24 — October 2026 — Southern New Jersey — M id A tlantic Real Estate Journal
www.marej.com
S outhern N ew J ersey Pricing aligns as market normalizes WCRE Third Quarter 2026 Report: Commercial Real Estate Moves Forward
W
olf Commer- cial Real Estate (WCRE) has re-
to current financing and oper - ating conditions. Buyers and sellers are find - ing greater common ground on valuations, helping trans- actions advance after an ex- tended period of pricing un- certainty. Capital remains available, but investment decisions increasingly depend on achievable cash flow, acqui - sition cost, tenant quality, and future capital requirements. Performance continues to differ across markets. Phil- adelphia-area industrial de- mand strengthened, led by Southern New Jersey, while
New York office leasing main - tained momentum. Office conditions elsewhere improved more gradually, with demand favoring modernized, accessi- ble buildings. Retail remained comparatively resilient as limited construction and de- mand from necessity-based and service-oriented busi- nesses supported occupancy. Higher ownership costs remain a significant consid - eration. Insurance, taxes, maintenance, and tenant im- provements are placing pres- sure on net operating income, making expense management
and capital planning essen- tial. With new development constrained, owners are also pursuing targeted improve- ments, repositioning, and adaptive reuse to strengthen existing properties. “Greater alignment is help- ing the market move for- ward,” said Jason M. Wolf, managing principal and founder of WCRE. “Buyers and sellers are finding com - mon ground on value, while tenants and landlords are aligning on rents, improve- ment costs, and lease terms. As expectations become more
closely matched, negotiations are becoming more productive and creating a clearer path to completed transactions.” Regional Market Highlights Southern New Jersey: Of- fice leasing remained steady, supported by renewals, selec- tive expansions, and demand from healthcare, education, and professional-service users; vacancy held at 11.65%. Industrial demand remained a regional strength, with Bur- lington County generating ap- proximately 3.8 million s/f of annual absorption. Retail con- ditions varied by county, with vacancy at 4.5% in Burlington and 6.4% in Camden, while necessity-based and service- oriented tenants continued to support demand. Philadelphia: Office condi - tions showed gradual stabiliza- tion, although smaller tenant footprints and uneven submar- ket performance continued to constrain recovery. Industrial annual absorption reached approximately 7.9 million s/f, with slower deliveries helping vacancy improve to 8.6%. Re- tail vacancy remained stable at 4.2%, supported by limited construction and leasing from restaurants, personal services, healthcare-related businesses, and discount retailers. Northern New Jersey: Office availability declined to 13.1% as positive absorp- tion and the removal of obso- lete inventory improved con- ditions, despite subdued new leasing. Industrial avail- ability reached 9.1%, with recent warehouse deliveries creating greater competi- tion while smaller facilities remained comparatively tight. Retail availability stood at 3.6%, supported by affluent households and limited development, al- though leasing volume mod- erated as expansion options remained scarce. New York Metro: Man- hattan office demand re- mained strong, with first-half leasing of 17.3 million s/f exceeding the comparable pre-pandemic average and activity broadening beyond trophy properties. Industrial vacancy reached 7.7% as recent supply out- paced demand, although a sharply smaller construction pipeline should ease future pressure. Retail availability held at a historical low of continued on page 26
leased its Q3 2026 Re- gional Mar- ket Report, examining commercial real estate conditions across South- ern New Jer-
Jason M. Wolf
sey, Philadelphia, Northern New Jersey, and the New York metropolitan area. The third quarter reflected a market increasingly adapting
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