New Jersey Office Figures Q4 2025

Leasing activity remained subdued for the second consecutive quarter, totaling 798,000 sq. ft. in Q4—up 14% from Q3 but still 31% below the five‑year quarterly average. A pronounced slowdown in the second half of the year weighed heavily on annual results. Full‑year 2025 leasing reached 3.67 million sq. ft., 26% below 2024’s 4.93 million sq. ft. and 47% below the 2015–2019 average. This marks the lowest annual leasing total on record, 8% below the previous trough of 3.97 million sq. ft. in 2021.

The pullback was driven primarily by a sharp decline in large‑block transactions. Only two new leases of 100,000 sq. ft. or larger were completed in 2025, compared with seven such deals in 2024. Beyond macro pressures—including a softening labor market and uncertainty from tariffs—occupiers also faced a shrinking supply of high‑quality, market‑ready space. Inflation of the cost of capital and construction has hampered landlords’ ability to build turnkey spaces, fund tenant improvement allowances or invest in asset repositioning, rendering several buildings effectively noncompetitive. The lack of compelling quality or viable options for tenant relocations have contributed to stalling the flow of new leasing. On a macro front, New Jersey has also suffered just like many suburban locations as demand nationally has shifted focus more on urban cities and away from suburban markets. As available quality space tightened, tenants increasingly opted to renew. Renewals totaled 2.40 million sq. ft. for the year, representing 40% of all leasing velocity—up from 33% in 2024 and 27% in 2023.