New Jersey office market report

2022 Q2 quarterly report

New Jersey office leasing velocity has seen a significant downturn as demand lessens, especially in suburban or non-transit-oriented market areas. The office market vacancy rate remains elevated from pandemic levels at 18.8% even as inventory continually declines. Investment sales are on pace to be 30% less than 2021 sales volume as office asset pricing and asking rents continue to shrink.

250.6 msf

Inventory

An increasing amount of existing office space is now being converted or demoed. With over 47 msf of vacant space on the market this trend is likely to continue.

-558,532 sf

Net Absorption

Occupiers opt to downsize or leave space altogether. The market continues to display the leasing decisions leave behind, and this quarter -558,532 sf of office space is vacant with traditional office suburbia affected the most.

$28.05

Direct Asking Rent

Asking rents of top-quality assets have remained steady while the flock to top assets continues. Lower quality assets have been left behind showing a decline in asking rents.

45.4 msf

Availabilities

Sublease opportunity is abundant with a steady flow of companies injecting the new sf to market quarter to quarter. Availability is kept stable due to a decline in inventory through use type changes and conversions.

18.8%

Vacancy

Vacancy rates remain heightened in suburbia office areas, while transit-oriented development areas are most frequently returned to by employees.

$1.4 billion

Investment Sales

Investment activity has continued as redevelopment potential paired with rising rates have pushed values down, attracting investors.

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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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