"The strength of the economy is creating an unprecedented levelof demand," according to Donald P. Eisen, executive managingdirector for the metro area for Cushman & Wakefield who isbased in the company's East Rutherford, NJ offices. Reflecting onhis firm's new first-half of 2000 market report, Eisen notes that,in particular, "Jersey City and Newark are being revitalized bysignificant investment."

Among the market trends: Jersey City, sometimes called NewYork's 6th borough or Wall Street West, is seeing a blast of newconstruction to satisfy demand. Newark, meanwhile, is parlaying itsextensive fiber-optics network and older, underutilized buildingstock to increasingly attract e-commerce, telecom and engineeringfirms.

Overall, according to Eisen, new construction has put more than1.5 million sf of new office product on the market in just thefirst six months of the year, and as much as 5.4 million sf more ison the drawing boards or under construction. At the same time,heavy demand has driven vacancies into single digits, with thetightest markets in Hudson and Monmouth counties. After severalyears of being quiet, the I-78 corridor has turned up the gasagain, and the Princeton market remains among the tightest, withseveral new projects slated.