New Jersey Office Market
The Northern New Jersey office market closed 2025 with positive net absorption totaling 556,548 SF in the fourth quarter. The vacancy rate decreased 90 basis points year over year, landing at 18.3%. Leasing activity increased 26.3% quarter over quarter, totaling just under 2.4 MSF in the fourth quarter of 2025. Sublease availability declined to 5.9 MSF, the lowest level in the past five years. Class A office leasing represented more than 69.9% of overall activity in 2025. Overall asking rents averaged $32.02 PSF in the fourth quarter of 2025, rising 1.6% year over year.
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New Jersey Industrial Market
The industrial market in Northern and Central New Jersey stabilized in the fourth quarter of 2025, recording positive net absorption for the second consecutive quarter. Class A demand continues to drive vacancy stabilization. Occupancy gains were concentrated in Class A assets, garnering over 44% of leasing activity, as tenants prioritize modern facilities. Tenant demand in the fourth quarter of 2025 reflected a more diverse mix of industry types, underscored by the reemergence of major retail occupiers. Vacancy rose 20 BPS to 6.1%, driven by 1.85 MSF of construction deliveries during the fourth quarter, much of which delivered without pre-leasing. Sublease availability reached a new historic high of 12,091,534 during the fourth quarter, increasing by 4.4% quarter-over-quarter.
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