New Jersey Office Market
Absorption in the second quarter of 2023 totaled negative 1.1 million square feet, bringing the year-to-date total to over negative 3 million square feet. The construction pipeline increased to 379,350 square feet as construction began at the 260,000 square-foot M West property in Morristown. ‒Leasing activity in the first half of the year reached 5.1 million square feet, 27.9% below the output from one year ago. The vacancy rate fell slightly to 18.5% in the second quarter of 2023, which is still significantly above pre-pandemic levels.
New Jersey Industrial Market
Absorption in the second quarter of 2023 totaled 1.7 msf, bringing the year-to-date total to 2.4 msf. The construction pipeline remains robust, trending upward to 12.8 msf in the second quarter of 2023. Vacancy and rents both increased year over year. Vacancy grew to 3.1% as numerous large spaces were added to the market. Higher-priced space delivered to the market and still-robust demand drove strong 2023 year-to-date rent growth of 9.5%.
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