Northern and Central New Jersey had robust industrial leasing and a slowdown in office leasing in Q2, according to a report from Cushman & Wakefield. The industrial market saw 5.8 million square feet (msf) of new leasing, up 11.2% year-over-year, despite an overall vacancy rate rise to 7.6%. Class A industrial properties experienced 1.4 msf of positive net absorption, signaling strong demand. 

Conversely, office leasing slowed, with no new leases or renewals over 100,000 sf this quarter, leading to a high vacancy rate of 23.2%. The trend towards high-quality office spaces continues, despite significant consolidations and rising sublease space.  

“The industrial market continues to show resilience with strong leasing activity and significant construction completions,” said John Obeid, senior research manager. “While the influx of new space has increased the market’s vacancy rate, the Class A segment remains robust with positive net absorption, indicating sustained demand for high-quality logistics properties.”