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NJ Office Leasing Pulls Back in Q3
CBRE’s Q3 2023 Office Figures report for Northern and Central New Jersey reveals that economic uncertainties have led to a pullback in the overall office leasing market.
Total leasing activity in Q3 2023 was 839,000 square feet, a 44% decline from Q2. The region also experienced a negative net absorption of 288,000 square feet during the quarter. Despite the challenges, there was robust renewal activity and a flight-to-quality for new commitments, and the average asking rent increased by 5% year-over-year to $31.77 per square foot.
Northern Jersey had the highest leasing activity in Q3, while Central Jersey experienced a decline in leasing activity. Investment sales were also impacted by high interest rates, totaling $124 million in Q3.
