Construction deliveries, slowed leasing continue to lead vacancy higher

Vacancy, up 230 basis points year over year, has reached its highest mark in more than five years. Delivery of vacant, speculative construction projects added 2.7 million square feet (msf) of vacancy to the market in the third quarter alone, while projects along the I-95 Corridor spanning submarkets from Bergen Central to Exit 7A/Trenton account for over 2.0 msf of newly delivered and vacant product. Running parallel to the wave of deliveries has been slowed leasing activity, totaling 16.3 msf through the first three quarters of 2023. Comparatively, 24.8 msf of leasing activity occurred during the first three quarters of 2022, making for a 34% decline year over year.

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