New Jersey Office Figures Q1 2026

Leasing activity tallied less than one million square feet for the third consecutive quarter, totaling 621,000 sq. ft. in Q1—down 22% quarter-over-quarter and 47% below the five-year quarterly average. This represents the lowest quarterly leasing volume on record, narrowly surpassing the prior low of 623,000 sq. ft. in Q1 2021. The slowdown was driven primarily by the absence of large-format transactions causing the average new deal size to drop from 15,200 sq. ft in 2024 to 10,000 sq. ft since the start of 2025. Prime assets remained more resilient than the overall market with availability 520 basis points (bps) lower than the overall market and asking rents at a 30% premium.