Northern New Jersey, NJ Industrial Market Report Q3 2026
Absorption Rebounds to 880K SF, but New Supply Rises 41%
Demand
Northern New Jersey absorbed 880K SF in Q3 2026, against -325K SF in the same quarter last year. Vacancy is 6.2%, 51 bps looser than Q3 2025. Route 23/I-287 is both the tightest submarket at 3.0% vacancy and the rent growth leader at +2.0%. Trailing-12-month absorption of 1.11M SF is up from 4K SF a year earlier. Asking rent of $16.59/SF is up 1.1% year over year and within 1% of the Q2 2026 peak of $16.70/SF.
Supply
Northern New Jersey delivered 585K SF in Q3 and 2.79M SF over the trailing twelve months (+41% versus the prior TTM period). Space under construction equals 1.0% of inventory, concentrated in Eastern Morris at 6.6% of its stock. Annual deliveries peaked at 3.55M SF in 2023. The 2.23M SF pipeline equals about eight quarters of absorption at the trailing pace.
Investment Market
Northern New Jersey recorded $4.1B in sales over the trailing twelve months, +3% against the prior TTM period; Q3 accounted for $937M. The high-water mark in this series is $5.3B in 2021.
Northern New Jersey cap rates average 6.36%. Pricing sits at $214/SF, higher for 16 consecutive years. The cap rate is 60 bps below the Q1 2015 high of 6.95%. Price per SF is at a record.
Volume
- $4.1B TTM volume (+3% YoY)
- Q3 2026: $937M
- Series peak $5.3B (2021)
Pricing
- Cap rate 6.36%
- Price per SF $214
- Caps compressing 3 quarters running
