CBRE’s Q3 2023 Office Figures report for Northern and Central New Jersey reveals a decrease in the overall office leasing market due to economic uncertainties. In Q3, there was a significant decline of 44% in total leasing activity compared to the previous quarter, with only 839,000 square feet leased. The region also saw negative net absorption of 288,000 square feet during this time.
Despite these challenges, there was still strong renewal activity and an increase in new commitments as businesses sought higher quality spaces. As a result, the average asking rent rose by 5% year-over-year to $31.77 per square foot.
In terms of specific regions within New Jersey, Northern Jersey had the highest leasing activity during Q3 while Central Jersey experienced a decline. Additionally, high interest rates impacted investment sales which totaled $124 million for this quarter.
Overall,NJ’s office market faced setbacks in Q3 but showed resilience through renewal and commitment activities despite economic uncertainties.
