New Jersey Office Market Gains Traction in Q1
Demand for high-end office space in New Jersey is going strong, providing added momentum as developers continue to raze obsolete buildings to make way for higher and better uses.
Both trends were on display in the first quarter of 2026, as noted by market reports by multiple brokerage firms. Research by JLL found that office vacancy in northern and central New Jersey fell to 25.4 percent to start the year, hitting a mark not seen since mid-2022, thanks to an uptick in leasing and the ongoing removal of outdated buildings from the inventory.
The change in occupied space, known as net absorption, was positive for the fourth straight quarter with nearly 584,000 square feet of activity from January through March, the firm said. Notably, JLL found that leasing activity remained concentrated in Class A space, accounting for about 90 percent of absorption as tenants continued to favor higher-quality buildings and submarkets.
“The headline here is that we’re finally seeing some real traction in New Jersey’s office market as the market corrects itself and obsolete buildings are removed from the inventory,” said Tim Greiner, an executive managing director with JLL and its lead office broker in New Jersey.
“Four straight quarters of positive absorption and more than half a million square feet absorbed in Q1 alone tells us that companies are still making decisions, still committing to space, but they’re being very selective about what they take,” he added.