Northern New Jersey Office Market Report
The Region’s Offices Prepare to Turn the Corner as Vacant Arrivals Add Competition for Tenants
Pressure on offices starting to abate. The pandemic-induced shift to remote work among many office-based roles ended a six-year streak of declining vacancy in 2020. Over the past 15 months ending in June, the amount of vacant office space in the market increased by nearly 6.4 million square feet, lifting the vacancy rate by 340 basis points to 18 percent. Uncertainty regarding the duration and severity of the health crisis has prompted some companies to reduce footprints or pause expansions. Other firms are continuing to occupy space, however. Pharmacology company Eisai and insurer AIG both took up more than 200,000 square feet apiece this year. While move-outs are anticipated to exceed move-ins this year, the recent positive uptick in leasing activity puts the market on track to potentially stabilize in 2022.