At first glance, Northern and Central New Jersey's office market appears oversupplied, with vacancy reaching 22.0%. However, a closer examination reveals a fundamentally different story. Demand continues to concentrate in a limited pool of high-quality, well-located assets, while much of the market's vacant inventory consists of aging space that no longer meets modern tenant expectations. As obsolete buildings undergo conversion, demolition, or financial distress and virtually no new supply is being added, competition for functional office space is likely to intensify.
Key Findings
- Vacancy declines from 22.0% to 6.8% when long-marketed listings are removed from the analysis.
- HQ-quality Class A buildings continue to outperform the broader market as tenant demand remains concentrated in top-tier assets.
- More than half of the region's office inventory was built or substantially renovated between 1980 and 1992.
- Nearly half of all vacant office space is concentrated in buildings delivered during the 1980s.
- Office conversions, demolitions, and distressed assets are steadily reducing the supply of older inventory.
- With only one fully preleased office project under construction, virtually no new competitive supply is entering the market.
Download the full report External Link to explore how aging inventory, limited development, and ongoing office-to-other-use conversions are reshaping New Jersey's office market and tightening the supply of competitive space.
