As company priorities shift, vacancy rates remain elevated

Morristown, NJ – Avison Young has released its Second Quarter 2022 Office Market Report for New Jersey. The report highlights how the hybrid model influences workplace strategy, investors evaluating office properties for potential conversion opportunities, and how workforce preferences help guide leasing decisions.

“Right now, we are experiencing a downturn in office leasing velocity and a 30% decrease in investment sales volume when compared to this time in 2021, despite asking rents remaining steady and strong investment activity,” said Jeff Heller, Principal & Managing Director, Avison Young. “As corporate users reimagine their workplace strategy, they’re weighing more options on how to best leverage their office space assets.”

One such highlight illustrates that as companies reduce office space and adapt to changing workplace needs, more collaboration areas are being introduced and access to transit remains as a top priority for employees returning to the office. However, suburban areas are most affected by vacancies, while transit-oriented areas where workers live, and play are more frequently returned to. With over 47 million-square-feet of vacant space on the market, the report also shares how investors and landlords are increasingly acquiring assets to reposition them for industrial, medical, or residential use.