Tempered demand in Q3 as large leases retreat

Third quarter leasing activity in the Northern New Jersey office market totaled 1.4 million square feet (msf), down 20.7% over the quarter and 39.3% year-over-year. This marks the first quarter since Q2 2019 that no leases signed topped 100,000 square feet (sf). This lack of demand from large tenants was a major driver in overall leasing volume dropping to its lowest level since Q4 2020. Despite the lackluster activity, tenants including the SPARC Group and Berkley Insurance expanded in the process of renewing their leases.Leasing activity in three submarkets, Morris (21.5%), Princeton (12.9%), and I-78 (12.7%) comprised nearly half all leasing for the quarter. There were some signs of life in the Waterfront submarket on the heels of a weak second quarter.

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