Newmark Knight Frank (NKF) released its Third Quarter 2017 Office Market Report which details the largest deals closed in Northern and Central New Jersey along with other key trends.
Technology companies are expanding throughout the state, fueled by economic development incentives. Billtrust, a financial technology firm, leased 88,759 square feet for its new corporate headquarters at 1009 Lenox Drive in Lawrenceville. NKF Executive Managing Director Steve Tolkach represented the landlord in this transaction, which was the largest new lease of the quarter. Aided by a $32.0 million Grow NJ award, biotech company Modern Meadow moved across the Hudson, landing in 72,900 square feet at the Former Roche campus in Nutley. Other tech deals include the expansion of Jet.com’s offices in Hoboken, for which the company was awarded $25.8 million in incentives to create 322 new jobs. Nuts.com also leased 24,372 square feet at 10 Exchange Place in Jersey City, where it will add 150 employees.
“New Jersey’s tech industry is poised for continued growth,” said Mark Russo, NKF research manager. The region’s deep labor pool, extensive transportation infrastructure, and generous incentives would make an it an attractive headquarters location for a large technology company such as Amazon, who is currently accepting proposals for a second US headquarters. However, recent leasing activity with technology firms was not enough to offset new space coming on the market during third-quarter 2017. “Big pharma mergers and acquisitions continue to drive office space dispositions, putting upward pressure on availability,” said Russo. Availability in the Northern New Jersey office market increased by 20 basis points to 23.1 percent, driven by 251,603 square-feet of negative net absorption. The average asking rent equates to $28.59 per square foot up from $28.24 per square foot at the end of second-quarter 2017.
Additional highlights of the report:
-Availability spiked from 21.7 percent to 28.9 percent in the Bridgewater area, as a result of Lilly, Lifecell and Impax Laboratories giving up large blocks of space.
-New retail, hotel and residential developments are helping to create a more dynamic environment in the Parsippany area.
-Bergen County saw heightened activity as Mack-Cali found buyers for six of the nine buildings in its 2.2-million-square-foot office portfolio, while Glenmark Pharmaceuticals and Sony inked new leases.
About Newmark Knight Frank
Newmark Knight Frank (NKF) is one of the world's leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, NKF's 15,000 professionals operate from more than 400 offices in established and emerging property markets on six continents.
With roots dating back to 1929, NKF's strong foundation makes it one of the most trusted names in commercial real estate. NKF's full-service platform comprises BGC's real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing; capital markets services, including investment sales, debt placement, appraisal, and valuation services; commercial mortgage brokerage services; as well as corporate advisory services, consulting, project and development management, and property and corporate facilities management services. For further information, visit www.ngkf.com.
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