Southern New Jersey Office Market
In Q2 2024, the market saw a net decrease in occupancy with absorption totaling -10,635 square feet. The decline was predominantly in Class B and Class C offices, which recorded -36,805 and -9,671 square feet of absorption, respectively. The Class A market recorded positive absorption of 35,841 square feet during the quarter. Southern New Jersey’s average asking rate reached a new all-time high of $22.10/SF in the first quarter of 2024 and was essentially unchanged in the second quarter, registering $22.07/SF. After seven consecutive quarters of positive quarter-over-quarter rent growth, the trend moderated in the second quarter with a slight 0.1% decline from the prior quarter. Still, rents remain at a healthy level close to an all-time high. At the end of the second quarter, total tenant demand as a percentage of inventory was 1.6%, ten basis points higher than the previous quarter.
Download Southern New Jersey Office Market Report 2Q24