Northern New Jersey Retail Market Report

Residential and corporate growth sustain retail momentum. Tenant demand for retail space across Northern New Jersey is expected to stay strong through 2025, driven by a resilient labor market and affluent consumers. Hudson County’s expanding corporate presence should maintain retail leasing activity, as office absorption reaching post-pandemic highs in 2024 should aid midweek foot traffic. Accelerated multifamily development will further attract tenants, though sub-2 percent retail vacancy may necessitate smaller footprints. Elsewhere, rising residential density in Bergen and Essex counties should support consumer demand for grocery and drug stores. Meanwhile, expanding household and commercial clusters in Passaic and Morris counties are positioned to draw additional retailers, following Morris County’s record apartment absorption last year. While retail vacancy rates in these areas reached historical lows last year, they remain higher than submarkets closer to the Hudson River, providing tenants such as experiential concepts with more options for larger floorplans.