Real Estate NJ’s 2026 Market Forecast
Even with stretches of volatility in 2025, it was clear to many of our industry experts that capital and confidence had returned to the market in a way not seen in several years. That sets the stage for what could be a stronger and perhaps smoother 2026, one marked by conviction in fundamentals rather than cautious optimism.
You can read all about it in our 2026 Market Forecast, which features a distinguished list of commercial real estate experts and predictions on everything from leasing and lending to affordable housing, energy and capital markets.
2025 started off slowly but proved to be more transactional as the year progressed. We anticipate this increased activity to continue, especially given the impact of lower interest rates and more stability around tariffs, which will ultimately lead to greater transaction volume in 2026. With this renewed stability in the market along with less new construction availability, product that has been vacant will receive additional activity, ultimately leading toward tenancy. In addition, the increased stability will provide more certainty to investors, allowing for greater transactional volume. With the focus on occupancy, rents in 2026 will remain flat and there will still be concessions within the market, especially in the beginning of the year. Vacancy rates should decrease across New Jersey to the extent where you could see additional construction starts preparing for 2027 and 2028 deliveries. The strong real estate fundamentals Rockefeller Group has built its industrial portfolio on continue to be a priority for occupiers and institutional investors: functionality, design, location and a flight to quality.
Amboy Bank is the most established, continually operating, full-service commercial bank in New Jersey. Amboy always looks at the unique circumstances of each borrower’s position and goals before recommending the best possible options and solutions. Every individual situation deserves a thorough understanding of their particular objectives and Amboy has been so successful, in part, because of their expertise in offering creative options to even the most challenging circumstances. Being able to match the right loan with the right borrower, along with ongoing support and timely responsiveness, are a few of the reasons Amboy has continued to be voted ‘Best Bank in Central New Jersey’ for the past 28 years in a row. Amboy has proudly financed some of the most extensive and impactful building and housing projects in New Jersey, becoming one of the largest construction lenders in the state, a distinction that has earned it the title of “The Builder’s Bank.”
2025 was a year of false starts — there were sporadic moments of forward momentum followed by immediate corrections. Recent rate cuts have not impacted the market the way they have historically because of the lack of underlying fundamentals supporting them and the uncertainty of future cuts. I think 2026 will be a very active year both on the new development and leasing side. There is a clearer pathway ahead of us than there has been for the last few years. Spaces continue to absorb here in the Northeast, and you cannot make more land, unfortunately. Whether the market will shift to a more landlord-favorable market or not is hard to say, but I think absorption at current rates will be really strong. Stability and predictability in leasing will directly translate to stronger and more liquid capital markets.