New Jersey’s office sales market is showing signs of recovery, with opportunistic buyers capitalizing on well-located properties at attractive valuations, according to the latest CoStar data.
Office sales above $5 million rose 6% year over year to $519 million, fueled by a surge in owner-user transactions. In 2024, user-buyer deals accounted for 24% of total office sales, up from just 7% between 2019 and 2023. These transactions totaled nearly $126 million—more than double the previous year and the highest since 2017.
The largest deal in this category was Princeton University’s $33.4 million purchase of Princeton Overlook in West Windsor. The 159,000 SF property sold for $210 per SF, a 12% discount from its 2021 price. This aligns with last year’s $201 per SF average for non-medical owner-user office sales.
Meanwhile, investment sales volume continued to decline, totaling just $394 million—the lowest in at least a decade—amid tightening lending conditions and falling net operating incomes. Traditional non-medical office properties traded at an average of $126 per SF, down 21% from 2023. However, institutional investors have returned, primarily targeting discounted suburban assets.
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