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Report: N.J. incentives bring bump to suburban offices in Q2

Thursday, July 10, 2014   (0 Comments)
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Report: N.J. incentives bring bump to suburban offices in Q2 07/08/2014

With a little help from the state's revamped business incentives, a few New Jersey suburbs have seen bumps in office leasing in recent months, according to a new second-quarter analysis by the brokerage firm Avison Young.

Researchers from the firm’s Morristown office pointed to increased activity and a handful of large deals in suburban submarkets in northern New Jersey during the quarter, including Morris County. However, the firm also noted that large blocks of space were coming onto the market in other sections of the state, particularly in Central Jersey.

Morris County was among the suburbs to record “large-scale absorption” during the quarter, Avison Young said, driven by last year’s Economic Opportunity Act that strengthened the state’s business and development subsidies. The activity includes a deal last month by Automatic Switch Co., which acquired a 250,589-square-foot vacant office building in Florham Park after mulling a move to North Carolina.

Emergency Medical Associates, Atlantic Health and FM Global also signed deals in Morris County during Q2, bringing vacancy down to 27.7 percent from 31.4 percent a year earlier. Jeffrey Heller, Avison Young’s managing director in New Jersey, said companies are taking advantage of “unprecedented incentives” offered under the EOA. 

Unfortunately, overall vacancy has still increased slightly to 21.3 percent from 21 percent, though it seems apparent that this figure has been mitigated by the efficacy of the EOA incentive structure.


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