PARSIPPANY, NJ-New research from Colliers International suggeststhat the New Jersey office market is stabilizing, although markedimprovement is critically dependent on the pace of economicexpansion. Until then, landlords are continuing to lower rents,albeit just slightly, and offer more concessions in advance oflease expirations. Some tenants have already capitalized on this byseeking upgrades to their existing space.

Meanwhile, a few large tenants are helping to stabilize theoffice market. Watson Pharmaceuticals Inc. is expanding inParsippany to approximately 148,000 square feet, and BlackRockInc., which at one point considered relocating from New Jersey,recently leased 141,375 square feet at 1 University Square Dr. inPrinceton. In addition, chemical company BASF Corp. is building anew $100-million, 325,000-square-foot headquarters building inFlorham Park.

Several positive macro-economic trends may spur additionalexpansions. US businesses with fewer than 20 employees arecontinuing to hire, which extends an upward trend that began inmid-2009, according to the June 2010 small-business employmentindex from Intuit Inc. In addition, the state’s recent budget planmay encourage small companies to become more confident about hiringlater in the year.