More than a quarter of office space in northern and central New Jersey sat empty during the first quarter of 2025, according to a new analysis from East Rutherford–based JLL Commercial Real Estate.
The report shows a total vacancy rate of 27 percent between January and March, up from 26.6 percent at the close of 2024 and higher than the 25.8 percent recorded two years ago. The rate now surpasses the 26 percent figure seen in 2009 following the global financial crisis.
One of the main drivers behind the increase was negative net absorption of more than 929,000 square feet, the difference between newly leased and vacated space. JLL noted this marks the largest drop since mid-2023.
“Redevelopment of sites housing vacant, outdated office buildings will remain a major theme of the office market, as tenants move out and pursue modern workspaces for their operations. Demand for industrial space, multi-housing units, medical and life sciences facilities has fostered the demolition of such buildings to alternative uses,” JLL said in its report.
The shift has been fueled by decisions from several major corporations, including Samsung, which listed its North American headquarters in Ridgefield Park at the beginning of 2025. Over the past five years, more than 8.5 million square feet of office space has been taken off the market, with 2 million square feet removed so far this year alone.
Industry experts say New Jersey’s office sector continues to struggle more than five years after the pandemic left many buildings empty. Changing work habits and demographic trends have also played a role, with younger employees often favoring urban offices in walkable areas with access to public transit over sprawling suburban campuses.
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.