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Flight to quality drives strong absorption and market bifurcation
Year to date, the Northern New Jersey industrial market has recorded 4.5 million square feet (msf) of occupancy gains, a 16.0% increase over the same period in 2025 and the busiest first three quarters since 2022. That growth has been concentrated almost entirely in new, modern facilities: Class A product posted 8.2 msf of year-to-date absorption, while Class B and Class C combined saw a net loss of roughly 3.7 msf. This flight to quality is also reshaping performance by building size. Buildings between 500,000 and 750,000 square feet (sf) ended Q3 with a 4.3% vacancy rate, down 240 basis points (bps) year over year. That is 340 bps tighter than the 50,000- to 200,000-sf tranche and 540 bps tighter than the 200,000- to 500,000-sf tranche.