NAIDB: Office, Industrial, Retail Sectors Record $1.4B in H1 2025 Transactions across 7 NJ Counties
Photo Caption: According to the NAIDB Summer Market Snapshot Report’s counties of focus, the most actively traded submarket for industrial properties is Middlesex County, where the firm arranged the $19.5M sale of 107 How Lane in New Brunswick and currenly serves as its exclusive leasing agent.
WOODBRIDGE, N.J. (August 11, 2025) – NAI DiLeo-Bram & Co. (NAIDB) today released its Summer Market Snapshot Report for select counties located in Northern and Central New Jersey, revealing a total sales volume across the office, industrial and retail sectors of $1.4 billion in the first half of 2025. While overall sales volume remains below the peak post-pandemic years of 2021-2022, the market is demonstrating strong resilience that exceeds the same period last year.
“The Northern and Central New Jersey industrial market continues to lead in transaction volume, highlighting its strong appeal to both users and investors as a core logistics and distribution hub,” said David A. Simon, chief operating officer. “The office sector, while still in transition due to evolving workplace strategies, is presenting targeted buying opportunities for investors primarily focused on repositioning and redevelopment potential. Similarly, well-located retail properties with strong demographics are also experiencing heightened investor activity.”
From January to June 2025, 109 transactions were posted, a slight decrease from 116 in Spring 2024. However, the higher total volume for Spring 2025 underscores the impact of these significant, non-portfolio deals. The NAIDB Snapshot evaluates submarkets across Morris, Essex, Union, Somerset, Middlesex, Mercer and Hunterdon counties.
While most counties in the Northern/Central New Jersey market are currently below their five-year average for sales volume, Somerset County is the exception. This outlier performance is attributed to a single $145 million industrial sale-leaseback involving one of Nissan North America’s industrial buildings, part of a larger national transaction.
Industrial Sector Continues to Lead
The industrial sector continues to dominate in terms of transaction volume among the three major asset types analyzed by NAIDB. The largest transaction recorded was a 600,000-square-foot warehouse sale in Middlesex County, totaling $166.8 million. This state-of-the-art building featured 36-foot clear heights and 96 docks on 35 acres near I-95. Prologis acquired the building from ARC Realty.
Middlesex County remains the most actively traded county in the report’s scope.
Another highly notable industrial transaction was the Cottontail Logistics Center, which sold for $84 million. This two-building logistics park features desirable specifications, including 36-foot clear heights, 65 loading spaces and LEED silver certification.
Interestingly, while big-box industrial spaces and distribution centers typically trade at a discount to smaller industrial spaces, the high price paid for Cottontail Logistics Center skewed the median price for buildings over 100,000 square feet to $282 per square foot.
Office Market Sees Notable Trophy Sale
The office sector recorded its most-significant transaction in Morris County: a 413,000-square-foot trophy suburban asset at 340 Mt. Kemble Avenue. This property was sold for $116.5 million by PCCP/Onyx to Crown Acquisitions, translating to a price of $282 per square foot with a reported cap rate of 8.8%. This sale is particularly notable as there have been no sales of traditional office buildings over 500,000 square feet since 2021, highlighting the success of repositioned office assets. The building had previously undergone an extensive $50 million renovation and was 94% occupied at the time of sale.
Retail Sector Shows Targeted Interest
Of the three asset types, retail recorded the lowest volume of transactions in the first half of 2025. The largest retail sale was Morris Marketplace, a 140,000-square-foot shopping center in Morristown, which sold for $52.5 million, or $375 per square foot. Situated on 20 acres and part of a larger mixed-use development, the shopping center is occupied by unanchored, “essential” retail concepts – a tenant roster that has increasingly attracted institutional buyers. The building is newer construction and was 100% occupied at the time of sale.
Based in Woodbridge, N.J., NAIDB is a member of NAI Global, a leading global commercial real estate advisor with over 325 offices and 5,800 professionals. NAI Global completes more than $20B in worldwide commercial real estate transactions annually. Leveraging the powerful support of the NAI Global platform, NAIDB offers a full suite of commercial real estate services, combining the personalized service and local knowledge of a boutique firm with the resources of a global company.
# # #