Spike in Sublease Space Tarnishes Princeton's Crown

NJBIZOctober 30, 2009

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The submarket's location appealed to David Osterman, managing partner of the Princeton office at law firm Goldberg Segalla LLP, which is based in Buffalo, N.Y. "We can attract talent, because of the central location, from a very large geographic area." In August, the firm signed a 7,625-square-foot lease to expand and relocate to Hilton Realty's 902 Carnegie Center, in Princeton, he said.

The 12.8 million-square-foot Princeton office submarket - the largest in central New Jersey and the third-largest in the state - has seen three consecutive quarters of negative absorption, totaling 581,000 square feet according to commercial real estate services firm Grubb & Ellis. The greater Princeton area has a 17 percent Class A vacancy rate, compared to a rate of more than 20 percent for the state overall, "but it still had a tough year," said Micky Landis, senior vice president and general manager of the Princeton office of Boston Properties, which owns more than 2 million square feet of Class A office space on the Princeton Route 1 corridor.

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Spike in Sublease Space Tarnishes Princeton's Crown

WITH A CENTRAL location and diverse tenant base, the Princeton office submarket has weathered the recession better than much of the state, but corporate consolidations have eroded some of the submarket's strength. Still unknown...

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