New Jersey Office Market
| Average Asking Rent (Price/SF) | $30.07 |
| Availability Rate (%) | 26.4% |
| Net Absorption (SF) | -40,366 |
Gradually improving demand in Northern New Jersey’s office market during 2021 resulted in a series of large-block leases closing at year-end. Leasing activity amounted to 2.1 million square feet, the highest quarterly total in more than two years. However, this was offset by negative absorption in Parsippany, Princeton and MetroPark, keeping availability stable at 26.4% over the past three months. Average asking rents remained relatively unchanged at $30.07/SF, although landlords are continuing to offer expanded tenant improvement allowances and rent abatements. The market’s outlook is improving, but the spread of the Omicron variant is expected to further delay many return-to-office plans and temper demand in 2022.
New Jersey Industrial Market
| Average Asking Rent (Price/SF) | $10.97 |
| Vacancy Rate (%) | 3.1% |
| Net Absorption (SF) | 3,980,403 |
The Northern New Jersey industrial market achieved several milestones in 2021 as a boom in consumer demand, coupled with emerging challenges related to the global supply chain, further intensified competition for limited space. Demand significantly outpaced supply as net absorption amounted to nearly 15.0 million square feet over the past 12 months, compared with 7.4 million square feet of new completions. This caused vacancy to fall to an all-time low of 3.1% at year-end, down from 4.2% during the fourth quarter of 2020. Landlords responded by raising rents at a record pace; the average asking rent increased 17.8% over the past year to $10.97/SF.
Download New Jersey Industrial Market 4Q21 Download The Path Forward For The NJ Office Market April 2020 Download The Superregional Industrial Market 2021