The commercial real estate market in Northern and Central New Jersey posted a total sales volume of $1.4 billion in the first half of 2025, according to a new Summer Market Snapshot Report from NAI DiLeo-Bram & Co. (NAIDB). The report indicates a resilient market that has exceeded last year’s performance, though it remains below the peak years of 2021-2022.
The report, which covers submarkets in Morris, Essex, Union, Somerset, Middlesex, Mercer and Hunterdon counties, noted that 109 transactions were completed from January to June 2025. While this is a slight decrease from the 116 transactions recorded in the same period last year, the higher total volume for 2025 is attributed to several significant, high-value deals.
“The Northern and Central New Jersey industrial market continues to lead in transaction volume, highlighting its strong appeal to both users and investors as a core logistics and distribution hub,” David Simon, NAI DiLeo-Bram & Co.’s chief operating officer said. He also noted that the office and retail sectors, while still in flux, are presenting targeted buying opportunities for investors focused on repositioning and strong demographics.
The industrial sector was the clear leader, with the largest transaction being a $166.8 million sale of a 600,000-square-foot warehouse in Middlesex County. The state-of-the-art building, which features 36-foot clear heights, was acquired by Prologis from ARC Realty. Middlesex County was highlighted as the most actively traded county in the report’s scope. Another significant industrial deal was the Cottontail Logistics Center, which sold for $84 million.
In the office market, the most notable transaction was a $116.5 million sale of a 413,000-square-foot trophy suburban asset at 340 Mt. Kemble Avenue in Morris County. This sale underscored the success of repositioned office properties, as the building had recently undergone a $50 million renovation and was 94% occupied.
The retail sector recorded the lowest transaction volume. However, it still saw a significant deal with the sale of Morris Marketplace, a 140,000-square-foot shopping center in Morristown, for $52.5 million.
According to the report, newer, fully-occupied shopping centers with “essential” retail tenants are increasingly attracting institutional buyers.
