New Jersey Office Market
Absorption in the fourth quarter of 2023 totaled negative 541,807 SF, bringing the year-to-date total to over negative 4.3 million SF. The under-construction pipeline increased to 1,021,147 SF as construction began at the 260,000 SF M West property in Morristown. The property is set to deliver during the end of the first quarter of 2024. Leasing activity in the fourth quarter of 2023 improved, reaching 2.9 million SF: a 54.3% increase after a lackluster third quarter. There were seven deals that closed for more than 50,000 SF during the fourth quarter of 2023, compared with just three deals during the prior quarter. The vacancy rate decreased by 20 basis points to 19.0% in the fourth quarter of 2023, which is still substantially above pre-pandemic levels.
New Jersey Industrial Market
Absorption in the fourth quarter of 2023 totaled 912,153 SF, bringing the year-to-date total to 5.3 million SF. The construction pipeline remains robust, trending upward during the fourth quarter of 2023 to 14 million SF. Vacancy and rents both increased year over year. Vacancy grew by 100 basis points to 3.6%. Higher-priced space delivered to the market and still-robust demand drove strong 2023 year-to-date rent growth of 17.3%. Asking rents reached a new historic high of $16.21/SF during the fourth quarter of 2023, with newly delivered space directly impacting the increasing rents.Download New Jersey Industrial Market 4Q23