Newark, NJ - Office Market Overview
The Newark real estate market includes the Dayton, Mount Pleasant, and North Ironbound office space submarkets. With a metropolitan population of over 2.5 million people, Newark is the most-populous city in New Jersey and a major East Coast hub for air, sea, and rail shipping and transit.
As of mid-2017, the Newark office market encompasses nearly 14 million square feet of existing office space in properties larger than 50,000 square feet. Not only is Newark a major shipping port, it is also home to numerous corporate offices and world-renowned educational institutions, all of which help to create consistent demand for commercial real estate in Newark NJ.
Newark, NJ - Office Inventory Description
Newark was settled over 350 years ago, and over the centuries has grown into an integral part of the Port of New York and Port of New Jersey container shipping terminals. With an annual gross metropolitan product of over $177 billion, there is significant demand for Class A office space in Newark. Nearly 60% of the office inventory in Newark is Class A or A+, with Class B product contributing another 5.7 million square feet of space to the total office market in Newark.
The Downtown Newark office market sees some of the strongest demand for Class A office space in the region. Located along the Passaic River between Market Street and Dr. Martin Luther King Jr. Boulevard, this area is home to portfolio office buildings such as 1 Washington Park, Three Gateway Center, and 550 Broad Street.
Newark, NJ Commercial Inventory Breakdown
Total: 22,663,231 SF
By square footage range:
- 50k to 100k SF: 459,701 SF / 2.03% of total office
- 100k to 500k SF: 6,412,746 SF / 28.3% of total office
- 500k to 1M SF: 9,870,734 SF / 43.55% of total office
- > 1M SF: 5,920,050 SF / 26.12% of total office
- Class A: 9,806,082 SF / 43.27% of total office
- Class B: 5,438,004 SF / 23.99% of total office
- Class C: 78,095 SF / 0.34% of total office
Newark, NJ - Green Office Space
The State of New Jersey ranks 25th among the top 30 U.S. markets, for the largest amount of green office buildings. In Newark alone, there is over 1 million square feet of energy-efficient, green office space. An excellent example of a LEED-certified office building in Newark is Two Riverfront Plaza in the Downtown office submarket. Built in 2013, this building has nearly 338,000 square feet of Class A energy-efficient office space and has been awarded the LEED Platinum certification.
The National Green Building Adoption Index from 2017 measured the growth of green office space in the top 30 U.S. office markets and discovered that, when looking at office buildings larger than 50,000 square feet, the percentage of green buildings has increased from less than 5% back in 2005 to about 38% today. New Jersey has placed 25th on the most recent survey.
Newark, NJ's Top Office-Using Sectors
The Newark commercial real estate and office market is driven by a deep mix of business and industry. Among the top office-using sectors in Newark are the finance, education, healthcare, and logistics & transportation industries.
- Finance – Prudential Financial, Bank of America, Ernst & Young LLP, and Fidelity Investments are some of the largest creators of white-collar office employment in the Newark region.
- Education – Prestigious educational institutions such as Rutgers, the New Jersey Institute of Technology, and Seton Hall University School of Law attract not only students but venture capital and research and development business to the office market in Newark.
- Healthcare – CVS Health, Holy Name Medical Center, Kennedy Health, and Virtua are some of the organizations in this top office-using sector that create demand for white-collar office space in the Newark area.
- Logistics & Transportation – Transportation, shipping, and logistics companies such as Amazon, FedEx, United Airlines, and United Parcel Service help to drive the commercial real estate market in Newark.
- Total Population282,803
- Male Population(49.4 %) 139,738
- Female Population(50.6 %) 143,065
- Median Age33.60
- Average Household Income$48,984
- Median Household Income$34,826
- Median Income Under 25$18,816
- Median Income 25-44$36,225
- Median Income 45-64$41,335
- Median Income Over 65$22,627
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