Avison Young: Q4 2019 office, industrial sectors continue trends.

Byline: Linda Lindner

Vacancy rates continue to fall while rents increase in both office and industrial, according to Avison Young New Jersey's fourth quarter 2019 report released Wednesday.

In Q4, the New Jersey office market experienced a 120-basis point drop in the vacancy rate since the same quarter a year earlier in 2018, going from 14.3 percent to 13.1 percent, while market rents rose 13 cents year over year to $30.23 per square foot. Net absorption continued its hot streak, posting a positive number for the seventh-straight quarter.

Similarly, the state's industrial sector vacancy rate also continued to drop as rents increased. The industrial vacancy rate fell to 2.5 percent when compared to the fourth quarter of 2018 when it was 2.9 percent.

"Investors and tenants alike continue to view the New Jersey office and industrial markets in a positive light," said Jeff Heller, principal and managing director of Avison Young New Jersey. "Overall fundamentals in both sectors are still strong and the outlook for 2020 remains on an upward trajectory."

Warren office sector spotlight and transactions

The report includes a spotlight of the Warren market as a blueprint for the New Jersey office market in 2020.

Much of the New Jersey office market can be described as "dated" with a lack of amenities. It was this line of thinking that inspired Vision Real Estate Partners and Rubenstein Partners to upgrade Warren Corporate Center after they purchased it...