Occupiers increasingly interested in the future of offices, as leasing activity ticked up

With the worst of the pandemic likely behind us, many tenants are now focusing on future real estate needs and workplace strategies. Demand was strong to start the year; leasing activity increased 54.7% from last quarter to total 1.7 million square feet (msf) in the first quarter, surpassing the five-year quarterly average of 1.6 msf . Morris, Middlesex, and Princeton were the most active submarkets during the first quarter with combined leasing activity accounting for 54.9% of the market’s total. TAMI tenants registered some of the largest leases of the quarter including Honeywell International, Inc.’s sale-leaseback of 131,745 sf at 115 Tabor St in Morris Plains. The pharmaceutical industry and the expanding life sciences sector were also active in the market with Mallinckrodt Pharmaceuticals signing a 101,641-sf sublease and CytoSorbents Corp. leasing 48,500 sf, however limited supply presents a challenge for the industry’s immediate growth potential.

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