Vacancy increases again as construction deliveries and subleases hit the market

While still historically low, vacancy rose 50 basis points (bps) from last quarter and 140 bps year over year. Driving this increase is a combination of speculative developments that are delivering and cooling tenant demand. Sublease availability has risen to 5.0 million square feet (msf), up 72% from Q4 2022. Exemplifying this trend, spaces recently given back by Bed Bath & Beyond account for 800,000 square feet of new vacancy in the Meadowlands and Exit 10 submarkets. New Class A projects are not immune to such headwinds, as large blocks of space in the Linden Logistics Center and Stateline Business Park have recently come back to market.

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