In New Jersey, average industrial lease transaction size grew in 2025
New Jersey industrial – average lease size by year and by class and year
- Across the New Jersey industrial market, the average lease size experienced a downward trend for three consecutive years from 2021 to 2024. After reaching a low point in 2024, at 80,100 sf, the average transaction size increased by 22.3% in 2025 and now stands at 105,300 sf.
- During the pandemic years, between 2020-2022, occupiers rushed to secure space to support their potential, future, ecommerce growth. The bigger, more modern, buildings and newly delivered properties were securing larger tenant commitments in the 250,000 - 300,000 sf range.
- It will be important to keep an eye on these leases as they mature to determine if the tenants choose to downsize, reconfigure their space or renew as-is. It is also important to note that big box tenants may have no place else to go.
- Historically, Class B and C buildings have a smaller footprint, and the average lease size has been 84,200 sf in these spaces. Leasing activity has pulled back from the peak but has remained steady over the past 3 years.
- The increase in the overall average lease size signals that the industrial market remains stable, and this return to normalcy is expected to continue through 2026 and into 2027.
March 2, 2026
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