There is sustained recovery in New Jersey’s office market, with six consecutive quarters of positive net absorption and vacancy falling to its lowest level since the end of 2022.
According to JLL’s newly released Q3 2026 New Jersey Office Market Report, more than 927,000 square feet of positive net absorption was recorded during the third quarter, bringing the year-to-date total to 2.2 million square feet.
Overall vacancy fell to 24.5%, down 50 basis points from the previous quarter.
“What surprised me most in this report was how much vacancy has come down and the sheer number of tenants actively looking for space,” Tim Greiner, Executive Managing Director, Leasing Advisory, JLL, told binje.com.
“We knew demand was improving because we’re seeing it firsthand in our leasing activity across New Jersey, but the numbers really bring home how broad-based that recovery has become.”
The nearly 5.8 million square feet of active tenant requirements and six consecutive quarters of positive absorption is a sign of real momentum, Greiner said.
“What’s particularly encouraging is that this isn’t limited to one or two locations, he said. “We’re seeing interest across the state, and that gives me confidence that the recovery has room to run.”
Class A leads the recovery: Nearly 80% of third-quarter absorption occurred in Class A buildings.
The Hudson Waterfront submarket recorded more than 699,000 square feet of positive Class A absorption, aided by Fidelity Investments’ 139,080-square-foot expansion in Jersey City.
Office conversions are reducing supply. More than 443,000 square feet at 480 Washington Blvd. in Jersey City was withdrawn from the office market for a planned residential conversion.
Greiner said in a release that he expects that momentum to carry through the remainder of the year.
