NJ TRANSIT HUB PERSPECTIVE | MID-YEAR 2019
Metropark
The Metropark submarket is considered one of the most strategic
office locations in the state, owing to both its superior highway
access and commuter rail service via Amtrak and New Jersey
Transit at the Metropark Train Station. The Station provides direct
links to Manhattan and other major transit hubs in the state.
Woodbridge Center Mall and Menlo Park Mall, as well as several
hotels and restaurants, are located within minutes of this market. In contrast to the recent leasing activity seen in the Class A office
market, the Metropark Class B vacancy rate eclipsed 28.0 percent
compared to less than 24.0 percent in 2018. Additional direct
space marketed at 120 Wood Avenue South led to the higher
Class B vacancy rate. The largest block of available space in the
Metropark Class B market consisted of 92,780 square feet at 70
Wood Avenue South.
With 4.0 million square feet of rentable office space in proximity to
the Metropark Train Station, this submarket represents the second
largest suburban transit hub in Northern and Central New Jersey
after the 4.8 million-square-foot Princeton market. After falling to
19.1 percent at the end of 2018, the Metropark overall vacancy rate
remained at this level through mid-year 2019 as well. The overall
vacancy rate was kept in check as the Class A and Class B markets
navigated divergent courses. The Metropark Class A vacancy rate
retreated nearly one percentage point from year-end 2018 to
17.6 percent in mid-2019. Among the transactions that exerted
downward pressures on the Class A vacancy rate was SmartLinx
Solutions’ subleasing of 21,470 square feet from McDonalds at 111
Wood Avenue South - MetroTop II in Iselin, while Oracle Financial
Services Software absorbed 20,450 square feet at 399 Thornall
Street in Edison. RSM US, OpTerra Energy Services and TriNet also
collectively absorbed nearly 44,500 square feet at 333 Thornall
Street. Persistent demand for Class A space in the Metropark
submarket had boosted the average asking Class A rental rate to
$34.75 per square foot in mid-2019, which represented a nearly
1.0 percent increase from 2018. This submarket maintained the
highest Class A rental rate in the Central New Jersey office market. With more than 520,000 square feet of active tenant space
requirements at mid-year, the Metropark submarket is expected
to remain active in the coming quarters. However, limited Class A
availabilities will challenge office occupiers seeking modern space
options in this market.
Net new supply
Net absorption
total vacancy
22.0%
200,000
100,000
20.0%
0
18.0%
-100,000
-200,000
2015
2016
2017
2018
Mid-2019
16.0%