Previous Market Reports

In what is typically the slowest part of the year, demand for industrial space remained robust through the third quarter. Average asking rents, which experienced a sustained period of growth over the last several quarters, have leveled.

Office market conditions were relatively unchanged through the third quarter with vacancy rates and asking rents showing little movement. Asking rents remain highest along the Hudson Waterfront where there are several large block availabilities in trophy properties.

The Fed’s September 50 basis point rate (BPR) cut is welcome news, but healthcare real estate investors generally remain tempered in their enthusiasm. Aging baby boomers and increased demand suggests that medical office buildings will remain popular investments.

Rising vacancy rates amid new construction deliveries and tempered demand were the key trends in the New Jersey industrial market in the first half of the year, while average asking rents moderated.

The ongoing flight to quality has helped to sustain leasing activity in the Northern New Jersey Office market through the first half of the year. Tenants in the market continue to focus on upgrading their occupancy to Class A and trophy properties.

In Q2 2024, the base rents for Medical Office in Bergen County increased by nearly $2.00 PSF but remained static in Northern NJ.

The overall vacancy rate rose during the first quarter up to 5.0%, from 4.7% at the end of last year and from 2.4% at the end of the first quarter 2023. The rise in the vacancy rate is the result of the delivery of 4.6 million square feet of new product during the quarter, where 69.0% of space is available.

Many of the trends that occurred at the end of 2023 continued into the first three months of 2024. A flight to quality has helped to sustain the market as active tenants look to upgrade their space by relocating to Class A and trophy properties.

Healthcare remains a bright spot in the single-tenant office market, with steady demand for medical offices and urgent care centers. Labs for research and development supporting healthcare may also see ongoing crossover demand.