declined in Manhattan

The nearly two percentage point drop in New Jersey's overall office vacancy rate recorded by Cushman Wakefield, Inc.'s New Jersey research team during 2006 reflects continued forward movement in the face of sluggish job growth and economic uncertainty.On the industrial side, strong demand for warehouse/distribution space continues to position the Garden State as a powerhouse for industrial leasing, according to the firm's findings.In Northern New Jersey, overall office vacancy rates declined 2.1 percentage points during the past year to reach 16.5 percent the lowest level since 2001."The Hudson Waterfront benefited from a booming New York City office market in 2006," noted Gualberto "Gil" Medina, executive managing director of Cushman Wakefield's New Jersey operations."As the number of prime space availabilities declined in Manhattan, the lure of cheaper rents and incentives resulted in 1.4 million square feet of leasing in Jersey City alone."Among the most notable office deals, Citigroup sublet 316,775 s/f from UBS at Newport VII, while Merrill Lynch expanded its lease to occupy 236,350 s/f at 101 Hudson Street."Within the resurgent City of Newark, leasing activity was the strongest in five years," Medina added. 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