- Buyer composition for office assets in New Jersey has shifted meaningfully over the past decade, as overall transaction activity has slowed considerably. By year-end 2025, total office sale volume had declined by approximately 76% compared to levels a decade earlier, reflecting both tighter capital markets and reduced institutional appetite for the sector.
- Much of this decline can be attributed to a pullback from institutional and public market capital. Over the past ten years, investment activity from institutional buyers and REIT/public investors has fallen by nearly 100%, with the most pronounced drop-off in 2023 as higher interest rates and evolving office demand fundamentals led many large investors to pause acquisitions.
- Private investors and owner-occupiers have increasingly filled the gap left by institutional capital. Over the past three years, private buyers and office users have accounted for more than 80% of office acquisitions in New Jersey, with private capital representing the majority of transaction volume as these investors pursue smaller and more opportunistic opportunities.
- Looking ahead, private capital is expected to remain the primary driver of investment activity in the New Jersey office market. Many local and regional operators are capitalizing on repriced assets and distressed opportunities, leveraging market expertise to acquire properties at more favorable bases and long-term value entry points.
The REIT Retreat and Private Purchasers: How New Jersey’s office investment market has evolved over the last decade
New Jersey office sales volume by buyer type
March 11, 2026
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