Drop in Jobs and Leasing Spark Vacancy Rise in Northern New Jersey

ELMWOOD, N.J. — A modest decline in office-using employment has been posted so far this year in Northern New Jersey, according to a second-quarter Office Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

The pace of job losses has quickened recently, however, setting the stage for higher vacancy and slower rent growth by year end.

“Perhaps reflecting concerns over the near-term direction of the economy and its impact on the local office market, investment activity has slowed in the past few quarters,” says Michael Fasano, regional manager of the New Jersey office of Marcus & Millichap.

“Investors remain interested in Class C properties, however, due to their encouraging long-term performance.”

Following are some of the most significant aspects of the New Jersey Office Research Report:

· Approximately 500,000 square feet is slated for delivery this year, including more than 300,000 square feet in Morris County.
· Vacancy is forecast to end the year at 14.7 percent.
· Asking rents is projected to finish the year at $27.35 per square foot, an increase of 2.7 percent.
· Effective rents will rise 2.7 percent to $23.70 per square foot.
· Investor interest in medical assets remains steady, with several deals complete so far this year.

For a copy of the complete New Jersey Office Research Report, as well as reports on other markets nationwide, visit our website at http://www.marcusmillichap.com/.

Press Contact: Stacey Corso, Communications Department, (925) 953-1716