Commercial Real Estate Outlook for Northern & Central New Jersey
Q3 2018 The vacancy rate in Northern New Jersey is basically unchanged at 25.5 percent with some landlords upgrading their office buildings to meet the demands of a changing workforce. Improvements to these properties include gyms, meditation centers, full-service cafeterias, and the addition of large common areas and promenades.
Q2 2018 The availablity rate for Class A office space approached 26 percent in the region with most lease transactions comprised of smaller tenants. Commercial real estate market continues to favor tenants with more opportunities for concession packages in their negotiations to lease office space.
Q1 2018 Office vacancy rates remain elevated despite the administration's rollback of numerous regulations which impacted corporate hiring practices. There is however, renewed interest among REITs and other institutional investors in the acquisition of Class A office portfolios due to attractive buying opportunities.
Q2 2017 The outlook for the commercial real estate sector is improving with a slight increase in lease transactions likely due to the removal of job constraining regulations and lower unemployment rate.
Q1 2017 With New Jersey's jobless rate at 4.2 percent, industry experts are cautiously optimistic that office market conditions will improve. Commercial landlords may also be willing to make capital improvements to upgrade their office building portfolios to attract new tenants.
Q4 2016 The pace of office leasing activity has stalled as New Jersey's economy contines to underperform compared to the national economy which has seen stronger job growth across all sectors. Bergen County's office availability rate is close to 20 percent.
Q3 2016 Commercial leasing activity is flat in the region due to slower hiring practices in the professional and financial services sectors. With innovation stagnating, start-up companies are at their lowest levels in almost two decades which also curbs the need for new office space.
Q2 2016 The commercial real estate market rebounded slightly as the vacancy rate for all classes of office space decreased to 18.5 percent. The lower vacancy rate may be attributed to a smaller inventory of office buildings which are being converted to multi-family residential properties. There has also been additional hiring in the private sector.
Q1 2016 Northern New Jersey's overall office vacancy rate approached 21 percent with revised job figures reflecting losses in the professional and business services sector.
Q4 2015 The demand for office space gained momentum in the region as New Jersey's unemployment rate fell to 5.1 percent due to private sector job growth. The industrial market also benefitted from the local economy as online retail companies leased warehouse space for their fulfillment and distribution centers.
Q3 2015 Office availability rates decreased slightly in the region to 20 percent with the expectation that modest growth will be seen next year. For the proactive tenant, market conditions are highly favorable in their negotiations with landlords to lease Class A office space or to extend their tenancy.
Q2 2015 The bulk of commercial leasing activity in Northern New Jersey can be characterized by lease renewals rather than corporate relocations and office expansions reflecting sluggish job growth in the region. The office availability rate in Bergen County is unchanged at close to 21 percent.
Q1 2015 The vacancy rate for all classes of office space in Bergen County remains elevated at nearly 21 percent. There is an uptick in leasing activity for newly renovated office buildings as landlords modernize their commercial properties through capital improvements to building facades, mechanical systems, lobbies and other common areas.
Q4 2014 The inventory for single-user office buildings in Bergen County is growing as prominent companies, lured by attractive incentives, relocate their corporate facilities out-of-state. Despite a soft office market, industrial market conditions are improving with new construction of distribution centers along major corridors.
Q3 2014 Northern New Jersey's office vacancy rate hovers above 25 percent as corporate hiring fails to gain momentum in the state's economy. An exception to this downward trend is the financial services sector in which commercial leasing activity has accelerated with notable lease transactions in the Hudson County waterfront submarket.
Q2 2014 The commercial real estate market has stabilized even though the vacancy rate for Class A office space continues to exceed 20 percent. There is cautious optimism that office market conditions will improve when sustainable long-term job creation is realized.
Q1 2014 The overall office vacancy rate increased slightly as corporate restructuring and disappointing job growth impact the State's economy. The looming employer mandate associated with the Affordable Care Act also presents challenges for corporate decision-makers and may affect future hiring practices leading to a weaker office market. For commercial sales, the 2014 outlook is positive with increased capital accessible for institutional investors eager to acquire Class A properties.
Q4 2013 Although New Jersey's jobless rate decreased to 7.8 percent, the vacancy rate for Class A office space in Northern New Jersey remains persistently high at nearly 25 percent. This elevated vacancy rate in the region is due primarily to slow economic growth in the professional and financial services sectors which traditionally fuel the demand for office space.
