Life sciences vacancy rises as major projects break ground across NJ-11
Northern New Jersey life science vacancy jumped in Q2 2026, even as new campuses launch and an Edison office building heads to auction.
Vacancy rates for the life sciences sector in Northern New Jersey rose significantly during the second quarter of 2026 according to a report released by Savills. The overall vacancy rate climbed to 24.4 percent, marking an increase of 890 basis points year over year from 15.5 percent recorded at this time last year.
This sharp rise in available space is primarily attributed to the addition of several large availabilities entering the market simultaneously during the quarter. Sublease vacancy also saw a notable jump, increasing to 3 percent in the second quarter compared with just 1.6 percent for the same period in 2025.
New Campus Projects Break Ground
Despite higher overall vacancy numbers, major development activity continues as Advance Realty Investors unveiled plans for Continuum, a massive life sciences and advanced manufacturing campus located in Bridgewater. The company broke ground on the first phase of this project which is set to include up to 830,000 square feet of purpose-built space designed specifically for life science tenants.
In Paramus, SK Biopharmaceuticals launched a new innovation facility known as SK Life Science LinX. This development aims to provide collaborative workspace and commercialization support tailored for South Korean biotech and pharmaceutical companies that are entering the United States market.
Major Leases Signed Across Submarkets
Several significant lease transactions were completed in the quarter across various submarkets within Northern New Jersey, indicating continued demand despite rising vacancy figures. Medline Industries secured 195,416 square feet of space in Carteret, which falls under the Middlesex submarket.
Sandoz leased 78,391 square feet located in Plainsboro within the Princeton submarket while Organon took possession of 70,000 square feet in Florham Park inside the Morris submarket. Regenity Biosciences signed for 60,215 square feet in Oakland in the West Bergen submarket.
Capintec also finalized a lease for 25,565 square feet of space located in Florham Park within the Morris submarket during this reporting period. These transactions highlight specific pockets of activity where companies are expanding their physical footprints even as overall market vacancy increases.
Office Asset Heads to Auction
In a separate move affecting commercial real estate, Colliers announced it will market Edison Square West in Edison through an online auction scheduled for August 10 through August 12. The property is a 98,566-square-foot Class A office building situated at 2035 Lincoln Highway within the mixed-use Edison Square campus.
The asset is anchored by the Crowne Plaza Hotel and Conference Center and will be offered in partnership with Ten-X, a leading online commercial real estate auction platform. The offering is being exclusively managed by Vice Chair Jacklene Chesler alongside Senior Vice President Patrick Norris and Transaction Manager Brittany Leventoff.
Jacklene Chesler stated that the Edison Square West offering represents an opportunity to acquire a stabilized cash-flowing office asset with meaningful upside potential in one of Central New Jersey's most resilient suburban corridors. She noted that strong occupancy, durable tenancy, and flexible TC zoning support a wide range of uses for the property.
The building is currently 83 percent occupied by a roster of 21 tenants representing medical, financial services, technology, education, childcare, and professional service sectors. These tenants have an average tenure of nearly seven years which provides stable cash flow for the asset owner.
Approximately 17,000 square feet remains available for immediate leasing while future availability of about 12,000 to 15,000 square feet of contiguous space offers flexibility for larger users seeking a premier location within the Metropark submarket. This mix of occupied and available space positions the property well for continued leasing momentum.
Local Leadership Changes
In related news regarding local real estate leadership, HLW recently welcomed new co-studio directors for its New Jersey office located in Madison. Christopher Townsend and Erin Vasold have been named to serve as co-directors at this location effective July 10, 2026.
This appointment signals continued investment in the region's architectural and design capabilities which often support the development of new life science campuses and mixed-use projects like those seen in Bridgewater and Paramus. The firm is positioning itself to handle complex developments as the market evolves with these large-scale additions.
Questions residents are asking
Why did vacancy rates rise so much this quarter?
Vacancy increased primarily because several large availabilities were added to the market at once. This influx of new space pushed the overall rate up by nearly nine percentage points compared to last year.
Where can I find details on the Edison office auction?
The property is being marketed via an online auction scheduled for August 10 through August 12 in partnership with Ten-X. A listing is available at loopnet.com under the address 2035 Lincoln Highway.
What new life science projects are starting construction?
Advance Realty Investors broke ground on Continuum in Bridgewater which will include up to 830,000 square feet of space. Additionally, SK Biopharmaceuticals launched the SK Life Science LinX facility in Paramus.