NJ TRANSIT HUB PERSPECTIVE | MID-YEAR 2019
Overall asking rents
In contrast to the narrowing gap in the overall vacancy rate
between the transit hub market and the suburban New Jersey
office market, the discrepancy in asking rents continued to widen
in mid-2019. The suburban average overall asking rental rate
increased $0.09 from year-end 2018 to $25.50 per square foot,
while the overall transit hub rental rate climbed $0.12 to $34.53
per square foot. This $9.03 per square foot difference in rents
between the suburban and transit hub markets was the largest
discrepancy in nearly a decade.
Class A buildings in transit hub markets remain on the radar
screen for tenants with space requirements. The Hoboken/
Jersey City average asking Class A rent of $45.60 per square
foot represented the highest rental rate among the state’s
transit hub markets. With an average asking Class A rental rate
of approximately $34.50 per square foot, Newark is a potential
alternative for companies looking for urban space with access to
Manhattan. Class A building rents near the Metropark Train Station
increased nearly one percent from year-end 2018 to $34.75 per
square foot six months later, which was the highest rental rate
among the suburban transit hub markets. Coming in second was
the Princeton submarket’s $30.11 per square foot average asking
Class A rental rate.
With the only new office construction underway in the state’s
transit hub market consisting of 100,700 square feet within a
mixed-use project at 1000 Maxwell Lane in Hoboken, limited
modern space availabilities combined with persistent demand are
expected to maintain upward pressures on Class A rental rates.
$38.00
$36.00
$28.00
$30.00
$32.00
$34.00
$26.00
$25.50
$24.95
$24.00
$23.68
$22.00
$20.00
2015
2016
2017
Overall Transit Hub Market
2018
Suburban Transit Hubs
Urban Transit Hubs
Mid-2019
Suburban NJ
Class A market year-over-year comparison
Class A Average Asking Rental Rates 2016 vs 2017
Class A Vacancy Rates 2016 vs 2017
10%
2018
Overall Transit Hub Market
$15
Urban Transit Hubs
2018
Suburban Transit Hubs
Mid-2019
Suburban NJ
$20
$25
$30
Mid-2019
$35
20%
15%
$40
25%
$45
30%