Office Market's Growth Described as 'Slight'

According to the numbers produced by CBRE affiliate Torto Wheaton Research, the Northern/Central New Jersey and New York region's total employment level has grown by 0.8% over the past four quarters. Total employment in the region is forecasted to grow by 1.1% in the next two years, providing some optimism for filling the market's vacant office space. Q3 office market results showed positive, if slower, leasing activity, a slight rise in available space, minor negative absorption and rising rents, according to TWR.

Still, "the economy today can be characterized as one where the long-standing risks appear to be getting larger," cautioned Craig Thomas, VP and director of research for TWR. "The general consensus is that economic conditions may be unraveling. It's ironic, however, that even as these risks seem to take a greater role in the day-to-day discussion, the state of the economy and the quality of the expansion continues to improve, at times even exceeding expectations."

"There is much uncertainty today in the marketplace as corporate America is trying to understand the direction of the economy and commercial real estate, almost literally on a daily basis," commented Patrick Murphy, executive managing director of the tri-state suburban markets for CBRE. "But the real estate fundamentals continue to be strong in New Jersey, and we remain cautiously optimistic about the strength of our state's commercial marketplace. The event's program also included a report on the overall tri-state market by Mary Ann Tighe, CEO of the New York tri-state region for CBRE, and a keynote address by Steve Forbes, president and editor-in-chief of Forbes magazine.