Two prominent suburban submarkets provided most of the activity during a modest second quarter for the northern and central New Jersey office sector, according to new research from Newmark Grubb Knight Frank.
The submarkets, the Princeton area and Parsippany-Route 10, accounted for about 351,000 square feet of positive net absorption during the three-month period, Newmark found. Total absorption, or the increase in occupied space, amounted to 530,391 square feet for the entire market, making it the third consecutive quarter with positive activity.
That activity was highlighted by deals by Dr. Reddy's Laboratories, which leased 75,000 square feet at 107 College Road East, in Plainsboro, and Summit Medical Group, which will occupy 100,000 square feet at a soon-to-be-built site in Florham Park, the second-quarter report said. Outside the Princeton and Parsippany submarkets, Ashland Inc. leased 84,000 square feet at 56 Livingston Ave., in Roseland.
Leasing activity in the quarter totaled 1.8 million square feet, down from 2.1 million in the first quarter, Newmark found. Meantime, availability in northern and central New Jersey ticked down to 24.3 percent from 24.5 percent, though it's still slightly higher than it was at this time last year.
The Newmark report noted no major construction projects were completed during the quarter, though Panasonic planned this month to move into its new 340,000-square-foot headquarters in Newark, built by SJP Properties and Matrix Development Group.
Reporter Joshua Burd is @JoshBurdNJ on Twitter.
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