New Jersey industrial sublet availability soars

Currently, there is 8.3 million square feet (msf) of sublet space available in New Jersey, accounting for 1.3% of the market. Since the end of 2023, available sublet space has increased by 2.9 msf, representing a rise of over 50%.

During the same period, the overall availability rate has also risen by 3.3 msf, or 0.6%.

Since the end of 2021, inventory has grown by 48 msf, contributing to a 30 msf increase in available space over that time frame.

As noted in our previous data bite on construction and rents, 25% of the current under-construction inventory is expected to be delivered vacant, which will further drive up the overall availability rate. Occupiers are continuing to right-size by either subleasing their existing space or opting for smaller spaces in new leases. Availability is expected to continue rising through at least the first half of 2025, which will likely contribute to a decrease in average asking rents.

August 13, 2024

US-NJ-NJ New Jersey

NJ industrial sublet sf availability and total availability percent