The requested news item does not exist. Please return to News
Conversion of vacant office buildings throughout the state pushes down vacancy rates
PARSIPPANY, NJ, July 2, 2013 — New Jersey’s overall vacancy rate continued to inch down in the second quarter of 2013, fueled by an uptick in demand for vacant suburban office buildings offering redevelopment opportunities. The state’s overall vacancy rate declined from 25 percent at midyear 2012 to 24.2 percent this quarter.
Among the high-profile conversions recently announced was a 495,000-square-foot building at 1 Continental Drive in Cranbury that was leased to Lam Cloud Management, which has plans to convert the property into a high-tech data center. The building, owned by The Sudler Cos., had been vacant for the past four years and represented one of the largest blocks of space in Central New Jersey. In addition, Memorial Sloan-Kettering Cancer Center acquired a 287,000-square-foot former Lucent Technologies building at 480 Red Hill Road in Middletown for redevelopment as an outpatient facility.
“A large portion of the activity witnessed during the first half of 2013 can be attributed to vacant office buildings being repositioned for alternative uses,” said Daniel J. Loughlin, managing director and Jones Lang LaSalle’s office brokerage lead in New Jersey. “Vacant buildings considered functionally obsolete by today’s office users are likely to remain on the radar screen for potential medical, mixed-use, multi-family or assisted living conversions.”
Approximately 1.5 million square feet in leasing transactions were recorded in the Northern New Jersey and Central New Jersey office markets in the second quarter of 2013, slightly below the approximately 1.7 million square feet in leasing transactions posted during the first quarter of 2013.
Less than 950,000 square feet of new construction was underway during the second quarter of 2013 in the Northern New Jersey and Central New Jersey office markets, compared to 813,670 square feet one year earlier. More than 90 percent of these projects are build-to-suit developments.
Highlights of the second quarter of 2013 include:
JLL is a leader in the New York tri-state commercial real estate market, with more than 1,600 of the most recognized industry experts offering brokerage, capital markets, property/facilities management, consulting, and project and development services. In 2012, the New York tri-state team completed approximately 23.8 million square feet in lease transactions, arranged capital markets transactions valued at $1.57 billion, managed projects valued at nearly $7.0 billion, and oversaw a property and facilities management portfolio of 102.1 million square feet and an agency leasing portfolio of 76.0 million square feet.
About Jones Lang LaSalleJones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 2.6 billion square feet and completed $63 billion in sales, acquisitions and finance transactions in 2012. Its investment management business, LaSalle Investment Management, has $47.7 billion of real estate assets under management. For further information, visit www.jll.com.
George Shea, Mark Faris - Shea Communications