MARKET TRENDS
- Vacancy increased 140 basis points (bps) from one year ago — with the largest year-over-year change reported in Southern NJ, where vacancy rose 330 bps to 7.4%.
- Rents are up across the region due to new construction; however, landlords of older stock will be forced to lower asking rents to better compete with new inventory.
- The construction pipeline is up 1.3 msf from Q2 2022; going forward, increased material costs and tougher lending standards by banks will slow speculative construction.