Northern New Jersey Retail Market Report

Vacancy stays tight in core counties. Northern New Jersey saw net absorption of retail space turn negative for the first time in three years during the second quarter of 2025. Even so, vacancy rose only 10 basis points to 3.4 percent over the first half, underpinned by resilient small-box leasing from restaurant, personal care and daily needs operators. Sustained demand for smaller floorplans helped vacancy tighten in Union and Essex counties during the first six months of 2025. Meanwhile, Hudson County’s 1.7 percent rate remained the lowest nationally among submarkets with more than 20 million square feet of inventory. Tight availability and steady demand for smaller spaces, bolstered by an affluent consumer base, are expected to maintain market stability, even with ongoing turnover.