10A —May 20 - June 16, 2022 — Office & Industrial Distribution Centers — M id A tlantic Real Estate Journal
www.marej.com
O ffice & I ndustrial D istribution C enters By David Simon, COO of NAI DiLeo-Bram & Co. New Jersey office occupancy rates are anticipated to increase throughout 2022
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increase throughout 2022. INDUSTRIAL The industrial market soared during the past two years as e-commerce rapidly expanded. Despite many consumers across the U.S. returning to in- person shopping, e-commerce continues to grow because of the convenience it offers. As a result, demand for indus- trial space in New Jersey is outpacing the limited sup- ply currently available. The consistent need for industrial properties in this market has led to record low vacancy rates and record high rental rates. With multiple companies vying for the same properties, Landlords are in an enviable position and are experiencing unique leverage. It is expected that rates will continue to increase throughout the year. The unwavering demand has supported new construction in this market and pricing for new buildings has reached an all-time high. In fact, many of the new buildings have been pre-leased while still in the construction phase. The de- mand for space in this area has dramatically increased compe- tition on both the user/occu- pier side as well as the owner/ investor side of the business. Given current market trends, the remainder of 2022 looks to be another solid year for the New Jersey industrial sector. David Simon is COO at NAI DiLeo-Bram & Co. MAREJ NAI DiLeo-Bram inks 16,000 s/f ind. sublease in Union, NJ UNION, NJ — NAI DiLeo- Bram & Co. announced that the team of Richard Goski , VP, and Catherine Goski , associate VP completed a sub- lease for 805 Lehigh Ave., a 16,000 s/f industrial building in Union. The Goski’s represented the master tenant. The new subtenant, Rbud, Inc., was rep - resented by Robert Clayton of Keller Williams City Life JC Realty . Rbud, Inc. was looking for a property with a 1/2 acre fenced-in lot for parking and in close proximity to the ports, which made 805 Lehigh Ave. an ideal location. Additional features of the property that appealed to Rbud included upgraded office space and covered loading docks. MAREJ
pacted the overall absorption of office space and has been a factor in the way companies have opted to utilize existing space and determine future office space needs. Demand for office space in the first quarter of this year showed improvement over the same time last year. There is a desire by many to spend some time with colleagues and clients, in person. The challenge is determining the proper balance that works best for everyone and enables companies to generate desired results for clients while pro -
office requirements. However, sublease space is not always the right solution for a variety of reasons. In this environment where recruiting and retaining top talent is competitive and critical, companies want their office space to properly reflect their own unique brand and culture. Some sublease spaces, which may be financially ap - pealing, might not be able to effectively convey some of the intangible qualities that a company wants to project. Without any unforeseen events, overall office occu- pancy rates are anticipated to
viding the right environment for employees. Companies are placing an emphasis on employee wellness and are focused on building systems and practices such as indoor air quality and more stringent daily cleaning procedures. As a result, this has benefited owners of class A properties and others who have upgraded their properties to comply with these types of tenant requests and concerns. The abundance of available class A sublease space in the market presents some excel - lent options for tenants with
FFICE There appears to be a contrast in vari-
ous office policies that companies have imple- mented due to the pan- demic. Some companies are currently operating ful-
David Simon
ly remotely; some are requir- ing all of their employees to be in the office full time while others are adopting a hybrid structure. This shift has im-
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