Demand picked up in the fourth quarter with large transactions driving activity

The presence of the Omicron variant has postponed return to work dates for many companies in the Northern New Jersey office market, however, the delay did not stop tenants from thinking about their future real estate needs. Upcoming lease expirations and a desire to act on quality space drove leasing activity in Q4 2021 to 2.3 million square feet (msf), its highest level in nine quarters and a 56.0% increase from last quarter. The five largest leases accounted for 42.1% of all demand this quarter, anchored by major commitments from Fiserv and Party City. Fiserv signed for 428,000 square feet (sf) in Berkeley Heights, the market’s largest new lease in two years, while Party City consolidated its headquarters into 209,000 sf in Woodcliff Lake. Both companies received tax credits from the state as part of their commitments. Valley Bank also signed for 119,000 sf at a new development in Morristown.

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