Vacancy rises as slowing rent growth, weakening market conditions begin to materialize

Northern New Jersey saw its first substantial increase in vacancy in over five years. Still near historic lows, vacancy swung 60 basis points (bps) from the third quarter of 2022. Average asking rents, while up 36% year over year, will slow as vacancy climbs, allowing near-term rent growth to return to historical norms. However, due to the lack of large tracts of industrial land, the high cost of such land and continuing demand from large box users for Class A, port-centric options, Northern New Jersey’s vacancy will remain below the national average.

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