North, Central New Jersey Office Vacancy Falls to 25% as Absorption Tops 1.2 Million Square Feet
Updated
Updated · ROI-NJ.com · Jul 16
North, Central New Jersey Office Vacancy Falls to 25% as Absorption Tops 1.2 Million Square Feet
1 articles · Updated · ROI-NJ.com · Jul 16
Summary
A 40-basis-point drop left Northern and Central New Jersey office vacancy at 25% in mid-2026, the market’s lowest level since year-end 2022.
704,150 square feet of second-quarter net absorption extended the market’s positive streak to five quarters and lifted year-to-date absorption above 1.2 million square feet.
1.3 million square feet of office transactions closed in the second quarter, driven mostly by smaller leases; PNC Bank’s 91,915-square-foot renewal in East Brunswick was the largest deal.
5.2 million square feet of sublease space remained at mid-2026, down from nearly 7.9 million in mid-2023 as higher-end space was leased or pulled from the market.
13.5% direct vacancy in Premier Class A buildings versus 27.1% for the rest of Class A points to continued flight-to-quality and further pressure on vacancy and rents.