The 10.9 million square feet of office space leased in 2015 was the most in a decade, according to the commercial real estate firm Cushman & Wakefield.
JERSEY CITY -- Last year was a good one for leases in New Jersey.
The 10.9 million square feet of office space leased in New Jersey in 2015 was the most in a decade, with a net gain in leased space and a decline in the vacancy rate statewide, according to the commercial real estate firm Cushman & Wakefield, which tracks and reports market activity.
"Office vacancy fell by 1.4 percentage points since a year ago to 18.7 percent, its lowest point since 2011," Andrew Judd, a New Jersey executive for Cushman & Wakefield, said in statement.
Judd said more space was filled than was vacated throughout the Garden State during all four quarters of 2015, when the net gain in occupancy was nearly 2 million square feet, well above the 300,0000-square-foot gain in 2014.
Experts say commercial leasing is related to residential development, because availability of nearby housing can be a factor in a company's decision where to locate. For example, the Hudson Waterfront office space sub-market, which led all submarkets in the fourth quarter of 2015 and where two of New Jersey's top 10 leases were signed last year, is home to booming residential growth.
Chris DeLorenzo, executive vice president of leasing at Mack-Cali, one of the state's biggest commercial landlords, said his firm's experience in 2015 was consistent with the growth that Cushman & Wakefield was reporting.
"I would echo that same sentiment," DeLorenzo said.
While the Mack-Cali had not announced its fourth quarter totals, DeLorenzo said the firm's first three quarters of 2015 had been strong, with leases totaling 3.1 million square feet. Mack-Cali's year-long total for 2015 was well on its way to exceeding the 3-3.6 million-square-foot range the firm had been within since 2010, he added.
DeLorenzo related the healthy office market to the nation's overall economic health, pointing to steady job growth in 2015 as consistent with the need for more office space to house those additional hires.
The increased leasing activity in New Jersey in 2015 was reflected in its higher square-footage costs last year, as reported by Cushman & Wakefield. According to the firm, the cost of Class A, or prime, office space rose by 1.5 percent, to $39.34 per square foot on average statewide.
Steve Strunsky may be reached at sstrunsky@njadvancemedia.com. Follow him on Twitter @SteveStrunsky. Find NJ.com on Facebook.