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Market Report

Northern New Jersey Office Investment Forecast

2020 Outlook

Regional Cost Advantages Drive Both Office Tenant and Investor Demand in Northern New Jersey

 

Corporations recommit to region, keeping vacancy near record lows. The Northern New Jersey office market will benefit this year from the retention of several major employers who renewed sizable leases in 2019, including Pershing and Samsung, as well as from prominent new tenants. LG Electronics’ new 360,000-square-foot North American headquarters will open near the George Washington Bridge later this year, eventually housing 1,000 employees. Other notable construction projects arriving in 2020 include Building 100 at Kearny Point as well as the 205,000-square-foot Muhlenberg Medical Arts Complex in Union County. Overall, while construction is picking up slightly this year, office development in the region has been modest over the past decade, growing at half the national pace. As a result, vacancy will remain well below the cycle peak of 18.6 percent from 2013. Availability is even tighter for Class B/C space, about half the rate of Class A floor plans, reflecting the demand for affordable office space near one of the globe’s most prominent business centers in New York City.

 

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