Northern New Jersey, NJ Retail Market Report Q3 2026

Trailing Absorption Slips to -16K SF While Rents Rise 4.6%

Demand

Northern New Jersey absorbed 158K SF in Q3 2026, against 137K SF in the same quarter last year. Vacancy is 3.3%, 1 bps looser than Q3 2025. Newark is the tightest submarket at 1.0% vacancy; Sussex County leads rent growth at +6.5%. Trailing-12-month absorption of -16K SF compares with 216K SF a year earlier. Asking rent of $27.95/SF is up 4.6% year over year and a record. Vacancy sits 112 bps below the Q1 2021 peak of 4.4%.

Supply

Northern New Jersey delivered 11K SF in Q3 and 132K SF over the trailing twelve months (-26% versus the prior TTM period). Space under construction equals 0.2% of inventory, concentrated in Parsippany at 1.7% of its stock. Annual deliveries peaked at 1.80M SF in 2008. Q3 deliveries were 34% below last year’s 17K SF.

Investment Market

Northern New Jersey recorded $1.5B in sales over the trailing twelve months, +19% against the prior TTM period; Q3 accounted for $394M. The high-water mark in this series is $2.2B in 2015. Northern New Jersey cap rates average 7.06%. Pricing sits at $283/SF, higher for 6 consecutive years. The cap rate is 47 bps above the Q3 2016 low of 6.59%. Price per SF is at a record.