New Jersey office market report

2022 Q3 quarterly report

Strong negative absorption reflects a market with many businesses choosing to close their physical space in favor of a virtual environment. On the other hand, those who are choosing to stay in place are condensing their existing footprint. Amid an increase in vacancy rates and slowing leasing velocity due to deteriorating economic conditions, a growing number of owners may struggle to carry heavily leveraged assets with financing tied commonly to unsecured loans. This is expected to impact owners, lenders and occupiers alike.

242.5 msf

Inventory

An increasing amount of office space is now being converted, demoed, or given back to the market.
-2,012,299 sf

Net Absorption

Space gives backs continue as just over two million-sf of office space has returned to the market this quarter. This trend has further exasperated the large delta between occupier demand and an ever-increasing supply of space.

$27.76 psf

Direct Asking Rent

Asking rents decreased slightly quarter-over-quarter. Top quality product continues to display more resilience to the pricing downturn then other lower quality assets.

48.05 msf

Availabilities

Availabilities have increased just over 200,000 sf quarter-over-quarter, as a growing number of office stock comes off the market permanently, therefore keeping availabilities in equilibrium.

19.2%

Vacancy

Vacancy rates have risen about 0.6% quarter-over-quarter, a metric being kept in balance due to the inventory drop that is also steadily occurring.

$2.2 billion

Investment Sales

Sale volume has slowed down significantly throughout the year with $1.6 B of $2.2 B total sale volume taking place in Q1 2022. This slow down could be due rising rates and repricing occurring, among other reasons, as the office market continues to decline.

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Your source for the latest New Jersey office market reports

Get in-depth office market reports and insights from commercial real estate experts in the Greater New Jersey area. Avison Young advisors look at New Jersey commercial real estate activities and the latest New Jersey statistics to provide you expert market research on New Jersey's office properties.

Explore different topics like the latest office market pricing trends and analysis of New Jersey's current office real estate market conditions. Gain a better understanding of New Jersey’s office real estate outlook and stay ahead of current office space trends. Make smart decisions when it comes to investing in office properties in New Jersey's competitive office real estate market. Avison Young is your trusted source for commercial real estate office market insights in New Jersey.

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