Southern New Jersey Office Market
Net absorption for the Southern New Jersey office market totaled negative 109,704 SF during the first quarter of 2026, which pushed office vacancies up by 70 basis points compared to the end of 2025. Southern New Jersey’s first-quarter weakness is likely an aberration rather than a consistent trend. Office vacancies have been gradually declining over the past five years, when rates were nearing 19.0%. Moreover, the market boasts the lowest vacancy rate within the larger Greater Philadelphia region. Compared with Delaware, office vacancies ended the first quarter of 2026 at 17.3%, and office vacancy rates in the Philadelphia metro area remain elevated, well above 20.0%. Average direct asking rents in Southern New Jersey have fully rebounded and now surpass pre-2020 levels, averaging $21.79/SF as of the first quarter. Over the past several quarters, rent growth has accelerated, with current rates representing a 1.1% year-over-year increase.
Download Southern New Jersey Office Market Report 1Q26