A new research report from Cushman & Wakefield suggests that New Jersey’s office market is significantly healthier than top-line statistics imply. The analysis reveals that a tiny fraction of “statistical outliers”—large, vacant corporate campuses—is disproportionately inflating the state’s reported vacancy rates.
According to the report, just 2% of office buildings account for a staggering 33% of all vacant square footage in Northern and Central New Jersey.
To provide a more accurate picture of the market, Cushman & Wakefield introduced the Median Vacancy Rate (MVR). This metric excludes buildings with vacancy levels three standard deviations above the mean (the extreme outliers).
When these massive, empty blocks are removed from the data, the perception of the market shifts dramatically:
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Reported Vacancy Rate: 22.1%
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Adjusted Vacancy Rate (MVR): 14.8%
The impact is even more pronounced in specific submarkets. In the I-78 West corridor, the removal of just one large, vacant corporate campus caused the submarket’s vacancy rate to plummet by 3,050 basis points.
The data highlights a growing divide in the market. While legacy “big box” office campuses struggle, high-quality, amenitized Class A properties continue to see steady demand.
“This analysis helps explain what we’re seeing on the ground,” Todd Elfand, executive managing director at Cushman & Wakefield said. “Healthy leasing activity and flight-to-quality demand continue to support well-located, experiential assets. A handful of large vacancies from past corporate consolidations or financially distressed owners are masking that strength.”
Bill Simoneau, senior research manager for New Jersey, added that while headlines often focus on the 22% vacancy figure, the majority of the market is performing considerably better. This stabilization aligns with the firm’s Q3 2025 report, which noted a second consecutive quarter of positive net absorption for the first time since 2022.
The findings suggest that for tenants seeking high-quality space with stable landlords, the market is actually becoming increasingly competitive, contrary to the “empty office” narrative.
