2-27-15

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12C— February 27 - March 12, 2015 — Commercial Office Spotlight — Mid Atlantic Real Estate Journal

NAI J ames E. H anson

NAI James E. Hanson Northern & Central New Jersey 3Q’14 Office Report

t the end of the third quarter, 15.2% of the total 227,847,009 s/f in the Northern and Central New Jersey class A and B of- fice market remained vacant. This is down .2% from the pre- vious quarter. Net absorption was down 337,974 s/f com- pared to the second quarter, but it still remains positive at 621,587 s/f. The average asking rate posted at the end of the quarter was $25.04 psf. Overall, asking rates are back to where they were in 2009. Hudson County saw the most leasing activity with 1,026,054 s/f leased, while A

Sussex County did not see any activity for the third quarter; however, Sussex did register the lowest vacancy at 3.6%. Passaic County saw the high- est vacancy at 22.2% and the highest average asking rent, $26.84 psf, was seen inMercer County. John Wiley & Sons, a re- newal, was the biggest trans- action of 383,128 s/f at 111 River Street in Hoboken. The Royal Bank of Canada moved into a 193,067 s/f space at 30 Hudson St. in Jersey City and NAI Hanson coordinated the United Water move from Harrington Park to a 116,360 s/f space in Paramus at 461 From Rd. 200 Clocktower Dr., a 57,000 s/f office building in Hamilton, was delivered this quarter and 962,500 s/f is still under construction. One of the bigger construction projects underway is 699 Broad St. in Newark, known as the Pru- dential Tower, a 750,000 s/f class A office building which will be delivered in June 2015. 140 Park Ave. in Mor- ristown is a 100,000 s/f class B office medical building that is expected to be delivered in January 2015. Mack Cali completed a $231 million deal to sell 12 office buildings located in NJ, NY and CT to Keystone Property. The most expensive single building transaction belonged to Marcus Partners and Pru- dential Real Estate Investors purchasing 500 Plaza Drive in Secaucus for $68.8 million. 2 Giralda Farms also sold this quarter for $53,300,000 to American Realty Capi- tal Global Trust. This sale comes after Merck signed a long term lease in the second quarter. n

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Northern & Central New Jersey 4Q’14 Office Report

To view our 4Q Office Market Overview, please visit naihanson.com/flyers/4Q2014Office.pdf

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