It appears all those back-to-the-office mandates have been a blessing for New Jersey’s office market. After years of uncertainty, a new report from JLL shows renewed momentum.
JLL’s Fall 2025 New Jersey Office Tenants in the Market Trends, which was released Monday, said there was 5.3 million square feet of active tenant demand in Q3 of 2025.
The 5.3 million square feet of active demand is the highest recorded since 2018, signaling a potential rebound or shift in how businesses are approaching office space post-pandemic.
The good news: This does not appear to be a blip.
Office, which bottomed out in 2022 (at 3.8 million SF) has been slowly climbing since, reaching 4.3 million SF in 2023 and 4.9 million SF in 2024.
Tim Griener, JLL’s New Jersey Brokerage Lead and an executive managing director, obviously is thrilled by the trend. He said the data reflects a broader shift in how companies are thinking about space — not just how much, but where and why.
“The data shows that New Jersey’s office market is entering a new phase of stability and selective growth,” he told BINJE. “For the first time in several years, active tenant requirements have climbed past five million square feet, which tells us companies are once again making long-term decisions instead of waiting on the sidelines.”
The trends speak for themselves, Greiner said.
For instance, approximately 1.7 million SF of office requirements spanned multiple markets in the state, which suggested a strategy of prioritizing the quality of office product over a specific geography.
Meaning many larger-sized tenants appear to be exploring several markets in search of higher-end spaces.
And for tenant requirements above 10K SF, nearly 40% were in the 25K-50K SF size range, which was an uptick from 37% seen in 2023.
Furthermore, large block requirements (greater than 100K SF) have trended consistently higher since 2023.
These tenants also are favoring new projects or recently renovated buildings in well-connected and highly amenitized submarkets, the report said.
This is all positive, Greiner said.
“What stands out is how strategic those moves have become,” he said. “Tenants are focused on upgrading the quality of their environment, creating a place that draws people in. Many tenants are evaluating multiple submarkets before committing, which speaks to how discerning occupiers have become about access, amenities and overall experience.”
Greiner said life sciences continue to dominate leasing, but the tenant mix has broadened as more finance, recreation, and tech-related companies re-enter the market.
According to Greiner, submarkets such as Princeton, Parsippany and along Route 78 are capturing a lot of new demand because they offer modern buildings, strong infrastructure, and the right balance between talent and convenience.
Tenant space requirements are anticipated to maintain their upward trajectory, the report said – though it noted macroeconomic headwinds could prompt companies to adjust their corporate real estate strategies in the near term.
That being said, from where the sector has been, Monday’s report is solid news for the industry, Greiner said.
“Heading into the final quarter, I expect this measured pace to continue as tenants remain thoughtful about their office needs,” he said. “The momentum in large-block requirements and the continued flight to Class A product point to a more balanced market and that’s a healthy sign for New Jersey’s long-term office fundamentals.”
