Bergen Office Vacancy Rates Still High as Pandemic-Era Remote Work Transforms New Jersey’s Commercial Real Estate

the staff of the Ridgewood blog

Hackensack NJ — More than five years after the COVID-19 pandemic emptied offices across New Jersey, vacancy rates remain stubbornly high—particularly in older suburban office buildings that have struggled to adapt to today’s hybrid workforce.

According to industry experts, New Jersey’s office vacancy rate now stands at 23%, compared with roughly 16% before the pandemic. But the real problem may be even larger. Many companies are holding onto unused space until their leases expire, said James Hughes, a Rutgers University professor of urban planning and policy development.

“There are a lot of organizations that aren’t using all the space they have,” Hughes explained. “As leases come up for renewal, vacancies are likely to rise even further.”

From Office Boom to Office Bust in North Jersey

Commercial office space in Bergen County and North Jersey boomed during the 1980s, as corporate jobs replaced declining manufacturing work. By 1990, nearly 80% of the state’s total office inventory had been built. But much of that real estate, now 34–44 years old, is considered outdated and ill-suited for the post-pandemic workforce.

As Hughes noted, these offices were built before the internet and mobile technology. Many were cheaply constructed and lack the amenities that today’s tenants demand.

Even before the pandemic, suburban office vacancies were on the rise. The pandemic only accelerated the decline.

The Shift Toward Class A Office Space

While Class B and C suburban office parks continue to lose tenants, Class A properties—newer or recently renovated buildings with modern amenities—are attracting interest.

“Companies need to compete with home,” said Jessica Curry, a real estate broker with NAI Hanson in Teterboro. “Landlords are investing in cafes, gyms, and collaborative spaces to make offices more appealing.”

In Paramus, Hackensack Meridian Health recently opened a 150,000-square-foot health center on the site of a former office park. Elsewhere, developers are repurposing old office campuses into apartments, warehouses, and mixed-use projects.

Reimagining Bergen County’s Commercial Real Estate

Some properties, like Court Plaza in Hackensack and the Glenpointe campus in Teaneck, are thriving after major investments in upgrades. Court Plaza is more than 90% occupied and undergoing a courtyard renovation featuring alfresco dining, shaded seating, and recreational spaces.

Ryan Sanzari, president of Alfred Sanzari Enterprises, said tenants want spaces their employees find “commute-worthy” and located near major highways and transit connections.

“Post-COVID, it’s all about communication with tenants and providing an experience they can’t get at home,” Sanzari said.

What’s Next for NJ’s Aging Office Parks?

As leases expire, experts predict even more vacancies in older suburban office complexes, forcing owners to choose between costly upgrades or redevelopment. In Morris Plains, for example, the former Honeywell headquarters has already been transformed into a residential community.

The trend signals a long-term reshaping of New Jersey’s commercial real estate market, with remote work and hybrid schedules continuing to drive demand for smaller but higher-quality office spaces.

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