Real Estate Journal — New Jersey — May 15 - 28, 2015 — 9B


M id A tlantic

C entral N ew J ersey First-quarter rebound led by pharma, insurance and IT sectors C&W reports strong demand, moderate progress for New Jersey office market

E AST RUTHERFORD, NJ — After experienc- ing a set-back in demand

ing more than 200,000 s/f. The largest first-quarter transac- tion involved a 107,000 s/f Princeton submarket lease by Solvay Pharmaceuticals a 504 Carnegie Center in West Windsor. Tenants inked eight new deals in excess of 50,000 s/f, in- cluding three inMorrisCounty, where Securitas took 81,282 s/f (at 9 Campus Dr., Parsip- pany), Langan Engineering took 71,500 s/f (300 Kimball Dr., Parsippany) and Arthur J. Gallagher took 51,210 s/f (115 South Jefferson Rd., Whip- pany). Deals between 10,000

s/f and 30,000 s/f also helped drive activity, accounting for almost 29% of first-quarter volume. “Despite the brisk activity, the New Jersey market did not experience a significant positive impact on net absorp- tion, as a handful of larger first-quarter deals consisted of corporate sale-leasebacks and deals in which space was never on the market for lease,” Lo Russo said. Additionally, 13 blocks of 30,000 s/f or more came onto the market during this time, including Great Atlantic & Pacific Tea Co.’s

217,000 s/f space at 2 Paragon Dr. in Montvale, and SHI’s 212,000 s/f space at 300 David- son Ave. in Somerset. Still, overall net absorption was slightly positive for the quarter with almost 210,000 s/f in occupancy gains. While va- cancy held steady at 20.1%, it remains slightly higher than it was one year ago (19.7%). Sim- ilarly, rents in most market segments remained relatively stable during the first quarter. Year over year, however, New Jersey’s average direct ask- ing rent has fallen 2.8%, due to higher-priced spaces being

leased-up in top-tier submar- kets like the Hudson Water- front, Metropark, Princeton, and Morris Rte. 10/24. According to Lo Russo, Cush- man & Wakefield anticipates continued, albeit slow market progress inNew Jersey. “Some additional mid-sized and large space sheds may impact mar- ket statistics through 2015 and keep the recovery’s pace in check,” he said. “Yet significant deals in the immediate pipe- line will keep things moving on the right track. All indicators point toward healthy demand here in the coming months.” n

and occupan- cy levels to- ward the end of last year, t h e N e w Jersey office market sta- bilized once again dur- ing the first

Ron Lo Russo

quarter of 2015, according to Cushman & Wakefield . The commercial real estate services firm’s latest research findings, released today, show strong leasing with moderate progress across the state’s northern and central counties. “The New Jersey market has regained momentumwith strong first quarter leasing totals,” said Ron Lo Russo , the commercial real estate services firm’s president, NY Tri-State region. “Overall fundamentals reflect the local economy’s modest, yet steady, improvement.” In fact, Northern and Cen- tral New Jersey recordedmore than 2.2 million s/f in lease transactions during the first three months of the year, a volume 22% higher than the fourth quarter of 2014 and the highest total since the fourth quarter of 2011. Leading the way were the Parsippany (328,000 s/f), Princeton/Route 1 (269,000 s/f), Woodbridge/ Edison (155,000 s/f) and I-78 Corridor (133,000 s/f) sub- markets. Pharmaceutical, insurance and information technology firms drove this activity, with each of these industries leas- WOODBRIDGE, NJ – NAI DiLeo-Bram & Co. an- nounced that it represented the sale of the former “Animals and Things” building located off Rte. 1 in Edison to Chick-fil-A. The property consisted of a 25,000 s/f structure on 1.88 acres. The sale price was in ex- cess of $2.5million dollars. The broker for the deal, Senior VP Richard Galuppo said, “This highly visible location on Route 1 was an obvious choice for a national chain like Chick-fil- A.” The building will be razed to accommodate the buyer’s prototype building. Construc- tion is to begin later this year. n NAI DiLeo-Bram brokers sale to Chick-fil-A

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