Despite indications of good news for the national economy in thefourth quarter— such as a 1.8% increase in GDP to 3.25% and adecrease in unemployment to 8.6%—the good news may have beentemporary. The positive changes were largely due to inventoryrestocking and workers withdrawing from the workforce, neither ofwhich indicates true growth.

In the fourth quarter, New Jersey's office market remainednegatively affected by layoffs and economic uncertainty, with thelowest volume of office leasing in more than 10 years and morecompanies electing to stay put. The quarter also saw continuednegative absorption of space. Despite signs of increased weakness,a New Jersey Business & Industry Association survey of localbusinesses found that the employment outlook is more positive, with86% of companies planning to add or retain employees in 2012.

Both the class A and B office sectors saw dismal numbers intotal space leased, with class A buildings totaling 1.15 millionsquare feet leased in the fourth quarter— the lowest in more than adecade. Class B fared worse at 458,000 square feet leased— thelowest in more than 15 years.