Jessica Vasil, President & Principal, Lee & Associates

Jessica Vasil, president and principal of commercial real estate services firm Lee & Associates, spoke with Invest: New Jersey about sustaining success in a competitive real estate market. “Real estate today is about more than just space — it’s about helping people make confident, strategic decisions in a rapidly changing environment. At Lee & Associates, we’re proud to lead a team that brings together brokerage expertise, research, property management, and marketing across our three New Jersey offices. Beyond our success in New Jersey, our network of 80+ offices in the U.S. and Canada have completed over $120 billion in transactions in the past five years alone,” Vasil said.

Reflecting on the past year, what have been the most significant milestones or achievements for Lee & Associates?

Our most significant milestone this past year has been our growth — both in talent and production. We’ve built our team by attracting and developing highly skilled professionals, and today we have more than 70 people across brokerage, property management, and operations in New Jersey. That growth has translated into performance.

In 2024, our industrial team transacted over $312 million in volume, placing us among the top producers in New Jersey. In Q1 2025 alone, they’ve already closed $104 million — a testament to the strength of our relationships and market expertise.

We’ve also had continued success in medical and office leasing, particularly in the suburbs, where small and mid-size users are still highly active. We’ve become trusted advisors in helping them navigate renewals, subleases, and hybrid workplace needs. Sublease availability alone has climbed to about 7.6 million square feet in New Jersey — roughly 27% above the pre-COVID 15-year average. Many companies are downsizing, so subletting has become a viable option at levels even higher than the Great Recession.

We’re not a massive global platform, but we’re consistently closing nine-figure volumes in one of the country’s most competitive markets — and doing it with a focused team built for lasting client relationships.

How would you describe the commercial real estate landscape in New Jersey, particularly in the industrial and office sectors?

The New Jersey commercial real estate market continues to be active, but not always predictable. We closed over $413 million in transaction volume in 2024, which reflects the strength of demand — but deal flow has become more episodic. Clients were especially cautious in early 2024 due to economic uncertainty and the election cycle.

In industrial, the market has shifted. What was a clear landlord’s market just two years ago has become more tenant-driven — New Jersey’s industrial vacancy has risen to 7.2% in Q1 2025 after a stretch of near-0% vacancy, and rent growth has essentially flattened. We’re spending more time advising tenants on renewals, relocations, and creative lease structuring. We still see solid activity — about 7.2 million SF of NJ industrial leases were signed in Q1 — but that’s roughly half the volume of late 2024, and availabilities are up. In fact, sublet space in the industrial market just hit an all-time high of 13.7 million SF. Tenants have more options now, so landlords are getting creative with concessions and ‘blend-and-extend’ lease strategies. Now more than ever, brokers need to stay sharp and informed. That’s where our investment in research, marketing, and analytics pays off — giving us real-time insights we can turn into strategic guidance.

The office market, while still recovering, is starting to show signs of stability — especially in the suburbs. In fact, New Jersey office vacancy has held nearly flat at 10.9% as of Q1 2025 — still a few points below the U.S. average — and quarterly leasing ticked up to roughly 3 million SF of activity. While it’s a modest improvement, it signals that tenants are slowly re-engaging as workers return. Office utilization currently averages about 54% of pre-pandemic levels nationwide, but it’s steadily rising, with peak midweek use now above 60%. We’re seeing businesses bring employees back on-site, and landlords who offer the right mix of amenities, design, and location are attracting quality tenants. Activity is strongest among small and mid-sized users, especially in medical and professional services. In Q1, we tracked 186 Class A office lease deals totaling 1.4 million SF — a clear sign that smaller requirements are still active, particularly in pharma, healthcare, and professional services. On the industrial side, leases in the 10,000–20,000 SF range surged by 38% last quarter, underscoring that smaller and mid-size companies are very active right now.

Overall, we’re finding flexibility is the throughline. Whether industrial or office, tenants want space that can adapt to changing business needs — and we’re focused on helping them get there.

What is the impact of redevelopment or rehabilitation of urban and suburban areas and properties in the region?​

Redevelopment has played a major role in the revitalization of urban and suburban markets across New Jersey. We’ve seen it most visibly in places like Hoboken, Jersey City, and the waterfront business districts, where infrastructure investment and thoughtful planning have helped attract a new wave of tenants.

Newark is a standout example. Its downtown has been transformed over the last several years, driven in part by anchor institutions like Prudential that have invested not just in real estate, but in the broader economic fabric of the city. That momentum has brought in other high-caliber tenants and made Newark a competitive destination for companies that value access, transit, and walkability.

We see similar opportunities in suburban submarkets where older office parks and commercial corridors are being reimagined to meet modern tenant expectations — whether that means flexible floorplans, improved amenities, or mixed-use repositioning. As advisors, we’re often working with both landlords and tenants to help evaluate and shape these evolving spaces.

We’re also seeing outdated office stock come offline — either through conversion to residential or demolition for industrial reuse. This kind of adaptive reuse is a key part of the revitalization story, turning obsolete properties into productive assets.

What are the major challenges faced by the commercial real estate market in New Jersey, and how does Lee & Associates navigate those?

Uncertainty remains the biggest challenge in the New Jersey commercial real estate market — whether it’s interest rates, inflation, trade policy, or shifts in how and where people work. We are navigating rising vacancies and cautious sentiment. Consider that New Jersey’s overall office availability is about 14.2%, and U.S. office vacancy is nearing 20% — the highest in roughly 30–40 years. Those numbers reflect companies rethinking space needs. Coupled with higher interest rates, it’s no surprise that clients are deliberate. Our job is to help them make smart decisions even when the path ahead isn’t crystal clear.

At Lee & Associates, we’ve invested in growing our service lines and diversifying beyond industrial — into office, medical, and multifamily — so we’re not overexposed to any single asset type. Our industrial team remains a major strength, with 24 dedicated brokers, but we’re equally focused on building long-term value across asset classes.

The other shift we’re seeing is that clients want more than just deal execution — they want perspective. Our role has become more advisory. Clients expect real-time market intelligence, thoughtful opinions, and strategic guidance. That expectation has elevated the industry, and we welcome it.

We’re also encouraged by the next generation entering the field. More young professionals are coming in with degrees in real estate and finance, ready to contribute. As real estate becomes more data-driven and globally interconnected, we see our job as not just completing transactions, but helping shape outcomes for investors, institutions, and the communities we serve.

Looking ahead, what are the top priorities and goals for Lee & Associates in the next three to five years? 

Looking ahead, our top priority is building the next generation of leadership — not just growing in numbers, but in capability. We’re selective in who we bring on, and we’re deeply invested in their success. These professionals are the future advisors to our clients, and we want them equipped with the market knowledge and strategic mindset to lead.

To support that, we’ve developed an internal speaker series that brings influential voices to our office, helping our agents stay ahead of market trends and industry shifts. We also place strong emphasis on collaboration — our brokers work closely with our marketing team, director of research, and director of social media and each other to deliver unified, data-informed service.

We anticipate that leasing — particularly in industrial and medical — will continue to lead transaction activity. Many users are still in “wait-and-see” mode, but we’re optimistic. New Jersey remains one of the most important logistics corridors in the country, and when interest rates stabilize and trade conditions improve, we expect a meaningful uptick in deal velocity.

Our goal is to be fully prepared for that moment. We’re not just focused on transactions — we’re committed to delivering fully integrated, real-time market strategy through a team-based model. That’s how we serve our clients best, and that’s how we’ll continue to grow.