Market Intelligence Insights & Information
NAI James E. Hanson provides property statistics, demographic information, economic analysis, and comprehensive market intelligence for the Northern & Central New Jersey real estate markets. The information is gathered by NAI professionals and compiled in our quarterly industrial, office and medical office reports.
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2026 Market Reports
The Northern New Jersey industrial market has remained in relative balance for much of the year, supported by consistent underlying trends. Persistent demand for high-quality Class A assets, combined with a tempered construction pipeline, have kept vacancy rates stable.
The Northern New Jersey office market continues to be bifurcated, with trophy and well-located Class A buildings seeing increased activity while older Class B and C stock struggles to capture tenant demand. Year-to-date net absorption for Class A space, through the third quarter, was positive for the first time since 2019.
A drop-off in new supply, combined with sustained tenant demand, has driven positive absorption in the submarket through the third quarter. With leasing activity remaining robust and running comparable to the levels recorded in 2025 this trend is likely to continue.
Market Insights
What’s shaping the New Jersey industrial market today?
Vice President and Director of Research James Delmonte moderated our 3Q 2026 Industrial Market Panel with Senior Vice Presidents Kenneth D. Lundberg, SIOR, Thomas A. Vetter, SIOR, and Russell J. Verducci, SIOR, and Managing Director, Institutional Services Group, William Ericksen, SIOR, CCIM. They covered industrial outdoor storage (IOS), the flight to quality, tariffs, the expanding port market, and their outlook for the next 6 to 12 months.
What’s driving the IOS market?
Managing Director, Institutional Services Group, William Ericksen, SIOR, CCIM, explains how institutional capital has pushed IOS lease and sale pricing to new levels, and why zoning and approvals keep the supply of sites so limited.
Who’s buying industrial today?
Senior Vice President Kenneth D. Lundberg, SIOR, discusses the new class of buyers stepping up for industrial real estate: users whose rents have roughly doubled over the past five to seven years.
How are tariffs hitting industrial users?
Senior Vice President Thomas A. Vetter, SIOR, explains why tariffs calculated when a shipment reaches a U.S. port, rather than when the order is placed, make it difficult for companies to underwrite their margins.
How is the port market expanding?
Senior Vice President Russell J. Verducci, SIOR, breaks down how once-secondary markets like South Plainfield have become primary IOS markets, and why many tenants looking near the port now want to start their search in places like Edison.
What’s ahead for New Jersey industrial?
Senior Vice Presidents Kenneth D. Lundberg, SIOR, Russell J. Verducci, SIOR, and Thomas A. Vetter, SIOR, share three different outlooks for the next 6 to 12 months, from a market that’s back in balance to more challenges before things get better.
Monthly Economic Indicators
The 10-Year Treasury Yield was down quarter-over-quarter finishing at 4.24%. Comparatively, the rate was 4.20% at the same time last year.
The unemployment rate moved higher during the first three months of the year, up to 4.20%, despite the addition of 228,000 jobs in March.
The annual consumer price index fell to 2.4% in March, down from 2.8% in February.
GDP slowed in the first quarter, down -0.30% amid concern about tariffs and a potential disruption of the U.S. economy.
News & Information
SOLD! Representing the seller, Michael Walters, SIOR and Cameron Silverstein recently negotiated the sale of 5 adjacent lots in Boonton/Parsippany, NJ.
What does the future hold for healthcare real estate? Vice President Randy Horning – CRE Advisor highlights the resilience that can be found among economic challenges.