Office Construction Slows in Central and Northern New Jersey as Flight-to-Quality/Efficiency Trends Emerge
- The New Jersey office market will deliver just over 400,000 square feet of new office supply this year, well below its 10-year annualized average of approximately 620,000 square feet.
- Spread evenly across suburban and urban locations, these new projects are capitalizing on a flight-to-quality and flight-to-efficiency, where occupiers can pay for best-in-class space via a smaller office footprint.
- With total office availability (sublease and direct availability) increasing from a pre-pandemic low of 15% to over 20% as of May 2023, construction activity is expected to remain below historical averages in 2024.
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