New Jersey Office Figures Q2 2026

Leasing activity rebounded in Q2 with 932,000 sq. ft. of leasing volume, up 50% from Q1’s record-low total, but 21% below the five-year quarterly average, underscoring demand-side softness. While the uptick is a positive signal, Q2 marks the fourth consecutive quarter with leasing below 1.0 million sq. ft.

Tenant demand skewed toward smaller requirements, as tenant “rightsizing” has been at the forefront of tenants’ decisions since the pandemic. Large block leasing has been muted since early 2025, and Q2 followed that trend with just one new lease exceeding 100,000 sq. ft. and no new transactions above 50,000 sq. ft. Caution and a preference for flexibility amid an uncertain economic backdrop has curtailed large user demand, leading to a decline in average deal size from 15,200 sq. ft. at the start of 2025 to 11,000 sq. ft. in Q2 2026.