8A — January 2026 — 2026 Forecast — M id A tlantic Real Estate Journal
www.marej.com
2026 F orecast
Market fundamentals stabilize as investors and occupiers regain confidence WCRE Fourth Quarter 2025 Report: Stability emerges as CRE positions for 2026
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real estate markets through- out the region are demonstrat- ing measured stabilization and renewed confidence. Transac - tion activity remained steady through the fourth quarter, supported by easing inflation, more predictable financing conditions, and limited new construction. While certain sectors continue to recali- brate, improved pricing clarity and disciplined underwriting helped restore momentum across leasing, investment, and owner-user activity. “As we close out 2025, the market is no longer defined by
volatility, but by recalibration and opportunity,” said Jason Wolf , managing principal and founder of WCRE. “Capital is becoming more intentional, occupiers are making clearer long-term decisions, and well- located, high-quality assets continue to outperform as we move into 2026.” Regional Market Highlights: Southern New Jersey fin - ished the year with resilient leasing and investment activ- ity, supported by continued demand for modern office, healthcare, and industrial space. Flight-to-quality trends
remained dominant as ten- ants prioritized amenity-rich, efficient buildings in strategic suburban corridors such as Cherry Hill, Mount Laurel, and Marlton. Investment activity remained steady despite elevat- ed interest rates, with private regional owners and owner- users driving acquisitions and portfolio repositioning efforts. Philadelphia’s commer - cial real estate market showed cautious but tangible signs of stabilization in Q4. Of - fice absorption remained under pressure as tenants continued to right-size, though long-term
commitments by institutional and professional users rein- forced confidence in best-in- class assets. Industrial demand softened amid rising sublease availability and new supply, while retail leasing remained resilient, led by service-orient- ed, healthcare, and experien- tial users. Investor confidence strengthened throughout the quarter, supported by clearer pricing visibility and improved financing predictability. Northern New Jersey continued to rank among the nation’s strongest industrial markets, benefiting from its strategic location and demand for modern logistics facilities. While the office sector remained uneven due to hybrid work adoption, select suburban sub- markets maintained stability. Retail assets in well-positioned corridors benefited from lim- ited new supply and consistent consumer traffic, supporting steady fundamentals heading into 2026. New York’s recovery pro- gressed unevenly across as- set classes. Retail leasing rebounded in prime corridors as experiential and flagship concepts expanded. Office de - mand remained concentrated in high-quality class A prop - erties, reflecting an ongoing flight-to-quality trend. Indus - trial assets in outer boroughs continued to attract interest from logistics and last-mile us- ers seeking proximity to dense population centers. Key Market Takeaways: • Market conditions stabilized across asset classes as pricing clarity and disciplined lending supported steadier activity • Flight-to-quality trends con - tinued to favor modern, well- located office, industrial, and retail properties • Capital markets regained confidence as underwriting con - ditions became more predict- able and cap rates stabilized • Retail leasing remained re - silient, led by service-oriented, experiential, and essential- use tenants • A gradual and uneven re - covery is expected in 2026, favoring adaptable assets and owners focused on flexibility and efficiency Notable Transactions for Q4 2025: • South Jersey: Needleman Management completed the acquisition of the 340,261 s/f office complex at 6000 & 8000 continued on page 10A
ARLTON, NJ — Wolf Commer- cial Real Estate
(WCRE) has released its Q4 2025 Re- gional Mar- ket Report, providing a comprehen- sive analysis of commer- cial real es-
Jason Wolf
tate conditions across South- ern New Jersey, Philadelphia, Northern New Jersey, and the New York Metro markets. As 2025 ends, commercial
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