Cushman & Wakefield Reports Robust Leasing Trends in New Jersey Q2 2025

**New Jersey, July 9, 2025** – Cushman & Wakefield, a global leader in commercial real estate services, has released its Q2 2025 New Jersey Market Report, revealing significant leasing activity within the state's industrial and office sectors. This report highlights a resurgence in demand for Class A properties, showcasing the region's ongoing appeal despite prevailing economic challenges.

The industrial sector in New Jersey demonstrated notable leasing momentum in the second quarter, with total activity reaching 5.7 million square feet (msf). This represents a 4.7% increase from the previous quarter. Key submarkets, particularly Port South and Meadowlands, accounted for a remarkable 33.9% of the total leasing activity. Year-to-date leasing in the Port South submarket exhibited a 22.0% improvement year-over-year (YOY), totaling 2.3 msf.

Despite the positive leasing trends, the overall net absorption for the industrial market remained negative for the ninth consecutive quarter, standing at -1.9 msf. Class A industrial properties, however, experienced positive absorption, fueled by sustained tenant demand amidst a backdrop of increasing sublease availability. The vacancy rate surged by 220 basis points YOY, reaching 9.9%, primarily due to 13.1 msf of new vacancies entering the market. Pre-leasing activity also declined, with only 15.4% of newly delivered projects occupied upon completion, resulting in a pre-leasing rate of 28.4%.

Felix Soto, Senior Research Analyst at Cushman & Wakefield, commented on the resilience of New Jersey’s industrial market. "Submarkets such as Port South and the Meadowlands continue to see robust leasing activity, highlighting their strategic value and appeal for modern warehouse and distribution spaces," he stated.

In the office sector, New Jersey showed signs of stabilization by mid-2025, characterized by steady demand for the third consecutive quarter. Notably, net absorption turned positive in Q2, driven by gains in Class A office spaces. The office vacancy rate improved slightly, decreasing by 40 basis points YOY to 22.2%. This improvement was attributed to strategic adaptations like conversions and demolitions that helped offset vacancy growth.

New leasing activity in the office sector remained strong at 1.8 msf in Q2, eclipsing the two-year quarterly average, with 67.6% of demand focused on Class A office spaces. Furthermore, asking rents for Class A properties saw a 3.3% YOY increase, rising to $36.40 per square foot, while the overall market average experienced a slight decline of 0.6% from the previous quarter, settling at $32.45 per square foot.

"As we reach the midpoint of 2025, the New Jersey office market is finding balance," Soto added. "Sustained demand for Class A office environments and strategic adaptations, like conversions, are keeping the market competitive and attractive for tenants looking for premium spaces."

Cushman & Wakefield (NYSE: CWK) operates as a leading global commercial real estate services firm, boasting approximately 52,000 employees across nearly 400 offices in 60 countries. In 2024, the firm reported revenues of $9.4 billion across its core service lines, which include leasing, capital markets, and valuation services. The firm is recognized for its commitment to fostering an award-winning corporate culture, encapsulated in its belief that "Better never settles." For more detailed insights, visit [Cushman & Wakefield's official website](http://www.cushmanwakefield.com).