Northern and Central New Jersey Industrial Figures Q3 2025

The New Jersey industrial leasing market showed clear signs of stabilization in Q3 2025 following ten consecutive quarters of rising vacancy. A combination of positive net absorption and fewer vacant deliveries from new construction held the vacancy rate steady at 7.2%. Class A demand remained strong, driving 1.3 million sq. ft. of net absorption. Development activity also moderated, with the pipeline shrinking to 7.1 million sq. ft.—its second-lowest level since Q2 2019.
Leasing activity was vigorous, surpassing the five-year quarterly average by 13%. Tenant demand was driven by third-party logistics (3PL) firms seeking favorable terms on Class A space. Average asking rents declined slightly as landlords prioritized occupancy over rent growth.