New Jersey Office Figures Q3 2025

Leasing activity trended downward for the third consecutive quarter, totaling 702,000 sq. ft. in Q3, a 34% decline quarter-over-quarter and 40% below the five-year quarterly average. This represents the lowest quarterly total since Q1 2021. The absence of large-block transactions was impactful—no new leases of 100,000 sq. ft. or greater were signed for the second straight quarter. Year-to-date leasing reached 2.87 million sq. ft., down 17% from the same period a year ago. Renewals made up a greater share of total velocity for the first time in several years reflecting cautious sentiment. Financially challenged owners, a softening labor market, tariff impacts and fewer quality options have made occupiers hesitant to commit capital toward relocations or expansions, opting instead to renew in place and defer major capital outlays.