Northern New Jersey Retail Market Report

Leasing cools as supply constraints intensify. Net absorption accelerated in the second quarter, reaching its highest quarterly total since late 2024. Several large move-ins contributed to the gain, including ShopRite, Dick’s House of Sport, and Restoration Hardware. Leasing activity, however, fell year-over-year even as vacancy continued along a multi-year downward trajectory, particularly in Hudson County and Northern New Jersey’s eastern nodes. As the nation’s second-tightest major retail market, with 3.1 percent vacancy as of June, limited options may be restricting expansion opportunities even as fitness, sports, experiential, and other service-oriented users continue to pursue space.