If you are looking to lease office space, consider the New Jersey office market tenant friendly. The Northern and Central New Jersey office market has vacancies ranging from 15-34 %. Landlords compete for sizable or credit worthy tenants by offering incentives. These include free rent and phased in occupancy, allowing tenants to benefit from the glut of empty space. A tenant represented by an experienced broker will receive many solicited and unsolicited proposals from landlords competing for their business.
A tenant may consider taking advantage of the current opportunities for a “flight to quality” and move from a class “B” building to a class “A” building at the same or possibly reduced rates, which may also include furniture. Timing should be considered an important factor in their strategy. It is best to begin the process 9-18 months prior to lease expiration to avoid being under pressure to stay in their existing space. This approach allows the tenant to see their value in the market place by receiving offers from neighboring properties.
Equipped with this information, tenants may choose to relocate or remain under favorable conditions while still profiting from the leasing market downturn. In just a few hours, a tenant can quickly assess competitive rental rates by touring properties that meet their criteria. By knowing the rates, tenants can reduce their overhead by saving on occupancy costs, which are often the greatest expense to operating their business. These savings can offset the drop they may be experiencing in their revenues.
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