Fundamentals Coming Back in Line, 2026 Northern NJ Office Investment Forecast Reveals

On Feb 10, 2026

Marcus & Millichap has published its 2026 Northern New Jersey Office Investment Forecast Report.

According to Jim McGuckin, managing director, market leader, New Jersey, “Northern New Jersey’s office market is benefiting from a disciplined supply environment and steady demand tied to healthcare and cost-sensitive suburban locations. With construction running at historically low levels, vacancy has continued to trend lower, helping bring fundamentals back in line with national averages.”

Key report findings include:

• Northern New Jersey’s workforce is expected to grow modestly in 2026, adding roughly 2,000 jobs, with traditionally office-using sectors posting a slight rebound after declines last year.
• Office deliveries in 2026 are expected to fall to roughly half of the past decade’s average, approaching record-low inventory growth and ranking among the slowest expansion rates of any major market.
• Office vacancy is expected to decline to approximately 15.8 percent in 2026, marking the metro’s lowest level since before the pandemic and in line with the national average.
• Average asking rents are expected to rise to approximately $28.70 per square foot, with Northern New Jersey standing out as one of the few Northeast office markets that has avoided rent declines in recent years.
• Investment activity is being supported by healthcare-adjacent demand and value-oriented strategies, with leasing momentum along the ON3 health corridor and increased focus on lower-cost suburban submarkets amid recent transfer-tax changes.

“We’re seeing capital focus on healthcare-adjacent corridors and lower-cost submarkets where leasing has held up and pricing remains accessible, particularly as recent tax changes influence deal structures,” added McGuckin.

Access the report here,

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