ELMWOOD, N.J.— Operating conditions are expected to remain fairly stable in the Northern New Jersey office market this year, according to the 2008 National Office Report by Marcus & Millichap, the nation’s largest real estate investment services firm. Vacancy is forecast to rise modestly, but some pockets of strength still exist in the market. (Essex County map at left below; Bergen County Courthouse at top right)
Also included in the report is the firm’s annual National Office Index (NOI), a snapshot analysis that ranks 43 office markets based on a series of 12-month forward-looking supply and demand indicators. Northern New Jersey moves down four places this year to No. 35.
“A growing flight to quality sentiment among investors will sustain the Northern New Jersey market,” says Michael Fasano, regional manager of Marcus & Millichap’s Northern New Jersey office. “Properties in proven submarkets in Bergen, Essex and Union counties will dominate buying activity.”
Following are some of the most significant aspects of the Northern New Jersey Office Research Report:
· Employers are forecast to boost payrolls 0.4 percent with the addition of 8,100 jobs.
· Developers are expected to deliver 750,000 square feet of office space this year.
· Vacancy is forecast to end the year at 14.4 percent.
· Asking rents are projected to rise 2 percent to $27.16 per square foot.
· Effective rents will increase 1.7 percent to $23.35 per square foot.
In the 2008 NOI, Seattle moved up three places to secure the No. 1 spot, surpassing last year’s leader New York City, which slipped to No. 2. Boston moved up two spots to No. 3, while San Francisco jumped 12 places to the No. 4 position. Los Angeles slipped two spots, coming in at No. 5.
For a copy of Marcus & Millichap’s National Office Report and the complete NOI rankings, visit www.MarcusMillichap.com.
CONTACT:
Stacey Corso
Public Relations Manager
Marcus & Millichap
2999 Oak Road
Suite 210
Walnut Creek, CA 94597
Office: 925.953.1716
Mobile: 415.672.6460
Fax: 925.953.1710
http://www.marcusmillichap.com/
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