According to a survey by Colliers this week, the inventory of available commercial office space here in New Jersey in 2026 continues to diminish at an astounding rate of more than 1 million square feet per quarter.  We are down more than 3 million square feet in 2026 so far with no end in sight.  Why is this happening?

Readers of this newsletter know about the great consolidation of tenants into the properties of the surviving Landlords. We see this occurring in markets like Somerset, New Jersey, where almost 1 million square feet of surplus vacant office buildings have been demolished and are now being redeveloped as new distribution warehouse.  

At the same time, business owners in 2026 see rising revenues, as low inflation and rising personal income have resulted in increased sales in the service and retail sectors.  With a healthy economy comes rises in salaries for employees in all business sectors and new demand for the hiring of employees.  With these rising revenues, many businesses are cautiously looking to hire new employees in the New Year to handle the increase in business activity. 

Office consolidation and business growth at the same time. Some call this the perfect storm. Just when businesses are finally looking to hire new employees for the first time in more than a decade is when we see the return of the dreaded landlord market.  In a landlord market the perceived leverage in lease negotiations shifts toward the landlord, who can now raise rents and also pick and choose amongst competing tenants for the few available space options remaining. 

This is where we real estate advisors enter the picture. There are a number of ways that a real estate advisor can help a business owner to rise above the competition.  A smart tenant advisor will start by preparing a space program to outline exactly what you are looking for. I always say that it is so much easier to find the right space if you know what you are looking for.  You may also want to get your financial statements in order, as Landlords want to know their risks up front.

A good tenant advisor can show you proven strategies to make your business more attractive to the landlord than the competition while at the same time show you ways to create more flexible leasing terms for you. By the way, did you know it may cost you nothing to hire a tenant advisor as the fees for a tenant advisor may already be structured in the deal?

So, if you are facing the perfect storm, and need advice on how to succeed in a landlord market, why not give us a call to find out why, at Dickstein Real Estate Services, OUR DIFFERENCE IS YOUR ADVANTAGE®.

Regards,

Lawrence Dickstein