Prices for Class B and Class C office space in Bergen County jumped in the second quarter over the previous year, despite a softer market and weaker economy, according to a new report.

The median price for the properties is $208 a square foot - a 13 percent increase from the same period a year ago, according to a report issued by a national commercial real estate brokerage Marcus & Millichap.

The county's stock of Class B and Class C properties continued to attract investors because of the market's "consistent" demand and difficulty in adding supply, the report said.

"The opportunity right now is to secure smaller-space tenants and do the best you can until we start to see some job creation, until we start see some momentum in the economy," Michael Fasano, a regional manager for Marcus & Millichap in Elmwood Park, said in an interview.

The bright spot came as overall leasing volume in North Jersey - 7.5 million square feet - was 30 percent lower in the 12 months ending in the second quarter than in the previous year, the report said. Leasing volume was 60 percent lower in the first six months of this year than in the first half of 2007. The company defines North Jersey as Bergen, Essex, Hudson, Morris, Passaic and Union counties.

The declining turnover rate is likely to slow increase in rent prices - now about 2 percent year-over-year and to further encourage owners to sweeten deals with more leasing incentives, such as a month of free rent. The concessions are expected to rise this year and are likely to edge higher in 2009 as the market sees more ripple effects of layoffs in the financial-services sector, the report said. Asking rents in North Jersey were $27.21 per square foot in the second quarter.

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E-mail: tangel@northjersey.com

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