Leasing activity cooled despite a diverse tenant mix

Northern New Jersey office leasing activity decreased by 23.0% from Q1 2024 to 1.6 million square feet (msf) in Q2 2024, the lowest level in three quarters. Although moderated, this quarter’s leasing volume was in-line with the 1.6 msf five-year Q2 average. Despite a diverse tenant mix, the lowered demand in the second quarter caused leasing activity in the first half of the year to fall 14.4% from the first half of 2023, from 4.1 msf to 3.6 msf. The I-78 submarket captured the largest share of activity, 22.3%. Three of the top 10 transactions were signed in this submarket. In the largest of the three, Regeneron Pharmaceuticals will relocate and expand within the submarket from 110 Allen Road in Basking Ridge to 300 Warren Corporate Center Drive in Warren. Tenants in the Financial Services & Insurance industry signed three of the top 10 transactions, accounting for 36.7% of activity. Overall, the Pharmaceutical and TAMI sectors were active participants in the market, each posting two of the top 10 transactions and accounting for 17.3% and 10.1%, respectively.

Read the full report