Southern New Jersey Office Market
In the fourth quarter of 2024, the market experienced a slight decline in occupancy, dropping by 0.3% from the previous quarter. Overall absorption was negative 57,155 square feet. This decrease was primarily seen in older buildings constructed before the 21st century. In contrast, modern buildings built in the 21st century recorded a positive quarterly absorption of 263 square feet. At the beginning of 2024, the average asking rent in Southern New Jersey reached a record high of $22.09 per square foot. By the end of the year, this figure remained relatively stable, decreasing only slightly to $22.04 per square foot. After experiencing seven consecutive quarters of positive rent growth from the third quarter of 2022 to the first quarter of 2024, the trend moderated during the second and third quarters of 2024, with quarter declines of -0.1% and -0.7%, respectively. However, rents have since seen a quarterly increase of 0.6%, bringing the average to just $0.05 below the all-time high. At the end of the fourth quarter, total tenant demand as a percentage of inventory was 1.7%, 10 basis points above the previous quarter
Download Southern New Jersey Office Market Report 4Q24