The Central Jersey office space market is on the upswing, posting a 14.6 percent vacancy rate in the third quarter, according to a report by commercial real estate services provider Cassidy Turley. The rate marks a 0.9 percent decrease from the second quarter and the lowest level in 18 quarters.
The Woodbridge/Edison area office space market had 1,678,899 square feet of vacant space, or 18 percent of the available footprint, in the second quarter of 2013, according to the Cassidy Turley report. Some 1,636,824 square feet, or 17.5 percent of the area’s office space, was vacant in the third quarter.
The average asking rate dropped from $26.99 per square foot in the second quarter to $25.80 in the third.
The Cassidy Turley report credited growth in the labor market for the positive trend in office space transactions. In Central Jersey, 6,700 jobs were added in trade, transportation and utilities, according to the report. Other big gainers included 6,300 employees in leisure and hospitality; 5,200 in education and health services; and 3,100 in financial services.
The Central Jersey office market saw several high-profile transactions in the third quarter, the Cassidy Turley report noted.
- AT&T renewed 275,000 square feet at 30 Knightsbridge Road in Piscataway
- URS Corporation renewed 234,160 square feet at 510 Carnegie Center in Princeton
- Johnson & Johnson's signed a two-year extension for 112,184 square feet at 23 Orchard Road in the Skillman section of Montgomery
- Real Estate Mortgage Networks leased 50,258 square feet at 194 Wood Avenue South in the Iselin section of Woodbridge for 10 years
- J. Knipper & Co., Inc. leased 45,352 square feet at 270 Davidson Avenue in Somerset
- Hill Wallack, LLP leased 43,500 square feet at 19 Roszel Road in Princeton
Cassidy Turley predicts leasing activity will remain high through the end of 2013.