New Jersey

Despite a slow start to the year, the Northern New Jersey office market decreased vacancy to 20.2 percent as we moved from fourth quarter 2016 into 2017. More than 750,000 square feet of office space is expected to be absorbed in the market to drop the vacancy rate 20 basis points. New deliveries in Morris and Essex Counties, including a 200,000-square-foot office for UPS in Parsippany, are leading the way. Moreover, landlords and investors alike are upgrading and investing in larger redevelopment projects throughout the state which has increased leasing activity. In response to healthier market conditions, owners have also increased rents for office space, which caused higher vacancy rates at the beginning of the year. The average asking rent is anticipated to climb to $27.59 per square foot this year, outpacing the 2 percent rise in office rents posted in 2016. In first quarter, the Hudson Waterfront saw an increase of 3.6 percent per square foot. Hudson Waterfront The main trends in Jersey City and Hoboken are driven by the large populations of millennials in and around surrounding areas. Millennials account for 27.2 percent of the population in Hudson County. In the last 12 months, investors — particularly New …