Commercial Real Estate Outlook for Northern & Central New Jersey
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.
Q4 2009 Office availability rates decreased slightly in the region with the expectation that modest growth will be seen by the third quarter of 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.
Q3 2009 Although commercial real estate is traditionally a lagging economic indicator, the availability rate for all classes of office space in Bergen County remains stable at nearly 26 percent. In the Hudson County waterfront submarket, New Jersey state and local economic incentive programs have fostered the completion of a 415,000 square foot lease transaction at Jersey City's Newport Office Center.
Q2 2009Declining economic conditions in the region impact commercial real estate sector - notably the GW Bridge submarket in eastern Bergen County where the availability rate for Class A office space increased by 15 percent from the previous quarter as companies continue to downsize.
Q1 2009 Office market conditions remain basically unchanged in the region. In Bergen County, the vacancy rate for all classes of office space increased by a modest 0.4 percent. To attract large tenants to New Jersey, the Legislature may opt to reduce the eligibility requirements for the Urban Transit Hub Tax Credit program from 250 employees to 150 employees and include development projects costing $50 million.
Q4 2008Vacancy rates in office buildings rose slightly while many commercial property owners worry that as rental income falls, refinancing will become more difficult. Commercial real estate market continues to favor tenants with more opportunities for concession packages in their negotiations to lease office space.
Q3 2008 Commercial real estate market remains relatively stable with slight increase in office availability rates amidst concerns over financial services sector.
Q2 2008Leasing activity remains flat in the region. An exception is the Hudson County waterfront, a historically strong submarket with a less than 8% vacancy rate. There is also cautious optimism that the New Jersey Urban Transit Hub Tax Credit program for sites near mass-transit stations may help stimulate the office market.
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.
