New Jersey makes gains in office and industrial space leasing

Office space leasing surged in the third quarter of the year, and industrial space leasing increased in both North and Central Jersey.

There's good news and good news here.

Researcher John Obeid of Tri-State Suburban Research did his homework for the Colliers International Group. It shows a 29 percent office space leasing surge, and while some of it was consolidation of in-state space, some was "tenants coming out of New York — that is all new jobs to New Jersey. One example was Ernst and Young (an accounting firm), moving from New York to Hoboken."

According to Obeid, the largest deal was by a pharmaceutical firm, Allergen. Through acquisitions, it had three locations in New Jersey, and needed to consolidate all three. It signed a 430,000 square foot deal in Morristown.

Also a major factor in this leasing increase, according to Obeid, is New Jersey's "very aggressive" incentive program, the "Grow New Jersey Assistance Program," which Obeid said has really helped bring tenants from outside of the state into New Jersey. In the third quarter, the program had a hand in 11 of the 16 transactions involving 45,000 square feet of leasing in North Jersey.

The industrial leasing growth wasn't as spectacular. But there was a leasing increase for the 15th consecutive quarter, in part because, according to Obeid, "e-commerce retailers and logistics companies like to be located here just so they can reach the great consumer base where we are located."

He says industrial markets, since the recession have been on a "tear," because of New Jersey's location.