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Strong to survive in NJ.

Strong to survive in NJ

To accurately assess New Jersey's office market it is important to evaluate its individual market areas. Their specific circumstances and ability to recover vary considerably. However, overall, positive signs are beginning to appear.

Although actual lease signings continue to maintain a slow pace, brokers are conducting an increasing number of surveys for corporations which can be interpreted as an early barometer of future activity. In addition, some substantial new requirements in the 200,000 to 500,000 square foot range are emerging.

A pent-up demand both from inactivity fostered by a wait-and-see attitude and corporations that have downsized but continued to grow in the past, promise to become a positive factor during the next two to three years.

SJP Properties has closed approximately 400,000 square feet in 1991, including two that rank as the state's largest. AT&T EasyLink, a new business unit of AT&T, leased a 150,000-square-foot building in SJP Properties' Morris Corporate Center III, the most recently completed phase of the 1.8 million square foot Morris Corporate Center campus in Parsippany, New Jersey. Another Morris Corporate Center III building of 114,000 square feet was leased to American International Adjustment Company, a subsidiary of AIG. A third building in the four-building phase was virtually 100 percent leased to Maersk Inc., National Computer Systems Inc., Deluxe Check Printers Inc., Allen-Bradley Co., Steelcase, KBC Advanced Technologies and Mercantile Logistics. This activity was enough to have a considerable impact on Morris County's vacancy rate in a quality product.

Well located, high quality properties and the reputation of the developers who stand behind them are the factors that are attracting major tenants. There has been a steady absorption of properties in this category, especially in buildings with the full spectrum of amenities including cafeterias, sophisticated technological features such as fiber optic capabilities, significant power availability and energy efficient systems in well insulated buildings.

The supply of space in the 100,000-square-foot and over range is dwindling which may spur users looking for larger blocks to action. Eventually, over the longer term, this situation will lead to build-to-suit development.
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Copyright 1992, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:Review & Forecast Section IV
Author:Pozycki, Steven J.
Publication:Real Estate Weekly
Date:Jan 29, 1992
Words:355
Previous Article:Matrix Development moves to PA with 2 purchases.
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