Rate will reach 18.2 percent by yearÂs end, real estate investment services firm predicts.Office vacancy levels in New Jersey are continuing to rise amid mounting job losses in office-using industries, according to the fourth-quarter office market report from Marcus & Millichap, a real estate investment services firm.
More than 157,100 employees lost their jobs in the Garden State in the last 12 months, compared to 9,100 workers added in the previous year, the firm said. Of the jobs eliminated in the past year, 70,200 were office-using positions, with the most severe reduction in the professional and business services sectors, which have shed 54,000 jobs in the past 12 months, according to the report.
As demand for space has fallen, office vacancies in New Jersey have increased to 17.7 percent year-to-date, with the rate expected to rise to 18.2 percent by the end of the year, according to Marcus & Millichap. The firm predicts that asking rents will dip 0.7 percent, to $25.47 per square foot, this year, and effective rents will decline 5.3 percent, to $20.55 per square foot.
Well-located Class A properties in northern New Jersey remain the healthiest, as vacancy and asking rents have improved over the past year in the Meadowlands and Hackensack/Teaneck submarkets, according to the report. Class B and C properties in the Parsippany/Troy Hills and Garden State/West Union county submarkets have reported rising vacancies, while the vacancy level among lower-tier properties in central and southern New Jersey have held steady, the report said.
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