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Flight-to-Quality Remains a Theme of NJ Office Market in Q2
During the first half of 2023, the overall office vacancy rate in Northern and Central New Jersey continued to rise, reaching nearly 27%, according to JLL’s Q2 NJ office leasing report.
This increase was driven by diminished leasing activity and consolidations, resulting in over 1.3 million square feet of negative net absorption. The Class A office market saw the largest impact, with the vacancy rate climbing to 30.1%. The Route 78 submarket experienced the highest volume of negative absorption, mainly due to the availability of 879,000 square feet at 1 AT&T Way in Bedminster.
Flight-to-quality migration was a notable trend, as demonstrated by Kenvue leasing a newly renovated 191,450-square-foot office building at the Summit East campus for its global headquarters. The Johnson & Johnson spinoff will also occupy a 100,000-square-foot R&D building to be constructed on the campus.
- ◦Lease
