Report: North Jersey Vacancies Up Slightly

According to the report, issued by the firm's research director, Matthew Dolly, the vacancy rate trended upward a bit to 16.9% from 16.8% in Q4 2006 for a five-county inventory that totals more than 96 million sf. The comparable vacancy rate at the end of Q1 2006 was a shade over 16.6%.

A large part of that modest advance can be tied to one building, namely the Gale Co.'s completion of the 175,000-sf 100 Kimball Dr. within the Center of Morris County here. Built on spec, the new asset has yet to sign any tenants. And while leasing velocity in general was less than robust, the fact that it was at reasonably steady drove rents up a bit. Q1 average asking rent was $24.52 per sf, according to GVA Williams, up from $24.41 at the end of Q4. That $24.52 number was, however, down slightly from $24.61 at the end of Q1 2006.

And there were some notable deals in the market in Q1, the largest being Mack-Cali Realty's signing of an agreement to develop a 250,000-sf headquarters office here for hotelier Wyndham Worldwide, as reported by GlobeSt.com. Other large leases included Warner Chilcott's renewal and expansion to nearly 58,000 sf at Rockaway 80 Corporate Center in Rockaway, and Coughlin Duffy's extension and expansion to nearly 53,500 sf at 350 Mount Kemble Rd. in Morristown.

By county, according to GVA Williams, Bergen showed an average asking rent of $25.40 and a vacancy rate of 19.1% for its 22.4-million-sf inventory. Essex County's (Newark) numbers were $23.50, 13.1% and 23.3 million sf respectively. Passaic County showed a $21.37 average and 21.4% vacancy for its 4.2-million-sf inventory.

Morris County has the region's largest inventory, 24.1 million sf, and at the end of Q1 that market had an average asking rate of $24.54 and a vacancy of 20.9%, including Gale's 100 Kimball Dr. Finally, Hudson County (Jersey City), with an inventory of 22 million sf, was the priciest, averaging $25.17. It was also among the tightest, with a vacancy of just 13.2% and, "there are many large requirements currently in that market," according to the GVA Williams report.