26 — July 2026 — Southern New Jersey — M id A tlantic Real Estate Journal
www.marej.com
S outhern N ew J ersey Limited new supply, pricing clarity, and selective demand shape regional market conditions WCRE 2nd Qtr. 2026 Report: Market rebalancing continues as CRE fundamentals adjust
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concludes, commercial real estate markets across the region remain highly seg- mented by geography, asset class, and property quality. Industrial markets are mov- ing from a period of rapid ex- pansion toward stabilization as construction pipelines con- tract. Office markets continue to recalibrate around smaller tenant footprints, adaptive reuse, and ongoing flight-to- quality trends. Retail funda - mentals remain among the most durable across the region, supported by limited new con- struction, resilient consumer
demand, and tight availability in well-located corridors. “The second quarter of 2026 reflects a market that is be - coming more disciplined and more selective,” said Jason M. Wolf, managing principal and founder of WCRE. “Ten - ants are focused on efficiency, investors are underwriting carefully, and the strongest activity continues to concen- trate around high-quality, well-located assets with long- term relevance.” Regional Market Highlights: Southern New Jersey continued to serve as a major
driver of regional industrial performance, particularly through Burlington County and Gloucester County lo - gistics corridors. Burlington County remained one of the strongest industrial submar- kets in the country, supported by modern distribution prod- uct and continued tenant mi- gration from higher-cost port markets. Investor demand also remained active for scale industrial assets, highlighted by major portfolio activity in Southern New Jersey. Philadelphia showed signs of stabilization across several
property sectors. Industrial demand improved during the first half of 2026 after a his - torically weak 2025, although vacancy remained elevated as the market continued to absorb recent speculative deliveries. The office sector remained uneven, with tenant footprints still below pre-pan- demic norms and availability elevated, though conversions and limited new construction are gradually helping reduce excess inventory. Retail fun - damentals remained steady, with low vacancy, limited development, and continued demand from smaller-format, necessity-based, and value- oriented tenants. Northern New Jersey remained mixed across asset classes. Industrial demand softened during the first quar - ter, with availability rising as recently delivered inventory continued working through lease-up. Office fundamentals improved modestly, support- ed by declining availability, shrinking inventory, and lim- ited new construction, though leasing activity remained below historical levels. Retail remained one of the region’s strongest sectors, with avail- ability near historic lows and private capital continuing to target stabilized net lease and neighborhood retail assets. New York Metro contin- ued to outperform nation- ally in the office and retail sectors while its industrial market remained in adjust- ment. Manhattan office leas - ing remained strong, led by financial services, artificial intelligence firms, and other well-capitalized tenants seek- ing high-quality space in core corridors. Retail availability stayed near record lows, sup- ported by tourism, limited new supply, and strong demand for premier storefronts. Indus- trial fundamentals remained more tenant-favorable as the market continued absorbing elevated deliveries, though the construction pipeline has slowed materially. Key Market Takeaways: • Market conditions remain segmented, with performance increasingly determined by asset quality, location, and tenant credit. • Industrial fundamen - tals are transitioning toward stabilization as construction pipelines contract and recent continued on page 36
ARLTON, NJ — Wolf Commer- cial Real Estate
(WCRE) has released its Q2 2026 Re - gional Mar- ket Report, providing a comprehen- sive analysis of commer- cial real es-
Jason M. Wolf
tate conditions across South- ern New Jersey, Philadelphia, Northern New Jersey, and the New York Metro markets. As the first half of 2026
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