New Jersey Office Market
The Northern New Jersey office market recorded a 30-basis-point quarter-over-quarter decline in vacancy, falling to 18.8%, supported by moderate leasing activity and steady tenant demand. Occupiers continue to favor newer, recently upgraded buildings. Leasing activity surged in 2024, surpassing 10.3 MSF—the highest annual total in five years. Activity moderated in the first quarter of 2025, with approximately 2.3 MSF leased. Top-tier assets remain in demand, highlighted by BlackRock Inc.’s 175,200 SF renewal at 1 University Square Drive in Princeton.
Availability rose 110 basis points quarter-over-quarter to 24.3% in the first quarter of 2025. Large block additions contributed to the increase, including Bank of America’s 328,966 SF listing at 101 Hudson Street in Jersey City near the end of the quarter.
New Jersey Industrial Market
The vacancy rate rose by 20 basis points quarter-over-quarter to 5.7% in the fourth quarter of 2024. Despite increases in vacancy over the past two years, the market remains healthy, standing 110 basis points below the twenty-year trendline. Net absorption exceeded 800,000 SF as demand outpaced supply. Class A warehouse leasing surged throughout 2024, accounting for over 55.21% of total leasing volume year to date. Class A activity rose by 18.8% quarter-over-quarter, driven by highly optimized space entering the market and landlords offering generous concession packages. The average deal size exceeded 200,000 SF in the fourth quarter of 2024, reflecting a sustained flight to quality. The construction pipeline largely declined over the past year, with year-to-date deliveries totaling more than 10.3 MSF, the highest since 2020. However, this trend reversed in the latter part of 2024, coinciding with three interest rate cuts by the Federal Reserve.
Download New Jersey Industrial Market 4Q24