Leasing activity had a healthy start to the year despite subdued demand from large tenants

Northern New Jersey leasing activity totaled 2.0 million square feet (msf) in Ql 2024, slightly outpacing the five-year quarterly average of 1.9 msf. However, this represents a decline of 15.7% from the previous quarter and 16.7% from Ql 2023. Since 2019, large transactions exceeding 100,000 square feet (sf) have accounted for 27.3% of leasing volume, a share which was further pronounced in the first and fourth quarters of 2023. In Ql 2023, five leases constituted an outsized 38.9% of activity, while in Q4 2023, two leases exceeding 350,000 sf accounted for 37.9%. In contrast, the first quarter of 2024 saw three such large leases totaling 400,000 sf, representing just 20.3% of activity, with increased demand from small to mid-sized tenants compensating for the shortfall.

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