EAST RUTHERFORD, NJ-There are quite a few larger tenants looking for office space in the state at the start of the year, according to Cushman & Wakefield
While the typical size of lease deals dwindled last year, by all accounts, C & W says that right now the large majority of lookers require 100,000 square feet or more.
“Currently, we are tracking over 8.3 million square feet of active office tenant requirements in New Jersey, a 35% increase since the end of 2011,” the company’s analysts said in its most recent report. They said that of all space being sought, 70 % is for the larger blocks.
There are 28 large tenants in the market for space totaling 5.8 million square feet, according to C & W. At the close of 2011, there were 19 such tenants seeking a total of 4.1 million square feet.
While the number of tenants requiring 50,000-100,000 square feet has decrease since 2011, the company also reported seeing an influx of tenant requirements in the 20,000-50,000-square-foot range. Currently, there are 46 firms actively looking for the smaller amount of space, requiring a total of 1.3 million square feet. At year-end 2011, there were only 26 tenants in the market for 769,000 square feet in total.
“The rise in large tenant requirements could help boost demand in the Garden State during 2013,” said C & W in the report.
“However as many larger tenants either end up renewing in place or relocating into more efficient spaces, net absorption for the state may not see any substantial increase,” the report cautioned.