New Jersey office market report

Q3 2023

As economic conditions in the office market continue to struggle, institutional investors are stockpiling cash in order to wait out and maximize their response for the future. Employers continue to cope with the work-from-home and hybrid workplace trends which has seen available space increase slightly year-over-year.

Decline in asking rents year-over-year

Year-over-year asking rents have declined by 0.43% or $0.13 psf. Historically, as with the current market, increasing availability lends itself to decreasing rents as there is more supply than demand.

In a tenant favorable market such as this, defined by conditions of increasing availability and favorable concessions, decreases in asking rents appear to be continuing.

-768,263 sf

Quarterly net negative absorption

Q3 2023 saw -356,853 sf more negative absorption than Q2 2023 at -411,410 sf. Year- to-date the NJ office market has seen a total of -2,293,422 sf in net negative absorption which represents -0.9% of the total inventory.

Demand for office space remains sluggish with many companies continuing to right size their workplace as a result of hybrid or remote work environments and the utilization of AI.


Availability rate at conclusion of Q3

From Q2 to Q3 2023 the total available space increased by 186,902 sf. This slight increase is attributed to the increase in direct available space. The total availability rate increased by 0.1% from 18.8% in Q2 2023 to 18.9% in Q3 2023, comprising of 15.4% direct availability and 3.6% sublet availability.

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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