New Jersey Industrial & Warehouse Market Report | Q3 2026
Last updated: November 11, 2026
Key Takeaways
- New Jersey’s industrial vacancy fell 60 basis points to 8.1% in Q3 2026 as net absorption reached 4.8 million SF, the strongest quarter of 2026 and the third straight quarter of occupancy gains, according to Cushman & Wakefield.
- New leasing totaled 9.3 million SF in Q3 and 26.9 million SF year to date, up 15.8%. C&W also recorded 25 new leases above 100,000 SF, most in Class A buildings. The Turnpike Corridor accounted for 74.2% of the year’s demand.
- The average asking rent eased 4.0% on the year to $16.12/SF/yr NNN. Warehouse/distribution space asks $16.43.
- About 8.4 million SF is under construction, while sublease availability has fallen to 8.6 million SF from its Q4 2025 peak of 10.1 million SF.
Browse warehouse space for rent in Northern New Jersey
8.1%
Overall Vacancy (Q3 2026)
$16.12
Avg. Asking Rent ($/SF/yr NNN)
4.8M
SF Net Absorption (Q3 2026)
8.4M
SF Under Construction
New Jersey’s industrial market strengthened in Q3 2026. Large tenants moved into recently completed buildings, absorption hit its highest level of the year and vacancy fell to 8.1%. Demand is concentrated in modern Class A warehouses along the New Jersey Turnpike, while older buildings, though positive in Q3, have still lost occupancy this year. Rents softened modestly during the quarter and are down 4.0% on the year.
Figures are from Cushman & Wakefield’s Q3 2026 New Jersey Industrial MarketBeat unless noted. The series covers Northern and Central New Jersey, 703.4 million SF; South Jersey is covered in our Philadelphia report. Rents are weighted net asking rents in $/SF/yr. C&W’s national tables differ slightly from the New Jersey report on year-to-date completions (4.6M SF nationally vs. 4.46M SF locally); this page uses the New Jersey report.
Market Snapshot: Q3 2026
| Metric | Q3 2026 | Change or note |
|---|---|---|
| Overall vacancy | 8.1% | Down 60 bps QoQ and 20 bps YoY |
| Overall asking rent ($/SF/yr NNN) | $16.12 | Down 4.0% YoY |
| Warehouse/distribution asking rent | $16.43 | W/D vacancy below 9.0% for the first time since Q3 2024 |
| Net absorption, Q3 | 4,760,720 SF | Strongest quarter of 2026 |
| Net absorption, year to date | 9,013,532 SF | Third straight positive quarter |
| New leasing, Q3 | 9.3M SF | Down 4.4% YoY; 13.9% above the two-year quarterly average |
| New leasing, year to date | 26.9M SF | Up 15.8% YoY; renewals add 15.8M SF |
| Deliveries, Q3 | 813,677 SF | Five projects; 4,463,813 SF year to date |
| Under construction | 8,448,258 SF | Includes 35 warehouse projects totaling 8.1M SF |
| Sublease availability | 8.6M SF | Down 4.4% QoQ; below the 10.1M SF Q4 2025 peak |
| Inventory | 703.4M SF | Northern NJ 317.1M SF; Central NJ 386.3M SF |
Source: Cushman & Wakefield, New Jersey Industrial MarketBeat Q3 2026.
User purchases picked up in Q3. The most notable was F.W. Webb’s $55.0 million acquisition of 1 Cragwood Road in South Plainfield, a newly delivered speculative warehouse that was vacant at the time of sale.
Northern vs. Central New Jersey
| Region | Inventory | Vacancy | Q3 net absorption | Year-to-date leasing | Under construction | W/D asking rent |
|---|---|---|---|---|---|---|
| Northern NJ | 317.1M SF | 7.9% | 1,322,102 SF | 10.1M SF | 2,169,759 SF | $17.43 |
| Central NJ | 386.3M SF | 8.3% | 3,438,618 SF | 16.8M SF | 6,278,499 SF | $15.73 |
| New Jersey total | 703.4M SF | 8.1% | 4,760,720 SF | 26.9M SF | 8,448,258 SF | $16.43 |
Source: Cushman & Wakefield, New Jersey Industrial MarketBeat Q3 2026. Leasing excludes renewals.
