Northern New Jersey Retail Market Report

Service-led backfilling sustains low vacancy. Northern New Jersey was the only major Northeast market where retail vacancy declined in 2025, as the metro avoided widespread store closures and added little new supply. That backdrop allowed the market to overtake Boston and New York City for the lowest vacancy in the region, near 3 percent, with counties such as Essex posting rates near record lows. In the suburbs, areas with higher availability continue to backfill legacy space, such as Blu Alehouse replacing a former Olive Garden. Urban leasing has also become more service- and experience-driven, with fitness concepts expanding in late 2025 and Audible debuting a 15,000-square-foot community events space in downtown Newark. Minimal deliveries and service-oriented leasing should keep conditions tight in 2026. Tenants are likely to remain most active where rooftop growth is strongest, such as Jersey City and South Hudson, while the more established Gold Coast may face slower leasing velocity.