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Central New Jersey class A office space is showing signs of life. With a lack of spec building in the overall market, class A vacancy rates have gone from about an appalling 20% to around  5.5%.

Recent data shows most class A units are currently leasing between $24 psf to $28 psf. Although on the flip-side, class B vacancy rates have risen to approximately 13% with lease rates around $18 to $20 psf.

Nationally, office vacancy rates have ticked upward to a four year high in the first quarter of 2009- clocking in at 15.2%. The decline in the amount of occupied space was 24.9 million square feet, the most since September 2001.

office-index-chart

Overall vacancy rates are predicted to reach nearly 20% by years end, while effective rents in Q1 fell approximately 2% with the average rent psf at 24.16. Nearly 50 million square feet of office space is expected to be empty in 2009, but is also expected to begin to fill up in early 2010 as the economy starts its slow, but certain recovery.

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