Northern New Jersey’s industrial market showed clearer momentum in Q2 2026, with vacancy plateauing and net absorption remaining positive, yet several indicators point to a market still finding its balance, according to a recent report from real estate services provider Savills.
Sublease availability rose 6.0% year over year to nearly 12 million square feet, with 2.6 million square feet of that space coming to market in the past 60 days. This influx signals that, despite healthy absorption and active leasing, conditions remain steady rather than accelerating.
Vacancy trends highlight a widening bifurcation across size segments. Mid‑size buildings—50,000 to 200,000 square feet and 200,000 to 500,000 square feet—were among the softer portions of the market, posting vacancy rates of 7.7% and 9.6%, respectively.
In contrast, 500,000 to 750,000 square feet of inventory tightened meaningfully, with vacancy falling to 3.4%, down 350 basis points from a year earlier. The split underscores that tenants seeking large blocks continue to face limited options and firmer pricing, while smaller‑space users encounter more availability and negotiating leverage.
Leasing remained robust and consumer-driven, anchored by logistics & distribution/3PLs, e‑commerce, and consumer goods—which together generated 63.1% of activity over the past year.
New commitments from GoFo Express, Centric Brands, and Multipet International, along with renewals by Amazon and HelloFresh, reinforce the dominance of consumer‑facing industries in shaping demand.
Overall, Q2 reflects a market with stable fundamentals but uneven dynamics, where strong leasing and tightening large‑format supply coexist with rising sublease space and softer mid‑size availability.
The result is a landscape defined by steady performance, selective constraints, and continued reliance on consumer‑oriented occupiers.
