Skip Ribbon Commands
Skip to main content

News release

EAST RUTHERFORD, NJ

JLL Report Finds New Jersey’s Transit Hub Market Outperforms Suburban Areas

Office space throughout New Jersey’s Transit Hub Market consistently sees higher rents, lower vacancy rates than suburban areas


EAST RUTHERFORD, NJ, May 2, 2014 — New Jersey’s transportation-centric office markets remain at the center of commerce and lifestyle throughout the state, according to JLL’s newly released Transit Hub Perspective report. The state’s Transit Hub Market consistently boasts higher average asking rental rates and lower vacancy rates than its suburban counterpart. Despite higher vacancy rates in certain areas, New Jersey’s transit-focused office markets remain firmly on the radar screen for companies seeking locations that are readily accessible to their employees.

Life Sciences Outlook

“Transit-oriented locations continue to play a pivotal role in New Jersey’s office market,” said Robert Kossar, executive managing director and head of JLL’s New Jersey and Long Island operations. “During the past several years, we have witnessed a migration of businesses to transit-centric locations throughout the state.

Technology has helped produce a mobile workforce that is no longer constrained to dedicated offices and cubicles. Younger workers are opting to live, work and play in urban locations with access to mass transportation systems. For companies looking to tap into the innovation pipeline via Manhattan’s young talent pool, transit connectivity is critical.”

The JLL report defined the Transit Hub Market as those areas characterized by one or more of these factors: a significant number of office properties clustered near or within a downtown, urban or town center; adjacent or proximate to a New Jersey Transit rail station; and offering a mass transit commuting option within walking distance of the commuter’s office location.

The overall Transit Hub Market boasted an average asking rental rate of $29.57 per square foot at year-end 2013, a 3.5 percent boost from rents of $28.56 per square foot at year-end 2012. The Suburban New Jersey office market saw figures that were significantly lower, recording rates of $23.24 per square foot at year-end 2013, a 2.6 percent increase during the past year from rents of $22.65 per square foot at year-end 2012.

With expanding businesses gravitating toward Transit Hub Market locales, those areas have continued to outperform the Suburban New Jersey office market. Overall, the state’s Transit Hub Market saw a vacancy rate of 18.8 percent at year-end 2013, a 14.6 percent (or 2.4 percentage point) increase from 16.4 percent at year-end 2012. The Suburban New Jersey office market posted a vacancy rate of 27.2 percent at year-end 2013, a 5.9 percent (or 1.7 percentage point) decrease during the past year from 28.9 percent at year-end 2012.

JLL is a leader in the northern/central New Jersey commercial real estate market, with more than 500 professionals and support staff providing agency leasing, tenant representation, industrial services, strategic consulting, project and development services, property management and investment sales/capital markets services to New Jersey's leading corporate tenants, investors and landlords. The firm, which assists clients from three full-service offices in Parsippany, Iselin (Metropark) and East Rutherford, also acts as local service provider for JLL global and national corporate clients in need of real estate assistance in New Jersey.

About JLL
JLL (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 fee revenue of $4 billion, JLL has more than 200 corporate offices and operates in 75 countries worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3 billion square feet and completed $99 billion in sales, acquisitions and finance transactions in 2013. Its investment management business, LaSalle Investment Management, has $48.0 billion of real estate assets under management. For further information, visit www.jll.com.