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 LIVINGSTON, N.J., March 1 /PRNewswire/ -- The Bender Report, a leading annual survey of commercial office space in northern New Jersey, has concluded that the market has begun to rebound from a record low in the summer of 1992. The survey is based on information gathered from 2,150 office buildings of mare than 15,000 square feet in the northern New Jersey marketplace.
 "When the history is written of the commercial real estate market in northern New Jersey, the summer of 1987 will be considered the peak of the market and the summer of 1992 will be the bottom of that market," stated David D. Bender, president of Bender & Company, a commercial real estate brokerage and management firm. "Don't expect too much to happen in 1993 other than a stabilizing of the market and the beginning stages of a recovery."
 During 1992, most commercial real estate activity involved companies that already had a presence in the marketplace. Given the generally favorable terms available to renters, the most significant trend was the movement of companies from Class B or C space to Class A buildings.
 "For the last four years, net absorption declined," Bender commented. "But in 1992, net absorption fell by 73 percent, from 4.4 million to 1.2 million square feet, a dramatic indication that more people are moving out of the market than are moving in."
 Other significant highlights of 1992 include a decline of the vacancy rate from 22 percent to 21 percent; the virtual absence of construction activity; and the stabilization of gross absorption at approximately 10 million square feet per year.
 Headquartered in Livingston, Bender & Company specializes in commercial real estate brokerage and management services. This survey is the company's eighth annual survey of northern New Jersey's commercial real estate market.
 Highlights of January 1993 Northern New Jersey Office survey
 1992 Developments
 -- The net absorption of office space declined by 73 percent, the largest annual decline in the history of the market;
 -- Net absorption declined from 4.4 million square feet in 1991 to 1.2 million in 1992;
 -- Gross absorption of slightly more than 10 million square feet in 1992;
 -- Most leasing deals are renewals, generally at less rental cost;
 -- The vacancy rate fell from 22 percent to 21 percent, its first annual decline since 1988.
 Long-Term Trends
 -- Peak of commercial real estate market was summer 1987;
 -- Decline fueled by the liquidity crunch and credit squeeze following the S & L crisis;
 -- Market bottomed during the summer of 1992;
 -- Class B and C tenants are moving up to Class A building space; a shortage of Class A space may develop by 1995-96;
 1993 Predictions
 -- Market conditions will stabilize;
 -- There will be no new construction;
 -- Credit will become selectively available; capital will start to return to market;
 -- The terms and conditions of leases will gradually start to improve from a landlord's perspective;
 -- Corporations will explore leasing opportunities while market conditions remain generally favorable from a tenant's perspective;
 Government Policy
 -- Proposed federal banking reform will improve market liquidity;
 -- Clinton's proposed economic stimulus package could provide a short-term boost to construction activity but not to commercial real estate business;
 -- Changes in insurance regulations could tighten reserve requirements for insurance companies, making it more difficult for these companies to participate in the real estate market.
 General Business Climate
 -- Caution is the dominant note;
 -- Uncertainty about Congressional action on Clinton's proposals;
 -- Difficult for companies to plan for the long term.
 -- 1992 is the market's slowest year on record, and 1993 offers the prospect of a slight recovery;
 -- A great deal of space remains available in market: 32 million square feet.
 -0- 3/1/93
 /CONTACT: Anthony S. Cicatiello of Bender & Company, 908-382-1066/

CO: Bender & Company, Inc. ST: New Jersey IN: SU: ECO

WB-SR -- NY057 -- 1412 03/01/93 12:29 EST
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Date:Mar 1, 1993

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