dominated by a handful of very large tax
incentive-backed deals for new corporate
space in urban centers, even as older class
A buildings out in campus-land often
went begging for buyers and tenants, they
noted. The experts agreed that a “
bifurcated” market, with juxtaposed trends,
continued in early 2012.
One example of such juxtaposition:
While a joint-venture partnership of SJP
Properties and Matrix Development is set
to start building slick new hyper-energy-effi-cient office towers in Newark (for
Panasonic) and Hoboken (for Pearson), in
Parsippany, Transwestern signed on as leasing agent and property manager for a
10-year-old former insurance company
office that has been vacant for about a year.
Transwestern will reposition the building,
one of the newer class A facilities in a community where the average office property is
20 years old, so it can be brought to market
for multiple tenants—but it faces the challenging fact that Parsippany had one of the
highest first-quarter vacancy rates in
Northern New Jersey.
While it’s true that the state’s entire
office market is hurting—the overall
As leasing agent and property manager, Transwestern plans to reposition 300 Kimball Dr., one of the newer class A assets in a community where the aver- age office property is 20 years old. The challenge: the 10-year-old building has been vacant for about a year and its market, Parsippany, had one of the highest Q1 vacancies in Northern New Jersey.
vacancy rate is about 24%, the highest
since 2004—vacancy declined to 10% or
less in urban locales such as Jersey City
and Newark, according to Q1 reports.
Meanwhile, it rose or remained as high as
30% in Parsippany and other office-cam-pus havens. The traditional fare of
“bucolic campus” environments demon-