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New space in New Jersey appears to be dropping.

Although New Jersey's stock of vacant office space continuous to increase, the fuel for this growth finally seems to be running out. The amount of new office construction coming on the market, according to the latest issue of the New Jersey Gordon Office Market Report, published by the Edward S. Gordon Company of New Jersey, has dropped by nearly 40 percent during the past 12 months from over 7 million square feet to less than 3 million.

With 7.68 million square feet leased over the past 12 months; the state's strength in the pharmaceutical, chemical and environmental industries; and so few buildings under construction, the state's office market is a step closer to stabilizing.

Overall availability increased by 1.2 million square feet from 129.2 million square feet the previous year. Currently, according to the Gordon Office Market Report, 19.39 percent or 25,210,000 square feet of office space is available throughout the state.

Class "A" product continued to show positive net absorption with more than 500,000 square feet leased in the past six months. On the other hand, Class "B" space absorption fell to 790,000 square feet and Class "C" space to 710,000 square feet.

According to the Gordon Office Market Report, the state's newer markets continued to outperform locales with an older stock of buildings.

Asking rental rates have stabilized somewhat decreasing only 83 cents to $20.79 during the past 12 months, which represents a 4 percent decrease.

The Meadowlands/Waterfront market's 30.99 percent availability tops the list with Hightstown/Freehold showing only 1.31 percent of its space unoccupied. The Meadowlands market is comprised of 15.57 million square feet, the Hightstown market .81 million square feet. When tallied by county, Bergen tops the chart with 25.08 percent of its 21.25 million square feet available. Hunterdon shows all but 2.12 percent of its 1.46 million square feet leased.

The Meadowlands/Waterfront market leased the most office space, 1.39 million square feet during the past 12 months.
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Title Annotation:vacant office space statistics according to Edward S. Gordon Company Inc. report
Publication:Real Estate Weekly
Date:Aug 26, 1992
Words:343
Previous Article:Commercial vacancy in NJ drops 18%.
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