New Jersey office market report

Q1 2023

Deteriorating economic conditions have slowed down new construction starts, as developers opt to build asset classes that are more likely to be recession resilient. In addition, space available for sublease is at historical highs due to an increasing number of tenants looking to offset the carrying costs associated with underutilized workspaces.

402,000 sf

Development pipeline

401,787 sf of office product is set to deliver throughout 2023. The forthcoming stock, when compared to its previous 8-year annual average, represents a 28% drop in overall delivered square footage. Developer strategy has mostly transitioned from a speculative basis to a more risk-averse approach, only moving forward with projects that are pre-leased.
-1.1 msf

Net absorption

Negative net absorption represented 0.07% as a share of inventory in the first quarter of 2023. The market remains in favor of tenants, despite landlords holding rents largely steady. Often, companies opt to downsize space and more efficiently plan for condensed physical footprints as the market transitions in favor of the tenant.

450,000 sf

Leased

Nearly a half-million square feet has been leased in the first quarter of the year as healthcare-focused occupiers continue to drive leasing activity. New Jersey has been a fertile ground for medical innovation for 150 years, hosting many of the largest global healthcare companies within the state.

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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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