With the state’s unemployment rate below 5.0 percent, employee recruitment and retention will remain top priorities for office occupiers in the coming year. Rather than remaining in outdated, inefficient workspaces, a growing chorus of companies will pursue relocations to upgraded, amenity-filled office buildings to aid in these efforts.
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Trend Watch Dec. 4: New office buildings boast 12% vacancy rate
The year of construction for buildings has significant impact on reported vacancy rate. Buildings completed since 2010 maintained the lowest vacancy rates, as office occupiers prefer new product. Demand for new construction will drive the demolition/rehabilitation of older, vacant office buildings, especially in strategically located markets lacking sites for new construction.
Trend Watch Nov. 28: Big-box leasing activity continues a climb
Twelve leases greater than 500,000 square feet closed throughout northern and central New Jersey, an increase of 33.3 percent year-over-year and a pace expected to outpace year-end totals for 2016. Big-box leasing has tripled as traditional retailers and e-commerce companies —representing 75.0 percent of big-box leasing for 2017 — continued to expand their distribution networks.
Urban logistics set to change industrial real estate’s competitive landscape
The rising demand for sites that will support urban logistics centers has driven growth in Northern New Jersey, while also creating competition among developers, as forgotten industrial markets reemerge. Retailers, parcel carriers and food and beverage companies have all increased their demand for industrial space less than ten miles from Manhattan. Formerly obsolete locations throughout New York’s boroughs are reemerging as competitive alternatives to the New Jersey markets.
