NJ TRANSIT HUB PERSPECTIVE | MID-YEAR 2019
Perspective
NJ Transit Hub
We are pleased to present our Mid-Year 2019 edition of JLL’s New
Jersey Transit Hub Perspective, which represents the seventh year
running for this popular narrative.
This unique JLL commentary takes an in depth look at New
Jersey’s transit hub markets, which are typically defined as office
properties adjacent to, or within walking distance of a New Jersey
Transit commuter rail station. We further breakdown the transit
hub markets into Urban Transit and Suburban Transit Hubs.
Urban Transit Hubs consist of major CBD office markets with
rail stations: Hoboken/Jersey City, Newark, New Brunswick and
Trenton. Suburban Transit Hubs typically contain smaller sized
buildings in a wider area and include Metropark, Morristown,
Princeton and Summit.
Against the backdrop of decelerating leasing volume that penned
the storyline of the Northern and Central New Jersey office market
since 2017, the state’s transit hub market vacancy rate slipped
lower during the first half of 2019. With transactions greater
than 100,000 square feet being elusive, deals less than 25,000
square feet in size were responsible for most of the current
demand seen in the transit markets. Despite today’s leasing
environment, the state’s transit hub markets are expected to
remain on track as tenants migrate towards buildings with
access to mass transportation for their workforces and clients.
But don’t count out the state’s suburban office markets yet.
Whether located in transit hubs or suburban markets, high-
end Class A space remains on the corporate wish list. This
demand had pulled the Northern and Central New Jersey Class
A vacancy rate to its lowest level in more than seven years.
However, the relatively empty speculative construction pipeline
will challenge tenants seeking modern work environments for
their operations. As a result, savvy landlords in suburban and
transit hub markets alike are upgrading their buildings and
packing them with the amenities to help make their product
stand above the competition.