Real estate services company Cushman & Wakefield released its New Jersey Market Report Jan. 7 for the fourth quarter, with data revealing sustained leasing momentum and strategic market stabilization across both the industrial and office sectors in the state. Â
The industrial market in New Jersey recorded significant transaction activity throughout 2025. Total warehouse and distribution leasing activity for the year reached 24.7 million square feet (msf), marking the third strongest performance since the record-breaking levels of 2021.
While the fourth quarter saw a slight decrease from the third, with 4.9 msf of leasing activity and an increased vacancy rate of 9.6%, the strong overall annual performance underscores continued tenant interest in the region.
“Despite headwinds from the economic and geopolitical climate, New Jersey’s industrial market continued to demonstrate resilience in 2025, driven by robust tenant demand and strategic submarket activity, including in the popular port region, where we saw over four million square feet of leasing activity year-to-date,” said Felix Soto, research manager at Cushman & Wakefield.
The office market also showed encouraging signs of stability. The sector achieved positive net absorption for the year, totaling 758,475 square feet, while the vacancy rate settled at 21.9%. Leasing activity in the fourth quarter reached 1.3 msf, with a clear preference for high-quality assets. Class A office spaces captured 60.3% of tenant demand, indicating a continued flight to quality among occupiers.
“The New Jersey office market is finding its footing, with Class A spaces leading the way in attracting tenants and stabilizing the market,” said Bill Simoneau, senior research manager at Cushman & Wakefield.
