EAST RUTHERFORD, NJ-The overall New Jersey commercial realestate market, while still somewhat colorless, is moving slowlytoward an economic upgrade, according to locally based Cushman& Wakefield Inc.’s mid-year research findings. Northern NewJersey’s fundamentals remain stronger than those in the state’scentral counties heading into the second half of the year; theindustrial sector appears to be gaining ground.

“While minimal decreases in the unemployment rate and a smalluptick in net job gain are relatively minor, the changing climateillustrates preliminary signs of stabilization that could trendtoward recovery,” says Gil Medina, executive managing director forthe commercial real estate services firm’s New Jersey operations.“We are seeing pockets of improvement throughout the market.”

Office fundamentals remain in flux in the state’s northerncounties. The overall vacancy rate, now 16.7%, increased by 0.3%from last quarter yet still represents a 0.3 percentage pointyear-over-year decline. Average weighted asking rents declinedmodestly year-over-year (-2.5%) to currently rest at $25.74 persquare foot. “Leasing activity is slightly down from last quarter,however, when comparing year-to-date activity from this same timelast year to mid-point this year, it represents an approximateincrease of 11%,” Medina says. “As of mid year, Northern New Jerseyexperienced new leases totaling 2.3 million square feet.”