Northern New Jersey’s retail market demonstrated remarkable stability in the third quarter of 2025, maintaining a tight vacancy rate of 3.4% despite a dynamic landscape. According to the latest Retail Market Report from Marcus & Millichap, the region remains anchored by resilient demand for smaller retail spaces, particularly in dense urban corridors.
“Northern New Jersey’s retail market remains defined by tight urban vacancies and shifting suburban dynamics,” Brent Hyldahl, managing director investments in Marcus & Millichap’s New Jersey office said. “Small-format demand continues to anchor core corridors, even as large-format centers face higher turnover.”
Hudson County sets national benchmark
The tightest market in the entire region—and nationally—is Hudson County, which recorded an exceptionally low vacancy rate of just 1.7%. This performance is attributed to consistent absorption of small-format spaces and a high density of consumer demand.
Market dynamics and investor preference
The metro area’s overall 3.4% vacancy rate held flat year-over-year, largely because strong leasing activity from small-format tenants offset moderate “givebacks” or vacancies from larger, “big-box” retailers.
Investment activity is trending toward stability and necessity, with institutions focusing their purchases on grocery-anchored and net-leased assets. This reinforces investor confidence in the smaller retail formats, especially as storefront vacancy rates tightened near 2.5%.
Key Market Findings for Northern New Jersey (3Q/25):