Central New Jersey is doing most of the work. It took 72% of Q3 absorption (WareCRE calculation) and holds about three-quarters of the space under construction. Northern New Jersey, the region closest to New York City, is slightly tighter at 7.9% vacancy and commands higher rents.
Rent Trends: Down 4.0% on the Year to $16.12/SF
The average asking rent was $16.12/SF/yr NNN in Q3 2026, down 4.0% from a year earlier as new supply entered the market, though C&W notes pricing remains historically high. Warehouse/distribution space commands the highest rents at $16.43. Class A space carried a year-to-date average taking rent of $16.67, a 15.8% premium over non-Class A warehouse space.
By submarket, warehouse/distribution asking rents run from $11.98 in Greater Princeton to $18.56 in the Route 23 Corridor. Among the nine largest submarkets, Exit 7A/8 is lowest at $13.59 and Port South highest at $18.02.
For Tenants
Modern Class A space is absorbing fastest and carries a premium, while older buildings have lost occupancy this year despite a positive Q3, so tenants willing to consider non-Class A space have the most leverage. Among submarkets above 25 million SF, Exit 7A/8 (13.2% vacant) and the Port Region (10.4%) have the most room to negotiate. I-287/Exit 10, at 5.1%, is the tightest large submarket. Search Northern New Jersey warehouse listings on WareCRE
Construction Pipeline: 8.4M SF Underway, Few New Starts
Thirty-five warehouse/distribution projects totaling 8.1 million SF were under construction at the end of Q3 2026, led by the I-287/Exit 10 submarket with 1.9 million SF. Only one project, of 60,060 SF, broke ground in Q3, bringing year-to-date starts to 4.0 million SF.
Five projects totaling 813,677 SF delivered in Q3, nearly double the previous quarter. The largest was Johnson Development Associates’ 333,580 SF facility at 740 Corporate Boulevard in Robbinsville, preleased to Dunlop. So far this year, 59.4% of new construction has been preleased or occupied on completion.
For Owners
C&W expects vacancy to stay high in the near term as speculative projects and recent completions enter the market, and expects that to temper rent growth. Class A warehouse owners should keep a pricing advantage. Owners of older space face the hardest leasing environment: non-Class A warehouse absorption is still negative this year at 1.3 million SF.
Submarket Breakdown
| Submarket | Inventory | Vacancy | Q3 net absorption | W/D asking rent ($/SF/yr) |
|---|---|---|---|---|
| Port Region | 98.5M SF | 10.4% | 1,246,910 SF | $17.92 |
| I-287/Exit 10 | 97.5M SF | 5.1% | 657,437 SF | $16.25 |
| Greater I-80 Corridor | 86.8M SF | 7.1% | −38,965 SF | $15.96 |
| Meadowlands | 82.1M SF | 7.7% | 346,325 SF | $17.91 |
| Exit 8A | 81.4M SF | 9.3% | 1,000,469 SF | $15.30 |
| Port South | 44.7M SF | 8.6% | 311,428 SF | $18.02 |
| Somerset/I-78 Corridor | 34.8M SF | 8.6% | 6,219 SF | $16.13 |
| Exit 7A/8 | 29.2M SF | 13.2% | 162,297 SF | $13.59 |
| Exit 9 | 28.9M SF | 7.4% | 521,909 SF | $16.04 |
Source: Cushman & Wakefield, New Jersey Industrial MarketBeat Q3 2026. Twenty submarkets in total; the nine largest are shown.
Exit 8A and I-287/Exit 10
These two Turnpike Corridor submarkets lead the state’s demand, with 4.7 million SF and 4.0 million SF of year-to-date leasing. Exit 8A absorbed 1,000,469 SF in Q3. Its largest Q3 deals were US Elogistics’ 611,320 SF new lease at 1 Costco Drive and GIII Apparel Group’s 583,376 SF renewal at 140 Docks Corner Road. I-287/Exit 10 is the tightest large submarket at 5.1% and has the most space under construction.
Port Region and Meadowlands
The Port Region, the largest submarket at 98.5 million SF, led Q3 absorption with 1,246,910 SF but remains 10.4% vacant. The Meadowlands, 82.1 million SF, is 7.7% vacant with a warehouse asking rent of $17.91/SF/yr.
