Office demand consolidates around quality assets
Northern New Jersey registered 1.4 million square feet (msf) of office leasing volume in Q1 2026, a 5.7% increase from last quarter's 1.3 msf but 24.5% short of the market's five-year quarterly average of 1.9 msf. Large, market-moving transactions were limited, as they were last quarter, with just one transaction topping 100,000 square feet (sf) — the Newark Board of Education's 211,336-sf renewal and expansion at 765 Broad Street. Average lease size in Q1 measured 8,605 sf, a 17.8% drop from the 2025 average of 10,462 sf. Organon's relocation to 70,624 sf at 100 Park Avenue in Florham Park and Jersey Mike's 68,750-sf lease at 1 CommVault Way in Tinton Falls reflect continued demand concentrating in the highest quality assets across the state.