Financial service firms drove strong leasing activity in the fourth quarter

Leasing activity in the Northern New Jersey office market surged in the fourth quarter, up 67.9% over the quarter to 2.4 million square feet (msf). This quarter’s level of activity measured higher than both the five-year Q4 average (2.0-msf) and the 2015-2019 Q4 average (1.8-msf). Leasing for the year totaled 8.0 msf, 7.8% lower than 2022’s robust 8.6 msf, but on par with the ten-year 8.0-msf annual average. Bank of America signed the largest lease of the year in Q4, with its 547,962-square-foot commitment at 525 Washington Blvd in Jersey City. The bank renewed its current footprint and will also expand its presence in the building by consolidating from other locations. The transaction was a boost for the Waterfront submarket, pushing leasing activity to an eight-year high. Nokia Bell Labs signed the second largest lease of the quarter totaling 360,000 square feet at the proposed HELIX2 in New Brunswick. Fueled by the Bank of America lease, financial services & insurance accounted for 45.1% of activity in Q4 2023 and, at 26.4%, captured the lion’s share of leasing for the year followed by pharmaceuticals (22.1%), and TAMI (12.6%).

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