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Demand dips in the third quarter but year-to-date leasing still ahead of 2020 levels
Rising concerns over the spread of the COVID-19 Delta variant resulted in some employers delaying their office re-opening plans and real estate decisions. However, the announcement by the federal government of a vaccine mandate for businesses with over 100 employees will slow the spread of the virus and allow the economy to move forward. After rising in the second quarter, Northern New Jersey leasing activity declined 23.1%, quarter over quarter, to 1.4 million square feet (msf). Still, year-to-date leasing activity is up 7.7% compared to this time in 2020. A majority of third-quarter leasing activity was centered around the Morris (503,149 sf), I-78 (183,357 sf), West Bergen (136,721 sf) and Waterfront (127,908 sf) submarkets. Notable lease transactions included Cigna’s relocation to 196,693 sf at 115 Tabor Road, Remarkable Foods Inc.’s new lease of 103,931 sf at 399 Jefferson Road and Samsung’s 84,213-sf renewal at 105 Challenger Road.