson today released its Northern New Jersey Market Report for the first quarter of 2012. The report, which examines factors such as vacancy percentage, average lease rates and total net absorption, shows that while the region’s office and industrial markets have demonstrated improvement over the past year, the local retail market is in the midst of a slower recovery.
An overview of the industrial market includes the following data:
· There was more than 59.9 million square feet of vacant space in the first quarter of 2012 — down 4.2 percent from the same time last year, when 62.5 million square feet was available. Vacancy rates were at 8.0 percent — down 8.4 percent from the same time last year.
· While the amount of space leased in the first quarter of 2012 decreased by more than 45.9 percent from the same time last year (10.7 million to 5.8 million square feet), total net absorption increased from negative 2,312,097 to negative 1,451,226.
· Industrial lease rates averaged at $5.71 per square foot — down 0.2 percent compared to the same time last year, when average rates were $5.69 per square foot.
· Notable industrial transactions included Donna Karan’s 197,000-square-foot lease in Carlstadt; Jersey Paper’s 151,973-square-foot lease in Edison; Preferred Fragrances’ 105,000-square-foot lease in Newburgh; Ring Container Technologies’ 64,338-square-foot lease in Springfield; Shakespeare Theatre’s 50,000-square-foot lease in Florham Park; and Source4’s 46,855-square-foot lease in Parsippany.
An overview of the office market includes the following data:
· At 20.9 million square feet, the amount of vacant Class A office space in the first quarter of 2012 was virtually flat compared to the same time last year. There was more than 12.5 million square feet of vacant Class B space — an increase of 7.3 percent from the same time last year.
· There was over 1.5 million square feet of Class A space leased — a decrease of 32.7 percent from the same time last year, when more than 2.4 million square feet of space was leased. There was 636,485 square feet of Class B space leased — down 24.6 percent from the same time last year, when 844,298 square feet of space was leased.
· In the Class A market, total net absorption was 34,594 square feet — an increase of 30.5 percent from the same time last year, when absorption was at 26,505 square feet. In the Class B market, total net absorption was 5,813 square feet — up from negative 15,339 square feet last year.
· Class A rents averaged $26.42 per square foot — down 4.1 percent from the same time last year, when rates were $27.65 per square foot. Class B rents averaged $20.87 per square foot — down slightly compared with Q1 2011’s rates of $21.07 per square foot.
· Notable office transactions included Pearson’s 200,000-square-foot lease in Hoboken; Cole Real Estate Investments’ 176,000-square-foot purchase in Parsippany; Savient Pharmaceuticals’ 48,469-square-foot lease in Bridgewater; Parker Ibrahim & Berg LLC’s 30,055-square-foot lease in Somerset; Community Blood Services’ 28,500-square-foot purchase in Paramus; and NYCE Payments Network LLS’s 22,770-square-foot lease in Secaucus.
An overview of the retail market includes the following data:
· There was more than 16.9 million square feet of retail space available — an increase of 4.3 percent from the same time last year, when there was 16.2 million square feet available. Vacancy rates averaged 6.3 percent — up from the same time last year, when rates were 6.0 percent.
· There was 884,742 square feet of retail space leased — a decrease of 9.3 percent from the same time last year, when 975,661 square feet was leased.
· Total net absorption was negative 315,949 square feet, with eight out of the 12 Northern New Jersey counties experiencing negative absorptions.
· Overall, total average asking rental rates were at $19.50 per square foot — down 2.5 percent from the same time last year, when rates averaged $20.04 per square foot. Direct rates averaged $17.07 per square foot, while sublet rates averaged $23.73 per square foot.
· Notable retail transactions included Foodtown’s 39,700-square-foot lease in Parsippany; Morris Habitat for Humanity’s 33,500-square-foot lease in Randolph; Stickley Furniture’s 22,364-square-foot purchase in Paramus; Sears Outlet’s 19,430-square-foot lease in Watchung; Vendetta Paintball’s 19,121-square-foot lease in Middletown; and Plaza 10 East’s 11,600-square-foot purchase in Randolph.
To download the full report, please visit www.naihanson.com/flyers/1stqtr2012.pdf.
About NAI James E. Hanson
Since 1955, NAI James E. Hanson has been a leading independent full-service brokerage commercial real estate and property management firm serving a diverse client list. NAI Hanson offers its clients strategic solutions and provides comprehensive value-added services such as office, industrial and retail brokerage, investment sales, land sales, management, government services and financing expertise.
NAI Hanson is also one of the original members of NAI Global, an international commercial real estate network with over 350offices spanning the globe. For more information on NAI James E. Hanson, contact William C. Hanson, SIOR, at the company’s Hackensack office at 201-488-5800 or visit www.naihanson.com.
# # #