2019-07-12_DTZ戴德梁行_Office_Q4_2018_Central_New_Jersey_2页_431kb
报告摘要
MarketBeat Summary: Central New Jersey Office Market Q4 2018
Core Content
The Central New Jersey Office Market in Q4 2018 showed modest improvements in market fundamentals, with a notable decline in vacancy rates and strong net absorption. Despite a stable economic environment in the state, the U.S. unemployment rate slightly decreased, and New Jersey experienced a significant drop in its unemployment rate, reaching 4.0%, the lowest since 2001. Private sector employment increased by nearly 62,000 jobs, with professional and business services being the main driver.
The overall office market saw a 70-basis point drop in vacancy rates, reaching 16.0%, the lowest since Q4 2016. This decline was observed across all counties, with the Upper 287 Corridor, Woodbridge/Edison, and Monmouth County showing the most significant improvements. Net absorption for the quarter was 537,844 sf, contributing to a year-to-date (YTD) net absorption of 408,081 sf, which was a positive outcome for the market.
Key Market Indicators
| Metric | Q4 2017 | Q4 2018 | 12-Month Forecast |
|---|---|---|---|
| Vacancy | 16.5% | 16.0% | ▲ |
| YTD Net Absorption (sf) | -922k | 408k | ▼ |
| Under Construction (sf) | 0 | 0 | ■ |
| Average Asking Rent* | $25.75 | $26.71 | ▲ |
*Leasing activity does not include renewals. Rental rates reflect gross asking $psf/year.
Market Overview
- New Jersey Unemployment Rate: 4.0% (lowest since 2001).
- Private Sector Employment: Increased by 62,000 jobs since Q4 2017.
- Vacancy Rate: Declined 70 bps to 16.0%.
- Net Absorption: Nearly 540,000 sf in Q4 2018, bringing YTD net absorption to 408,081 sf.
- Leasing Activity: Total of 3,464,202 sf for the year.
- Class A Assets: Dominated demand, accounting for 81.4% of the quarterly total.
- Average Asking Rent: Rose to $26.71 psf, with Class A rates surpassing $30.00 psf.
- High-Priced Submarkets: Metropark and Princeton/Route 1 Corridor remain top-tier, while Monmouth County reached a record $32.03 psf for Class A.
Key Lease Transactions
| Property | SF | Tenant | Transaction Type | Submarket |
|---|---|---|---|---|
| 1001 Frontier Road, Bridgewater | 224,000 | Phillips-Van Heusen | Renewal | I-78 Corridor |
| 2 Merck Drive, Whitehouse | 223,350 | Merck | Sale/Leaseback | I-78 Corridor |
| 1 University Square Drive, West Windsor | 204,443 | Blackrock Financial Management | Renewal | Princeton-Rt. 1 |
| 15 Independence Boulevard, Warren Township | 61,230 | Mitsui Sumitomo | Renewal | I-78 Corridor |
Key Sales Transactions
| Property | SF | Seller/Buyer | Price / $PSF | Submarket |
|---|---|---|---|---|
| Portfolio: 1 & 2 Merck Drive, Whitehouse | 1,215,850 | Merck / UNICOM Global | $25,000,000/$21 | I-78 Corridor |
| Portfolio: 300, 400, & 500 Atrium Drive, Franklin Township | 669,785 | Macquarie Group/LNR Partners / Bakertown Realty Group | $33,500,000/$50 | Upper 287 Corridor |
| 41 Spring Street, New Providence | 176,000 | Mountain Development Corp. / Shelbourne Global Solutions | $23,000,000/$136 | Route 24 Corridor |
| Portfolio: 3525 & 3535 Quakerbridge Plaza, Hamilton Township | 117,000 | Kiwi Offices / Ibis Realty LLC | $13,600,000/$116 | Princeton/Rt 1 Corridor |
Outlook
- Occupancy: Expected to fall in 2019 due to large vacancies in the I-78 Corridor and Princeton/Route 1 Corridor.
- Touring Activity: Remains healthy across Central New Jersey, potentially helping to offset some vacancies.
- Market Trends: While large transactions are rare, smaller leases continue to drive the market, accounting for 58.3% of new demand.
Summary of Key Points
- Economic Improvement: NJ unemployment dropped significantly, and private sector employment increased.
- Vacancy Decline: Overall vacancy rate fell to 16.0%, with strong performance in certain submarkets.
- Net Absorption: Positive net absorption of 537,844 sf in Q4 2018, contributing to a YTD net gain of 408,081 sf.
- Leasing Activity: Driven by Class A assets and pharmaceutical industry, with Merck being a major player.
- Rental Rates: Continued to rise, with Class A leading the increase.
- Sales Activity: Active, with notable transactions in I-78 Corridor, Upper 287 Corridor, and Princeton/Rt 1 Corridor.
- Outlook: Uncertain due to anticipated vacancies, but touring activity and demand may help stabilize the market.
Contact Information
Cushman & Wakefield
1 Meadowlands Plaza
7th Floor
East Rutherford, NJ 07073
www.cushmanwakefield.com
For more information, contact:
- Jason Price, Director: Tel: +1 201 508 5208 | Email: jason.price@cushwake.com
- Christa DiLalo, Associate Director: Tel: +1 201 508 5286 | Email: christa.dilalo@cushwake.com
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