New Jersey Office Market
The Northern New Jersey office market began the first quarter of 2026 with 240,846 SF of positive net absorption. The availability rate decreased 20 basis points quarter over quarter to 22.7%. Northern New Jersey office leasing totaled 1.9 MSF in the first quarter of 2026, slightly below the two-year quarterly average of 2.1 MSF. Sublease availability declined to 5.9 MSF, the lowest level in six years. Class A office leasing accounted for more than 72.3% of overall activity in 1Q26. Overall asking rents averaged $32.12/SF in the first quarter of 2026, rising 0.38% year over year.
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New Jersey Industrial Market
The Northern and Central New Jersey industrial market started the year strong, posting 3.49 MSF of net absorption in the first quarter of 2026—its third straight positive quarter. Vacancy fell 10 basis points, driven by 8.7 MSF of leasing activity. Occupancy gains were concentrated in Class A assets, accounting for over 51% of leasing activity, as tenants prioritize modern facilities. The first quarter of 2026 saw a resurgence of blue-chip tenants, with activity still primarily driven by 3PLs. Vacancy is plateauing, edging down 10 BPS to 6.3% in the first quarter of 2026. Sublease availability fell 9.9% quarter-over-quarter to 10,885,831 SF, its lowest level in over a year.
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