Northern and Central New Jersey’s commercial real estate market proved resilient in the second half of 2025, recording $1.5 billion in total sales volume despite broader economic cooling.
According to the Winter 2026 Capital Markets Report released today by NAI DiLeo-Bram & Co. (NAIDB), the region saw 118 transactions between July and December. Notably, every major asset class—industrial, retail, and office—featured individual trades that approached or surpassed the $100 million threshold.
While much of the state’s commercial activity sat below five-year averages, two counties emerged as clear regional powerhouses:
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Middlesex County: Maintaining its status as the state’s most active hub, Middlesex saw four of the largest industrial and retail sales of the half-year, anchored by a flagship deal valued at over $100 million.
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Morris County: Activity in Morris hit $420 million, fueled by a massive office trade and several significant industrial acquisitions.
The report highlights a shifting landscape across different property types:
Industrial Sector: The industrial market continues to be the regional heavyweight, accounting for 53 percent of all transaction volume. However, analysts at NAIDB identified a “widening price gap” between high-demand big-box distribution centers and smaller-footprint properties, suggesting a more nuanced market for warehouse space as e-commerce and logistics needs evolve.
Retail Outpaces Office: For the first time in recent cycles, retail sales volume surpassed office volume in the second half of the year. The office sector, while slower, still saw high-value institutional interest, particularly in specialized assets like the Summit Medical Group campus in Union County.
The “Renovation Play”: The report also points to a rise in value-add investments. In Parsippany, a 203,000-square-foot office building, currently fully occupied, was acquired for $33 million. The buyer reportedly plans significant renovations, signaling confidence in the long-term demand for modernized, well-located office environments in Morris County.
