South New Jersey Real Estate Market Reports

Southern New Jersey Office Market

Southern New Jersey’s office vacancy rate stood at 13.8% as of the third quarter, representing a 110-basis-point decrease over the past year and signaling ongoing market stabilization. Net absorption totaled 184,988 square feet during the third quarter, bringing 2025’s year-to-date absorption total to 225,850 square feet. The combination of declining vacancy rates and net positive annual absorption underscores a strengthening office market and bodes well for continued improvement as the year comes to a close. Average asking rents in Southern New Jersey have fully rebounded and now surpass pre-2020 levels. Following substantial year-over-year gains in both 2022 and 2023, rent growth moderated in 2024 and saw a slight decline of 1.4% over the past year to average $21.37 per square foot as of the third quarter. As of the third quarter, the percentage of active users relative to inventory ticked up to 1.8%, above the eight-quarter average of 1.6%. Market demand is being driven by tenants seeking an average of approximately 11,000 square feet of space. Notably, users that are new to market or growing their footprint account for approximately 46% of market demand, suggesting potential for future market growth.