NEW JERSEY—CBRE reports that while office market leasing and renewals have been slow for the first half of 2012 in N.J., there may be patterns emerging from the data, which will help to plan for the remainder of the year.
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. In 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 marketplace.
“With over 33 million sq. ft. of office space available, the New Jersey market can accommodate most space requirements,” said Leo Paytas, senior vice president of CBRE New Jersey. “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 sq. ft. This could mean smaller companies who have been sitting on the sidelines are now looking to capitalize on new opportunities.”
CBRE reports that so far this year, 54.4 percent of all transactions equal to or greater than 10,000 sq. ft. were completed in the 10,000-20,000 sq. ft. range. In addition, the company reports that 20.2 percent of transactions totaled 40,000 sq. ft. or greater. Last year, total percentages for these ranges were 49.4 percent and 27 percent, respectively.
Renewal activity in the first four months of 2012 was less than 2011 and 2010.
The combined leasing and renewal activity in 2012 to date were 26. Percent less than 2011 and 19.6 percent less than 2010, reported CBRE.