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Q3 2021 New Jersey Office Market Report

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The anticipated post Labor Day return to the office was disrupted by the Delta variant as many companies pushed their target days further out or left them undecided. While this has delayed the re population of office buildings as flexible work from home programs resume, New Jersey’s office market exhibited early signs of a recovery during the third quarter. Although remaining negative, net absorption recorded its highest total since Q4 2019 at negative 101,502 SF. Just one block of space was the cause for the negative figure the remaining 467,149 SF of space at 55 Corporate Drive in Bridgewater officially became available. Aside from this, newly available space slowed, particularly new sublease space, which plagued the market over the last 18 months.

As New Jersey continues to re emerge from the pandemic and with employers slowly making decisions about a return to the office, the amount of newly available large blocks of space slowed significantly during the third quarter. There were only eight blocks of newly available space in excess of 50,000 SF added during the quarter, compared to 16 the prior quarter and 14 during Q1 2021. Furthermore, the rate at which companies placed new space on the sublease market decreased to it’s lowest quarterly total since Q1 2020, prior to the start of the pandemic. While the slowdown ultimately benefited the market, further improvement was muted as leasing activity totaled just 1.5 MSF for the quarter, down 29.4% from its three year quarterly average.
 

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Q3 2021 New Jersey Office Market Report

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