Newmark Q4 Northern New Jersey Office Market Report

1/8/21

New Jersey Office Market

Average Asking Rent (Price/SF)	$29.87
Availability Rate (%)	25.0%
Net Absorption (SF)	-2,228,716

The Northern New Jersey office market finished the year with a fourth consecutive quarter of negative net absorption as the economic downturn and widespread remote work brought on by the pandemic has weakened tenant demand. Availability now stands at a record 25.0%, up from 21.7% at the end of 2019. Asking rents have not yet seen a broad correction, declining slightly from $29.97/SF to $29.87/SF over the past year. Despite adverse conditions, certain significant transactions continued to close during the past year and quarter, particularly among the resilient life sciences and healthcare sectors.

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New Jersey Industrial Market

Average Asking Rent (Price/SF)	$9.26
Vacancy Rate (%)	4.2%
Net Absorption (SF)	4,142,326

Tenants and developers in Northern New Jersey’s industrial market remained active during the third quarter of 2020 amid a challenging economic period. Due to a healthy amount of pre-leasing, net absorption outpaced record new construction by nearly 250,000 square feet. Vacancy has remained relatively stable over the past year and fell slightly from 4.3% to 4.2% over the past three months. The average asking rent rose steadily by 2.3% to $9.26/SF over the past year. The market saw a 28.0% decline in year-to-date leasing activity compared to 2019.

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