New Jersey Office Market
| Average Asking Rent (Price/SF) | $30.67 |
| Availability Rate (%) | 24.9% |
| Net Absorption (SF) | -1,380,469 |
A continued flight-to-quality among office tenants, along with the repurposing of outdated stock, continued the decline in availability during the fourth quarter of 2022. The availability rate decreased from 25.6% to 24.9% over the past three months, marking its lowest rate in over a year, although a significant decline would be needed to reach the pre-pandemic rate of 21.8%. Overall asking rents increased slightly, growing to $30.67/SF, up from $30.35/SF during the third quarter of 2022. Premier buildings have been recording the largest rent increases.
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New Jersey Industrial Market
| Average Asking Rent (Price/SF) | $13.25 |
| Vacancy Rate (%) | 2.8% |
| Net Absorption (SF) | 2,956,154 |
Northern New Jersey industrial leasing activity continued to remain strong through the fourth quarter of 2022. Net absorption for the quarter was 2,956,154 square feet, bringing the year-to-date total to 12,241,767 square feet. Vacancy rose slightly, closing the year at 2.8%, still 30 basis points below the fourth quarter of 2021. Currently, the average asking rate in the fourth quarter of 2022 stands at $13.25/SF, which increased by $2.27/SF from the prior year. It’s expected that average asking rent growth will slow as vacancy incrementally rises on the heels of elevated construction deliveries in 2023; however, vacancy will remain below the national average. Looking forward, more local municipalities imposing ordinances to slow industrial construction will keep vacancy lower for longer by constricting new supply.
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