Available sublease space in the NJ industrial market increases by 34% year-to-date

Since year end 2023 there has been 2.15 million square feet of sublet space made available, 403,451 sf of which has been added since the end of Q1 2024. The average asking rent for sublease space peaked at $15.60 in Q3 2023, since then the average asking rent for sublease space has dropped to $14.48.
As discussed in our previous two data bites, the stumbling of industrial leasing activity in Q1 and the increasing number of leases signed for spaces 50k sf or less, the adjustment by occupiers to minimize overheard primarily through downsizing efforts has continued. This has led to increasing availability and the decrease of asking rental rates as owners look to fill the available space.
Through the end of 2024, it is expected that sublease space will continue to increase as preleasing numbers fail to impress and occupiers continue to control their overhead through downsizing measures. Alongside the increase in available sublease space, it is expected that the average asking rent will continue to decrease in relation to the increased space.

May 29, 2024

US-NJ-NJ New Jersey