The great divide: How New Jersey’s industrial landlords balance premiums and concessions

Class A:

• The average NNN asking rent has increased to $17.04, up from $16.50 in 2024. 
• Free rent has more than doubled to 7.2 months, up from 4.1, underscoring the competitive push for quality tenants.
• The average lease size remained large at 176,572 sf, nearly flat year-over-year.

Class B & C:

• The average NNN asking rent decreased slightly to $14.20, from $14.70 in 2024.
• Free rent concessions also expanded to 5.4 months, up from 3.8 months in 2024.
• The average lease size for class B & C increased to 78,625 sf, a notable jump from 58,710 sf a year prior. 

Class A space is commanding premium rents but at the cost of heavier concessions, while Class B/C is benefiting from larger average deal sizes. Across both segments, landlords lean on free rent to balance headline rents and to sustain leasing velocity.