Northern and Central New Jersey showcased a robust industrial sector with the highest quarterly new leasing activity in two years, hitting 6.4 million square feet (msf), according to Cushman & Wakefield’s Q4 2023 report.  

Central New Jersey dominated with 68.2% of the year’s leasing activity, a significant 20.9% uptick from the previous year. Despite lease renewals reaching 11.9 msf, net absorption slowed with negative trends, especially in Northern New Jersey, resulting in a 5.8% vacancy rate, up by 300 basis points. 

In the office market, Q4 witnessed significant transactions, including Bank of America’s 547,962-square-foot renewal and expansion in Jersey City and Nokia Bell Labs’ 360,000-square-foot commitment in New Brunswick. However, net absorption remained negative at 1.0 msf for the quarter, contributing to a year-to-date total of negative 3.0 msf, pushing vacancy rates to 21.6%. Average rental rates held firm at $31.03 per square foot.