New Jersey Office Market
The Northern New Jersey office market recorded a 30-basis-point quarter-over-quarter decline in vacancy, falling to 18.8%, supported by moderate leasing activity and steady tenant demand. Occupiers continue to favor newer, recently upgraded buildings. Leasing activity surged in 2024, surpassing 10.3 MSF—the highest annual total in five years. Activity moderated in the first quarter of 2025, with approximately 2.3 MSF leased. Top-tier assets remain in demand, highlighted by BlackRock Inc.’s 175,200 SF renewal at 1 University Square Drive in Princeton.
Availability rose 110 basis points quarter-over-quarter to 24.3% in the first quarter of 2025. Large block additions contributed to the increase, including Bank of America’s 328,966 SF listing at 101 Hudson Street in Jersey City near the end of the quarter.
New Jersey Industrial Market
The vacancy rate rose by 30 basis points quarter-over-quarter to 5.9% in the first quarter of 2025. Northern New Jersey currently sits 90 basis points below the twenty-year trendline of 6.8%. Net absorption registered at 582,000 SF, even as industrial leasing activity settled into a more measured pace. Industrial leasing totaled 6.6 MSF in the first quarter of 2025, following a strong second half of 2024 that reached over 9.1 million SF. The slowdown reflects a more cautious approach from occupiers amid growing economic uncertainty. While some tenants are delaying decisions due to ongoing market and trade volatility, Chinese 3PLs have remained active in leasing so far in 2025. Despite the overall moderation in activity, Class A warehouse leasing accounted for 49.2% of total leasing volume year to date.
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