NJ TRANSIT HUB PERSPECTIVE | SUMMER 2018
Newark
With a population of nearly 280,000, Newark is the largest city in
New Jersey and one of the most densely populated cities in the
state. A majority of the office buildings are in close proximity to
Newark Penn Station. This major transportation hub provides
bus and commuter rail service via New Jersey Transit, Amtrak,
PATH and Newark’s Light Rail system. With more than 27,200
daily boardings, Newark’s Penn Station has the largest volume
of passenger traffic in the state. Newark is also home to several
educational institutions including Rutgers- Newark, Seton
Hall University’s Law School and the New Jersey Institute of
Technology.
With an office inventory of nearly 12.0 million square feet, Newark
comprises the second largest transit hub market in Northern and
Central New Jersey after the 18.3 million-square-foot Jersey City/
Hoboken market. The Newark overall vacancy rate climbed to
22.5 percent at year-end 2017 compared to less than 22.0 percent
in 2016, as vacancies edged demand. Contributing to the higher
vacancy rate was 57,900 square feet placed on the market for
sublease by Panasonic at 2 Riverfront Plaza. This represented
the largest block of sublease space in Newark. Additional blocks
of direct space available at 33 Washington Street and 550 Broad
Street also exerted upward pressures on this submarket’s vacancy
rate. Among the transactions completed in the Newark submarket
during the past year was Gibbon PC’s signing a 111,830-square-
foot renewal at 1 Gateway Center. In addition, Newark Public
Schools leased 97,130 square feet at 765-769 Broad Street for its
new headquarters.
New Jersey’s economic incentives programs will continue to
lure corporate investments to the Newark transit market. After
being awarded a 10-year $31.5 million tax credit, Mars Wrigley
Confectionery US announced plans to move its U.S. headquarters
and 500 jobs to Newark. The candy maker has recently leased
148,460 square feet at Ironside Newark, a former warehouse being
redeveloped into 402,530 square feet of office and retail space.
Net new supply, net absorption and total vacancy
Net new supply
Net absorption
total vacancy
200,000
25.0%
24.0%
0
23.0%
-200,000
22.0%
-400,000
21.0%
-600,000
20.0%
2013
2014
2015
2016
2017
After being awarded a 10-year $31.5 million
tax credit, Mars Wrigley Confectionery
US announced plans to move its U.S.
headquarters and 500 jobs to Newark. The
candy maker has recently leased 148,460
square feet at Ironside Newark, a former
warehouse being redeveloped into 402,530
square feet of office and retail space.