Q3 2013 Commercial leasing velocity improved modestly in Bergen County with the office availability rate for all classes of office space decreasing by 1.0 percent. To stimulate the commercial real estate market and state economy recent legislation has been enacted to streamline New Jersey's economic incentive programs allowing smaller and mid-size companies access to important tax credits.
Q2 2013 Despite an improvement in New Jersey's jobless rate to 8.6 percent, economic uncertainty including the delay in implementing the employer mandate of the Health Care Law continues to curb the demand for office space in the region. The overall office vacancy rate in Bergen County hovers just below 18 percent.
Q1 2013 Commercial leasing activity continues to be flat with the overall vacancy rate in Northern New Jersey slightly exceeding 19 percent. Office market conditions fail to gain momentum amidst slow economic growth and an elevated unemployment rate of 9.5 percent.
Q4 2012 Commercial real estate market remains relatively stable as the vacancy rate for all classes of office space in Bergen County fell slightly below 18 percent. The commercial real estate sector is a lagging economic indicator and improvements in office vacancy rates are contingent upon economic growth and regional job creation.
Q3 2012 Office availability rates increased slightly in Northern New Jersey as the state's jobless rate reached 9.9 percent which is the highest level in over three decades. Until there is adequate job growth, it is unlikely that New Jersey's commercial real estate market will tangibly improve.
Q2 2012 With the slow economic recovery and lackluster job data, the demand for new office space has stalled in the region as the overall vacancy rate in Bergen County holds steady at 18.1 percent.
Q1 2012 Commercial leasing activity remains slow in the region with the vacancy rate for all classes of office space stable at 18.1 percent. In an uncertain economy, commercial real estate transactions have been characterized by lease renewals rather than office relocations as many companies are cautious to expand payrolls and invest in capital expenditures.
Q4 2011 The vacancy rate for Class A office buildings in Bergen County fell slightly from the previous quarter suggesting that commercial leasing velocity is gradually improving in the region. Office vacancies for all classses of office space also declined by 0.3 percent to 18.6 percent.
Q3 2011 Commercial leasing activity continues to be sluggish with the vacancy rate for Class A office space in Bergen County rising modestly to 28 percent. To stimulate the region's stagnant commercial real estate market, legislators have introduced the Grow New Jersey Assistance Program - a new tax incentive bill designed to promote job creation/retention and capital investment in metropolitan and suburban areas.
Q2 2011 Thevacancy rate for all classes of office space in Bergen County approached 19 percent as leasing activity stalled in the region. The commercial real estate market lost momentum due to an unexpected rise in unemployment and slower hiring practices by companies seeking to reduce operating costs in an uncertain economy.
Q1 2011 Commercial real estate market showing signs of improvement in the region as the demand for new office space increased slightly from the previous quarter which may be attributed to a modest rise in private and public sector jobs. Another positive economic indicator is the record breaking $310 million sale of two Class A office buildings in the Hudson County waterfront submarket.Q4 2010 The vacancy rate for all classes of office space in Bergen County edged up to slightly over 18 percent with economic data suggesting that the northern New Jersey office market has finally stabilized. To retain mid-size and large corporations in New Jersey, the economic incentive program BRRAG (Business Retention & Relocation Assistance Grant) has been revised. The enhanced bill substantially raises business tax credits for qualifying companies which relocate a minimum of 50 full-time employees within the state. Q3 2010 Commercial real estate market remains sluggish prompting New Jersey lawmakers to propose pro-business legislation to stimulate economic growth in the private sector. These measures include reinstating the InvestNJ grant program and providing tax credits to qualified companies. The office vacancy rate in northern New Jersey decreased by 0.4 percent with vacancy levels not expected to decline significantly until the jobless rate improves.
Q2 2010Commercial leasing activity continues to be flat in the region with the availability rate for Class A office space decreasing by 0.1 percent. Despite higher corporate earnings reports, many companies are hesitant to expand their workforce which diminishes the demand for office space.
Q1 2010 The availability rate for all classes of office space in Bergen County remains constant at 25.5 percent which may signify that the commercial real estate market has stabilized. In response to stagnant leasing activity, some landlords have opted to upgrade their commercial properties with an emphasis on sustainability and compliance with green building standards.
Northern & Central New Jersey Commercial Real Estate Market: Bergen County, Essex County, Hudson County, Hunterdon County, Mercer County, Middlesex County, Monmouth County, Morris County, Passaic County, Somerset County, Union County.