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Bergen County continues as active submarket.

Bergen County continues as active submarket

Despite the doldrums of the New Jersey commercial real estate market, Bergen County continues to perform as the state's most active and resilient submarket.

Situated at the northeast corner of New Jersey, Bergen County has long been known for its prestigious corporate headquarters, regional shopping malls and affluent residential communities. With nearly 25 million square feet of existing space and 5.6 million square feet of available space, Bergen County is the Garden State's largest submarket. In fact, Bergen County contains nearly 20 percent of the entire inventory of the twelve-county Northern New Jersey office market.

Throughout the first quarter of 1991, leasing activity in Bergen County was exceptionally strong, with over 736,000 square feet of space leased. In comparison, over 1.9 million square feet of space was leased in the entire twelve-county Northern New Jersey market. The largest transaction was in Montvale at the Grand Met building where Ed Bennett Consultants leased 118,000 square feet of space. Several other notable transactions include the 27,000-square-foot lease for Transamerica/Flood Hazard at Alfred Sanzari's Heights Plaza in Hasbrouck Heights and Globe Mortgage's 26,000-square-foot transaction at Fairleigh Dickinson University's University Plaza in Hackensack.

The three-building University Plaza proved to be one of the most active office developments in Bergen County as New York Switch Company, Steven Appollo, Esquire, and the Purip Company also signed leases at the 475,000-square-foot corporate campus.

Even with this significant leasing activity, Bergen County's vacancy rate increased from 20.4 percent recorded in the fourth quarter of 1990 to the first quarter 1991 rate of 22.6 percent. This increase can be attributed to the combination of corporate consolidations, various sublets coming on the market (528,776 square feet of available sublet space) and the addition of new office space. The most notable new building which was added to Bergen County's inventory is the 225,000-square-foot Overpeck Office Park II in Ridgefield Park. Only 125,000 of the 225,000 square feet of space is still available since Cushman & Wakefield pre-leased 100,000 square feet to Mellon Bank.

For the remainder of 1991, Bergen County should continue to be New Jersey's most active submarkets in terms of leasing activity.

Richard Baumstein Senior Director Cushman & Wakefield of New Jersey, Inc.
COPYRIGHT 1991 Hagedorn Publication
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Copyright 1991, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:Mid-Year Review & Forecast Section III
Author:Baumstein, Richard
Publication:Real Estate Weekly
Date:Jun 26, 1991
Previous Article:Caldors opens 123rd store at Melville Mall on LI.
Next Article:Recent surge in large commercial transfers.

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