According to Cushman & Wakefield’s third-quarter 2023 industrial and office statistics, the industrial leasing market in Northern and Central New Jersey is returning to normal levels after a record-breaking year in 2021. In Q3 2023, there was a total of 4.8 million square feet leased, which closely aligns with the average quarterly activity over the past two years.
Central New Jersey accounted for nearly 60% of this activity. However, due to an increase in vacant non-Class A space, there was a negative net absorption of 2.6 million square feet during this quarter. On the other hand, Class A properties saw positive net absorption for their thirty-third consecutive quarter at approximately 730 thousand square feet.
In terms of office leasing activity during Q3 of 2023 , there were approximately1 .3 million square feet leased – marking it as one of the lowest quarterly volumes since Q2 of 2020 . Additionally , compared to last year’s numbers ,the office vacancy rate has increased by120 basis points reaching21 .2% .
The article “NJ Industrial Normalizes in Q3” originally appeared on Connect CRE.
