Class B office activity rebounding in New Jersey

In the post-pandemic era, tenant demand has shifted sharply toward high-quality office space, concentrating leasing activity in Trophy and Class A buildings. As a result, lower-quality assets have borne the brunt of the market downturn, with Class B leasing activity down 26% from pre-COVID levels.

However, some markets have seen recent growth in Class B activity - a sign to broader recovery in these areas. Markets like San Francisco (+34%), New Jersey (+24%) Manhattan (+22%) and Dallas (+16%) have all experienced significant year-over-year (YoY) growth in Class B leasing activity.

New Jersey’s year-over-year growth is driven primarily by the expansion of biotech and pharmaceutical companies. Notable deals include Biocentriq’s lease of nearly 57,000 square feet and BeiGene’s commitment to nearly 53,000 square feet—two of the largest leases signed over the past year.