Somerset/I-78 Corridor
LG Electronics’ 926,362 SF renewal at 50 Veronica Avenue was the quarter’s largest transaction. The submarket is 8.6% vacant, and its year-to-date absorption is negative at 675,962 SF.
Small-Bay and Flex Space in New Jersey
C&W’s New Jersey report does not publish a small-bay breakout. Its high-tech/flex asking rent averages $15.99/SF/yr statewide, and the tightest smaller submarkets include the Route 24 Corridor (2.1% vacant), Suburban Essex (3.3%) and the Route 23 Corridor (3.7%). For how small-bay space is defined and priced nationally, see our small bay industrial guide.
Looking for warehouse space in New Jersey?
Browse Northern NJ ListingsKey Trends to Watch
1. Class A Is Taking the Demand
Class A warehouse/distribution space accounted for 3.6 million SF of Q3 absorption and 11.1 million SF year to date. Non-Class A warehouses absorbed 1.5 million SF in Q3, a sign of recovery, but remain negative for the year.
2. Renewals Are Surging
As COVID-era leases expire, renewals reached 15.8 million SF through Q3, up 76.2% from a year earlier, including 5.4 million SF signed in the quarter.
3. Sublease Space Is Shrinking
Sublease availability fell to 8.6 million SF, down from its Q4 2025 peak of 10.1 million SF, and vacant sublease space is 15.2% of total vacancy, down 110 bps from its peak.
Outlook: What to Watch in Early 2027
C&W’s year-end 2026 MarketBeats are typically released in January. Three measures will show whether the recovery holds.
- Speculative deliveries. C&W expects vacancy to stay high near term as new projects arrive. Watch how much of the 8.1 million SF warehouse pipeline delivers vacant.
- Older buildings. A second positive quarter for non-Class A warehouse absorption would broaden the recovery.
- Port volume. Port of New York and New Jersey volume was down 1.1% year to date through August, at 6.0 million TEUs, after last year’s tariff-driven surge.
Find warehouse space in New Jersey
Browse distribution, small-bay and flex listings across Northern and Central New Jersey.
Search New Jersey ListingsRelated Resources
Frequently Asked Questions
What is the current industrial vacancy rate in New Jersey?
New Jersey’s industrial vacancy rate was 8.1% in Q3 2026, down 60 basis points from Q2 and 20 basis points from a year earlier, according to Cushman & Wakefield. Northern New Jersey was 7.9% vacant and Central New Jersey 8.3%.
How much does warehouse space cost in New Jersey?
The average industrial asking rent was $16.12 per square foot per year NNN in Q3 2026, down 4.0% from a year earlier. Warehouse/distribution space asks $16.43 statewide, $17.43 in Northern New Jersey and $15.73 in Central New Jersey. Class A space averaged a $16.67 taking rent this year.
Which New Jersey submarket has the highest vacancy rate?
Among submarkets above 25 million SF, Exit 7A/8 has the highest vacancy rate at 13.2%, followed by the Port Region at 10.4% and Exit 8A at 9.3%. The Port Region has the most vacant space in absolute terms, about 10 million SF. I-287/Exit 10, at 5.1%, is the tightest large submarket, according to Cushman & Wakefield’s Q3 2026 report.
How much industrial space is under construction in New Jersey?
About 8.4 million SF was under construction at the end of Q3 2026, including 35 warehouse/distribution projects totaling 8.1 million SF, led by I-287/Exit 10 with 1.9 million SF. Only one 60,060 SF project broke ground in Q3, and 59.4% of this year’s new construction was preleased or occupied on delivery.
Where is New Jersey industrial demand strongest?
Along the New Jersey Turnpike. Central New Jersey took 72% of Q3 absorption, and the Turnpike Corridor accounted for 74.2% of year-to-date leasing, led by Exit 8A with 4.7 million SF and I-287/Exit 10 with 4.0 million SF, and most demand is for modern Class A warehouses.
Sources: Cushman & Wakefield, New Jersey Industrial MarketBeat Q3 2026; Cushman & Wakefield, U.S. Industrial MarketBeat Q3 2026. Each report reflects the most recent vacancy, rental, and construction data available at the time of publication.
