The New York Times has a bit on New Jersey office real estate markets; construction on several projects in suburban north Jersey are moving forward. More importantly though, vacancy rates on Hudson coast are down to about 8 percent, and new projects are being planned including another tower in Hoboken.

Part of the continued strength comes from the Urban Transit Hub Tax Credit Program in effect since January. 9 Cities qualify, including Hoboken and Jersey City. Under the program, office development within a half mile of designated transit hubs qualifies for state tax abatements.

New office towers are expected along the Gold Coast, but not immediately. Harborside Plaza 4 surfaced last year briefly, but before the credit crisis (coincidentally, happy birthday, Credit Crunch!). Newport has no immediate plans for new office towers; several additional residential towers are in various stages of approval there, but no new office towers. Hoboken’s Waterfront Corporate Center has a third complex in the works, as noted in the Times. The Journal Square area does have several opportunities, and the hope is the development of the Harwood Towers will eventually bring more development there.

Still, many office development firms continue to insist on constructing suburban office parks, even as gasoline surpasses $4 a gallon. While suburban New Jersey office parks are currently asking a third of mid-town rents, and half of asking rents along the Gold Coast, unless fuel prices drop, employees may be less inclined to transfer into office space inaccessible to mass transit. The true effect of New Jersey’s Urban Transit Tax Credit won’t be realized for some time; the program has only been in effect for six months.