Commercial real estate brokerage Marcus & Millichap has published its 2026 Northern New Jersey Office Investment Forecast Report.
“Northern New Jersey’s office market is benefiting from a disciplined supply environment and steady demand tied to health-care and cost-sensitive suburban locations,” said Jim McGuckin, managing director, market leader, New Jersey. “With construction running at historically low levels, vacancy has continued to trend lower, helping bring fundamentals back in line with national averages.”
Key findings include:
- Northern New Jersey’s workforce is expected to grow modestly in 2026, adding roughly 2,000 jobs, with traditionally office-using sectors posting a slight rebound after declines last year.
- Office deliveries in 2026 are expected to fall to roughly half of the past decade’s average, approaching record-low inventory growth and ranking among the slowest expansion rates of any major market.
- Office vacancy is expected to decline to about 15.8% in 2026, marking the metro’s lowest level since before the pandemic and in line with the national average.
- Average asking rents are expected to rise to approximately $28.70 per square foot, with Northern New Jersey standing out as one of the few Northeast office markets that has avoided rent declines in recent years.
- Investment activity is being supported by healthcare-adjacent demand and value-oriented strategies, with leasing momentum along the ON3 health corridor and increased focus on lower-cost suburban submarkets amid recent transfer-tax changes.
“We’re seeing capital focus on healthcare-adjacent corridors and lower-cost submarkets where leasing has held up and pricing remains accessible, particularly as recent tax changes influence deal structures,” added McGuckin.
