New Jersey Commercial Office Space for Rent

Q3 2026

Q3 2026 North & Central New Jersey Commercial Real Estate Market Report

Focus: Q3 2026 Market Trends

Executive Summary

New Jersey's industrial market posted about 5 million SF of net absorption in Q3 2026, its best quarter since Q3 2018, as third-party logistics firms and retailers expanded. Office leasing picked up to 1.9 million SF, and Northern New Jersey retail vacancy was 3.1% as of June. On TenantBase, Q3 tenant searches split evenly between warehouse/industrial at 50.0% and retail/storefront at 50.0%, with warehouse share up from 40.0% in Q2.

Sector Snapshot

  • Office: Leasing rebounds. New leasing rose 21% from Q2 to 1.9 million SF, with vacancy at 21.7%.
  • Industrial: Strongest demand in years. Warehouse/distribution vacancy was 8.5%, with 8.1 million SF of new leasing in Q3.
  • Retail: Very tight. Northern New Jersey vacancy was 3.1% as of June.
  • Multifamily: High occupancy. North and Central Jersey occupancy are both near 95%.

New Jersey Tenant Demand Index

The TenantBase Tenant Demand Index tracks what businesses across North and Central New Jersey are actively searching for on the TenantBase platform each quarter. Because it measures tenant intent before leases are signed, it shows where demand is heading ahead of traditional vacancy and absorption data.

Q3 2026 Search Share by Space Type (July 1 to September 30, 2026)

  • Warehouse/Industrial: 50.0%
  • Retail/Storefront: 50.0%
  • Office: 0.0%

Three-Quarter Trend

  • Warehouse/Industrial: 33.6% in Q1, 40.0% in Q2, 50.0% in Q3
  • Retail/Storefront: 66.4% in Q1, 59.0% in Q2, 50.0% in Q3
  • Office: 0.0% in Q1, 1.1% in Q2, 0.0% in Q3

Key Takeaways

  • Warehouse demand rose for the third straight quarter, from 33.6% of searches in Q1 to 50.0% in Q3.
  • Retail's share has narrowed each quarter, from 66.4% in Q1 to 50.0% in Q3.
  • Small-bay industrial is in demand. Q3 warehouse searches sought 1 to 2 year terms for spaces up to 1,000 SF.
  • Office demand on TenantBase remains minimal, consistent with a statewide office vacancy above 20%.

Office Market

Key Metrics (Q3 2026)

  • Vacancy: 21.7% (Cushman & Wakefield)
  • New leasing: 1.9 million SF, up 21% from Q2 (Cushman & Wakefield)
  • Average asking rent: $31.96/SF, with Class A at $35.89/SF (Cushman & Wakefield)
  • Submarkets (Q2): GW Bridge at 8.9%, Central Bergen at 14.3%, Morristown at 17.0%, Hudson Waterfront at 30.2%, and Parsippany at 31.3% (Cushman & Wakefield)
  • Notable lease: Fidelity expanded by 139,080 SF in Jersey City (JLL)

TenantBase Office Activity

Demand share: No office searches were recorded on TenantBase in North and Central New Jersey in Q3, compared with 1.1% in Q2.

TenantBase data vs. the market: With vacancy above 30% in Parsippany and on the Hudson Waterfront, office tenants entering the market have strong negotiating leverage. Bergen County submarkets near the George Washington Bridge are far tighter.

Industrial & Warehouse Market

Key Metrics (Q3 2026)

  • Vacancy: 8.5% for warehouse/distribution space (Cushman & Wakefield)
  • Net absorption: about 5 million SF, the best quarter since Q3 2018 (Cushman & Wakefield)
  • New leasing: 8.1 million SF in Q3 and 24 million SF year to date, up 20.2% (Cushman & Wakefield)
  • Average asking rent: $16.43/SF (Cushman & Wakefield)
  • Submarkets: Exits 10/12 at 5.7%, Rt 46/23/3 at 5.9%, the Ports at 6.1%, the Meadowlands at 6.6%, and Exit 8A at 7.2% (NAI James E. Hanson)
  • Notable renewals: Amazon, 1.06 million SF in Carteret, and LG Electronics, 926,392 SF in Somerset (NAI James E. Hanson)

TenantBase Industrial Activity

Demand share: 50.0% of New Jersey tenant searches, up from 40.0% in Q2 and 33.6% in Q1.

