Most NJ Tenants Renewed For the Same Amount of Space Amid Uncertainty of Remote Work Impact

Northern and Central New Jersey's office markets are in a state of discovery as tenants and owners grapple with economic headwinds, the impact of remote work, and creating an attractive workplace for employees. Landlords are investing capital so their assets are in the best position to attract and retain tenants in need of office space. Companies continue to assess how much space they will need due to remote work, for what duration and the characteristics a space must have to execute successful return-to-office plans for their workforce. Although there is not a definitive answer on the impact of remote work, and analysis of renewals in the Northern and Central New Jersey markets shed some light on how companies behaved over the past two years (May 2020 to June 2022). CBRE analyzed 97 large renewal deals (10,000 sq. ft. with term lengths longer than 2 years), and found that firms who were remaining at their current location saw a 3% net reduction in square footage.