Available office space in state hits all-time high

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NULLAvailable space in the northern and central New Jersey office market hit record highs in the third quarter, exceeding 40 million square feet for the first time in the market’s history, according to a third-quarter market report from Jones Lang LaSalle, a commercial real estate services firm.

Overall vacancy rose in all but three submarkets in the region in the third quarter, the report said. During that period, available sublease space surpassed the 7.5 million-square-foot mark for the first time in nearly six years, according to the report.

Leasing activity for 2009 is on pace to finish with the lowest recorded total in the market’s history, according to Jones Lang LaSalle. Year-to-date, only five lease transactions have been greater than 100,000 square feet — the largest being Savvis Communications’ 208,000-square-foot lease at 1919 Park Ave., in Weehawken, during the third quarter, the firm said.

Overall average asking rents declined for the seventh consecutive quarter and has receded to its lowest level in five years — largely driven by the downward pressure of sublease asking rents in the Bergen County, Waterfront, Parsippany and Route 78 submarkets, the report said.