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NJ Industrial Returns to Equilibrium in Q3
Industrial leasing activity in Northern and Central New Jersey is normalizing after a record-breaking year in 2021, according to Cushman & Wakefield’s third-quarter 2023 industrial and office statistics. In Q3 2023, leasing activity reached 4.8 million square feet, approaching the two-year quarterly average of 4.9 million square feet.
Central New Jersey accounted for 59.9% of the total activity. However, the market posted a quarterly negative net absorption of 2.6 million square feet, primarily due to newly vacant non-Class A space. In contrast, the Class A segment had positive net absorption for the 33rd consecutive quarter at 730,881 square feet.
In the office market, leasing activity reached 1.3 million square feet in Q3 2023, the lowest quarterly volume since Q2 2020. The office vacancy rate increased year-over-year by 120 basis points to 21.2%.
- ◦Lease
