Newmark Q4 Northern New Jersey Office Market Report

1/8/21

New Jersey Office Market

Average Asking Rent (Price/SF)$29.87
Availability Rate (%)25.0%
Net Absorption (SF)-2,228,716
The Northern New Jersey office market finished the year with a fourth consecutive quarter of negative net absorption as the economic downturn and widespread remote work brought on by the pandemic has weakened tenant demand. Availability now stands at a record 25.0%, up from 21.7% at the end of 2019. Asking rents have not yet seen a broad correction, declining slightly from $29.97/SF to $29.87/SF over the past year. Despite adverse conditions, certain significant transactions continued to close during the past year and quarter, particularly among the resilient life sciences and healthcare sectors.


New Jersey Industrial Market

Average Asking Rent (Price/SF)$9.26
Vacancy Rate (%)4.2%
Net Absorption (SF)4,142,326

Tenants and developers in Northern New Jersey’s industrial market remained active during the third quarter of 2020 amid a challenging economic period. Due to a healthy amount of pre-leasing, net absorption outpaced record new construction by nearly 250,000 square feet. Vacancy has remained relatively stable over the past year and fell slightly from 4.3% to 4.2% over the past three months. The average asking rent rose steadily by 2.3% to $9.26/SF over the past year. The market saw a 28.0% decline in year-to-date leasing activity compared to 2019.

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