4B — February 8 - 21, 2013 — New Jersey — Mid Atlantic Real Estate Journal
www.marejournal.com
N ew J ersey
Large deals, positive absorption inspire guarded optimism Colliers International’s New Jersey office market report
New Commercial/Retail Property Listing Little Silver Village
EW JERSEY — The Northern and Central New Jersey office mar- kets faced added adversity in the fourth quarter of 2012 as hurricane Sandy and “fiscal cliff” trepidation both made landfall. These recent challeng- es, coupled with state budget concerns, ongoing job growth woes, and bitter interstate competition will likely hold leasing flat through at least the first half of 2013, according to the Fourth Quarter Northern and Central New Jersey office leasing market report from Colliers International New Jersey . The overall average asking N
Existing Buildings to be Removed. Vacant Land Great for Bank of Retail Site for Sale or Land Lease at Little Silver Train Station. Crossroads are Sycamore, Oceanport & Willow. Sold “As Is.” 1 Sycamore Avenue et al • Little Silver, New Jersey 07739
630 Broad Street • Shrewsbury, NJ Contact: Ray Smith, Broker Ray@SSRealty.com • (732)-747-1000 www.SSRealty.com $95,000./Year ~ Land Lease $995,000. ~ Sale or Build to Suit
399 Jefferson Road in Parsippany
just over 1.5 million s/f, which equates to only 62 percent of the third quarter total and just 55 percent of the second quarter total. Despite the challenging quarter, net absorption expe- rienced a modest positive gain of 329,243 s/f, wrapping up the calendar year on a high note. Though not a surefire indica- tor of performance in the year to come, at the very least, it propels the market into 2013 with guarded optimism. “Potential headwinds are on the horizonwith significant eco- nomic challenges to be met in 2013 on the national stage and state level,” said Robert Mar- tie , executive vice president of the Colliers International New Jersey region, who also noted that the ‘fiscal cliff,’ though averted in some respects, kicks the can on pressing issues such as the national debt ceiling and scheduled sequestration. “New Jersey faces a tough fiscal road ahead, coming to grips, with a $705 million budget shortfall that has the possibility of dou- bling by June. Under current economic situations, market indicators will likely struggle to gain any upward momentum and remain flat through the first half of 2013.” The report did reveal that the flight-to-quality seen in recent quarters seems to have reversed its course. Class A leasing velocity, which had steadily increased in market share compared to total office leasing in the first three quar- ters of the year, dropped sig- nificantly in the fourth quarter, to 48.4 percent, down from a yearly high in the third quarter of 57 percent. This may point to an emerging trend seen in the state; the increasing focus on redevelopment and re-fitting of older stock. For many market players, this is an encouraging sign, reflecting the market’s ability to adapt as the source of demand evolves. Other figures from the fourth quarter 2012 include: Northern New Jersey continued on page 12B
rent in Northern and Central New Jersey for the fourth quar- ter was $23.89/s/f, down from $24.23/s/f the previous quarter and $24.40/s/f compared with fourth quarter 2011. Leasing activity slowed substantially in the fourth quarter, registering
OFFICE BUILDINGS FOR SALE OR LEASE (609) 921-7655
Woodbourne Professional, Levittown, PA • Sale Price $1.3 Million • Sizes from 850 -2,400 SF • Lease prices from $500 - $1,400 / Mo.
The Gatherings, Penns Park, PA • Cluster of 6 buildings / mixed use • Sizes from 850 – 2,400 SF • Lease prices from $1,000 - $3,000 / Mo. • Sale information available*
Hyde Park, Doylestown, PA • 2,700 SF • Lease price $3,359 / mo. • Condominium for sale*
* Inquire for price
www.thompsonmanagementllc.com
Made with FlippingBook - professional solution for displaying marketing and sales documents online