Southern New Jersey Office Market
During the second quarter of 2025, market occupancy rose by 20 basis points on a year-over-year basis, reaching 85%. This uptick reflects a modest but positive improvement in overall occupancy levels compared to the same period last year. Overall absorption was recorded at -26,421 square feet this quarter but remains positive for the year at 78,565 square feet. Marlton and Moorestown led the market in space absorption this quarter, with Marlton absorbing 26,364 square feet and Moorestown close behind at 25,541 square feet. Several major tenants contributed to the positive absorption in these submarkets. Fox & Roach LP expanded its footprint by leasing an additional 4,700 square feet at 7000 E Lincoln Drive in Marlton. Meanwhile, Oxford Contracting Co. occupied 14,700 square feet at 5 Terri Lane in June. Southern New Jersey’s average asking rent reached a record high of $21.53 per square foot in the fourth quarter of 2023 and has remained elevated, registering $21.33 per square foot this quarter. The market saw a pronounced surge in rental rates between the fourth quarter of 2022 and the first quarter of 2023, recording a quarterly increase of 250 basis points. Since that period, rent growth has stabilized, averaging a modest 48 basis points per quarter. This trend reflects a stable and consistent outlook for the region’s office market, with sustained demand keeping rates near historic highs. At the close of the second quarter, total tenant demand— defined by the percentage of market space actively sought by tenants— stood at 1.5%. Although this represents a slight decrease from the previous quarter, it remains consistent with the recent eight-quarter average of 1.7%, indicating stable demand levels across the market.
Download Southern New Jersey Office Market Report 2Q25