Alan Cafiero. – Marcus & Millichap
Marcus & Millichap, a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, has published its 2026 Northern New Jersey Retail Investment Forecast Report.
Key findings include:
- Employment growth will remain modest. The metro is expected to add roughly 5,000 jobs in 2026, with hiring led primarily by education and health services.
- Retail construction will stay historically low. Deliveries are forecast to reach a new low in 2026, running roughly 80% below the past decade’s average.
- Vacancy is projected to reach a new record low. The metro’s retail vacancy rate is expected to decline for a sixth consecutive year to about 2.9%, the lowest among major U.S. markets.
- Rents are forecast to reach approximately $30.11 per square foot, roughly 20% higher than 2022 levels.
- Service-oriented tenants are helping backfill available space. Fitness concepts, entertainment uses and experiential retail have become increasingly active as landlords reposition legacy retail properties.
“What continues to stand out in Northern New Jersey is just how tight retail availability has become,” said Alan Cafiero, senior managing director, investments. “Limited construction and steady tenant demand have kept vacancy extremely low, particularly in well-populated suburban corridors.
“That dynamic is creating a stable environment for retail investment. Well-located neighborhood centers and service-oriented retail are seeing consistent interest from both tenants and investors looking for dependable cash flow.”
Marcus & Millichap’s Retail Investment Forecast Report follows its Office Investment Forecast Report, published in February.
