JLLThe office’s second quarter report showed good and bad news for the real estate sector in North and Central Jersey.
On the one hand, the number of subleased space is growing as companies expect employees to work remotely. On the other hand, leasing activity increased slightly during the quarter.
Subleases reached 7.7 million square feet by mid-year, up 6.4 million square feet earlier this year and the highest level since late 2003, according to JLL. However, subletting accounted for just over 18% of the available office space. , surpassing a record 40% in 2002.
The overall vacancy rate in the region reached 27.3%, up from 26.4% in the first quarter. However, excluding sublease, the share of direct vacancies was only 10 points higher – 22.3%.
However, tenant requirements are up 10% since the end of 2020, with the market requiring nearly 4.5 million square feet. In the second quarter, nearly 2 million square feet of deals were signed, the highest volume since the third quarter of 2020.
To view the full report, click here.