Southern New Jersey Office Market
In Q3 2024, the market saw an increase in occupancy of 0.2% between the second and third quarters, with absorption totaling 33,628 square feet. The increase was predominantly in Class A and Class C offices, which recorded 19,504 and 31,931 square feet of absorption, respectively. The Class B market recorded negative 17,807 square feet of absorption during the quarter. In the first quarter of 2024, the average asking rent in Southern New Jersey reached a record high of $22.10 per square foot. By the third quarter, this figure remained relatively stable at $21.90 per square foot. After experiencing seven consecutive quarters of positive rent growth, the trend slowed in the second quarter, showing a slight decline of 0.1% compared to the first quarter. Additionally, rents fell by 0.7% from the second to the third quarter, but they remain at a healthy level, close to the all-time high. At the end of the third quarter, total tenant demand as a percentage of inventory was 1.6%, unchanged from the previous quarter.
Download Southern New Jersey Office Market Report 3Q24