New Jersey Office Market
The Northern New Jersey office market posted a positive net absorption of 612,496 SF during the third quarter of 2024, marking the first time in two years that net absorption has turned positive. Leasing activity in the market soared, reaching over 3.1 MSF during the third quarter of 2024. Third quarter activity increased 33.8% quarter over quarter and is comparatively higher than this same time last year, increasing by 58% annually. The average deal size was 4,154 SF during the third quarter of 2024, an average of 636 SF higher than the prior quarter. Overall asking rents stood at $31.33/SF in Q3 2024, with a slight year-over-year increase of 0.2%. Asking rents are expected to remain elevated through the remainder of 2024, driven by increased tenant demand and improving leasing activity.
New Jersey Industrial Market
The vacancy rate increased by 20 basis points quarter-over-quarter to 5.5% in the third quarter of 2024. Despite the rise in vacancy over the past two years, the market remains healthy, standing 130 basis points below the twenty-year trendline. Even with robust deliveries, increased availability, and economic uncertainties, the market recorded one of its strongest leasing quarters in the last two years. While overall leasing activity remains below post-pandemic averages, Class A warehouse leasing surged throughout 2024, accounting for more than 52.42% of year-to-date leasing activity. The average deal size reached 187,867 SF in the third quarter of 2024, reflecting continued strong demand for quality space in Northern and Central New Jersey. Sublease availability closed the third quarter of 2024 at 8.3 MSF, a 23.4% increase quarter-over-quarter. A key factor behind this surge is the addition of 1,281,000 SF at 904 Cranbury South River Road in Monroe Township. The space, previously occupied by Home Depot following their signing of the largest lease in Q4 2022, has now returned to the market.
Download New Jersey Industrial Market 3Q24