Technology companies are expanding throughout the state, fueled by economic development incentives. Billtrust, a financial technology firm, leased 88,759 square feet for its new corporate headquarters at 1009 Lenox Drive in Lawrenceville. Newmark Executive Managing Director Steve Tolkach represented the landlord in this transaction, which was the largest new lease of the quarter. Aided by a $32.0 million Grow NJ award, biotech company Modern Meadow moved across the Hudson, landing in 72,900 square feet at the Former Roche campus in Nutley. Other tech deals include the expansion of Jet.com’s offices in Hoboken, for which the company was awarded $25.8 million in incentives to create 322 new jobs. Nuts.com also leased 24,372 square feet at 10 Exchange Place in Jersey City, where it will add 150 employees.
“New Jersey’s tech industry is poised for continued growth,” said Mark Russo, Newmark research manager. The region’s deep labor pool, extensive transportation infrastructure, and generous incentives would make an it an attractive headquarters location for a large technology company such as Amazon, who is currently accepting proposals for a second US headquarters. However, recent leasing activity with technology firms was not enough to offset new space coming on the market during third-quarter 2017. “Big pharma mergers and acquisitions continue to drive office space dispositions, putting upward pressure on availability,” said Russo. Availability in the Northern New Jersey office market increased by 20 basis points to 23.1 percent, driven by 251,603 square-feet of negative net absorption. The average asking rent equates to $28.59 per square foot up from $28.24 per square foot at the end of second-quarter 2017.
Additional highlights of the report:
-Availability spiked from 21.7 percent to 28.9 percent in the Bridgewater area, as a result of Lilly, Lifecell and Impax Laboratories giving up large blocks of space.
-New retail, hotel and residential developments are helping to create a more dynamic environment in the Parsippany area.
-Bergen County saw heightened activity as Mack-Cali found buyers for six of the nine buildings in its 2.2-million-square-foot office portfolio, while Glenmark Pharmaceuticals and Sony inked new leases.
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