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Lack of construction draws spotlight in '93.

For the first time in recent history, there is absolutely no construction underway in the Northern and Central New Jersey office market. The recently completed 600,000-square-foot BristolMeyers Squibb complex at the Princeton Forrestal Center in Plainsboro is the last new construction the market will see for quite some time. This is clearly a turning point.

As business continue to take advantage of the soft market conditions by upgrading into better quality facilities at a comparable price, in most sub-markets, large blocks of Class A available space have become increasingly scarce. However, while the outlook is bright, as vacancy rates continue to decline and leasing activity remains steady, net absorption has decreased as companies continue to consolidate.

The insurance and pharmaceutical industries are among the few businesses that are flourishing during these difficult times. Companies such as Chubb Insurance, Hanover Insurance, Hoffmann-LaRoche and Enzon continued to be active in the market.

In an effort to help rebuild New Jersey's economy, Public Service Gas & Electric, the state's largest electric and gas utility, was in the news again as it introduced a $16 million program. Under the program, PSE&G encourages companies to expand by providing energy credits and rebates to those employing 10 to 100 workers who hire additional employees. Incentives such as this, along with the anticipated outcome of the presidential election, may help to spur confidence within our marketplace in the coming year.
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Title Annotation:construction industry at standstill in New Jersey
Author:Eisen, Donald P.
Publication:Real Estate Weekly
Date:Jan 27, 1993
Words:234
Previous Article:Property management to see modest expansion.
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