Lease terms and size: Q3 warehouse searches sought 1 to 2 year terms for spaces up to 1,000 SF.

TenantBase data vs. the market: Small-bay and flex users face tight conditions in the Meadowlands, Ports, and Exits 10/12, where vacancy runs near 6%. Exit 8A offers more options at 7.2%.

Retail Market

Key Metrics (2026)

  • Vacancy: 3.1% in Northern New Jersey as of June (Marcus & Millichap)
  • Absorption: Q2 absorption was the highest since late 2024 (Marcus & Millichap)

TenantBase Retail Activity

Demand share: 50.0% of New Jersey tenant searches, down from 59.0% in Q2.

Lease terms: Q3 retail searches sought 2 to 3 year terms.

TenantBase data vs. the market: With Northern New Jersey retail vacancy near 3%, storefront tenants should expect limited availability and begin their search early.

Multifamily Market

North Jersey apartment occupancy was 94.7% and Central Jersey occupancy was 94.9%, according to RentCafe data reported by Jersey Digs in May 2026. Central Jersey's 81% renter renewal rate was the highest in the nation.

Q4 2026 Outlook

  • Office: Expect leasing momentum to continue, with tenant leverage in Parsippany and on the Hudson Waterfront.
  • Industrial: Expect vacancy to keep falling as logistics and retail users absorb space.
  • Retail: Expect vacancy to remain near 3%.
  • Multifamily: Expect occupancy to hold near 95%.

Frequently Asked Questions

What type of commercial space are New Jersey tenants searching for in 2026?

In Q3 2026, warehouse/industrial and retail/storefront space each made up 50.0% of North and Central New Jersey tenant searches on TenantBase. Warehouse share rose from 40.0% in Q2.

What is the industrial vacancy rate in New Jersey?

New Jersey warehouse/distribution vacancy was 8.5% in Q3 2026, with about 5 million SF of net absorption, according to Cushman & Wakefield.

What is the office vacancy rate in New Jersey?

New Jersey office vacancy was 21.7% in Q3 2026, according to Cushman & Wakefield.

How can I find commercial space in New Jersey at no cost?

TenantBase matches business tenants with vetted independent tenant rep brokers across North and Central New Jersey at no cost to the tenant. Brokers are compensated by the landlord. Get started with TenantBase.

Sources

  1. TenantBase proprietary search data, North and Central New Jersey, July 1 to September 30, 2026
  2. TenantBase, North & Central New Jersey Commercial Real Estate Market Report, Q2 2026
  3. TenantBase, North & Central New Jersey Commercial Real Estate Market Report, Q1 2026
  4. ROI-NJ, Cushman & Wakefield Q3 2026 New Jersey Office and Industrial, October 2026
  5. Cushman & Wakefield, New Jersey Office MarketBeat, Q2 2026
  6. RE-NJ, New Jersey Industrial Q3 2026 (Cushman & Wakefield, NAI James E. Hanson), October 2026
  7. ROI-NJ, JLL Q3 2026 New Jersey Office Report, October 2026
  8. Marcus & Millichap, Northern New Jersey Retail Market Report, 3Q 2026
  9. Jersey Digs, New Jersey Rental Market (RentCafe), May 2026

Disclaimer

Information in this report is aggregated from third-party sources and TenantBase proprietary platform data, and was synthesized with the assistance of AI. Market metrics reflect the most recent published data available at the time of writing. TenantBase search data reflects tenant activity on the TenantBase platform and is not a measure of total market leasing. All figures should be independently verified before making real estate decisions.