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The basics:

• NJ logged 24.7M sf industrial leasing activity in 2025, Cushman & Wakefield reports
• Q4 industrial leasing totals 4.9M sf, with vacancy rising
• Office market posts positive net absorption in 2025, led by Class A space

Reflections on the end of 2025 are making their way into the mainstream, and when it comes to New Jersey’s office and industrial sectors, the perspective offered by Cushman & Wakefield is encouraging.

The global commercial real estate services firm released its Q4 2025 New Jersey Market Report Jan. 7.

According to Cushman & Wakefield, the data highlight sustained leasing momentum and strategic market stabilization.

Industrial

The New Jersey industrial space recorded significant activity throughout the course of 2025. Cushman & Wakefield put year-end totals for warehouse and distribution leasing activity at 24.7 million square feet.

Despite a slight decrease from the third quarter, the company noted the strong performance across 2025 underscores continued tenant interest here. In Q4, CushWake reported 4.9 million square feet of industrial leasing activity and a vacancy rate of 9.6%, the latter up from Q3’s 8.4%.

That could be because the third quarter alone accounted for 8.8 million square feet of leasing, according to the report. Cushman & Wakefield also noted big box transactions represented 6.8 million square feet in 2025. In that space, 19 new leases surpassed 200,000 square feet.

Recent deals from the end of 2025 in the space include Garden State Cold Storage’s 7-acre lease in Newark and Sitex’s successful repositioning Zuckerberg’s Industrial Park in Saddle Brook. Beyond that, warehouses continue to be big business in the state, driving more than $295 billion in economic impact, according to a recent report from The Center for Advanced Infrastructure and Transportation at Rutgers University.

“Despite headwinds from the economic and geopolitical climate, New Jersey’s industrial market continued to demonstrate resilience in 2025, driven by robust tenant demand and strategic submarket activity, including in the popular Port Region, where we saw over 4 million square feet of leasing activity year-to-date,” commented Cushman & Wakefield Research Manager Felix Soto.

To close 2025, third-party logistics providers and retailers drove demand, per Cushman & Wakefield. Asian 3PL’s represented nearly 55% of that demand.

Office

The New Jersey office sector closed 2025 with positive net absorption, the Q4 report said, totaling 758,475 square feet. The vacancy rate landed at 21.9% — a 50 basis points drop, CushWake noted.

A flight to quality continues to drive demand. In Q4, Cushman & Wakefield reported 1.3 million square feet in leasing activity with a “clear preference for high-quality assets.” For the period, Class A office space represented 60.3% of tenant demand.

Asking rents dropped some from Q3 to Q4, the report notes, to $32.33 in the latter.

“The New Jersey office market is finding its footing, with Class A spaces leading the way in attracting tenants and stabilizing the market,” said Senior Research Manager Bill Simoneau.

Among notable Q4 transactions, Cushman & Wakefield highlighted Sandoz’s new lease for more than 78,000 at 777 Scudders Mill Road in Plainsboro.